Bill Text: NY A01029 | 2011-2012 | General Assembly | Introduced
Bill Title: Grants consumers the right to cancel motor vehicle installment contract within one day; establishes procedures therefor; permits waiver of such right; provides for reappraisal of trade-in vehicles during such one day period if the trade-in vehicle is removed from the dealer's lot and not returned in the same condition; permits a dealer to keep up to $100 as a cancellation fee; applies to leases as well as sales.
Spectrum: Partisan Bill (Democrat 14-0)
Status: (Introduced - Dead) 2011-05-12 - enacting clause stricken [A01029 Detail]
Download: New_York-2011-A01029-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
1029
2011-2012 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 5, 2011
___________
Introduced by M. of A. PHEFFER, DINOWITZ, GALEF -- Multi-Sponsored by --
M. of A. CLARK, COLTON, COOK, HIKIND, MAGEE, MAYERSOHN, MILLMAN,
ORTIZ, J. RIVERA, SCARBOROUGH, TOWNS -- read once and referred to the
Committee on Consumer Affairs and Protection
AN ACT to amend the general business law and the personal property law,
in relation to contracts for the sale of new motor vehicles
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 396-p of the general business law, as added by
2 chapter 736 of the laws of 1978, is amended by adding a new subdivision
3 4-a to read as follows:
4 4-A. (A) IN ADDITION TO ANY OTHER RIGHTS TO REVOKE AN OFFER, THE
5 CONSUMER MAY CANCEL A CONTRACT, WHETHER OR NOT SUCH CONSUMER HAS
6 RECEIVED A COPY OF SUCH CONTRACT SIGNED BY THE RETAIL DEALER, UNTIL
7 MIDNIGHT OF THE NEXT BUSINESS DAY AFTER THE DATE ON WHICH THE CONSUMER
8 SIGNED THE CONTRACT OR THE DATE ON WHICH THE RETAIL DEALER DELIVERED A
9 COPY OF THE CONTRACT SIGNED BY HIM OR HER, WHICHEVER IS LATER. FOR
10 PURPOSES OF THIS PARAGRAPH, CANCELLATION WILL BE DEEMED TO HAVE OCCURRED
11 WHEN WRITTEN NOTICE OF CANCELLATION IS GIVEN TO THE RETAIL DEALER.
12 NOTICE OF CANCELLATION, IF GIVEN BY MAIL, SHALL BE DEEMED DELIVERED ON
13 THE DATE OF THE POSTMARK. NOTICE OF CANCELLATION SHALL BE SUFFICIENT IF
14 IT INDICATES THE INTENTION OF THE CONSUMER NOT TO BE BOUND.
15 (B) THE CONSUMER MAY, IN ORDER TO OBTAIN IMMEDIATE DELIVERY OF A MOTOR
16 VEHICLE, WAIVE THE RIGHT TO CANCEL AS PROVIDED IN PARAGRAPH (A) OF THIS
17 SUBDIVISION. SUCH WAIVER MUST BE WRITTEN AND CLEARLY INDICATE THE INTEN-
18 TION OF THE CONSUMER TO WAIVE HIS OR HER RIGHT TO CANCEL THE CONTRACT.
19 (C) UNLESS THE CONSUMER WAIVES THE RIGHT TO CANCEL AS PROVIDED IN
20 PARAGRAPH (B) OF THIS SUBDIVISION, THE RETAIL DEALER IS NOT REQUIRED TO
21 DELIVER ANY MOTOR VEHICLE TO A CONSUMER UNTIL AFTER THE CLOSE OF BUSI-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00865-01-1
A. 1029 2
1 NESS ON THE NEXT BUSINESS DAY AFTER THE DAY ON WHICH THE CONSUMER OR
2 RETAIL DEALER SIGNS A MOTOR VEHICLE INSTALLMENT CONTRACT.
3 (D) FOR PURPOSES OF A CANCELLATION PURSUANT TO PARAGRAPH (A) OF THIS
4 SUBDIVISION, IF A CONSUMER, PURSUANT TO AN AGREEMENT WITH THE RETAIL
5 DEALER, REMOVES ANY TRADE-IN MOTOR VEHICLE FROM THE RETAIL DEALER'S LOT
6 AFTER SIGNING A MOTOR VEHICLE CONTRACT OR OFFER, BUT BEFORE THE EXPIRA-
7 TION OF THE PERIOD OF TIME DURING WHICH THE CONSUMER HAS THE RIGHT TO
8 CANCEL, THE RETAIL DEALER MAY REAPPRAISE THE VALUE OF THE TRADE-IN VEHI-
9 CLE UPON ITS RETURN TO THE RETAIL DEALER IF THE VEHICLE IS IN A CONDI-
10 TION THAT IS NOT SUBSTANTIALLY THE SAME AS WHEN IT WAS ORIGINALLY
11 APPRAISED FOR TRADE-IN PURPOSES. HOWEVER, SUCH REAPPRAISAL SHALL NEITHER
12 EXTEND THE CANCELLATION PERIOD PROVIDED FOR IN PARAGRAPH (A) OF THIS
13 SUBDIVISION NOR ENTITLE THE CONSUMER TO ANOTHER SUCH CANCELLATION PERI-
14 OD.
15 (E) IF A CONSUMER CANCELS A CONTRACT PURSUANT TO THE PROVISIONS OF
16 THIS SUBDIVISION, THE RETAIL DEALER MAY RETAIN, FROM ANY CASH DOWN
17 PAYMENT PAID BY THE CONSUMER TO THE RETAIL DEALER, COMPENSATION FOR
18 CANCELLATION OF THE CONTRACT THAT SHALL NOT EXCEED ONE HUNDRED DOLLARS,
19 BUT SHALL NOT IMPOSE ANY OTHER PENALTY OR OBLIGATION.
20 S 2. Section 198-b of the general business law is amended by adding a
21 new subdivision a-1 to read as follows:
22 A-1. CONTRACTS; CANCELLATION. 1. IN ADDITION TO ANY OTHER RIGHTS TO
23 REVOKE AN OFFER, A CONSUMER MAY CANCEL A CONTRACT FOR THE SALE OR LEASE
24 OF A USED MOTOR VEHICLE, WHETHER OR NOT SUCH CONSUMER HAS RECEIVED A
25 COPY OF SUCH CONTRACT SIGNED BY THE DEALER, PRIOR TO MIDNIGHT OF THE
26 NEXT BUSINESS DAY AFTER EITHER THE DATE ON WHICH THE CONSUMER SIGNED THE
27 CONTRACT OR THE DATE ON WHICH THE DEALER DELIVERED A SIGNED COPY OF THE
28 CONTRACT, WHICHEVER IS LATER. FOR THE PURPOSES OF THIS PARAGRAPH,
29 CANCELLATION WILL BE DEEMED TO HAVE OCCURRED WHEN WRITTEN NOTICE OF
30 CANCELLATION IS GIVEN TO THE DEALER. IF GIVEN BY MAIL, A NOTICE OF
31 CANCELLATION SHALL BE DEEMED DELIVERED ON THE DATE OF THE POSTMARK.
32 NOTICE OF CANCELLATION SHALL BE SUFFICIENT IF IT INDICATES THE INTENTION
33 OF THE CONSUMER NOT TO BE BOUND.
34 2. THE CONSUMER MAY, IN ORDER TO OBTAIN IMMEDIATE DELIVERY OF A MOTOR
35 VEHICLE, WAIVE THE RIGHT TO CANCEL A SALE OR LEASE CONTRACT WITHIN ONE
36 DAY AS PROVIDED IN PARAGRAPH ONE OF THIS SUBDIVISION. SUCH WAIVER MUST
37 BE WRITTEN AND CLEARLY INDICATE THE INTENTION OF THE CONSUMER TO WAIVE
38 HIS OR HER RIGHT TO CANCEL THE CONTRACT.
39 3. UNLESS THE CONSUMER WAIVES THE RIGHT TO CANCEL A SALE OR LEASE
40 CONTRACT WITHIN ONE DAY AS PROVIDED IN PARAGRAPH TWO OF THIS SUBDIVI-
41 SION, THE DEALER IS NOT REQUIRED TO DELIVER ANY MOTOR VEHICLE TO A
42 CONSUMER UNTIL AFTER THE CLOSE OF BUSINESS ON THE NEXT BUSINESS DAY
43 AFTER THE DAY ON WHICH THE CONSUMER OR DEALER SIGNS A MOTOR VEHICLE
44 INSTALLMENT CONTRACT.
45 4. FOR THE PURPOSES OF A CANCELLATION PURSUANT TO PARAGRAPH ONE OF
46 THIS SUBDIVISION, IF A CONSUMER, PURSUANT TO AN AGREEMENT WITH THE DEAL-
47 ER, REMOVES ANY TRADE-IN MOTOR VEHICLE FROM THE DEALER'S LOT AFTER SIGN-
48 ING A MOTOR VEHICLE CONTRACT OR OFFER, BUT BEFORE THE EXPIRATION OF THE
49 PERIOD OF TIME DURING WHICH THE CONSUMER HAS THE RIGHT TO CANCEL, THE
50 DEALER MAY REAPPRAISE THE VALUE OF THE TRADE-IN VEHICLE UPON ITS RETURN
51 TO THE DEALER IF THE VEHICLE IS IN A CONDITION THAT IS NOT SUBSTANTIALLY
52 THE SAME AS WHEN IT WAS ORIGINALLY APPRAISED FOR TRADE-IN PURPOSES.
53 HOWEVER, SUCH REAPPRAISAL SHALL NEITHER EXTEND THE CANCELLATION PERIOD
54 PROVIDED FOR IN PARAGRAPH ONE OF THIS SUBDIVISION NOR ENTITLE THE
55 CONSUMER TO ANOTHER SUCH CANCELLATION PERIOD.
A. 1029 3
1 5. IF A CONSUMER CANCELS A CONTRACT PURSUANT TO THE PROVISIONS OF THIS
2 SUBDIVISION, THE DEALER MAY RETAIN, FROM ANY CASH DOWN PAYMENT PAID BY
3 THE CONSUMER TO THE SELLER, COMPENSATION FOR CANCELLATION OF THE
4 CONTRACT NOT EXCEEDING ONE HUNDRED DOLLARS, BUT SHALL NOT IMPOSE ANY
5 OTHER PENALTY OR OBLIGATION.
6 S 3. Section 337 of the personal property law is amended by adding a
7 new subdivision 5-a to read as follows:
8 5-A. (A) IN ADDITION TO ANY OTHER RIGHTS TO REVOKE AN OFFER, A CONSUM-
9 ER MAY CANCEL A CONTRACT FOR THE LEASE OF A MOTOR VEHICLE, WHETHER OR
10 NOT SUCH CONSUMER HAS RECEIVED A COPY OF SUCH CONTRACT SIGNED BY THE
11 LESSOR, PRIOR TO MIDNIGHT OF THE NEXT BUSINESS DAY AFTER EITHER THE DATE
12 ON WHICH THE CONSUMER SIGNED THE CONTRACT OR THE DATE ON WHICH THE
13 LESSOR DELIVERED A SIGNED COPY OF THE CONTRACT TO THE CONSUMER, WHICHEV-
14 ER IS LATER. FOR THE PURPOSES OF THIS PARAGRAPH, CANCELLATION WILL BE
15 DEEMED TO HAVE OCCURRED WHEN WRITTEN NOTICE OF CANCELLATION IS GIVEN TO
16 THE LESSOR. IF GIVEN BY MAIL, A NOTICE OF CANCELLATION SHALL BE DEEMED
17 DELIVERED ON THE DATE OF THE POSTMARK. NOTICE OF CANCELLATION SHALL BE
18 SUFFICIENT IF IT INDICATES THE INTENTION OF THE CONSUMER NOT TO BE
19 BOUND.
20 (B) THE CONSUMER MAY, IN ORDER TO OBTAIN IMMEDIATE DELIVERY OF A MOTOR
21 VEHICLE, WAIVE THE RIGHT TO CANCEL AS PROVIDED IN PARAGRAPH (A) OF THIS
22 SUBDIVISION. SUCH WAIVER MUST BE WRITTEN AND CLEARLY INDICATE THE INTEN-
23 TION OF THE CONSUMER TO WAIVE HIS OR HER RIGHT TO CANCEL THE CONTRACT.
24 (C) UNLESS THE CONSUMER WAIVES THE RIGHT TO CANCEL AS PROVIDED IN
25 PARAGRAPH (B) OF THIS SUBDIVISION, THE LESSOR IS NOT REQUIRED TO DELIVER
26 ANY MOTOR VEHICLE TO A CONSUMER UNTIL AFTER THE CLOSE OF BUSINESS ON THE
27 NEXT BUSINESS DAY AFTER THE DAY ON WHICH THE CONSUMER OR LESSOR SIGNS
28 THE CONTRACT.
29 (D) FOR THE PURPOSES OF A CANCELLATION PURSUANT TO PARAGRAPH (A) OF
30 THIS SUBDIVISION, IF A CONSUMER, PURSUANT TO AN AGREEMENT WITH THE
31 LESSOR, REMOVES ANY TRADE-IN MOTOR VEHICLE FROM THE LESSOR'S LOT AFTER
32 SIGNING A MOTOR VEHICLE CONTRACT OR OFFER, BUT BEFORE THE EXPIRATION OF
33 THE PERIOD OF TIME DURING WHICH THE CONSUMER HAS THE RIGHT TO CANCEL,
34 THE LESSOR MAY REAPPRAISE THE VALUE OF THE TRADE-IN VEHICLE UPON ITS
35 RETURN TO THE LESSOR IF THE VEHICLE IS IN A CONDITION THAT IS NOT
36 SUBSTANTIALLY THE SAME AS WHEN IT WAS ORIGINALLY APPRAISED FOR TRADE-IN
37 PURPOSES. HOWEVER, SUCH REAPPRAISAL SHALL NEITHER EXTEND THE CANCELLA-
38 TION PERIOD PROVIDED FOR IN PARAGRAPH (A) OF THIS SUBDIVISION NOR ENTI-
39 TLE THE CONSUMER TO ANOTHER SUCH CANCELLATION PERIOD.
40 (E) IF A CONSUMER CANCELS A CONTRACT PURSUANT TO THE PROVISIONS OF
41 THIS SUBDIVISION, THE LESSOR MAY RETAIN, FROM ANY DOWN PAYMENT PAID BY
42 THE CONSUMER TO THE LESSOR, COMPENSATION FOR CANCELLATION OF THE
43 CONTRACT THAT SHALL NOT EXCEED ONE HUNDRED DOLLARS, BUT SHALL NOT IMPOSE
44 ANY OTHER PENALTY OR OBLIGATION.
45 S 4. This act shall take effect on the first of July next succeeding
46 the date on which it shall have become a law.
