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This entry was published on 2014-09-22
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Contracts for the sale of new motor vehicles
General Business (GBS) CHAPTER 20, ARTICLE 26
* § 396-p. Contracts for the sale of new motor vehicles. 1. Any
covenant or agreement in connection with or collateral to any contract
entered into between

(a) a manufacturer or distributor of new motor vehicles and a retail
dealer thereof, or

(b) a retail dealer of new motor vehicles and a consumer,
pursuant to which the price of such motor vehicle to the dealer or to
the consumer may be increased after such contract has been entered into
shall be deemed to be void as against public policy and wholly

2. Every contract provided for in subdivision one of this section
shall contain a conspicuous provision in bold face type stating that the
price contained in such contract is the final contract price to which
the parties have agreed, and that no additional fee or charge may be
imposed or collected. The provisions of this section shall be limited to
the sale of those new motor vehicles for which the dealer has a bona
fide customer order as evidenced by a written sales agreement with a
retail customer.

3. If a retail dealer of new motor vehicles accepts a deposit from a
consumer but does not have a bona fide customer order as evidenced by a
written sales agreement, that dealer shall give the consumer a written
form indicating what, if any, options or equipment are desired by the
consumer. This form shall be signed by the consumer and state
conspicuously on its face:

"This Is Not An Order Form. There Is No Guarantee That The Motor
Vehicle Offered To You Will Match The Description Indicated On This Form
Or Will Contain These And No Other Options. Should You Decide Not To
Purchase The Motor Vehicle, You Have The Right To Obtain A Full Refund
Of Your Deposit."

4. If a retail dealer of new motor vehicles accepts a deposit from a
consumer pursuant to a written contract for the purchase of a new motor
vehicle, such contract shall contain a provision setting forth the
estimated delivery date of the automobile and the place of delivery and
a statement in immediate proximity to the estimated delivery date that,
if the automobile has not been delivered in accordance with the contract
within thirty days following such estimated delivery date, the consumer
has the right to cancel the contract and to receive a full refund,
unless the delay in delivery is attributable to the consumer.

5. (a) Prior to the sale and delivery of a new motor vehicle, a retail
dealer or employee of a retail dealer shall provide written notification
to the consumer of any repairs undertaken to repair physical damage with
a retail value in excess of five percent of the lesser of the
manufacturer's or distributor's suggested retail price performed after
shipment from the manufacturer to the dealer, including damage to the
vehicle while in transit. This notice requirement shall not apply to
identical replacement of stolen or damaged accessories or their
components. This dollar amount shall include the cost of the retail
charge for parts and labor, at the dealer's stated labor rate.

(b) If a retail dealer has provided notice to a consumer pursuant to
paragraph (a) of this subdivision, the consumer shall be entitled to
cancel the purchase order or other documentation of intent to purchase
such vehicle and receive a full refund for any deposit made pursuant to
this transaction.

(c) If a retail dealer has failed to provide notice to a consumer
pursuant to paragraph (a) of this subdivision, the consumer shall be
entitled to a full refund of the purchase price of the vehicle, any
trade-in allowance plus fees and charges within four months after the
date of purchase. 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 use of the vehicle in
excess of one thousand miles for each month or part thereof which has
expired since sale and delivery of the vehicle and the date the consumer
surrenders the vehicle to the retail dealer to receive a refund pursuant
to this subdivision, and a reasonable allowance for any damage not
attributable to normal wear or usage. The amount of the deduction for
mileage in excess of the appropriate allowed amount shall be determined
by dividing the mileage in excess of the allowed amount by one hundred
thousand miles and multiplying the result times the purchase price.
Adjustment shall also be made for any modifications made by the
purchaser after delivery of the vehicle which either increase or
decrease the market value of the vehicle. A dealer which accepts return
of the motor vehicle because notice of repairs was not provided in
accordance with this subdivision shall notify the commissioner of the
department of motor vehicles of such return. 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 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.

(d) Any manufacturer, distributor or retail dealer selling or
transferring a new motor vehicle which has been subjected to repairs of
a value described in this subdivision, shall notify any retail dealer to
whom such new motor vehicle so repaired is sold or transferred. Such
notice shall be in writing, advise of such repairs, and be provided
prior to the receipt of any payment for such motor vehicle. If the
manufacturer, distributor, or retail dealer shall fail to provide such
notice, any retail dealer suffering a loss by reason of such failure
shall be entitled to reimbursement from the manufacturer, distributor,
or retail dealer who has failed to provide such notice.

6. Any dealer or employee of a dealer who violates any of the
provisions of this section shall be subject to a civil penalty not to
exceed fifty dollars for the first offense and two hundred fifty dollars
for the second and each subsequent offense.

* NB There are 2 396-p's