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Assembly Bill A5618

2021-2022 Legislative Session

Establishes restrictions on consumer and employment contracts

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Archive: Last Bill Status - In Senate Committee Judiciary Committee

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2021-A5618 (ACTIVE) - Details

See Senate Version of this Bill:
S5799
Current Committee:
Senate Judiciary
Law Section:
General Obligations Law
Laws Affected:
Add §5-303, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2015-2016: A9991
2017-2018: A2485, S8456
2019-2020: A852, S2817
2023-2024: A4334, S2766
2025-2026: S4319

2021-A5618 (ACTIVE) - Summary

Establishes restrictions on consumer and employment contracts.

2021-A5618 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5618
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 22, 2021
                                ___________
 
 Introduced  by M. of A. HYNDMAN -- 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:
   §  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

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