A manufacturer or distributor may audit a claim for sales and service incentives only during the six-month period immediately following payment or credit issued for the claim; however, this limitation shall not apply if there is a reasonable suspicion of fraud.
History: Laws 1997, ch. 14, § 2; 2011, ch. 111, § 2; 2011, ch. 118, § 2.
The 2011 amendment, effective July 1, 2011, changed the period for auditing claims for sales and service incentives from twenty-four months to six months.
Laws 2011, ch. 111, § 2 and Laws 2011, ch. 118, § 2 enacted identical amendments to this section. The section was set out as amended by Laws 2011, ch. 118, § 2. See 12-1-8 NMSA 1978.
Structure New Mexico Statutes
Chapter 57 - Trade Practices and Regulations
Article 16 - Motor Vehicle Dealers Franchising
Section 57-16-1 - Declaration of policy.
Section 57-16-2 - Application of act.
Section 57-16-3 - Definitions.
Section 57-16-4 - Unlawful acts; dealers.
Section 57-16-5 - Unlawful acts; manufacturers; distributors; representatives.
Section 57-16-5.1 - Prohibition on denial of claims based on technical errors.
Section 57-16-6 - Obligations; statement of compensation.
Section 57-16-6.1 - Motorcycle dealers; new product; franchise or sales agreement.
Section 57-16-6.2 - Recreational vehicles; franchise agreements.
Section 57-16-7 - Warranty and recall claims; payment.
Section 57-16-7.1 - Sales and service incentives; audit.
Section 57-16-8 - Unreasonable restrictions; site control agreements; exclusive use agreements.
Section 57-16-9 - Franchise renewal; termination; anticipatory termination.
Section 57-16-9.1 - Succession to motorcycle dealership.
Section 57-16-9.2 - Motor vehicle dealers; termination of franchise; return of inventory.
Section 57-16-10 - Refunds; discounts.
Section 57-16-11 - Injunction.
Section 57-16-12 - Venue of suits; relief.
Section 57-16-13 - Right of action; damages.
Section 57-16-14 - Limitations on suits.