It shall be unlawful for any person who is engaged, either directly or indirectly, in the manufacture or distribution of motor vehicles, to sell or enter into a contract to sell motor vehicles, whether patented or unpatented, to any person who is engaged or intends to engage in the business of selling such motor vehicles at retail in this state, on the condition or with an agreement or understanding, either express or implied, that such person so engaged in selling motor vehicles at retail shall in any manner finance the purchase or sale of any one or number of motor vehicles only with or through a designated person or class of persons or shall sell and assign the conditional sales contracts, chattel mortgages or leases arising from the sale of motor vehicles or any one or number thereof only to a designated person or class of persons, when the effect of the condition, agreement or understanding so entered into may be to lessen or eliminate competition, or create or tend to create a monopoly in the person or class of persons who are designated, by virtue of such condition, agreement or understanding to finance the purchase or sale of motor vehicles or to purchase such conditional sales contracts, chattel mortgages or leases, and any such condition, agreement or understanding is hereby declared to be void and against the public policy of this state.

History: Laws 1937, ch. 75, § 1; 1941 Comp., § 68-1601; 1953 Comp., § 64-31-1.

Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law.

Cross references. — For provision declaring it unlawful to require dealer to provide installment financing with specified financial institution, see 57-16-5 NMSA 1978.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 54A Am. Jur. 2d Monopolies, Restraints of Trade, and Unfair Trade Practices § 781 et seq.

Validity and construction of statute regulating dealings between automobile manufacturers, distributors, and dealers, 7 A.L.R.3d 1173, 82 A.L.R.4th 624, 51 A.L.R. Fed. 812.

58 C.J.S. Monopolies §§ 95, 97, 173.