Amd Art 11-A Art head, S399-w, add SS198-d & 198-e, Gen Bus L; amd S1139, Tax L
Enacts the "vessel lemon law" to protect consumers purchasing or leasing boats; requires manufacturers of defective vessels to conform such vessels to the terms of their warranties; provides for replacement or refund in the event of failure to do so; establishes procedures similar to those for new automobiles.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2260
SPONSOR: Englebright (MS) TITLE OF BILL: An act to amend the general business law and the tax
law, in relation to warranties for vessels
PURPOSE OR GENERAL IDEA OF THE BILL: This bill would enact a "Lemon
Law" for the protection of consumers who purchase boats.
SUMMARY OF PROVISIONS: This bill would add two new sections, 198-c and
198-d to the General Business Law to enact the "VESSEL LEMON LAW". This
bill requires manufacturers of boats purchased by consumers to conform
their boats to their warranties in the event that a boat should fail to
conform. The onus is on the manufacturer rather than the retail dealer.
In the event of a manufacturer's failure to, in effect, honor the
warranty, the manufacturer must provide a replacement boat or repurchase
the boat from the consumer.
There is a provision to make a consumer liable for a manufacturer's
costs and attorney's fees in the event that the consumer files a claim
in bad faith.
Manufacturers may establish a dispute resolution procedure and have it
certified by the state consumer protection board. The state consumer
protection board shall screen complaints before they are brought to an
arbitration board. Arbitration boards shall operate under the aegis of
the department of law and may hear complaints in the absence of a
dispute resolution procedure or if a consumer is dissatisfied with the
outcome of such a procedure. A consumer retains the right to file a suit
in court.
Violations of the provisions of this article by a manufacturer are
defined as unfair practices for which the Attorney General may seek to
recover a civil penalty.
Manufacturers are required to inform subsequent transferees the exist-
ence and nature of nonconformities of returned vessels. This bill would
preempt local legislation.
JUSTIFICATION: When it was found that many consumers experienced
difficulties with the quality of new and used motor vehicles, a "Lemon
Law" was enacted to protect consumers. The impact of this legislation is
simply to ensure that a consumer gets what he or she pays for. Similar
problems with manufacturers' warranties and vessel quality exist in the
marketplace for boats. This bill would establish criteria and procedures
to ensure that a consumer who pays good money for a boat, with a warran-
ty, gets a boat that conforms to the warranty for which the consumer is
paying.
LEGISLATIVE HISTORY: 03/30/99 referred to consumer affairs and
protection (A.3743) 01/05/00 referred to consumer affairs and protection
03/06/01 referred to consumer affairs and protection (A.6472) 01/09/02
referred to consumer affairs and protection 02/06/03 referred to consum-
er affairs and protection (A.3541) 01/07/04 referred to consumer affairs
and protection 2007-08 A874 referred to consumer affairs and protection
2009-10 A1740 referred to consumer affairs and protection 2011-12 A3822
consumer affairs and protection 2013-14 A2433 referred to consumer
affairs and protection
FISCAL IMPLICATIONS: Minimal
EFFECTIVE DATE: This act shall take effect on the first of January
next succeeding the date on which it shall have become a law; provided
that the commissioners of motor vehicles, taxation and finance and
parks, recreation and historic preservation and the Attorney General are
authorized to promulgate any and all rules and regulations and take any
other measures necessary to implement this act on its effective date on
or before such date.
