S T A T E O F N E W Y O R K
________________________________________________________________________
5017
2009-2010 Regular Sessions
I N A S S E M B L Y
February 10, 2009
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Introduced by M. of A. P. RIVERA, MILLMAN, ESPAILLAT, COLTON, POWELL,
GREENE, J. RIVERA -- Multi-Sponsored by -- M. of A. ALFANO, ARROYO,
BARRA, BENJAMIN, BOYLAND, CAHILL, CLARK, DIAZ, GOTTFRIED, HEASTIE,
HIKIND, HOOPER, JACOBS, V. LOPEZ, MAYERSOHN, McDONOUGH, ORTIZ, PERAL-
TA, RAMOS, N. RIVERA, ROBINSON, TITUS, TOWNS, WEINSTEIN, WEISENBERG,
WRIGHT -- 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 requiring certain contracts to be written in the
language in which such contracts were negotiated
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 396-p of the general business law, as added by
chapter 736 of the laws of 1978, is amended by adding a new subdivision
2-a to read as follows:
2-A. ANY RETAIL DEALER WHO NEGOTIATES PRIMARILY IN A LANGUAGE OTHER
THAN ENGLISH, ORALLY OR IN WRITING, IN THE COURSE OF ENTERING INTO A
CONTRACT PROVIDED FOR IN PARAGRAPH (B) OF SUBDIVISION ONE OF THIS
SECTION, SHALL DELIVER TO THE CONSUMER WHO IS THE OTHER PARTY TO SUCH
CONTRACT AND PRIOR TO THE EXECUTION OF SUCH CONTRACT, AN UNSIGNED TRANS-
LATION OF SUCH CONTRACT, IN THE LANGUAGE IN WHICH SUCH CONTRACT WAS
NEGOTIATED.
(A) IN ADDITION TO THE PENALTIES IMPOSED UNDER SUBDIVISION SIX OF THIS
SECTION, FAILURE TO COMPLY WITH THE PROVISIONS OF THIS SUBDIVISION SHALL
ENTITLE THE AGGRIEVED CONSUMER TO CANCEL SUCH CONTRACT. UPON A FAILURE
TO COMPLY WITH THE PROVISIONS OF THIS SUBDIVISION, THE AGGRIEVED CONSUM-
ER MAY CANCEL THE CONTRACT. FOR PURPOSES OF THIS SUBDIVISION, CANCELLA-
TION SHALL BE DEEMED TO HAVE OCCURRED WHEN WRITTEN NOTICE OF CANCELLA-
TION IS GIVEN TO THE RETAIL DEALER. NOTICE OF CANCELLATION, IF MAILED,
SHALL BE DEEMED DELIVERED ON THE DATE OF THE POSTMARK. NOTICE OF CANCEL-
LATION SHALL BE SUFFICIENT IF SUCH NOTICE INDICATES THE INTENTION OF THE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04959-01-9
A. 5017 2
CONSUMER NOT TO BE BOUND BY SUCH CONTRACT. IF A CONSUMER CANCELS A
CONTRACT PURSUANT TO THIS PARAGRAPH, THE RETAIL DEALER SHALL NOT IMPOSE
ANY PENALTY OR OBLIGATION UPON SUCH CONSUMER. WHEN A CONTRACT, WHICH HAS
BEEN SOLD AND ASSIGNED TO A FINANCIAL INSTITUTION IS CANCELED PURSUANT
TO THIS SUBDIVISION, SUCH CONSUMER SHALL MAKE RESTITUTION TO AND HAVE
RESTITUTION MADE BY THE RETAIL DEALER WITH WHOM HE OR SHE MADE THE
CONTRACT, AND SHALL GIVE NOTICE OF CANCELLATION TO THE ASSIGNEE.
NOTWITHSTANDING THAT THE CONTRACT WAS ASSIGNED WITHOUT RECOURSE, THE
ASSIGNMENT SHALL BE DEEMED CANCELED AND THE ASSIGNOR SHALL PROMPTLY
REPURCHASE THE CONTRACT FROM THE ASSIGNEE.
(B) THE TERMS OF THE CONTRACT WHICH IS EXECUTED IN THE ENGLISH
LANGUAGE SHALL DETERMINE THE RIGHTS AND OBLIGATIONS OF THE PARTIES.
HOWEVER, THE TRANSLATION OF THE CONTRACT IN ANY LANGUAGE OTHER THAN
ENGLISH IN WHICH THE CONTRACT WAS NEGOTIATED SHALL BE ADMISSIBLE IN
EVIDENCE ONLY TO SHOW THAT NO CONTRACT WAS ENTERED INTO BECAUSE OF A
SUBSTANTIAL DIFFERENCE IN THE MATERIAL TERMS AND CONDITIONS OF THE
CONTRACT AND THE TRANSLATION.
(C) THE PROVISIONS OF THIS SUBDIVISION SHALL BE IN ADDITION TO ANY
OTHER RIGHTS TO REVOKE AN OFFER.
S 2. The general business law is amended by adding a new section 198-c
to read as follows:
S 198-C. CONTRACTS IN CERTAIN LANGUAGES FOR THE SALE OR LEASE OF USED
MOTOR VEHICLES. ANY RETAIL DEALER WHO NEGOTIATES PRIMARILY IN A LANGUAGE
OTHER THAN ENGLISH, ORALLY OR IN WRITING, IN THE COURSE OF ENTERING INTO
A CONTRACT FOR THE SALE OR LEASE OF A USED MOTOR VEHICLE WITH A CONSUM-
ER, SHALL DELIVER TO SUCH CONSUMER WHO IS THE OTHER PARTY TO SUCH
CONTRACT AND PRIOR TO THE EXECUTION OF SUCH CONTRACT, AN UNSIGNED TRANS-
LATION OF SUCH CONTRACT, IN THE LANGUAGE IN WHICH SUCH CONTRACT WAS
NEGOTIATED.
A. IN ADDITION TO THE PENALTIES IMPOSED UNDER SUBDIVISION D OF THIS
SECTION, FAILURE TO COMPLY WITH THE PROVISIONS OF THIS SECTION SHALL
ENTITLE THE AGGRIEVED CONSUMER TO CANCEL SUCH CONTRACT. UPON A FAILURE
TO COMPLY WITH THE PROVISIONS OF THIS SECTION, THE AGGRIEVED CONSUMER
MAY CANCEL THE CONTRACT. FOR PURPOSES OF THIS SECTION, CANCELLATION
SHALL BE DEEMED TO HAVE OCCURRED WHEN WRITTEN NOTICE OF CANCELLATION IS
GIVEN TO THE RETAIL DEALER. NOTICE OF CANCELLATION, IF MAILED, SHALL BE
DEEMED DELIVERED ON THE DATE OF THE POSTMARK. NOTICE OF CANCELLATION
SHALL BE SUFFICIENT IF SUCH NOTICE INDICATES THE INTENTION OF THE
CONSUMER NOT TO BE BOUND BY SUCH CONTRACT. IF A CONSUMER CANCELS A
CONTRACT PURSUANT TO THIS SUBDIVISION, THE RETAIL DEALER SHALL NOT
IMPOSE ANY PENALTY OR OBLIGATION UPON SUCH CONSUMER. WHEN A CONTRACT,
WHICH HAS BEEN SOLD AND ASSIGNED TO A FINANCIAL INSTITUTION IS CANCELED
PURSUANT TO THIS SUBDIVISION, SUCH CONSUMER SHALL MAKE RESTITUTION TO
AND HAVE RESTITUTION MADE BY THE RETAIL DEALER WITH WHOM HE OR SHE MADE
THE CONTRACT, AND SHALL GIVE NOTICE OF CANCELLATION TO THE ASSIGNEE.
NOTWITHSTANDING THAT THE CONTRACT WAS ASSIGNED WITHOUT RECOURSE, THE
ASSIGNMENT SHALL BE DEEMED CANCELED AND THE ASSIGNOR SHALL PROMPTLY
REPURCHASE THE CONTRACT FROM THE ASSIGNEE.
B. THE TERMS OF THE CONTRACT WHICH IS EXECUTED IN THE ENGLISH LANGUAGE
SHALL DETERMINE THE RIGHTS AND OBLIGATIONS OF THE PARTIES. HOWEVER, THE
TRANSLATION OF THE CONTRACT IN ANY LANGUAGE OTHER THAN ENGLISH IN WHICH
THE CONTRACT WAS NEGOTIATED SHALL BE ADMISSIBLE IN EVIDENCE ONLY TO SHOW
THAT NO CONTRACT WAS ENTERED INTO BECAUSE OF A SUBSTANTIAL DIFFERENCE IN
THE MATERIAL TERMS AND CONDITIONS OF THE CONTRACT AND THE TRANSLATION.
C. THE PROVISIONS OF THIS SECTION SHALL BE IN ADDITION TO ANY OTHER
RIGHTS TO REVOKE AN OFFER.
A. 5017 3
D. ANY RETAIL DEALER OR EMPLOYEE OF A DEALER WHO VIOLATES ANY OF THE
PROVISIONS OF THIS SECTION SHALL BE SUBJECT TO A CIVIL PENALTY NOT TO
EXCEED FIFTY DOLLARS FOR THE FIRST OFFENSE AND TWO HUNDRED FIFTY DOLLARS
FOR THE SECOND AND EACH SUBSEQUENT OFFENSE.
S 3. Section 337 of the personal property law is amended by adding a
new subdivision 5-a to read as follows:
5-A. ANY RETAIL DEALER WHO NEGOTIATES PRIMARILY IN A LANGUAGE OTHER
THAN ENGLISH, ORALLY OR IN WRITING, IN THE COURSE OF ENTERING INTO A
RETAIL LEASE AGREEMENT PROVIDED FOR IN THIS SECTION, SHALL DELIVER TO
THE CONSUMER WHO IS THE OTHER PARTY TO SUCH AGREEMENT AND PRIOR TO THE
EXECUTION OF SUCH AGREEMENT, AN UNSIGNED TRANSLATION OF SUCH AGREEMENT,
IN THE LANGUAGE IN WHICH SUCH AGREEMENT WAS NEGOTIATED.
(A) IN ADDITION TO THE PENALTIES IMPOSED UNDER SECTION THREE HUNDRED
FORTY-SIX OF THIS ARTICLE, FAILURE TO COMPLY WITH THE PROVISIONS OF THIS
SUBDIVISION SHALL ENTITLE THE AGGRIEVED CONSUMER TO CANCEL SUCH AGREE-
MENT. UPON A FAILURE TO COMPLY WITH THE PROVISIONS OF THIS SUBDIVISION,
THE AGGRIEVED CONSUMER MAY CANCEL THE AGREEMENT. FOR PURPOSES OF THIS
SUBDIVISION, CANCELLATION SHALL BE DEEMED TO HAVE OCCURRED WHEN WRITTEN
NOTICE OF CANCELLATION IS GIVEN TO THE RETAIL DEALER. NOTICE OF CANCEL-
LATION, IF MAILED, SHALL BE DEEMED DELIVERED ON THE DATE OF THE POST-
MARK. NOTICE OF CANCELLATION SHALL BE SUFFICIENT IF SUCH NOTICE INDI-
CATES THE INTENTION OF THE CONSUMER NOT TO BE BOUND BY SUCH AGREEMENT.
IF A CONSUMER CANCELS AN AGREEMENT PURSUANT TO THIS PARAGRAPH, THE
RETAIL DEALER SHALL NOT IMPOSE ANY PENALTY OR OBLIGATION UPON SUCH
CONSUMER. WHEN AN AGREEMENT, WHICH HAS BEEN SOLD AND ASSIGNED TO A
FINANCIAL INSTITUTION IS CANCELED PURSUANT TO THIS SUBDIVISION, SUCH
CONSUMER SHALL MAKE RESTITUTION TO AND HAVE RESTITUTION MADE BY THE
RETAIL DEALER WITH WHOM HE OR SHE MADE THE AGREEMENT, AND SHALL GIVE
NOTICE OF CANCELLATION TO THE ASSIGNEE. NOTWITHSTANDING THAT THE AGREE-
MENT WAS ASSIGNED WITHOUT RECOURSE, THE ASSIGNMENT SHALL BE DEEMED
CANCELED AND THE ASSIGNOR SHALL PROMPTLY REPURCHASE THE AGREEMENT FROM
THE ASSIGNEE.
(B) THE TERMS OF THE AGREEMENT WHICH IS EXECUTED IN THE ENGLISH
LANGUAGE SHALL DETERMINE THE RIGHTS AND OBLIGATIONS OF THE PARTIES.
HOWEVER, THE TRANSLATION OF THE AGREEMENT IN ANY LANGUAGE OTHER THAN
ENGLISH IN WHICH THE AGREEMENT WAS NEGOTIATED SHALL BE ADMISSIBLE IN
EVIDENCE ONLY TO SHOW THAT NO CONTRACT WAS ENTERED INTO BECAUSE OF A
SUBSTANTIAL DIFFERENCE IN THE MATERIAL TERMS AND CONDITIONS OF THE
AGREEMENT AND THE TRANSLATION.
(C) THE PROVISIONS OF THIS SUBDIVISION SHALL BE IN ADDITION TO ANY
OTHER RIGHTS TO REVOKE AN OFFER.
S 4. This act shall take effect on the one hundred twentieth day after
it shall have become a law and shall apply to contracts entered into on
or after such date.