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Assembly Bill A9991

2015-2016 Legislative Session

Establishes restrictions on consumer and employment contracts

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Archive: Last Bill Status - In Senate Committee Rules Committee

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2015-A9991 (ACTIVE) - Details

Current Committee:
Senate Rules
Law Section:
General Obligations Law
Laws Affected:
Add ยง5-303, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2017-2018: A2485
2019-2020: A852
2021-2022: A5618
2023-2024: A4334

2015-A9991 (ACTIVE) - Summary

Establishes restrictions on consumer and employment contracts.

2015-A9991 (ACTIVE) - Bill Text download pdf 

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

                                  9991

                          I N  A S S E M B L Y

                               May 2, 2016
                               ___________

Introduced  by M. of A. SIMOTAS -- read once and referred to the Commit-
  tee on Judiciary

AN ACT to  amend  the  general  obligations  law,  in  relation  to  the
  provisions of consumer and employment contracts

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

  Section 1. The general obligations law is  amended  by  adding  a  new
section 5-303 to read as follows:
  S  5-303.  CONSUMER AND EMPLOYMENT CONTRACTS. 1. FINDINGS. OBSCURE AND
OVERLY COMPLEX LANGUAGE IN CONSUMER AND EMPLOYMENT CONTRACTS  INTERFERES
WITH  EMPLOYEES'  AND CONSUMERS' ABILITY TO PROVIDE MEANINGFUL ASSENT TO
THEIR CONSUMER AND EMPLOYMENT CONTRACTS. TO ENSURE THAT PRIVATE  PARTIES
COMPREHEND  THE  MATERIAL TERMS OF THE CONSUMER AND EMPLOYMENT CONTRACTS
INTO WHICH THEY ENTER, THIS SECTION REQUIRES THAT MERCHANTS AND  EMPLOY-
ERS  IN  DESIGNATED  FORMS  OF  CONTRACTS  ADEQUATELY DISCLOSE TERMS AND
CONDITIONS.
  2. NON-CONFORMING COVERAGE.  THIS SECTION SHALL APPLY TO THE CONTRACTS
DESIGNATED IN SUBDIVISION ONE OF THIS  SECTION  THAT  MEET  ANY  OF  THE
FOLLOWING CRITERIA:
  (A)  AN EMPLOYMENT OR CONSUMER CONTRACT NOT WRITTEN IN PLAIN LANGUAGE,
PURSUANT TO SECTION 5-702 OF THIS ARTICLE, THAT A REASONABLE CONSUMER OR
EMPLOYEE WOULD UNDERSTAND; OR
  (B) IF A CONSUMER CONTRACT, ALL OF THE MATERIAL TERMS ARE NOT FOUND IN
A SINGLE DOCUMENT.
  3. COVERED CONTRACTS. THE PROVISIONS OF THIS SECTION  SHALL  APPLY  TO
THE FOLLOWING TYPES OF CONTRACTS:
  (A) CONSUMER CONTRACTS; AND
  (B) EMPLOYMENT CONTRACTS.
  4.  RIGHTS  WHEN  A  COVERED CONTRACT IS NON-CONFORMING. A CONSUMER OR
EMPLOYEE MAY SEEK A COURT ORDER REFORMING ANY CONTRACT COVERED  BY  THIS
SECTION.  SUCH REFORMED AGREEMENT SHALL REFLECT THE UNDERSTANDING OF THE
PARTIES, AND THE COURT MAY EXCLUDE TERMS NOT WRITTEN IN PLAIN ENGLISH OR
FOUND IN A SEPARATE DOCUMENT.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14413-03-6

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