senate Bill S6872

Amended

Relates to the refund to a consumer of money from a used car dealer for failing to correct a malfunction or defect

download pdf

Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
view actions

actions

  • 02 / Apr / 2012
    • REFERRED TO CONSUMER PROTECTION
  • 30 / Apr / 2012
    • 1ST REPORT CAL.615
  • 01 / May / 2012
    • 2ND REPORT CAL.
  • 02 / May / 2012
    • ADVANCED TO THIRD READING
  • 21 / May / 2012
    • AMENDED ON THIRD READING 6872A
  • 18 / Jun / 2012
    • AMENDED ON THIRD READING (T) 6872B
  • 21 / Jun / 2012
    • PASSED SENATE
  • 21 / Jun / 2012
    • DELIVERED TO ASSEMBLY
  • 21 / Jun / 2012
    • REFERRED TO CODES

Summary

Establishes when a used car dealer has to refund a consumer his or her money for failing to correct a malfunction or defect as required by the warranty.

do you support this bill?

Bill Details

Versions:
S6872
S6872A
S6872B
Legislative Cycle:
2011-2012
Current Committee:
Assembly Codes
Law Section:
General Business Law
Laws Affected:
Amd ยง198-b, Gen Bus L
Versions Introduced in Previous Legislative Cycles:
2009-2010: A4911
2007-2008: A9208

Votes

8
1
8
Aye
1
Nay
1
aye with reservations
0
absent
0
excused
0
abstained
show Consumer Protection committee vote details

Sponsor Memo

BILL NUMBER:S6872

TITLE OF BILL:
An act
to amend the general business law, in relation to the refund to a
consumer of money from a used car dealership for failing to correct a
malfunction or defect

PURPOSE OR GENERAL IDEA OF BILL:
To include within the Used Car Lemon
Law a similar provision to one that exists within the New Car Lemon
Law.

SUMMARY OF SPECIFIC PROVISIONS:
This bill amends paragraph 1 and
sub-paragraph f of paragraph 3 of subdivision c of Section 198-b of
the General Business Law to establish a mileage credit for cars that
qualify under the Used Car Lemon Law.

JUSTIFICATION:
On December 14, 2006 the Court of Appeals issued a
decision in the combined cases of In the Matter of General Motors
Corporation v. James Warner and In the Matter of Daimler Chrysler
corporation v. Eliot Spitzer. 7 N.Y.3d 653 that upheld the Attorney
General's revised interpretation of the New Car Lemon Law. The
Attorney General's new interpretation held that a consumer may be
entitled to relief if, within the prescribed periods, four or more
unsuccessful repair attempts were made or the vehicle was out of
service for 30 days, notwithstanding that the condition complained of
was subsequently repaired. Previously, a consumer would be eligible
for a refund or replacement vehicle only when the purchaser could
demonstrate that a defect still existed as of the date of
arbitration. Similar provisions exist under the Used Car Lemon Law,
except that only three or more repair attempts are required to
qualify. A consumer has four years in which to bring an action under
the Used Car Lemon law. At the oral arguments before the Court of
Appeals, the issue was raised that a consumer could drive the car for
significant period of time before filing an action, either because
the car was repaired prior to the commencement of the action or
because the defect which caused the car to qualify was not such
that the car was unsafe or undriveable, thereby significantly
altering the value of the vehicle once returned. The Attorney
General's office indicated that the mileage credit formula in the New
Car Lemon Law that reduces the amount which the consumer recoups upon
return of the vehicle was a significant tool to prevent any attempted
fraud. Such a mileage credit does not exist in the Used Car Lemon
Law. This legislation would include in the Used Car Lemon Law this
important anti-fraud measure that is necessary given the Court of
Appeals decision.

PRIOR LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6872

                            I N  S E N A T E

                              April 2, 2012
                               ___________

Introduced  by  Sen.  ZELDIN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general business law, in relation to the refund to a
  consumer of money from a used car dealership for failing to correct  a
  malfunction or defect

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph 1 of subdivision c of section 198-b of the gener-
al business law, as amended by chapter 444  of  the  laws  of  1989,  is
amended to read as follows:
  1. If the dealer or his agent fails to correct a malfunction or defect
as required by the warranty specified in this section which substantial-
ly  impairs  the value of the used motor vehicle to the consumer after a
reasonable period of time, the dealer shall accept return  of  the  used
motor  vehicle  from  the  consumer  and refund to the consumer the full
purchase price, or in the case of a lease  contract  all  payments  made
under  the  contract,  including  sales or compensating use tax, less AN
AMOUNT EQUAL TO TWENTY-FIVE CENTS PER MILE FOR EACH MILE  IN  EXCESS  OF
THE MILEAGE APPLICABLE TO THE VEHICLE CONTAINED IN SUBDIVISION B OF THIS
SECTION THAT THE VEHICLE HAS BEEN DRIVEN SINCE THE CONSUMER PURCHASED OR
LEASED  THE VEHICLE FROM THE DEALER, AND LESS a reasonable allowance for
any damage not attributable to normal wear or usage, and adjustment  for
any  modifications which either increase or decrease the market value of
the vehicle or of the lease  contract,  and  in  the  case  of  a  lease
contract,  shall cancel all further payments due from the consumer under
the lease contract. In determining the purchase price to be refunded  or
in  determining all payments made under a lease contract to be refunded,
the purchase price, or all payments made under a lease  contract,  shall
be  deemed  equal  to the sum of the actual cash difference paid for the
used motor vehicle, or for the  lease  contract,  plus,  if  the  dealer
elects  to not return any vehicles traded-in by the consumer, the whole-
sale value of any such traded-in vehicles as listed in the National Auto
Dealers Association Used Car Guide, or such other guide as may be speci-
fied in regulations promulgated by the commissioner of  motor  vehicles,
as adjusted for mileage, improvements, and any major physical or mechan-
ical defects in the traded-in vehicle at the time of trade-in. The deal-
er  selling  or  leasing  the  used  motor  vehicle shall deliver to the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00803-01-1

S. 6872                             2

consumer a written notice including conspicuous language indicating that
if the consumer should be entitled to a refund pursuant to this section,
the value of any vehicle traded-in by the consumer, if the dealer elects
to not return it to the consumer, for purposes of determining the amount
of  such  refund  will  be  determined by reference to the National Auto
Dealers Association Used Car Guide wholesale value, or such other  guide
as  may  be  approved by the commissioner of motor vehicles, as adjusted
for mileage, improvements, and any major physical or mechanical defects,
rather than the value listed in the sales  contract.  Refunds  shall  be
made  to  the  consumer  and  lienholder, if any, as their interests may
appear on the records of ownership kept by the department of motor vehi-
cles. If the amount to be refunded to the lienholder  will  be  insuffi-
cient  to  discharge  the  lien, the dealer shall notify the consumer in
writing by registered or certified mail that  the  consumer  has  thirty
days to pay the lienholder the amount which, together with the amount to
be refunded by the dealer, will be sufficient to discharge the lien. The
notice  to  the  consumer shall contain conspicuous language warning the
consumer that failure to pay such funds to the lienholder within  thirty
days  will terminate the dealer's obligation to provide a refund. If the
consumer fails to make such payment within thirty days, the dealer shall
have no further responsibility to provide a refund under  this  section.
Alternatively,  the  dealer may elect to offer to replace the used motor
vehicle with a comparably priced vehicle, with such adjustment in  price
as  the  parties  may  agree  to. The consumer shall not be obligated to
accept a replacement vehicle, but  may  instead  elect  to  receive  the
refund  provided  under this section. It shall be an affirmative defense
to any claim under this section that:
  (a) The malfunction or  defect  does  not  substantially  impair  such
value; or
  (b)  The  malfunction  or  defect  is  the result of abuse, neglect or
unreasonable modifications or alterations of the used motor vehicle.
  S 2. Subparagraphs 5 and 6 of paragraph 1 of subdivision f of  section
198-b of the general business law, as separately amended by chapters 444
and 609 of the laws of 1989, are amended to read as follows:
  5.  If  the  same  problem  cannot  be  repaired  after  three or more
attempts, you are entitled to return the car and  receive  a  refund  of
your  purchase  price or of all payments made under your lease contract,
and of sales tax and fees, minus AN AMOUNT EQUAL  TO  TWENTY-FIVE  CENTS
PER  MILE FOR EACH MILE IN EXCESS OF THE MILEAGE APPLICABLE TO THE VEHI-
CLE CONTAINED ABOVE THAT THE VEHICLE HAS BEEN DRIVEN SINCE THE  CONSUMER
PURCHASED  OR  LEASED THE VEHICLE FROM THE DEALER, AND LESS a reasonable
allowance for any damage not attributable to normal usage or wear,  and,
in  the case of a lease contract, a cancellation of all further payments
you are otherwise required to make under the lease contract.
  6. If your car is out of service to repair a problem for  a  total  of
fifteen  days  or  more  during  the warranty period you are entitled to
return the car and receive a refund of your purchase  price  or  of  all
payments  made  under  your  lease  contract, and of sales tax and fees,
minus AN AMOUNT EQUAL TO TWENTY-FIVE CENTS PER MILE  FOR  EACH  MILE  IN
EXCESS OF THE MILEAGE APPLICABLE TO THE VEHICLE CONTAINED ABOVE THAT THE
VEHICLE HAS BEEN DRIVEN SINCE THE CONSUMER PURCHASED OR LEASED THE VEHI-
CLE  FROM THE DEALER, AND LESS a reasonable allowance for any damage not
attributable to normal usage or wear,  and,  in  the  case  of  a  lease
contract,  a  cancellation  of  all  further  payments you are otherwise
required to make under the lease contract.
  S 3. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.