NY State Senate Bill 2021-S5799

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to judiciary
Mar 18, 2021	referred to judiciary

2021-S5799 (ACTIVE) - Details

See Assembly Version of this Bill:: A5618
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: S8456, A2485
2019-2020: S2817, A852
2023-2024: S2766, A4334
2025-2026: S4319

2021-S5799 (ACTIVE) - Summary

Establishes restrictions on consumer and employment contracts.

2021-S5799 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5799

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the general obligations law, in relation to the
provisions of consumer and employment contracts

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to clarify basic precepts in law concerning
contract formation.

 
SUMMARY OF SPECIFIC PROVISIONS:

This bill would give consumers and employees the right to reform
contracts which are not written in plain language or which are not whol-
ly encompassed within a single document. The right to reform is intended
to give effect to the reasonable meaning of the contract, as well as the
reasonable expectations of the parties to the contract.

 
EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER:

This bill would provide clarification concerning the law of contract
formation.

 
JUSTIFICATION:

This bill was adapted from the Model State Consumer & Employee Justice
Enforcement Act, as originally drafted by the National Consumer Law
Center. The bill requires that merchants and employers provide clear
notice of all material contractual terms in plain language that the
consumer or employee can reasonably understand. The bill also allows for
a right of contract reformation, if contractual terms are not contained
within a single document, i.e. without incorporating by reference other
non-contiguous documents.

This bill does not dispense with well-settled rules of contract forma-
tion. Instead, it incorporates them in a way as to give further effect
to the assent which must be manifest in order to hold a consumer or
employee to the terms of the contract.

 
PRIOR LEGISLATIVE HISTORY:

2017-18: 5.8456 (Comrie) I A.2485-A (Simotas) JUDICIARY I Third Reading

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
On the one hundred and eightieth day after it shall become law.

2021-S5799 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5799
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 18, 2021
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee 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.

                                                            LBD09455-01-1

 S. 5799                             2
 
 PARTIES, AND THE COURT MAY EXCLUDE TERMS NOT WRITTEN IN PLAIN ENGLISH OR
 FOUND IN A SEPARATE DOCUMENT.
   5. PRE-EXISTING RULES. THE PROVISIONS OF THIS SECTION SHALL BE APPLIED
 IN  CONJUNCTION  WITH  PRE-EXISTING  RULES REGARDING CONTRACT FORMATION,
 INCLUDING RULES REGARDING REASONABLE NOTICE, AND THE CONDUCT A  CONSUMER
 OR  EMPLOYEE  MUST  MANIFEST  IN  ORDER TO ASSENT TO AN AGREEMENT.   THE
 PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO AGREEMENTS  NEGOTIATED
 WITH ANY LABOR UNION THROUGH COLLECTIVE BARGAINING.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

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Archive: Last Bill Status - In Senate Committee Judiciary Committee

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2021-S5799 (ACTIVE) - Details

2021-S5799 (ACTIVE) - Summary

2021-S5799 (ACTIVE) - Sponsor Memo

2021-S5799 (ACTIVE) - Bill Text download pdf

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Sponsored By

Leroy Comrie

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Actions

2021-S5799 (ACTIVE) - Details

2021-S5799 (ACTIVE) - Summary

2021-S5799 (ACTIVE) - Sponsor Memo

2021-S5799 (ACTIVE) - Bill Text download pdf

Comments