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This entry was published on 2014-09-22
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SECTION 417-A
Mandatory disclosures by sellers prior to resale
Vehicle & Traffic (VAT) CHAPTER 71, TITLE 4, ARTICLE 16
§ 417-a. Mandatory disclosures by sellers prior to resale. 1.
Certificate of prior use by dealer. (a) Upon the sale or transfer of
title by a dealer of any second-hand passenger motor vehicle, the dealer
shall execute and deliver to the buyer an instrument in writing in a
form prescribed by the commissioner which shall set forth the nature of
the principal prior use of such vehicle when the dealer knows or has
reason to know that such use was as a taxicab, rental vehicle, police
vehicle, or vehicle which has been repurchased pursuant to either
section one hundred ninety-eight-a or one hundred ninety-eight-b of the
general business law, a similar statute of another state, or an
arbitration or alternative dispute procedure.

(b) Upon the sale or transfer of title by a dealer of any passenger
motor vehicle that the dealer knows or has reason to know was previously
used as a driver education vehicle, the dealer shall execute and deliver
to the buyer an instrument in writing in a form prescribed by the
commissioner acknowledging such prior use.

2. Certificate of prior nonconformity by manufacturer or dealer. Upon
the sale or transfer of title by a manufacturer, its agent or any dealer
of any second-hand motor vehicle, previously returned to a manufacturer
or dealer for nonconformity to its warranty or after final
determination, adjudication or settlement pursuant to section one
hundred ninety-eight-a or one hundred ninety-eight-b of the general
business law, the manufacturer or dealer shall execute and deliver to
the buyer an instrument in writing in a form prescribed by the
commissioner setting forth the following information in ten point, all
capital type: "IMPORTANT: THIS VEHICLE WAS RETURNED TO THE MANUFACTURER
OR DEALER BECAUSE IT DID NOT CONFORM TO ITS WARRANTY AND THE DEFECT OR
CONDITION WAS NOT FIXED WITHIN A REASONABLE TIME AS PROVIDED BY NEW YORK
LAW." Such notice that a vehicle was returned to the manufacturer or
dealer because it did not conform to its warranty shall also be
conspicuously printed on the motor vehicle's certificate of title.

3. Violation. The failure of a dealer to deliver to the buyer the
instrument required by this section or the delivery of an instrument
containing false or misleading information shall constitute a violation
of this section.

4. Private Remedy. A consumer injured by a violation of this section
may bring an action to recover damages. Judgment may be entered for
three times the actual damages suffered by a consumer or one hundred
dollars, whichever is greater. A court also may award reasonable
attorneys' fees to a prevailing plaintiff buyer.

5. a. Action by the attorney general. Upon any violation of this
section, an application may be made by the attorney general in the name
of the people of the state of New York to a court or justice having
jurisdiction to issue an injunction, and upon notice to the defendant of
not less than five days, to enjoin and restrain the continuance of the
violation. If it shall appear to the satisfaction of the court or
justice that the defendant has violated this section, an injunction may
be issued by the court or justice, enjoining and restraining any further
violation, without requiring proof that any person has, in fact, been
injured or damaged thereby. In any such proceeding, the court may make
allowances to the attorney general as provided in paragraph six of
subdivision (a) of section eighty-three hundred three of the civil
practice law and rules, and direct restitution.

b. Whenever the court shall determine that a violation of this section
has occurred, it may impose a civil penalty of not more than one
thousand dollars for each violation. In connection with an application
made under this subdivision, the attorney general is authorized to take
proof and to make a determination of the relevant facts and to issue
subpoenas in accordance with the civil practice law and rules.