Bill Text: NJ A5393 | 2018-2019 | Regular Session | Introduced
Bill Title: Requires retail companies that subcontract work or services to provide certain notifications to consumers; makes these companies liable to consumers for certain damages.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2019-06-06 - Reported out of Asm. Comm. with Amendments, and Referred to Assembly Appropriations Committee [A5393 Detail]
Download: New_Jersey-2018-A5393-Introduced.html
Sponsored by:
Assemblyman PAUL D. MORIARTY
District 4 (Camden and Gloucester)
SYNOPSIS
Requires retail companies that subcontract work or services to provide certain notifications to consumers; makes these companies liable to consumers for certain damages.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning subcontracts and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section, "retail mercantile establishment" means any place of business where merchandise is exposed or offered for sale at retail to members of the consuming public and that uses a subcontractor to perform any of the work or services for which the retail mercantile establishment has entered into a contract with a consumer.
b. A retail mercantile establishment shall provide to the consumer, prior to the signing of the contract, written notification of the use of a subcontractor and, if appropriate, written notification of the use of a sub-subcontractor by the subcontractor. The notification also shall contain the type and amount of insurance coverage held by the subcontractor and, if appropriate, the sub-subcontractor.
The written notification shall be on a form that is separate from the contract for the work or services and shall be signed by the consumer as evidence that the consumer has received the notification.
c. A retail mercantile establishment shall include in the contract with the consumer a clear and conspicuous statement informing the consumer who is responsible for the performance of the contract.
d. A retail mercantile establishment shall be liable to the consumer for all damages arising out of the performance of the contract, including those caused by a subcontractor or a sub-subcontractor. This provision shall not be construed to prohibit a retail mercantile establishment from recovering any damages paid to a consumer from a subcontractor hired by the retail mercantile establishment or from a sub-subcontractor hired by the subcontractor.
e. A violation of this section shall be an unlawful practice pursuant to P.L.1960, c.39 (C.56:8-1 et seq.).
2. This act shall take effect immediately.
STATEMENT
This bill requires retail companies that subcontract work or services to provide certain notifications to consumers and makes the companies liable to the consumer for certain damages.
Under the provisions of this bill, a retail mercantile establishment is required to provide written notification to the consumer, prior to the signing of the contract, of the use of a subcontractor and, if appropriate, written notification of the use of a sub-subcontractor by the subcontractor. The notification is also required to contain the type and amount of insurance coverage held by the subcontractor and, if appropriate, the sub-subcontractor.
The written notification is required to be on a form that is separate from the contract for the work or services and is to be signed by the consumer as evidence that the consumer has received the notification.
In addition, the bill requires a retail mercantile establishment to include in the contract with the consumer a clear and conspicuous statement informing the consumer who is responsible for the performance of the contract.
The bill also provides that a retail mercantile establishment is liable to the consumer for all damages arising out of the performance of the contract, including those caused by a subcontractor or a sub-subcontractor. However, this provision is not to be construed to prohibit a retail mercantile establishment from recovering any damages paid to a consumer from a subcontractor hired by the retail mercantile establishment or from a sub-subcontractor hired by the subcontractor.
Under the bill, a "retail mercantile establishment" is defined as any place of business where merchandise is exposed or offered for sale at retail to members of the consuming public and that uses a subcontractor to perform any of the work or services for which the retail mercantile establishment has entered into a contract with a consumer
A violation of the bill's provisions is an unlawful practice under the consumer fraud act. An unlawful practice under the consumer fraud act is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, violations may result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.
