A. 8594--A 2
(ii) any insurance or other costs expended by the lessor for the bene-
fit of the lessee.
(8) "Capitalized cost" means the aggregate deposit, INCLUDING ANY
TRADE-IN ALLOWANCE, and [rental] LEASE payments previously paid to the
lessor for the leased vehicle less service fees.
(9) "AUTHORIZED DEALER" MEANS ANY DEALER OWNED OR OPERATED BY THE
MANUFACTURER OR ITS AGENTS.
(10) "LEASE PAYMENT" MEANS THE ENTIRE MONTHLY PAYMENT PAID BY THE
LESSEE TO THE LESSOR, FOR THE USE OF THE VEHICLE, EXCLUDING TAXES,
SERVICE CONTRACTS, INSURANCE, FEES AND CHARGES.
§ 2. Paragraphs 1 and 2 of subdivision (b) of section 198-a of the
general business law, paragraph 1 as amended by chapter 217 of the laws
of 1990 and paragraph 2 as amended by chapter 279 of the laws of 1989,
are amended to read as follows:
(1) If a new motor vehicle which is [sold and] PURCHASED, LEASED,
TRANSFERRED OR registered in this state does not conform to all express
warranties during the first [eighteen] THIRTY-SIX thousand miles of
operation or during the period of [two] THREE years following the date
of original delivery of the motor vehicle to such consumer, whichever is
the earlier date, the consumer shall during such period report the
nonconformity, defect or condition to the manufacturer, its agent or its
authorized dealer. If the notification is received by the manufacturer's
agent or authorized 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,
notwithstanding the fact that such repairs are made after the expiration
of such period of operation or such [two] THREE 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 of
a nonconformity, defect or condition pursuant to paragraph one of this
subdivision, the consumer 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 manufacturer or its authorized agent fails
to commence such repairs, the manufacturer, at the option of the consum-
er, shall replace the motor vehicle with a comparable motor vehicle, or
accept return of the vehicle from the consumer and refund [to the
consumer] the full purchase price or, if applicable, the lease price
[and any trade-in allowance] plus fees and charges. Such fees and charg-
es shall include but not be limited to all license fees, registration
fees, TITLE FEES, DOCUMENT FEES and any similar governmental charges,
PLUS ANY INCIDENTAL DAMAGES INCLUDING, BUT NOT LIMITED TO, REASONABLE
REPAIR, TOWING, AND RENTAL CAR COSTS INCURRED BY THE CONSUMER, less an
allowance for the consumer's use of the vehicle in excess of the first
[twelve] TWENTY-FOUR 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 improvements.
§ 3. Subdivision c of section 198-a of the general business law, as
amended by chapter 799 of the laws of 1986, paragraph 1 as amended by
chapter 234 of the laws of 1990 and paragraph 2 as amended by chapter 29
of the laws of 1989, is amended to read as follows:
A. 8594--A 3
(c) (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, SAFETY, OR USE of the motor vehicle to the consumer after a
reasonable number of attempts, the manufacturer, at the option of the
consumer, shall replace the motor vehicle with a comparable motor vehi-
cle, or accept return of the vehicle from the consumer and refund [to
the consumer] 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, be made to the dealer
or other authorized agent of the manufacturer who sold such vehicle to
the consumer 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, registra-
tion fees, TITLE FEES, DOCUMENT FEES and any similar governmental charg-
es, PLUS ANY INCIDENTAL DAMAGES INCLUDING, BUT NOT LIMITED TO, REASON-
ABLE REPAIR, TOWING, AND RENTAL CAR COSTS INCURRED BY THE CONSUMER, less
an allowance for the consumer's use of the vehicle in excess of the
first [twelve] TWENTY-FOUR 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 attribut-
able to normal wear or improvements.
(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 and lienholder, if any, as their interests may appear on
the records of ownership kept by the department of motor vehicles.
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 OR AS SET FORTH IN THE LEASE AGREEMENT,
as follows: the lessee shall receive the capitalized cost PLUS FEES AND
CHARGES and the lessor shall receive the lease price less the [aggregate
deposit and rental payments previously paid to the lessor for the leased
vehicle] CAPITALIZED COST, PLUS SERVICE FEES. The terms of the lease
shall be deemed terminated 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.
A. 8594--A 4
(3) It shall be an affirmative defense to any claim under this section
that:
(i) the nonconformity, defect or condition does not substantially
impair such value, SAFETY OR USE; or
(ii) the nonconformity, defect or condition is the result of abuse,
neglect or unauthorized modifications or alterations of the motor vehi-
cle.
§ 4. Subdivisions (d), (e), (g) and (h) of section 198-a of the gener-
al business law, subdivisions (d), (g) and (h) as amended by chapter 799
of the laws of 1986 and subdivision (e) as added by chapter 444 of the
laws of 1983, are amended to read as follows:
(d) It shall be presumed that a reasonable number of attempts have
been undertaken to conform a motor vehicle to the applicable express
warranties, if:
(1) the same nonconformity, defect or condition has been subject to
repair four or more times by the manufacturer or its agents or author-
ized dealers within the first [eighteen] THIRTY-SIX thousand miles of
operation or during the period of [two] THREE years following the date
of original delivery of the motor vehicle to a consumer, whichever is
the earlier date, but such nonconformity, defect or condition continues
to exist; [or]
(2) the vehicle is out of service by reason of repair of one or more
nonconformities, defects or conditions for a cumulative total of thirty
or more calendar days during either period, whichever is the earlier
date; OR
(3) THE NONCONFORMITY, DEFECT OR CONDITION MAY CAUSE DEATH OR SERIOUS
BODILY INJURY OR CREATES A RISK OF FIRE OR EXPLOSION IF THE VEHICLE IS
DRIVEN, AND SUCH NONCONFORMITY, DEFECT OR CONDITION HAS BEEN SUBJECT TO
REPAIR MORE THAN ONE TIME BY THE MANUFACTURER OR ITS AGENTS OR AUTHOR-
IZED DEALERS WITHIN THE FIRST THIRTY-SIX THOUSAND MILES OF OPERATION OR
DURING THE PERIOD OF THREE YEARS FOLLOWING THE DATE OF ORIGINAL DELIV-
ERY OF THE MOTOR VEHICLE TO A CONSUMER, WHICHEVER IS THE EARLIER DATE,
BUT SUCH NONCONFORMITY, DEFECT OR CONDITION CONTINUES TO EXIST.
(e) The term of an express warranty, the [two] THREE year warranty
period and the thirty day out of service period shall be extended by any
time during which repair services are not available to the consumer
because of a war, invasion or strike, fire, flood or other natural
disaster.
(g) If a manufacturer has established an informal dispute settlement
mechanism, such mechanism shall comply in all respects with the
provisions of this section and the provisions of subdivision (c) of this
section concerning refunds or replacement shall not apply IN THE
MANUFACTURER'S INFORMAL DISPUTE SETTLEMENT MECHANISM to any consumer who
has not first resorted to such mechanism. In the event that an arbitra-
tor in such an informal dispute mechanism awards a refund or replacement
vehicle, [he or she] THE ARBITRATOR shall not reduce the award to an
amount less than the full purchase price or the lease price, if applica-
ble, or a vehicle of equal value, plus all fees and charges except to
the extent such reductions are specifically permitted under subdivision
(c) of this section.
(h) A manufacturer shall have up to thirty days from the date the
consumer notifies the manufacturer of [his or her] SUCH CONSUMER'S
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 to recover a fee of [twenty-five] UP TO TWO HUNDRED
FIFTY dollars for each business day of noncompliance up to [five
A. 8594--A 5
hundred] FIVE THOUSAND dollars. Provided, however, that nothing
contained in this subdivision shall impose any liability on a manufac-
turer where a delay beyond the thirty day period is attributable to a
consumer who has requested a replacement vehicle built to order or with
options that are not comparable to the vehicle being replaced or other-
wise made compliance impossible within said period. In no event shall a
consumer who has resorted to an informal dispute settlement mechanism be
precluded from seeking the rights or remedies available by law.
§ 5. Paragraph 2 of subdivision (m) of section 198-a of the general
business law, as added by chapter 799 of the laws of 1986, subparagraph
1 as amended by chapter 217 of the laws of 1990 and subparagraph 4 as
amended by chapter 263 of the laws of 1990, is amended to read as
follows:
(2) The following notice shall be provided to consumers and arbitra-
tors and shall be printed in conspicuous ten point bold face type:
NEW CAR LEMON LAW BILL OF RIGHTS
(1) IN ADDITION TO ANY WARRANTIES OFFERED BY THE MANUFACTURER, YOUR
NEW CAR, IF PURCHASED [AND], LEASED, TRANSFERRED, OR REGISTERED IN NEW
YORK STATE, IS WARRANTED AGAINST ALL MATERIAL DEFECTS FOR [EIGHTEEN]
THIRTY-SIX THOUSAND MILES OR [TWO] THREE YEARS FROM ORIGINAL DELIVERY TO
A CONSUMER, WHICHEVER COMES FIRST.
(2) YOU MUST REPORT ANY PROBLEMS TO THE MANUFACTURER, ITS AGENT, OR
AUTHORIZED DEALER.
(3) UPON NOTIFICATION, THE PROBLEM MUST BE CORRECTED FREE OF CHARGE.
(4) IF THE SAME PROBLEM CANNOT BE REPAIRED AFTER FOUR OR MORE
ATTEMPTS; OR IF THE SAME PROBLEM CANNOT BE REPAIRED AFTER ONE OR MORE
ATTEMPTS AND POSES A RISK OF DEATH OR SERIOUS BODILY INJURY; OR IF YOUR
CAR IS OUT OF SERVICE TO REPAIR A PROBLEM FOR A TOTAL OF THIRTY DAYS
DURING THE WARRANTY PERIOD; OR IF THE MANUFACTURER OR ITS AGENT REFUSES
TO REPAIR A SUBSTANTIAL DEFECT OR CONDITION WITHIN TWENTY DAYS OF
RECEIPT OF NOTICE SENT BY YOU TO THE MANUFACTURER BY CERTIFIED MAIL,
RETURN RECEIPT REQUESTED; THEN YOU MAY BE ENTITLED TO EITHER A COMPARA-
BLE CAR OR A REFUND OF YOUR PURCHASE PRICE[,] OR, IF A LEASE, YOUR
AGGREGATE DEPOSIT AND ANY TRADE-IN ALLOWANCE, PLUS MOST OF YOUR LEASE
PAYMENTS, PLUS SALES TAXES, LICENSE AND REGISTRATION FEES[,] AND INCI-
DENTAL DAMAGES INCLUDING REASONABLE REPAIR, TOWING, AND RENTAL CAR
COSTS, MINUS A MILEAGE ALLOWANCE ONLY IF THE VEHICLE HAS BEEN DRIVEN
MORE THAN [12,000] 24,000 MILES. SPECIAL NOTIFICATION REQUIREMENTS MAY
APPLY TO MOTOR HOMES.
(5) A MANUFACTURER MAY DENY LIABILITY IF THE PROBLEM IS CAUSED BY
ABUSE, NEGLECT, OR UNAUTHORIZED MODIFICATIONS OF THE CAR.
(6) A MANUFACTURER MAY REFUSE TO EXCHANGE A COMPARABLE CAR OR REFUND
YOUR PURCHASE PRICE OR, IF A LEASE, YOUR AGGREGATE DEPOSIT AND ANY
TRADE-IN ALLOWANCE, PLUS MOST OF YOUR LEASE PAYMENTS IF THE PROBLEM DOES
NOT SUBSTANTIALLY IMPAIR THE VALUE, SAFETY, OR USE OF YOUR CAR.
(7) IF A MANUFACTURER HAS ESTABLISHED AN ARBITRATION PROCEDURE, THE
MANUFACTURER MAY REFUSE IN ITS ARBITRATION PROGRAM TO EXCHANGE A COMPA-
RABLE CAR OR REFUND YOUR PURCHASE PRICE OR, IF A LEASE, YOUR AGGREGATE
DEPOSIT AND ANY TRADE-IN ALLOWANCE, PLUS MOST OF YOUR LEASE PAYMENTS
UNTIL YOU FIRST RESORT TO [THE] ITS ARBITRATION PROCEDURE.
(8) IF THE MANUFACTURER DOES NOT HAVE AN ARBITRATION PROCEDURE, YOU
MAY RESORT TO ANY REMEDY BY LAW AND MAY BE ENTITLED TO YOUR ATTORNEY'S
FEES IF YOU PREVAIL.
(9) NO CONTRACT OR AGREEMENT CAN VOID ANY OF THESE RIGHTS.
(10) AS AN ALTERNATIVE TO THE ARBITRATION PROCEDURE MADE AVAILABLE
THROUGH THE MANUFACTURER, YOU MAY INSTEAD CHOOSE TO SUBMIT YOUR CLAIM TO
A. 8594--A 6
AN INDEPENDENT ARBITRATOR, APPROVED BY THE ATTORNEY GENERAL. YOU MAY
HAVE TO PAY A FEE FOR SUCH AN ARBITRATION. CONTACT YOUR LOCAL CONSUMER
OFFICE OR ATTORNEY GENERAL'S OFFICE TO FIND OUT HOW TO ARRANGE FOR INDE-
PENDENT ARBITRATION.
§ 6. Paragraphs 1 and 2 of subdivision a of section 198-b of the
general business law, paragraph 1 as amended by chapter 530 of the laws
of 1990 and paragraph 2 as amended by chapter 485 of the laws of 2003,
are amended to read as follows:
1. "Consumer" means the purchaser, [or] lessee, OR TRANSFEREE other
than for purposes of resale, of a used motor vehicle primarily used for
personal, family, or household 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 warranty applicable to such motor
vehicle, and any other person entitled by the terms of such warranty to
enforce the obligations of the warranty;
2. "Used motor vehicle" means a motor vehicle, excluding motor homes
and off-road vehicles, which has been purchased, leased, [or] trans-
ferred, OR REGISTERED either after [eighteen] THIRTY-SIX thousand miles
of operation or [two] THREE years from the date of original delivery TO
A CONSUMER, whichever is earlier;
§ 7. Paragraphs 1 and 2 of subdivision b of section 198-b of the
general business law, paragraph 1 as amended by chapter 857 of the laws
of 1990 and paragraph 2 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
without giving the consumer a written warranty which shall at minimum
apply for the following terms:
(a) If the used motor vehicle has [thirty-six] EIGHTY thousand miles
or less, the warranty shall be at minimum [ninety days or four] TWELVE
MONTHS OR TWELVE thousand miles, whichever comes first.
(b) If the used motor vehicle has more than [thirty-six] EIGHTY thou-
sand miles, but [less] NO MORE than [eighty] ONE HUNDRED thousand miles,
the warranty shall be at minimum [sixty days or three] SIX MONTHS OR SIX
thousand miles, whichever comes first.
(c) If the used motor vehicle has [eighty] MORE THAN ONE HUNDRED thou-
sand miles [or more] but no more than [one] TWO hundred thousand miles,
the warranty shall be at a minimum [thirty days or one] THREE MONTHS OR
THREE thousand miles, whichever comes first.
2. The written warranty shall require the dealer or [his] SUCH DEAL-
ER'S agent to repair or, at the election of the dealer, reimburse the
consumer 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.
(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.
A. 8594--A 7
(H) OTHER RELEVANT PARTS, INCLUDING BUT NOT LIMITED TO, MODERN CRIT-
ICAL SYSTEMS, COMPUTERS, OR MODULES SUCH AS NAVIGATION SYSTEMS, LANE
CHANGING SOFTWARE, DRIVER ASSISTANCE OR AUTOMATION SOFTWARE.
§ 8. Paragraph 3 of subdivision d of section 198-b of the general
business law, as amended by chapter 692 of the laws of 1994, is amended
to read as follows:
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 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] TWO 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.
§ 9. Paragraphs 1 and 2 of subdivision c and paragraphs 1 and 3 of
subdivision f of section 198-b of the general business law, paragraphs 1
and 2 of subdivision c as amended by chapter 444 of the laws of 1989,
paragraph 1 of subdivision f as separately amended by chapters 609 and
444 of the laws of 1989, subparagraphs 2 and 3 of paragraph 1 of subdi-
vision f as added by chapter 469 of the laws of 1994 and paragraph 3 of
subdivision f as amended by chapter 323 of the laws of 1997, are
amended to read as follows:
1. If the dealer or [his] THE DEALER'S agent fails to correct a
malfunction or defect as required by the warranty specified in this
section which substantially impairs the value, SAFETY, OR USE of the
used motor vehicle to the consumer after a reasonable period of time,
the dealer shall accept return of the used motor vehicle from the
consumer and refund to the consumer 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 under the lease
contract. In determining the purchase price to be refunded or in deter-
mining 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, 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
a written notice including conspicuous language indicating that if the
consumer should be entitled to a refund pursuant to this section, the
value of any vehicle traded-in by the consumer, if the dealer elects to
not return it to the consumer, 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, KELLEY BLUE BOOK WHOLESALE
VALUE OR THE TRADE-IN ALLOWANCE LISTED ON THE LEASE AGREEMENT or such
other guide as may be approved by the commissioner of motor vehicles, as
A. 8594--A 8
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 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 lienholder will be insuf-
ficient to discharge the lien, the dealer shall notify the consumer in
writing by registered or certified mail that the consumer 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 shall contain conspicuous language warning the
consumer 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 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 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, SAFETY OR USE; or
(b) The malfunction or defect is the result of abuse, neglect or
unreasonable modifications or alterations of the used motor vehicle.
2. It shall be presumed that a dealer has had a reasonable opportunity
to correct a malfunction or defect in a used motor vehicle, if:
(a) The same malfunction or defect has been subject to repair three or
more times by the selling or leasing dealer or [his] THEIR agent within
the warranty period, but such malfunction or defect continues to exist;
[or]
(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 shall be entitled to the replace-
ment or refund remedies provided in this section; OR
(C) THE MALFUNCTION OR DEFECT MAY CAUSE DEATH OR SERIOUS BODILY INJURY
OR CREATES A RISK OF FIRE OR EXPLOSION IF THE VEHICLE IS DRIVEN, AND
SUCH MALFUNCTION OR DEFECT HAS BEEN SUBJECT TO REPAIR MORE THAN ONE TIME
BY THE SELLING OR LEASING DEALER OR THEIR AGENT WITHIN THE WARRANTY
PERIOD, BUT SUCH MALFUNCTION OR DEFECT CONTINUES TO EXIST.
1. 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 who seek arbitration a copy of the provisions of
A. 8594--A 9
this section together with the following notice in conspicuous ten point
bold face type:
USED CAR LEMON LAW BILL OF RIGHTS
1. If you purchase a used car for more than one thousand five hundred
dollars, or lease a used car where you and the dealer have agreed that
the car's value is more than one thousand five hundred dollars, from
anyone selling or leasing three or more used cars a year, you must be
given a written warranty.
2. If your used car has [18,000] 36,000 miles or less, you may be
protected by the new car lemon law.
3. (a) If your used car has more than [18,000] 36,000 miles and up to
and including [36,000] 80,000 miles, a warranty must be provided for at
least [90 days or 4,000] 12 MONTHS OR 12,000 miles, whichever comes
first.
(b) If your used car has more than [36,000] 80,000 miles but less than
[80,000] 100,000 miles, a warranty must be provided for at least [60
days or 3,000] 6 MONTHS OR 6,000 miles, whichever comes first.
(c) If your used car has [80,000] 100,000 miles or more but no more
than [100,000] 200,000 miles, a warranty must be provided for at least
[30 days or 1,000] 3 MONTHS OR 3,000 miles, whichever comes first. Cars
with over [100,000] 200,000 miles are not covered.
4. If your engine, transmission, drive axle, brakes, radiator, steer-
ing, alternator, generator, starter, [or] ignition system (excluding the
battery), OR OTHER RELEVANT PARTS OR ELECTRONIC SYSTEMS are defective,
the dealer or [his] THEIR agent must repair or, if [he] SUCH DEALER so
chooses, reimburse you for the reasonable cost of repair.
5. If the same problem cannot be repaired after three or more
attempts, OR IF THE SAME PROBLEM CANNOT BE REPAIRED AFTER ONE OR MORE
ATTEMPTS AND POSES A RISK OF DEATH OR SERIOUS BODILY INJURY, you are
entitled to return the car and receive a refund of your purchase price
or of all payments made under your lease contract, and of sales tax and
fees, minus a reasonable allowance for any damage not attributable to
normal usage or wear, and, in the case of a lease contract, a cancella-
tion of all further payments you are otherwise required to make under
the lease contract.
6. If your car is out of service to repair a problem for a total of
fifteen days or more during the warranty period you are entitled to
return the car and receive a refund of your purchase price or of all
payments made under your lease contract, INCLUDING THE WHOLESALE VALUE
OF ANY TRADE-IN, and of sales tax and fees, minus a reasonable allowance
for any damage not attributable to normal usage or wear, and, in the
case of a lease contract, a cancellation of all further payments you are
otherwise required to make under the lease contract.
7. A dealer may put into the written warranty certain provisions which
will prohibit your recovery under certain conditions; however, the deal-
er may not cause you to waive any rights under this law.
8. A dealer may refuse to refund your purchase price, or the payments
made under your lease contract, if the problem does not substantially
impair the value, SAFETY, OR USE of your car, or if the problem is
caused by abuse, neglect, or unreasonable modification.
9. If a dealer has established an arbitration procedure, the dealer
may refuse to refund your purchase price OR LEASE PAYMENTS IN ITS ARBI-
TRATION PROCEDURE until you first resort to the procedure. If the dealer
does not have an arbitration procedure, you may resort to any remedy
provided by law and may be entitled to your attorney's fees if you
prevail.
A. 8594--A 10
10. As an alternative to the arbitration procedure made available
through the dealer you may instead choose to submit your claim to an
independent arbitrator, approved by the attorney general. You may have
to pay a fee for such an arbitration. Contact your local consumer office
or attorney general's office to find out how to arrange for independent
arbitration.
11. If any dealer refuses to honor your rights or you are not satis-
fied by the informal dispute settlement procedure, complain to the New
York State Attorney General, Executive Office, Capitol, Albany, N.Y.
12224.
3. Upon the payment of a prescribed filing fee, a consumer 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 application of the
consumer and payment of the filing fee, the dealer shall submit to such
alternate arbitration.
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 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 to recover, in addition to any other recovery to
which [he] SUCH CONSUMER may be entitled, a fee of [twenty-five] TWO
HUNDRED FIFTY dollars for each business day beyond thirty days up to
[five hundred] FIVE THOUSAND 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 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]
SUCH COMMISSIONER may deny the application of any person for registra-
tion 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] SUCH COMMISSIONER or such deputy deter-
mines that such applicant or registrant or any officer, director, stock-
holder, or partner, or any other person directly or indirectly inter-
ested 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.
§ 10. This act shall take effect 1 year after it shall have become a
law.