Section 66-4-1 - Dealers, wreckers, wholesalers and distributors of vehicles and title service companies must be licensed; presumption of conducting business. - New Mexico Statutes

66-4-1. Dealers, wreckers, wholesalers and distributors of vehicles and title service companies must be licensed; presumption of conducting business.

A.     A person, unless licensed to do so by the department, shall not carry on or conduct the active trade or business of:

(1)     a dealer in motor vehicles of a type subject to registration pursuant to the Motor Vehicle Code [66-1-1 NMSA 1978], including:

(a)     trailers, but not trailers sold as kits;

(b)     recreational vehicles designed to be towed;

(c)     motorcycles over fifty-five cubic centimeters; and

(d)     off-highway motor vehicles pursuant to the Off-Highway Motor Vehicle Act [66-3-1001 NMSA 1978];

(2)     dismantling any vehicle for the resale of the parts.  Any person possessing three or more wrecked, dismantled or partially wrecked or dismantled vehicles and selling or offering for sale a used vehicle part and who regularly sells or offers for sale used vehicles or used vehicle parts shall be presumed to be conducting the business of wrecking or dismantling a vehicle for the resale of the parts;

(3)     wholesaling of vehicles.  Any person who sells or offers for sale vehicles of a type subject to registration in this state, to a vehicle dealer licensed pursuant to the Motor Vehicle Code or who is franchised by  a manufacturer, distributor or vehicle dealer to sell or promote the sale of vehicles dealt in by such manufacturer, distributor or vehicle dealer shall be presumed to be conducting the business of wholesaling;

(4)     distributing of vehicles.  Any person who distributes or sells new or used motor vehicles to dealers and who is not a manufacturer shall be presumed to be conducting the business of distributing vehicles; or

(5)     a title service company.  Any person who for consideration prepares or submits applications for the registration of or title to vehicles shall be presumed to be engaging in the business of a title service company.

B.     Application for a dealer, wholesaler, distributor or wrecker of vehicles license or a title service company license shall be made upon the form prescribed by the department and shall contain the name and address of the applicant and, when the applicant is a partnership, the name and address of each partner or, when the applicant is a corporation, the names of the principal officers of the corporation and the state in which incorporated and the place where the business is to be conducted and the nature of the business and such other information as may be required by the department.  Every application shall be verified by the oath or affirmation of the applicant, if an individual, or, in the event an applicant is a partnership or corporation, by a partner or officer of the partnership or corporation.  Every application shall be accompanied by the fee required by law.

C.     A metal processor or dealer in scrap who dismantles, processes for scrap, shreds, compacts, crushes or otherwise destroys more than three vehicles within a period of one year shall be licensed pursuant to the provisions of Sections 66-4-1 through 66-4-9 NMSA 1978.

D.     To ensure that a dealer, wholesaler, distributor, wrecker of vehicles or title service company complies with this section, the secretary may apply to a district court of this state to have a person operating without a license as required by this section or operating without the bond required by Section 66-4-7 NMSA 1978 enjoined from engaging in business until that person complies with the requirements of licensing as provided by this section and the bonding requirements of Section 66-4-7 NMSA 1978.

E.     Upon application to a court for the issuance of an injunction against an unlicensed person, the court may issue an order temporarily restraining that person from doing business.  The court shall hear the matter within three days and, upon a showing by the preponderance of the evidence that the person is operating without a license and that the person has been given notice of the hearing as required by law, the court may enjoin the person from engaging in business in New Mexico until the person ceases to be unlicensed.  Upon issuing an injunction, the court may also order the business premises of the person to be sealed by the sheriff and may allow the person access thereto only upon approval of the court.

F.     A temporary restraining order shall not be issued against a person who has complied with the provisions of this section.  Upon a showing to the court by a person against whom a temporary restraining order has been issued that the person has a license in accordance with the provisions of this section, the court shall dissolve or set aside the temporary restraining order.