One significant effect of HB189 is the exemption of trailers from the waiver of the implied warranty of merchantability for damages resulting from towing. This means that sellers cannot deny liability for defects that may arise during towing, providing an added layer of consumer security. It reinforces the implied warranty whereby used motor vehicle dealers are restricted from excluding or modifying warranty obligations, thereby holding them accountable for the quality and functionality of the vehicles they sell.
Summary
House Bill 189 amends the Motor Vehicle Quality Assurance Act in New Mexico to include recreational vehicles and recreational travel trailers in its definitions. This change seeks to enhance consumer protection for individuals purchasing these types of vehicles by ensuring they are subject to the same quality assurance standards that apply to standard motor vehicles. The bill specifically addresses issues related to the implied warranty of merchantability that applies at the time of sale, thereby expanding the protections for consumers who engage in transactions concerning these vehicles.
Contention
While the bill is primarily aimed at consumer protection, it may also raise concerns among sellers and dealers of recreational vehicles and trailers. The broadened scope of the implied warranty could lead to pushback from the dealership community, who may feel that the additional responsibility and restrictions could affect their ability to operate profitably. Furthermore, discussions around the enforcement of these warranties may complicate sales agreements and potentially lead to disputes between buyers and sellers in a competitive market.