S T A T E O F N E W Y O R K
________________________________________________________________________
3225
2009-2010 Regular Sessions
I N A S S E M B L Y
January 23, 2009
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Introduced by M. of A. PHEFFER, DINOWITZ, GALEF -- Multi-Sponsored by --
M. of A. CLARK, COLTON, COOK, EDDINGTON, ESPAILLAT, 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:
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
4-a to read as follows:
4-A. (A) IN ADDITION TO ANY OTHER RIGHTS TO REVOKE AN OFFER, THE
CONSUMER MAY CANCEL A CONTRACT, WHETHER OR NOT SUCH CONSUMER HAS
RECEIVED A COPY OF SUCH CONTRACT SIGNED BY THE RETAIL DEALER, UNTIL
MIDNIGHT OF THE NEXT BUSINESS DAY AFTER THE DATE ON WHICH THE CONSUMER
SIGNED THE CONTRACT OR THE DATE ON WHICH THE RETAIL DEALER DELIVERED A
COPY OF THE CONTRACT SIGNED BY HIM OR HER, WHICHEVER IS LATER. FOR
PURPOSES OF THIS PARAGRAPH, CANCELLATION WILL BE DEEMED TO HAVE OCCURRED
WHEN WRITTEN NOTICE OF CANCELLATION IS GIVEN TO THE RETAIL DEALER.
NOTICE OF CANCELLATION, IF GIVEN BY MAIL, SHALL BE DEEMED DELIVERED ON
THE DATE OF THE POSTMARK. NOTICE OF CANCELLATION SHALL BE SUFFICIENT IF
IT INDICATES THE INTENTION OF THE CONSUMER NOT TO BE BOUND.
(B) THE CONSUMER MAY, IN ORDER TO OBTAIN IMMEDIATE DELIVERY OF A MOTOR
VEHICLE, WAIVE THE RIGHT TO CANCEL AS PROVIDED IN PARAGRAPH (A) OF THIS
SUBDIVISION. SUCH WAIVER MUST BE WRITTEN AND CLEARLY INDICATE THE INTEN-
TION OF THE CONSUMER TO WAIVE HIS OR HER RIGHT TO CANCEL THE CONTRACT.
(C) UNLESS THE CONSUMER WAIVES THE RIGHT TO CANCEL AS PROVIDED IN
PARAGRAPH (B) OF THIS SUBDIVISION, THE RETAIL DEALER IS NOT REQUIRED TO
DELIVER ANY MOTOR VEHICLE TO A CONSUMER UNTIL AFTER THE CLOSE OF BUSI-
NESS ON THE NEXT BUSINESS DAY AFTER THE DAY ON WHICH THE CONSUMER OR
RETAIL DEALER SIGNS A MOTOR VEHICLE INSTALLMENT CONTRACT.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06904-01-9
A. 3225 2
(D) FOR PURPOSES OF A CANCELLATION PURSUANT TO PARAGRAPH (A) OF THIS
SUBDIVISION, IF A CONSUMER, PURSUANT TO AN AGREEMENT WITH THE RETAIL
DEALER, REMOVES ANY TRADE-IN MOTOR VEHICLE FROM THE RETAIL DEALER'S LOT
AFTER SIGNING A MOTOR VEHICLE CONTRACT OR OFFER, BUT BEFORE THE EXPIRA-
TION OF THE PERIOD OF TIME DURING WHICH THE CONSUMER HAS THE RIGHT TO
CANCEL, THE RETAIL DEALER MAY REAPPRAISE THE VALUE OF THE TRADE-IN VEHI-
CLE UPON ITS RETURN TO THE RETAIL DEALER IF THE VEHICLE IS IN A CONDI-
TION THAT IS NOT SUBSTANTIALLY THE SAME AS WHEN IT WAS ORIGINALLY
APPRAISED FOR TRADE-IN PURPOSES. HOWEVER, SUCH REAPPRAISAL SHALL NEITHER
EXTEND THE CANCELLATION PERIOD PROVIDED FOR IN PARAGRAPH (A) OF THIS
SUBDIVISION NOR ENTITLE THE CONSUMER TO ANOTHER SUCH CANCELLATION PERI-
OD.
(E) IF A CONSUMER CANCELS A CONTRACT PURSUANT TO THE PROVISIONS OF
THIS SUBDIVISION, THE RETAIL DEALER MAY RETAIN, FROM ANY CASH DOWN
PAYMENT PAID BY THE CONSUMER TO THE RETAIL DEALER, COMPENSATION FOR
CANCELLATION OF THE CONTRACT THAT SHALL NOT EXCEED ONE HUNDRED DOLLARS,
BUT SHALL NOT IMPOSE ANY OTHER PENALTY OR OBLIGATION.
S 2. Section 198-b of the general business law is amended by adding a
new subdivision a-1 to read as follows:
A-1. CONTRACTS; CANCELLATION. 1. IN ADDITION TO ANY OTHER RIGHTS TO
REVOKE AN OFFER, A CONSUMER MAY CANCEL A CONTRACT FOR THE SALE OR LEASE
OF A USED MOTOR VEHICLE, WHETHER OR NOT SUCH CONSUMER HAS RECEIVED A
COPY OF SUCH CONTRACT SIGNED BY THE DEALER, PRIOR TO MIDNIGHT OF THE
NEXT BUSINESS DAY AFTER EITHER THE DATE ON WHICH THE CONSUMER SIGNED THE
CONTRACT OR THE DATE ON WHICH THE DEALER DELIVERED A SIGNED COPY OF THE
CONTRACT, WHICHEVER IS LATER. FOR THE PURPOSES OF THIS PARAGRAPH,
CANCELLATION WILL BE DEEMED TO HAVE OCCURRED WHEN WRITTEN NOTICE OF
CANCELLATION IS GIVEN TO THE DEALER. IF GIVEN BY MAIL, A NOTICE OF
CANCELLATION SHALL BE DEEMED DELIVERED ON THE DATE OF THE POSTMARK.
NOTICE OF CANCELLATION SHALL BE SUFFICIENT IF IT INDICATES THE INTENTION
OF THE CONSUMER NOT TO BE BOUND.
2. THE CONSUMER MAY, IN ORDER TO OBTAIN IMMEDIATE DELIVERY OF A MOTOR
VEHICLE, WAIVE THE RIGHT TO CANCEL A SALE OR LEASE CONTRACT WITHIN ONE
DAY AS PROVIDED IN PARAGRAPH ONE OF THIS SUBDIVISION. SUCH WAIVER MUST
BE WRITTEN AND CLEARLY INDICATE THE INTENTION OF THE CONSUMER TO WAIVE
HIS OR HER RIGHT TO CANCEL THE CONTRACT.
3. UNLESS THE CONSUMER WAIVES THE RIGHT TO CANCEL A SALE OR LEASE
CONTRACT WITHIN ONE DAY AS PROVIDED IN PARAGRAPH TWO OF THIS SUBDIVI-
SION, THE DEALER IS NOT REQUIRED TO DELIVER ANY MOTOR VEHICLE TO A
CONSUMER UNTIL AFTER THE CLOSE OF BUSINESS ON THE NEXT BUSINESS DAY
AFTER THE DAY ON WHICH THE CONSUMER OR DEALER SIGNS A MOTOR VEHICLE
INSTALLMENT CONTRACT.
4. FOR THE PURPOSES OF A CANCELLATION PURSUANT TO PARAGRAPH ONE OF
THIS SUBDIVISION, IF A CONSUMER, PURSUANT TO AN AGREEMENT WITH THE DEAL-
ER, REMOVES ANY TRADE-IN MOTOR VEHICLE FROM THE DEALER'S LOT AFTER SIGN-
ING A MOTOR VEHICLE CONTRACT OR OFFER, BUT BEFORE THE EXPIRATION OF THE
PERIOD OF TIME DURING WHICH THE CONSUMER HAS THE RIGHT TO CANCEL, THE
DEALER MAY REAPPRAISE THE VALUE OF THE TRADE-IN VEHICLE UPON ITS RETURN
TO THE DEALER IF THE VEHICLE IS IN A CONDITION THAT IS NOT SUBSTANTIALLY
THE SAME AS WHEN IT WAS ORIGINALLY APPRAISED FOR TRADE-IN PURPOSES.
HOWEVER, SUCH REAPPRAISAL SHALL NEITHER EXTEND THE CANCELLATION PERIOD
PROVIDED FOR IN PARAGRAPH ONE OF THIS SUBDIVISION NOR ENTITLE THE
CONSUMER TO ANOTHER SUCH CANCELLATION PERIOD.
5. IF A CONSUMER CANCELS A CONTRACT PURSUANT TO THE PROVISIONS OF THIS
SUBDIVISION, THE DEALER MAY RETAIN, FROM ANY CASH DOWN PAYMENT PAID BY
THE CONSUMER TO THE SELLER, COMPENSATION FOR CANCELLATION OF THE
A. 3225 3
CONTRACT NOT EXCEEDING ONE HUNDRED DOLLARS, BUT SHALL NOT IMPOSE ANY
OTHER PENALTY OR OBLIGATION.
S 3. Section 337 of the personal property law is amended by adding a
new subdivision 5-a to read as follows:
5-A. (A) IN ADDITION TO ANY OTHER RIGHTS TO REVOKE AN OFFER, A CONSUM-
ER MAY CANCEL A CONTRACT FOR THE LEASE OF A MOTOR VEHICLE, WHETHER OR
NOT SUCH CONSUMER HAS RECEIVED A COPY OF SUCH CONTRACT SIGNED BY THE
LESSOR, PRIOR TO MIDNIGHT OF THE NEXT BUSINESS DAY AFTER EITHER THE DATE
ON WHICH THE CONSUMER SIGNED THE CONTRACT OR THE DATE ON WHICH THE
LESSOR DELIVERED A SIGNED COPY OF THE CONTRACT TO THE CONSUMER, WHICHEV-
ER IS LATER. FOR THE PURPOSES OF THIS PARAGRAPH, CANCELLATION WILL BE
DEEMED TO HAVE OCCURRED WHEN WRITTEN NOTICE OF CANCELLATION IS GIVEN TO
THE LESSOR. IF GIVEN BY MAIL, A NOTICE OF CANCELLATION SHALL BE DEEMED
DELIVERED ON THE DATE OF THE POSTMARK. NOTICE OF CANCELLATION SHALL BE
SUFFICIENT IF IT INDICATES THE INTENTION OF THE CONSUMER NOT TO BE
BOUND.
(B) THE CONSUMER MAY, IN ORDER TO OBTAIN IMMEDIATE DELIVERY OF A MOTOR
VEHICLE, WAIVE THE RIGHT TO CANCEL AS PROVIDED IN PARAGRAPH (A) OF THIS
SUBDIVISION. SUCH WAIVER MUST BE WRITTEN AND CLEARLY INDICATE THE INTEN-
TION OF THE CONSUMER TO WAIVE HIS OR HER RIGHT TO CANCEL THE CONTRACT.
(C) UNLESS THE CONSUMER WAIVES THE RIGHT TO CANCEL AS PROVIDED IN
PARAGRAPH (B) OF THIS SUBDIVISION, THE LESSOR IS NOT REQUIRED TO DELIVER
ANY MOTOR VEHICLE TO A CONSUMER UNTIL AFTER THE CLOSE OF BUSINESS ON THE
NEXT BUSINESS DAY AFTER THE DAY ON WHICH THE CONSUMER OR LESSOR SIGNS
THE CONTRACT.
(D) FOR THE PURPOSES OF A CANCELLATION PURSUANT TO PARAGRAPH (A) OF
THIS SUBDIVISION, IF A CONSUMER, PURSUANT TO AN AGREEMENT WITH THE
LESSOR, REMOVES ANY TRADE-IN MOTOR VEHICLE FROM THE LESSOR'S LOT AFTER
SIGNING A MOTOR VEHICLE CONTRACT OR OFFER, BUT BEFORE THE EXPIRATION OF
THE PERIOD OF TIME DURING WHICH THE CONSUMER HAS THE RIGHT TO CANCEL,
THE LESSOR MAY REAPPRAISE THE VALUE OF THE TRADE-IN VEHICLE UPON ITS
RETURN TO THE LESSOR IF THE VEHICLE IS IN A CONDITION THAT IS NOT
SUBSTANTIALLY THE SAME AS WHEN IT WAS ORIGINALLY APPRAISED FOR TRADE-IN
PURPOSES. HOWEVER, SUCH REAPPRAISAL SHALL NEITHER EXTEND THE CANCELLA-
TION PERIOD PROVIDED FOR IN PARAGRAPH (A) OF THIS SUBDIVISION NOR ENTI-
TLE THE CONSUMER TO ANOTHER SUCH CANCELLATION PERIOD.
(E) IF A CONSUMER CANCELS A CONTRACT PURSUANT TO THE PROVISIONS OF
THIS SUBDIVISION, THE LESSOR MAY RETAIN, FROM ANY DOWN PAYMENT PAID BY
THE CONSUMER TO THE LESSOR, COMPENSATION FOR CANCELLATION OF THE
CONTRACT THAT SHALL NOT EXCEED ONE HUNDRED DOLLARS, BUT SHALL NOT IMPOSE
ANY OTHER PENALTY OR OBLIGATION.
S 4. This act shall take effect on the first of July next succeeding
the date on which it shall have become a law.