1. The Laws of New York
  2. Consolidated Laws
  3. General Business
  4. Article 26: Miscellaneous

Section 396-P*2 Contracts for the sale of new motor vehicles

General Business (GBS)

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 unenforceable.

  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