S T A T E O F N E W Y O R K
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2309
2015-2016 Regular Sessions
I N A S S E M B L Y
January 15, 2015
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Introduced by M. of A. DINOWITZ, WEPRIN -- Multi-Sponsored by -- M. of
A. PERRY -- read once and referred to the Committee on Consumer
Affairs and Protection
AN ACT to amend the general business law, in relation to automobile
manufacturers' warranty adjustment programs
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The general business law is amended by adding a new section
198-d to read as follows:
S 198-D. AUTOMOBILE MANUFACTURERS' WARRANTY ADJUSTMENT PROGRAMS. (A)
FOR THE PURPOSES OF THIS SECTION:
(1) "CONSUMER" MEANS THE PURCHASER, OTHER THAN FOR PURPOSES OF RESALE,
OF A MOTOR VEHICLE, A LESSEE OF A MOTOR VEHICLE, ANY PERSON TO WHOM SUCH
MOTOR VEHICLE IS TRANSFERRED DURING THE DURATION OF AN EXPRESS WARRANTY
APPLICABLE TO SUCH MOTOR VEHICLE AND ANY PERSON ENTITLED BY THE TERMS OF
SUCH WARRANTY TO ENFORCE THE OBLIGATIONS OF THE WARRANTY.
(2) "DEALER" MEANS ANY PERSON SELLING OR AGREEING TO SELL, LEASING OR
AGREEING TO LEASE IN THIS STATE ONE OR MORE MOTOR VEHICLES UNDER A
RETAIL AGREEMENT WITH A MANUFACTURER, MANUFACTURER BRANCH, DISTRIBUTOR
OR DISTRIBUTOR BRANCH, OR AGENT OF ANY OF THEM.
(3) "LESSEE" MEANS ANY CONSUMER WHO LEASES A MOTOR VEHICLE PURSUANT TO
A WRITTEN LEASE WHICH PROVIDES THAT THE LESSEE IS RESPONSIBLE FOR
REPAIRS TO SUCH MOTOR VEHICLES.
(4) "ADJUSTMENT PROGRAM" MEANS ANY PROGRAM OR POLICY THAT EXPANDS OR
EXTENDS THE CONSUMER'S WARRANTY BEYOND ITS STATED LIMIT OR UNDER WHICH A
MANUFACTURER OFFERS TO PAY FOR ALL OR ANY PART OF THE COST OF REPAIRING,
OR TO REIMBURSE CONSUMERS FOR ALL OR ANY PART OF THE COST OF REPAIRING,
ANY CONDITION THAT MAY SUBSTANTIALLY AFFECT VEHICLE DURABILITY, RELI-
ABILITY OR PERFORMANCE, OTHER THAN SERVICE PROVIDED UNDER A SAFETY OR
EMISSION-RELATED RECALL CAMPAIGN. THIS TERM DOES NOT INCLUDE ADJUSTMENTS
MADE BY A MANUFACTURER ON A CASE BY CASE BASIS.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01433-01-5
A. 2309 2
(5) "MANUFACTURER" MEANS (I) ANY PERSON WHO MANUFACTURES OR ASSEMBLES
NEW MOTOR VEHICLES FOR SALE OR DISTRIBUTION OR (II) ANY PERSON WHO IS
ENGAGED IN THE BUSINESS OF IMPORTING NEW MOTOR VEHICLES FOR SALE OR
DISTRIBUTION TO DEALERS OR THROUGH DISTRIBUTORS, OR FACTORY BRANCHES.
(6) "MOTOR VEHICLE" MEANS A MOTOR VEHICLE EXCLUDING OFF-ROAD VEHICLES,
WHICH WAS SUBJECT TO A MANUFACTURER'S EXPRESS WARRANTY AT THE TIME OF
ORIGINAL DELIVERY AND EITHER (I) WAS PURCHASED, LEASED OR TRANSFERRED IN
THIS STATE WITHIN EITHER THE FIRST EIGHTEEN THOUSAND MILES OF OPERATION
OR TWO YEARS FROM THE DATE OF ORIGINAL DELIVERY, WHICHEVER IS EARLIER,
OR (II) IS REGISTERED IN THIS STATE.
(7) "OFF-ROAD VEHICLE" MEANS ANY SELF-PROPELLED VEHICLE WHICH IS MANU-
FACTURED FOR SALE FOR OPERATION PRIMARILY ON OFF-HIGHWAY TRAILS OR OFF-
HIGHWAY COMPETITIONS AND ONLY INCIDENTALLY OPERATED ON PUBLIC HIGHWAYS
PROVIDED THAT SUCH VEHICLE DOES NOT EXCEED SEVENTY INCHES IN WIDTH OR
ONE THOUSAND POUNDS DRY WEIGHT.
(8) "SERVICE BULLETIN" MEANS ANY DOCUMENT ISSUED BY A MANUFACTURER
PERTAINING TO ANY ADJUSTMENT PROGRAM.
(B) (1) A MANUFACTURER SHALL, WITHIN NINETY DAYS OF THE ADOPTION OF AN
ADJUSTMENT PROGRAM, NOTIFY, BY FIRST-CLASS MAIL, ALL CONSUMERS ELIGIBLE
UNDER SUCH PROGRAM OF THE CONDITION IN THE MOTOR VEHICLE WHICH IS
COVERED BY AN ADJUSTMENT PROGRAM AND THE PRINCIPAL TERMS AND CONDITIONS
OF THE ADJUSTMENT PROGRAM.
(2) WITHIN THIRTY DAYS OF THE ADOPTION OF ANY NEW ADJUSTMENT PROGRAM,
A MANUFACTURER SHALL NOTIFY ITS DEALERS, IN WRITING, OF ALL THE TERMS
AND CONDITIONS THEREOF.
(3) COPIES OF ALL NOTICES MAILED IN ACCORDANCE WITH THIS SUBDIVISION
SHALL BE SENT TO THE DEPARTMENT OF STATE AND THE DEPARTMENT OF MOTOR
VEHICLES AND MADE AVAILABLE FOR PUBLIC INQUIRIES.
(C) EACH MANUFACTURER EITHER DIRECTLY OR THROUGH ITS AUTHORIZED AGENT
SHALL CAUSE TO BE GIVEN TO THE ORIGINAL PURCHASER OF A NEW MOTOR VEHI-
CLE, AT THE TIME OF PURCHASE, A NOTICE OUTLINING THE PROVISIONS OF THIS
SECTION AND THE RIGHTS AND REMEDIES PROVIDED UNDER THIS SECTION. THE
WRITTEN NOTICE SHALL BE DEEMED SUFFICIENT IF DONE IN SUBSTANTIALLY THE
FOLLOWING FORM:
"SOMETIMES (INSERT MANUFACTURER'S NAME) OFFERS A SPECIAL ADJUSTMENT
PROGRAM TO PAY ALL OR PART OF THE COST OF CERTAIN REPAIRS BEYOND THE
TERMS OF THE WARRANTY. CHECK WITH YOUR DEALER TO DETERMINE WHETHER ANY
ADJUSTMENT PROGRAM IS APPLICABLE TO YOUR MOTOR VEHICLE."
(D) (1) A DEALER SHALL DISCLOSE TO A CONSUMER SEEKING REPAIRS FOR A
PARTICULAR CONDITION AT ITS REPAIR SHOP, THE PRINCIPAL TERMS AND CONDI-
TIONS OF THE MANUFACTURER'S ADJUSTMENT PROGRAM COVERING SUCH CONDITION
IF THE DEALER HAS RECEIVED A SERVICE BULLETIN CONCERNING SUCH ADJUSTMENT
PROGRAM OR OTHERWISE HAS KNOWLEDGE OF IT.
(2) A DEALER SHALL PROVIDE NOTICE TO PROSPECTIVE PURCHASERS AND
LESSEES THAT PROVIDES INFORMATION ON HOW TO GET COPIES OF SERVICE BULLE-
TINS. NOTHING IN THIS NOTICE SHALL BE CONSTRUED AS AN ADMISSION BY THE
DEALER OR MANUFACTURER OF THE EXISTENCE OR NONEXISTENCE OF A VEHICLE
DEFECT. THE NOTICE SHALL BE DEEMED SUFFICIENT IF POSTED IN THE SHOWROOM
OR OTHER AREA CONSPICUOUS TO MOTOR VEHICLE PURCHASERS AND WRITTEN IN THE
FOLLOWING FORM:
FEDERAL LAW REQUIRES MANUFACTURERS TO FURNISH THE NATIONAL HIGHWAY
TRAFFIC SAFETY ADMINISTRATION (N.H.T.S.A.) WITH BULLETINS DESCRIBING ANY
DEFECTS IN THEIR VEHICLES.
YOU MAY OBTAIN COPIES OF THESE BULLETINS, FOR A FEE, FROM EITHER OF
THE FOLLOWING:
THE MANUFACTURER (ASK YOUR DEALER FOR THE TOLL-FREE NUMBER); OR
A. 2309 3
N.H.T.S.A.--TECHNICAL REFERENCE DIVISION (INSERT THE CURRENT MAILING
ADDRESS AND TELEPHONE NUMBER ESTABLISHED BY THE NATIONAL HIGHWAY TRAFFIC
SAFETY ADMINISTRATION FOR RECEIVING REQUESTS FOR SERVICE BULLETINS).
IN ADDITION, CERTAIN CONSUMER PUBLICATIONS PUBLISH THESE BULLETINS
AND SOME COMPANIES WILL SEND THEM TO YOU, FOR A FEE.
SUCH SIGN SHALL BE PRINTED WITH LETTERING THAT IS LEGIBLE AND SHALL BE
AT LEAST THREE-QUARTERS OF AN INCH BOLDFACE TYPE.
(E) A MANUFACTURER WHO ESTABLISHES AN ADJUSTMENT PROGRAM SHALL IMPLE-
MENT PROCEDURES TO ASSURE REIMBURSEMENT OF EACH CONSUMER ELIGIBLE UNDER
AN ADJUSTMENT PROGRAM WHO INCURS EXPENSES FOR REPAIR OF A CONDITION
SUBJECT TO THE PROGRAM PRIOR TO ACQUIRING KNOWLEDGE OF THE PROGRAM.
SUCH REIMBURSEMENT SHALL BE CONSISTENT WITH THE TERMS AND CONDITIONS OF
THE PARTICULAR PROGRAM.
ANY CLAIM FOR REIMBURSEMENT UNDER THIS SUBDIVISION SHALL BE MADE IN
WRITING TO THE MANUFACTURER WITHIN TWO YEARS OF THE DATE OF THE CONSUM-
ER'S PAYMENT FOR REPAIR OF THE CONDITION. THE MANUFACTURER SHALL NOTIFY
THE CONSUMER WITHIN TWENTY-ONE BUSINESS DAYS OF RECEIVING A CLAIM FOR
REIMBURSEMENT WHETHER THE CLAIM WILL BE ALLOWED OR DENIED. IF THE CLAIM
IS DENIED, THE SPECIFIC REASONS FOR THE DENIAL SHALL BE STATED IN WRIT-
ING.
(F) A VIOLATION OF ANY OF THE PROVISIONS OF THIS SECTION SHALL BE
DEEMED A DECEPTIVE ACT OR PRACTICE UNDER ARTICLE TWENTY-TWO-A OF THIS
CHAPTER.
(G) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO EXCLUDE, MODIFY, OR
OTHERWISE LIMIT ANY OTHER REMEDY PROVIDED BY LAW TO A CONSUMER OR
LESSEE.
S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law.