LBD00481-02-9
S. 4427--A 2
dealer, the agent or dealer shall within seven days forward written
notice thereof to the manufacturer by certified mail, return receipt
requested, and shall include in such notice a statement indicating
whether or not such repairs have been undertaken. The manufacturer, its
agent or its authorized dealer shall correct said nonconformity, defect
or condition at no charge to the [consumer] PURCHASER, notwithstanding
the fact that such repairs are made after the expiration of such period
of operation or such two year period.
(2) If a manufacturer's agent or authorized dealer refuses to under-
take repairs within seven days of receipt of the notice by a [consumer]
PURCHASER of a nonconformity, defect or condition pursuant to paragraph
one of this subdivision, the [consumer] PURCHASER may immediately
forward written notice of such refusal to the manufacturer by certified
mail, return receipt requested. The manufacturer or its authorized
agent shall have twenty days from receipt of such notice of refusal to
commence such repairs. If within such twenty day period, the manufactur-
er or its authorized agent fails to commence such repairs, the manufac-
turer, at the option of the [consumer] PURCHASER, shall replace the
motor vehicle with a comparable motor vehicle, or accept return of the
vehicle from the [consumer] PURCHASER and refund to the [consumer]
PURCHASER the full purchase price or, if applicable, the lease price and
any trade-in allowance plus fees and charges. Such fees and charges
shall include but not be limited to all license fees, registration fees
and any similar governmental charges, less an allowance for the [consum-
er's] PURCHASER'S use of the vehicle in excess of the first twelve thou-
sand miles of operation pursuant to the mileage deduction formula
defined in paragraph four of subdivision (a) of this section, and a
reasonable allowance for any damage not attributable to normal wear or
improvements.
§ 3. Paragraphs 1 and 2 of subdivision (c) of section 198-a of the
general business law, paragraph 1 as amended by chapter 234 of the laws
of 1990, paragraph 2 as amended by chapter 29 of the laws of 1989, are
amended to read as follows:
(1) If, within the period specified in subdivision (b) of this
section, the manufacturer or its agents or authorized dealers are unable
to repair or correct any defect or condition which substantially impairs
the value of the motor vehicle to the [consumer] PURCHASER after a
reasonable number of attempts, the manufacturer, at the option of the
[consumer] PURCHASER, shall replace the motor vehicle with a comparable
motor vehicle, or accept return of the vehicle from the [consumer]
PURCHASER and refund to the [consumer] PURCHASER the full purchase price
or, if applicable, the lease price and any trade-in allowance plus fees
and charges. Any return of a motor vehicle may, at the option of the
[consumer] PURCHASER, be made to the dealer or other authorized agent of
the manufacturer who sold such vehicle to the [consumer] PURCHASER or to
the dealer or other authorized agent who attempted to repair or correct
the defect or condition which necessitated the return and shall not be
subject to any further shipping charges. Such fees and charges shall
include but not be limited to all license fees, registration fees and
any similar governmental charges, less an allowance for the [consumer's]
PURCHASER'S use of the vehicle in excess of the first twelve thousand
miles of operation pursuant to the mileage deduction formula defined in
paragraph four of subdivision (a) of this section, and a reasonable
allowance for any damage not attributable to normal wear or improve-
ments.
S. 4427--A 3
(2) A manufacturer which accepts return of the motor vehicle because
the motor vehicle does not conform to its warranty shall notify the
commissioner of the department of motor vehicles that the motor vehicle
was returned to the manufacturer for nonconformity to its warranty and
shall disclose, in accordance with the provisions of section four
hundred seventeen-a of the vehicle and traffic law prior to resale
either at wholesale or retail, that it was previously returned to the
manufacturer for nonconformity to its warranty. Refunds shall be made to
the [consumer] PURCHASER and lienholder, if any, as their interests may
appear on the records of ownership kept by the department of motor vehi-
cles. Refunds shall be accompanied by the proper application for credit
or refund of state and local sales taxes as published by the department
of taxation and finance and by a notice that the sales tax paid on the
purchase price, lease price or portion thereof being refunded is refund-
able by the commissioner of taxation and finance in accordance with the
provisions of subdivision (f) of section eleven hundred thirty-nine of
the tax law. If applicable, refunds shall be made to the lessor and
lessee as their interests may appear on the records of ownership kept by
the department of motor vehicles, as follows: the lessee shall receive
the capitalized cost and the lessor shall receive the lease price less
the aggregate deposit and rental payments previously paid to the lessor
for the leased vehicle. The terms of the lease shall be deemed termi-
nated contemporaneously with the date of the arbitrator's decision and
award and no penalty for early termination shall be assessed as a result
thereof. Refunds shall be accompanied by the proper application form for
credit or refund of state and local sales tax as published by the
department of taxation and finance and a notice that the sales tax paid
on the lease price or portion thereof being refunded is refundable by
the commissioner of taxation and finance in accordance with the
provisions of subdivision (f) of section eleven hundred thirty-nine of
the tax law.
§ 4. Subdivision (h) of section 198-a of the general business law, as
amended by chapter 799 of the laws of 1986, is amended to read as
follows:
(h) A manufacturer shall have up to thirty days from the date the
[consumer] PURCHASER notifies the manufacturer of his or her acceptance
of the arbitrator's decision to comply with the terms of that decision.
Failure to comply with the thirty day limitation shall also entitle the
[consumer] PURCHASER to recover a fee of twenty-five dollars for each
business day of noncompliance up to five hundred dollars. Provided,
however, that nothing contained in this subdivision shall impose any
liability on a manufacturer where a delay beyond the thirty day period
is attributable to a [consumer] PURCHASER who has requested a replace-
ment vehicle built to order or with options that are not comparable to
the vehicle being replaced or otherwise made compliance impossible with-
in said period. In no event shall a [consumer] PURCHASER who has
resorted to an informal dispute settlement mechanism be precluded from
seeking the rights or remedies available by law.
§ 5. Subdivision (i) of section 198-a of the general business law, as
amended by chapter 415 of the laws of 1987, is amended to read as
follows:
(i) Any agreement entered into by a [consumer] PURCHASER for the
purchase of a new motor vehicle which waives, limits or disclaims the
rights set forth in this section shall be void as contrary to public
policy. Said rights shall inure to a subsequent transferee of such motor
vehicle.
S. 4427--A 4
Any provision of any agreement entered into by a [consumer] PURCHASER
for the purchase of a new motor vehicle which includes as an additional
cost for such motor vehicle an expense identified as being for the
purpose of affording such [consumer] PURCHASER his or her rights under
this section, shall be void as contrary to public policy.
§ 6. Subdivision (j) of section 198-a of the general business law, as
added by chapter 444 of the laws of 1983, is amended to read as follows:
(j) Any action brought pursuant to this section shall be commenced
within four years of the date of original delivery of the motor vehicle
to the [consumer] PURCHASER.
§ 7. Subdivision (k) of section 198-a of the general business law, as
amended by chapter 611 of the laws of 2005, is amended to read as
follows:
(k) Each [consumer] PURCHASER shall have the option of submitting any
dispute arising under this section upon the payment of a prescribed
filing fee to an alternate arbitration mechanism established pursuant to
regulations promulgated hereunder by the New York state attorney gener-
al. Upon application of the [consumer] PURCHASER and payment of the
filing fee, all manufacturers shall submit to such alternate arbi-
tration.
Such alternate arbitration shall be conducted by a professional arbi-
trator or arbitration firm appointed by and under regulations estab-
lished by the New York state attorney general. Such mechanism shall
[insure] ENSURE the personal objectivity of its arbitrators and the
right of each party to present its case, to be in attendance during any
presentation made by the other party and to rebut or refute such presen-
tation. In all other respects, such alternate arbitration mechanism
shall be governed by article seventy-five of the civil practice law and
rules; provided, however, that notwithstanding paragraph (i) of subdivi-
sion (a) of section seventy-five hundred two of the civil practice law
and rules, special proceedings brought before a court pursuant to such
article seventy-five in relation to an arbitration hereunder shall be
brought only in the county where the [consumer] PURCHASER resides or
where the arbitration was held or is pending.
§ 8. Subdivision (l) of section 198-a of the general business law, as
amended by chapter 487 of the laws of 1990, is amended to read as
follows:
(l) A court may award reasonable attorney's fees to a prevailing
plaintiff or to a [consumer] PURCHASER who prevails in any judicial
action or proceeding arising out of an arbitration proceeding held
pursuant to subdivision (k) of this section. In the event a prevailing
plaintiff is required to retain the services of an attorney to enforce
collection of an award granted pursuant to this section, the court may
assess against the manufacturer reasonable attorney's fees for services
rendered to enforce collection of said award.
§ 9. Subparagraph (i) of paragraph 1 of subdivision (m) of section
198-a of the general business law, as added by chapter 799 of the laws
of 1986, is amended to read as follows:
(i) that the arbitrators participating in such mechanism are trained
in arbitration and familiar with the provisions of this section, that
the arbitrators and [consumers] PURCHASERS who request arbitration are
provided with a written copy of the provisions of this section, together
with the notice set forth below entitled "NEW CAR LEMON LAW BILL OF
RIGHTS", and that [consumers] PURCHASERS, upon request, are given an
opportunity to make an oral presentation to the arbitrator;
S. 4427--A 5
§ 10. Subparagraph (iv) of paragraph 3 of subdivision (m) of section
198-a of the general business law, as added by chapter 799 of the laws
of 1986, is amended to read as follows:
(iv) the average number of days from the date of a [consumer's]
PURCHASER'S initial request to arbitrate until the date of the final
arbitrator's decision and the average number of days from the date of
the final arbitrator's decision to the date on which performance was
satisfactorily carried out.
§ 11. Paragraphs 4, 5, 6 and 7 of subdivision (n) of section 198-a of
the general business law, paragraphs 4, 5 and 7 as amended by chapter
635 of the laws of 2004, paragraph 6 as amended by chapter 26 of the
laws of 2005, are amended to read as follows:
(4) If, within the first eighteen thousand miles of operation or
during the period of two years following the date of original delivery
of the motor vehicle to such [consumer] PURCHASER, whichever is the
earlier date, the manufacturer of a motor home or its agents or its
authorized dealers or repair shops to which they refer a [consumer]
PURCHASER are unable to repair or correct any covered defect or condi-
tion which substantially impairs the value of the motor home to the
[consumer] PURCHASER after a reasonable number of attempts, the motor
home manufacturer, at the option of the [consumer] PURCHASER, shall
replace the motor home with a comparable motor home, or accept return of
the motor home from the [consumer] PURCHASER and refund to the [consum-
er] PURCHASER the full purchase price or, if applicable, the lease price
and any trade-in allowance plus fees and charges as well as the other
fees and charges set forth in paragraph one of subdivision (c) of this
section.
(5) If an agent or authorized dealer of a motor home manufacturer or a
repair shop to which they refer a [consumer] PURCHASER refuses to under-
take repairs within seven days of receipt of notice by a [consumer]
PURCHASER of a nonconformity, defect or condition within the first eigh-
teen thousand miles of operation or during the period of two years
following the date of original delivery of the motor home to such
[consumer] PURCHASER, whichever is the earlier date, the [consumer]
PURCHASER may immediately forward written notice of such refusal to the
motor home manufacturer by certified mail, return receipt requested. The
motor home manufacturer or its authorized agent or a repair shop to
which they refer a [consumer] PURCHASER shall have twenty days from
receipt of such notice of refusal to commence such repairs. If within
such twenty day period, the motor home manufacturer or its authorized
agent or repair shop to which they refer a [consumer] PURCHASER, fails
to commence such repairs, the motor home manufacturer, at the option of
the [consumer] PURCHASER, shall replace the motor home with a comparable
motor home, or accept return of the motor home from the [consumer]
PURCHASER and refund to the [consumer] PURCHASER the full purchase price
or, if applicable, the lease price, and any trade-in allowance or other
charges, fees, or allowances. Such fees and charges shall include but
not be limited to all license fees, registration fees, and any similar
governmental charges, less an allowance for the [consumer's] PURCHASER'S
use of the vehicle in excess of the first twelve thousand miles of oper-
ation pursuant to the mileage deduction formula defined in paragraph
four of subdivision (a) of this section, and a reasonable allowance for
any damage not attributable to normal wear or improvements.
(6) If within the first eighteen thousand miles of operation or during
the period of two years following the date of original delivery of the
motor home to such [consumer] PURCHASER, whichever is the earlier date,
S. 4427--A 6
the same covered nonconformity, defect or condition in a motor home has
been subject to repair two times or a motor home has been out of service
by reason of repair for twenty-one days, whichever occurs first, the
[consumer] PURCHASER must have reported this to the motor home manufac-
turer or its authorized dealer by certified mail, return receipt
requested, and may institute any proceeding or other action pursuant to
this section if the motor home has been out of service by reason of
three repair attempts or for at least thirty days. The special notifica-
tion requirements of this paragraph shall only apply if the manufacturer
or its authorized dealer provides a prior written copy of the require-
ments of this paragraph to the [consumer] PURCHASER and receipt of the
notice is acknowledged by the [consumer] PURCHASER in writing. If the
[consumer] PURCHASER who has received notice from the manufacturer fails
to comply with the special notification requirements of this paragraph,
additional repair attempts or days out of service by reason of repair
shall not be taken into account in determining whether the [consumer]
PURCHASER is entitled to a remedy provided in paragraph four of this
subdivision. However, additional repair attempts or days out of service
by reason of repair that occur after the [consumer] PURCHASER complies
with such special notification requirements shall be taken into account
in making that determination. It shall not count as a repair attempt if
the repair facility is not authorized by the applicable motor home
manufacturer to perform warranty work on the identified nonconformity.
It shall count as only one repair attempt for a motor home if the same
nonconformity is being addressed a second time due to the [consumer's]
PURCHASER'S decision to continue traveling and to seek the repair of the
same nonconformity at another repair facility rather than wait for the
initial repair to be completed.
(7) Nothing in this section shall in any way limit any rights, reme-
dies or causes of action that a [consumer] PURCHASER or motor home
manufacturer may otherwise have against the manufacturer of the motor
home's chassis, or its propulsion and other components.
§ 12. Clause (i) of subparagraph (A) and the second undesignated para-
graph of subparagraph (B) of paragraph 8 of subdivision (n) of section
198-a of the general business law, as added by chapter 635 of the laws
of 2004, are amended to read as follows:
(i) that the arbitrators participating in such mechanism are trained
in arbitration and familiar with the provisions of this section, that
the arbitrators and [consumers] PURCHASERS who request arbitration are
provided with a written copy of the provisions of this section, together
with the notice set forth below entitled "NEW MOTOR HOME LEMON LAW BILL
OF RIGHTS", and that [consumers] PURCHASERS, upon request, are given an
opportunity to make an oral presentation to the arbitrator;
The following notice shall be provided to [consumers] PURCHASERS and
arbitrators and shall be printed in conspicuous ten point bold face
type:
§ 13. Clause 4 of subparagraph (B) of paragraph 8 of subdivision (n)
of section 198-a of the general business law, as added by chapter 635 of
the laws of 2004, is amended to read as follows:
(4) IF, WITHIN THE FIRST EIGHTEEN THOUSAND MILES OF OPERATION OR
DURING THE PERIOD OF TWO YEARS FOLLOWING THE DATE OF ORIGINAL DELIVERY
OF THE MOTOR VEHICLE TO SUCH [CONSUMER] PURCHASER, WHICHEVER IS THE
EARLIER DATE THE MANUFACTURER OF A MOTOR HOME OR ITS AGENTS OR ITS
AUTHORIZED DEALERS OR REPAIR SHOPS TO WHICH THEY REFER A [CONSUMER]
PURCHASER ARE UNABLE TO REPAIR OR CORRECT ANY COVERED DEFECT OR CONDI-
TION WHICH SUBSTANTIALLY IMPAIRS THE VALUE OF THE MOTOR HOME TO THE
S. 4427--A 7
[CONSUMER] PURCHASER AFTER A REASONABLE NUMBER OF ATTEMPTS, THE MOTOR
HOME MANUFACTURER, AT THE OPTION OF THE [CONSUMER] PURCHASER, SHALL
REPLACE THE MOTOR HOME WITH A COMPARABLE MOTOR HOME, OR ACCEPT RETURN OF
THE MOTOR HOME FROM THE [CONSUMER] PURCHASER AND REFUND TO THE [CONSUM-
ER] PURCHASER THE FULL PURCHASE PRICE OR, IF APPLICABLE, THE LEASE PRICE
AND ANY TRADE-IN ALLOWANCE, PLUS FEES AND CHARGES, AS WELL AS THE OTHER
FEES AND CHARGES, INCLUDING BUT NOT LIMITED TO ALL LICENSE FEES, REGIS-
TRATION FEES, AND ANY SIMILAR GOVERNMENTAL CHARGES, LESS AN ALLOWANCE
FOR THE [CONSUMER'S] PURCHASER'S USE OF THE VEHICLE IN EXCESS OF TWELVE
THOUSAND MILES TIMES THE PURCHASE PRICE, OR THE LEASE PRICE IF APPLICA-
BLE, OF THE VEHICLE DIVIDED BY ONE HUNDRED THOUSAND MILES, AND A REASON-
ABLE ALLOWANCE FOR ANY DAMAGE NOT ATTRIBUTABLE TO NORMAL WEAR OR
IMPROVEMENTS.
§ 14. Subdivision (o) of section 198-a of the general business law, as
added by chapter 147 of the laws of 1994, is amended to read as follows:
(o) At the time of purchase or lease of a motor vehicle from an
authorized dealer in this state, the manufacturer shall provide to the
dealer or leaseholder, and the dealer or leaseholder shall provide to
the [consumer] PURCHASER a notice, printed in not less than eight point
bold face type, entitled "New Car Lemon Law Bill of Rights". The text of
such notice shall be identical with the notice required by paragraph two
of subdivision (m) of this section.
§ 15. Paragraph 1 of subdivision a of section 198-b of the general
business law, as amended by chapter 530 of the laws of 1990, is amended
to read as follows:
1. ["Consumer"] "PURCHASER" means the purchaser, or lessee, other than
for purposes of resale, of a used motor vehicle primarily used for
personal, family[,] or household, OR BUSINESS OR COMMERCIAL purposes and
subject to a warranty, and the spouse or child of the purchaser or the
lessee if either such motor vehicle or the lease of such motor vehicle
is transferred to the spouse or child during the duration of any warran-
ty applicable to such motor vehicle, and any other person entitled by
the terms of such warranty to enforce the obligations of the warranty;
§ 16. Paragraphs 1, 2 and 3 of subdivision b of section 198-b of the
general business law, paragraph 1 as amended by chapter 857 of the laws
of 1990, paragraphs 2 and 3 as amended by chapter 444 of the laws of
1989, are amended to read as follows:
1. No dealer shall sell or lease a used motor vehicle to a [consumer]
PURCHASER without giving the [consumer] PURCHASER a written warranty
which shall at minimum apply for the following terms:
(a) If the used motor vehicle has thirty-six thousand miles or less,
the warranty shall be at minimum ninety days or four thousand miles,
whichever comes first.
(b) If the used motor vehicle has more than thirty-six thousand miles,
but less than eighty thousand miles, the warranty shall be at minimum
sixty days or three thousand miles, whichever comes first.
(c) If the used motor vehicle has eighty thousand miles or more but no
more than one hundred thousand miles, the warranty shall be at a minimum
thirty days or one thousand miles, whichever comes first.
2. The written warranty shall require the dealer or his agent to
repair or, at the election of the dealer, reimburse the [consumer]
PURCHASER for the reasonable cost of repairing the failure of a covered
part. Covered parts shall at least include the following items:
(a) Engine. All lubricated parts, water pump, fuel pump, manifolds,
engine block, cylinder head, rotary engine housings and flywheel.
S. 4427--A 8
(b) Transmission. The transmission case, internal parts, and the
torque converter.
(c) Drive axle. Front and rear drive axle housings and internal parts,
axle shafts, propeller shafts and universal joints.
(d) Brakes. Master cylinder, vacuum assist booster, wheel cylinders,
hydraulic lines and fittings and disc brake calipers.
(e) Radiator.
(f) Steering. The steering gear housing and all internal parts, power
steering pump, valve body, piston and rack.
(g) Alternator, generator, starter, ignition system excluding the
battery.
3. Such repair or reimbursement shall be made by the dealer notwith-
standing the fact that the warranty period has expired, provided the
[consumer] PURCHASER notifies the dealer of the failure of a covered
part within the specified warranty period.
§ 17. Subparagraph (i) of paragraph 4 of subdivision b of section
198-b of the general business law, as amended by chapter 444 of the laws
of 1989 and as renumbered by chapter 530 of the laws of 1990, is amended
to read as follows:
(i) if the used motor vehicle is rented to someone other than the
[consumer] PURCHASER as defined in paragraph one of subdivision a of
this section;
§ 18. Paragraph 1 of subdivision c of section 198-b of the general
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]
PURCHASER after a reasonable period of time, the dealer shall accept
return of the used motor vehicle from the [consumer] PURCHASER and
refund to the [consumer] PURCHASER 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 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] PURCHASER
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]
PURCHASER, the wholesale 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 specified in regulations promulgated by the commissioner
of motor vehicles, as adjusted for mileage, improvements, and any major
physical or mechanical defects in the traded-in vehicle at the time of
trade-in. The dealer selling or leasing the used motor vehicle shall
deliver to the [consumer] PURCHASER a written notice including conspicu-
ous language indicating that if the [consumer] PURCHASER should be enti-
tled to a refund pursuant to this section, the value of any vehicle
traded-in by the [consumer] PURCHASER, if the dealer elects to not
return it to the [consumer] PURCHASER, 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
S. 4427--A 9
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] PURCHASER and lienholder, if any, as
their interests may appear on the records of ownership kept by the
department of motor vehicles. If the amount to be refunded to the lien-
holder will be insufficient to discharge the lien, the dealer shall
notify the [consumer] PURCHASER in writing by registered or certified
mail that the [consumer] PURCHASER 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]
PURCHASER shall contain conspicuous language warning the [consumer]
PURCHASER 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] PURCHASER 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] PURCHAS-
ER 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.
§ 19. Subparagraph (b) of paragraph 2 and paragraph 4 of subdivision c
of section 198-b of the general business law, as amended by chapter 444
of the laws of 1989, are amended to read as follows:
(b) The vehicle is out of service by reason of repair or malfunction
or defect for a cumulative total of fifteen or more days during the
warranty period. Said period shall not include days when the dealer is
unable to complete the repair because of the unavailability of necessary
repair parts. The dealer shall be required to exercise due diligence in
attempting to obtain necessary repair parts. Provided, however, that if
a vehicle has been out of service for a cumulative total of forty-five
days, even if a portion of that time is attributable to the unavailabil-
ity of replacement parts, the [consumer] PURCHASER shall be entitled to
the replacement or refund remedies provided in this section.
4. The term of any warranty, service contract or repair insurance, and
the fifteen day out-of-service period, shall be extended by any time
during which repair services are not available to the [consumer]
PURCHASER because of a war, invasion or strike, fire, flood or other
natural disaster.
§ 20. Subdivisions d and e of section 198-b of the general business
law, as amended by chapter 444 of the laws of 1989, paragraph 3 of
subdivision d as amended by chapter 692 of the laws of 1994, are amended
to read as follows:
d. Waiver void. 1. Any agreement entered into by a [consumer] PURCHAS-
ER for the purchase or lease of a used motor vehicle which waives,
limits or disclaims the rights set forth in this article shall be void
as contrary to public policy. Further, if a dealer fails to give the
written warranty required by this article, the dealer nevertheless shall
be deemed to have given said warranty as a matter of law.
S. 4427--A 10
2. Nothing in this section shall in any way limit the rights or reme-
dies which are otherwise available to a [consumer] PURCHASER under any
other law.
3. Notwithstanding paragraph one of this subdivision, this article
shall not apply to used motor vehicles sold for, or in the case of a
lease where the value of the used motor vehicle as agreed to by the
[consumer] PURCHASER and the dealer which vehicle is the subject of the
contract is, less than one thousand five hundred dollars, or to used
motor vehicles with over one hundred thousand miles at the time of sale
or lease if said mileage is indicated in writing at the time of sale or
lease. Further, this article shall not apply to the sale or lease of
historical motor vehicles as defined in section four hundred one of the
vehicle and traffic law.
e. Time of delivery, location of warranty and notice. The written
warranty provided for in subdivision b of this section and the written
notice provided for in subdivision c of this section shall be delivered
to the [consumer] PURCHASER at or before the time the [consumer]
PURCHASER signs the sales or lease contract for the used motor vehicle.
The warranty and the notice may be set forth on one sheet or on separate
sheets. They may be separate from, attached to, or a part of the sales
or lease contract. If they are part of the sales or lease contract, they
shall be separated from the other contract provisions and each headed by
a conspicuous title.
§ 21. The opening paragraph 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, is amended to read as follows:
If a dealer has established or participates in an informal dispute
settlement procedure which complies in all respects with the provisions
of part seven hundred three of title sixteen of the code of federal
regulations the provisions of this article concerning refunds or
replacement shall not apply to any consumer who has not first resorted
to such procedure. Dealers utilizing informal dispute settlement proce-
dures pursuant to this subdivision shall [insure] ENSURE that arbitra-
tors participating in such informal dispute settlement procedures are
familiar with the provisions of this section and shall provide to arbi-
trators and [consumers] PURCHASERS who seek arbitration a copy of the
provisions of this section together with the following notice in
conspicuous ten point bold face type:
§ 22. Paragraphs 2, 3, 4, 5 and 6 of subdivision f of section 198-b of
the general business law, paragraphs 2, 4 and 6 as separately amended by
chapters 444 and 609 of the laws of 1989, paragraph 3 as amended by
chapter 323 of the laws of 1997, paragraph 5 as amended by chapter 487
of the laws of 1990, are amended to read as follows:
2. A dealer shall have up to thirty days from the date of notice by
the [consumer] PURCHASER that the arbitrator's decision has been
accepted to comply with the terms of such decision. Provided, however,
that nothing contained in this subdivision shall impose any liability on
a dealer where a delay beyond the thirty day period is attributable to a
[consumer] PURCHASER who has requested a particular replacement vehicle
or otherwise made compliance impossible within said period.
3. Upon the payment of a prescribed filing fee, a [consumer] PURCHASER
shall have the option of submitting any dispute arising under this
section to an alternate arbitration mechanism established pursuant to
regulations promulgated hereunder by the attorney general. Upon applica-
tion of the [consumer] PURCHASER and payment of the filing fee, the
dealer shall submit to such alternate arbitration.
S. 4427--A 11
Such alternate arbitration shall be conducted by a professional arbi-
trator or arbitration firm appointed by and under regulations estab-
lished by the attorney general. Such mechanism shall ensure the personal
objectivity of its arbitrators and the right of each party to present
its case, to be in attendance during any presentation made by the other
party and to rebut or refute such presentation. In all other respects,
such alternate arbitration mechanism shall be governed by article seven-
ty-five of the civil practice law and rules.
The notice required by paragraph one of this subdivision, entitled
Used Car Lemon Law Bill of Rights, shall be provided to arbitrators and
[consumers] PURCHASERS who seek arbitration under this subdivision.
A dealer shall have thirty days from the date of mailing of a copy of
the arbitrator's decision to such dealer to comply with the terms of
such decision. Failure to comply within the thirty day period shall
entitle the [consumer] PURCHASER to recover, in addition to any other
recovery to which he may be entitled, a fee of twenty-five dollars for
each business day beyond thirty days up to five hundred dollars;
provided however, that nothing in this subdivision shall impose any
liability on a dealer where a delay beyond the thirty day period is
attributable to a [consumer] PURCHASER who has requested a particular
replacement vehicle or otherwise made compliance impossible within said
period.
The commissioner of motor vehicles or any person deputized by him may
deny the application of any person for registration under section four
hundred fifteen of the vehicle and traffic law and suspend or revoke a
registration under such section or refuse to issue a renewal thereof if
he or such deputy determines that such applicant or registrant or any
officer, director, stockholder, or partner, or any other person directly
or indirectly interested in the business has deliberately failed to pay
an arbitration award, which has not been stayed or appealed, rendered in
an arbitration proceeding pursuant to this paragraph for sixty days
after the date of mailing of a copy of the award to the registrant. Any
action taken by the commissioner of motor vehicles pursuant to this
paragraph shall be governed by the procedures set forth in subdivision
nine of section four hundred fifteen of the vehicle and traffic law.
4. In no event shall a [consumer] PURCHASER who has resorted to an
informal dispute settlement procedure be precluded from seeking the
rights or remedies available by law.
5. In an action brought to enforce the provisions of this article, the
court may award reasonable attorney's fees to a prevailing plaintiff or
to a [consumer] PURCHASER who prevails in any judicial action or
proceeding arising out of an arbitration proceeding held pursuant to
paragraph three of this subdivision. In the event a prevailing plaintiff
is required to retain the services of an attorney to enforce collection
of an award granted pursuant to this section, the court may assess
against the dealer reasonable attorney's fees for services rendered to
enforce collection of said award.
6. Any action brought pursuant to this article shall be commenced
within four years of the date of original delivery of the used motor
vehicle to the [consumer] PURCHASER.
§ 23. Subdivision g of section 198-b of the general business law, as
added by chapter 147 of the laws of 1994, is amended to read as follows:
g. Notice of [consumer] PURCHASER rights. At the time of purchase or
lease of a used motor vehicle from a dealer in this state, the dealer
shall provide to the [consumer] PURCHASER a notice, printed in not less
than eight point bold face type, entitled "Used Car Lemon Law Bill of
S. 4427--A 12
Rights". The text of such notice shall be identical with the notice
required by paragraph one of subdivision f of this section.
§ 24. Paragraph 3 of subdivision (b) of section 198-c of the general
business law, as added by chapter 254 of the laws of 2010, is amended to
read as follows:
(3) The time period specified in paragraph one or two of this subdivi-
sion may be shortened if the dealer and [consumer] PURCHASER agree, in
writing, to a shorter time period.
§ 25. This act shall take effect immediately.
