Provides certain warranties and protections for purchasers of new and used motor vehicles; includes commercial and business purchasers under the Lemon Law.
STATE OF NEW YORK
________________________________________________________________________
3541
2025-2026 Regular Sessions
IN ASSEMBLY
January 28, 2025
___________
Introduced by M. of A. RAJKUMAR, STIRPE, EACHUS, KELLES, SAYEGH, BRABE-
NEC, DeSTEFANO -- read once and referred to the Committee on Consumer
Affairs and Protection
AN ACT to amend the general business law, in relation to warranties and
protections for purchasers of new and used motor vehicles
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraphs 1 and 5 of subdivision (a) of section 198-a of
2 the general business law, paragraph 1 as amended by chapter 530 of the
3 laws of 1990, paragraph 5 as added by chapter 799 of the laws of 1986,
4 are amended to read as follows:
5 (1) ["Consumer"] "Purchaser" means the purchaser, lessee or transfer-
6 ee, other than for purposes of resale, of a motor vehicle which is used
7 primarily for personal, family or household, or commercial or business
8 purposes and any other person entitled by the terms of the manufactur-
9 er's warranty to enforce the obligations of such warranty;
10 (5) "Lessee" means any [consumer] purchaser who leases a motor vehicle
11 pursuant to a written lease agreement which provides that the lessee is
12 responsible for repairs to such motor vehicle.
13 § 2. Subdivision (b) of section 198-a of the general business law, as
14 amended by chapter 279 of the laws of 1989, paragraph 1 as amended by
15 chapter 217 of the laws of 1990, is amended to read as follows:
16 (b) (1) If a new motor vehicle which is sold and registered in this
17 state does not conform to all express warranties during the first eigh-
18 teen thousand miles of operation or during the period of two years
19 following the date of original delivery of the motor vehicle to such
20 [consumer] purchaser, whichever is the earlier date, the [consumer]
21 purchaser shall during such period report the nonconformity, defect or
22 condition to the manufacturer, its agent or its authorized dealer. If
23 the notification is received by the manufacturer's agent or authorized
24 dealer, the agent or dealer shall within seven days forward written
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07101-01-5
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1 notice thereof to the manufacturer by certified mail, return receipt
2 requested, and shall include in such notice a statement indicating
3 whether or not such repairs have been undertaken. The manufacturer, its
4 agent or its authorized dealer shall correct said nonconformity, defect
5 or condition at no charge to the [consumer] purchaser, notwithstanding
6 the fact that such repairs are made after the expiration of such period
7 of operation or such two year period.
8 (2) If a manufacturer's agent or authorized dealer refuses to under-
9 take repairs within seven days of receipt of the notice by a [consumer]
10 purchaser of a nonconformity, defect or condition pursuant to paragraph
11 one of this subdivision, the [consumer] purchaser may immediately
12 forward written notice of such refusal to the manufacturer by certified
13 mail, return receipt requested. The manufacturer or its authorized
14 agent shall have twenty days from receipt of such notice of refusal to
15 commence such repairs. If within such twenty day period, the manufactur-
16 er or its authorized agent fails to commence such repairs, the manufac-
17 turer, at the option of the [consumer] purchaser, shall replace the
18 motor vehicle with a comparable motor vehicle, or accept return of the
19 vehicle from the [consumer] purchaser and refund to the [consumer]
20 purchaser the full purchase price or, if applicable, the lease price and
21 any trade-in allowance plus fees and charges. Such fees and charges
22 shall include but not be limited to all license fees, registration fees
23 and any similar governmental charges, less an allowance for the [consum-
24 er's] purchaser's use of the vehicle in excess of the first twelve thou-
25 sand miles of operation pursuant to the mileage deduction formula
26 defined in paragraph four of subdivision (a) of this section, and a
27 reasonable allowance for any damage not attributable to normal wear or
28 improvements.
29 § 3. Paragraphs 1 and 2 of subdivision (c) of section 198-a of the
30 general business law, paragraph 1 as amended by chapter 234 of the laws
31 of 1990, paragraph 2 as amended by chapter 29 of the laws of 1989, are
32 amended to read as follows:
33 (1) If, within the period specified in subdivision (b) of this
34 section, the manufacturer or its agents or authorized dealers are unable
35 to repair or correct any defect or condition which substantially impairs
36 the value of the motor vehicle to the [consumer] purchaser after a
37 reasonable number of attempts, the manufacturer, at the option of the
38 [consumer] purchaser, shall replace the motor vehicle with a comparable
39 motor vehicle, or accept return of the vehicle from the [consumer]
40 purchaser and refund to the [consumer] purchaser the full purchase price
41 or, if applicable, the lease price and any trade-in allowance plus fees
42 and charges. Any return of a motor vehicle may, at the option of the
43 [consumer] purchaser, be made to the dealer or other authorized agent of
44 the manufacturer who sold such vehicle to the [consumer] purchaser or to
45 the dealer or other authorized agent who attempted to repair or correct
46 the defect or condition which necessitated the return and shall not be
47 subject to any further shipping charges. Such fees and charges shall
48 include but not be limited to all license fees, registration fees and
49 any similar governmental charges, less an allowance for the [consumer's]
50 purchaser's use of the vehicle in excess of the first twelve thousand
51 miles of operation pursuant to the mileage deduction formula defined in
52 paragraph four of subdivision (a) of this section, and a reasonable
53 allowance for any damage not attributable to normal wear or improve-
54 ments.
55 (2) A manufacturer which accepts return of the motor vehicle because
56 the motor vehicle does not conform to its warranty shall notify the
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1 commissioner of the department of motor vehicles that the motor vehicle
2 was returned to the manufacturer for nonconformity to its warranty and
3 shall disclose, in accordance with the provisions of section four
4 hundred seventeen-a of the vehicle and traffic law prior to resale
5 either at wholesale or retail, that it was previously returned to the
6 manufacturer for nonconformity to its warranty. Refunds shall be made to
7 the [consumer] purchaser and lienholder, if any, as their interests may
8 appear on the records of ownership kept by the department of motor vehi-
9 cles. Refunds shall be accompanied by the proper application for credit
10 or refund of state and local sales taxes as published by the department
11 of taxation and finance and by a notice that the sales tax paid on the
12 purchase price, lease price or portion thereof being refunded is refund-
13 able by the commissioner of taxation and finance in accordance with the
14 provisions of subdivision (f) of section eleven hundred thirty-nine of
15 the tax law. If applicable, refunds shall be made to the lessor and
16 lessee as their interests may appear on the records of ownership kept by
17 the department of motor vehicles, as follows: the lessee shall receive
18 the capitalized cost and the lessor shall receive the lease price less
19 the aggregate deposit and rental payments previously paid to the lessor
20 for the leased vehicle. The terms of the lease shall be deemed termi-
21 nated contemporaneously with the date of the arbitrator's decision and
22 award and no penalty for early termination shall be assessed as a result
23 thereof. Refunds shall be accompanied by the proper application form for
24 credit or refund of state and local sales tax as published by the
25 department of taxation and finance and a notice that the sales tax paid
26 on the lease price or portion thereof being refunded is refundable by
27 the commissioner of taxation and finance in accordance with the
28 provisions of subdivision (f) of section eleven hundred thirty-nine of
29 the tax law.
30 § 4. Subdivision (h) of section 198-a of the general business law, as
31 amended by chapter 799 of the laws of 1986, is amended to read as
32 follows:
33 (h) A manufacturer shall have up to thirty days from the date the
34 [consumer] purchaser notifies the manufacturer of [his or her] their
35 acceptance of the arbitrator's decision to comply with the terms of that
36 decision. Failure to comply with the thirty day limitation shall also
37 entitle the [consumer] purchaser to recover a fee of twenty-five dollars
38 for each business day of noncompliance up to five hundred dollars.
39 Provided, however, that nothing contained in this subdivision shall
40 impose any liability on a manufacturer where a delay beyond the thirty
41 day period is attributable to a [consumer] purchaser who has requested a
42 replacement vehicle built to order or with options that are not compara-
43 ble to the vehicle being replaced or otherwise made compliance impossi-
44 ble within said period. In no event shall a [consumer] purchaser who has
45 resorted to an informal dispute settlement mechanism be precluded from
46 seeking the rights or remedies available by law.
47 § 5. Subdivision (i) of section 198-a of the general business law, as
48 amended by chapter 415 of the laws of 1987, is amended to read as
49 follows:
50 (i) Any agreement entered into by a [consumer] purchaser for the
51 purchase of a new motor vehicle which waives, limits or disclaims the
52 rights set forth in this section shall be void as contrary to public
53 policy. Said rights shall inure to a subsequent transferee of such motor
54 vehicle.
55 Any provision of any agreement entered into by a [consumer] purchaser
56 for the purchase of a new motor vehicle which includes as an additional
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1 cost for such motor vehicle an expense identified as being for the
2 purpose of affording such [consumer his or her] purchaser their rights
3 under this section, shall be void as contrary to public policy.
4 § 6. Subdivision (j) of section 198-a of the general business law, as
5 added by chapter 444 of the laws of 1983, is amended to read as follows:
6 (j) Any action brought pursuant to this section shall be commenced
7 within four years of the date of original delivery of the motor vehicle
8 to the [consumer] purchaser.
9 § 7. Subdivision (k) of section 198-a of the general business law, as
10 amended by chapter 611 of the laws of 2005, is amended to read as
11 follows:
12 (k) Each [consumer] purchaser shall have the option of submitting any
13 dispute arising under this section upon the payment of a prescribed
14 filing fee to an alternate arbitration mechanism established pursuant to
15 regulations promulgated hereunder by the New York state attorney gener-
16 al. Upon application of the [consumer] purchaser and payment of the
17 filing fee, all manufacturers shall submit to such alternate arbi-
18 tration.
19 Such alternate arbitration shall be conducted by a professional arbi-
20 trator or arbitration firm appointed by and under regulations estab-
21 lished by the New York state attorney general. Such mechanism shall
22 [insure] ensure the personal objectivity of its arbitrators and the
23 right of each party to present its case, to be in attendance during any
24 presentation made by the other party and to rebut or refute such presen-
25 tation. In all other respects, such alternate arbitration mechanism
26 shall be governed by article seventy-five of the civil practice law and
27 rules; provided, however, that notwithstanding paragraph (i) of subdivi-
28 sion (a) of section seventy-five hundred two of the civil practice law
29 and rules, special proceedings brought before a court pursuant to such
30 article seventy-five in relation to an arbitration hereunder shall be
31 brought only in the county where the [consumer] purchaser resides or
32 where the arbitration was held or is pending.
33 § 8. Subdivision (l) of section 198-a of the general business law, as
34 amended by chapter 487 of the laws of 1990, is amended to read as
35 follows:
36 (l) A court may award reasonable attorney's fees to a prevailing
37 plaintiff or to a [consumer] purchaser who prevails in any judicial
38 action or proceeding arising out of an arbitration proceeding held
39 pursuant to subdivision (k) of this section. In the event a prevailing
40 plaintiff is required to retain the services of an attorney to enforce
41 collection of an award granted pursuant to this section, the court may
42 assess against the manufacturer reasonable attorney's fees for services
43 rendered to enforce collection of said award.
44 § 9. Subparagraph (i) of paragraph 1 of subdivision (m) of section
45 198-a of the general business law, as added by chapter 799 of the laws
46 of 1986, is amended to read as follows:
47 (i) that the arbitrators participating in such mechanism are trained
48 in arbitration and familiar with the provisions of this section, that
49 the arbitrators and [consumers] purchasers who request arbitration are
50 provided with a written copy of the provisions of this section, together
51 with the notice set forth below entitled "NEW CAR LEMON LAW BILL OF
52 RIGHTS", and that [consumers] purchasers, upon request, are given an
53 opportunity to make an oral presentation to the arbitrator;
54 § 10. Subparagraph (iv) of paragraph 3 of subdivision (m) of section
55 198-a of the general business law, as added by chapter 799 of the laws
56 of 1986, is amended to read as follows:
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1 (iv) the average number of days from the date of a [consumer's]
2 purchaser's initial request to arbitrate until the date of the final
3 arbitrator's decision and the average number of days from the date of
4 the final arbitrator's decision to the date on which performance was
5 satisfactorily carried out.
6 § 11. Paragraphs 4, 5, 6 and 7 of subdivision (n) of section 198-a of
7 the general business law, paragraphs 4, 5 and 7 as amended by chapter
8 635 of the laws of 2004, paragraph 6 as amended by chapter 26 of the
9 laws of 2005, are amended to read as follows:
10 (4) If, within the first eighteen thousand miles of operation or
11 during the period of two years following the date of original delivery
12 of the motor vehicle to such [consumer] purchaser, whichever is the
13 earlier date, the manufacturer of a motor home or its agents or its
14 authorized dealers or repair shops to which they refer a [consumer]
15 purchaser are unable to repair or correct any covered defect or condi-
16 tion which substantially impairs the value of the motor home to the
17 [consumer] purchaser after a reasonable number of attempts, the motor
18 home manufacturer, at the option of the [consumer] purchaser, shall
19 replace the motor home with a comparable motor home, or accept return of
20 the motor home from the [consumer] purchaser and refund to the [consum-
21 er] purchaser the full purchase price or, if applicable, the lease price
22 and any trade-in allowance plus fees and charges as well as the other
23 fees and charges set forth in paragraph one of subdivision (c) of this
24 section.
25 (5) If an agent or authorized dealer of a motor home manufacturer or a
26 repair shop to which they refer a [consumer] purchaser refuses to under-
27 take repairs within seven days of receipt of notice by a [consumer]
28 purchaser of a nonconformity, defect or condition within the first eigh-
29 teen thousand miles of operation or during the period of two years
30 following the date of original delivery of the motor home to such
31 [consumer] purchaser, whichever is the earlier date, the [consumer]
32 purchaser may immediately forward written notice of such refusal to the
33 motor home manufacturer by certified mail, return receipt requested. The
34 motor home manufacturer or its authorized agent or a repair shop to
35 which they refer a [consumer] purchaser shall have twenty days from
36 receipt of such notice of refusal to commence such repairs. If within
37 such twenty day period, the motor home manufacturer or its authorized
38 agent or repair shop to which they refer a [consumer] purchaser, fails
39 to commence such repairs, the motor home manufacturer, at the option of
40 the [consumer] purchaser, shall replace the motor home with a comparable
41 motor home, or accept return of the motor home from the [consumer]
42 purchaser and refund to the [consumer] purchaser the full purchase price
43 or, if applicable, the lease price, and any trade-in allowance or other
44 charges, fees, or allowances. Such fees and charges shall include but
45 not be limited to all license fees, registration fees, and any similar
46 governmental charges, less an allowance for the [consumer's] purchaser's
47 use of the vehicle in excess of the first twelve thousand miles of oper-
48 ation pursuant to the mileage deduction formula defined in paragraph
49 four of subdivision (a) of this section, and a reasonable allowance for
50 any damage not attributable to normal wear or improvements.
51 (6) If within the first eighteen thousand miles of operation or during
52 the period of two years following the date of original delivery of the
53 motor home to such [consumer] purchaser, whichever is the earlier date,
54 the same covered nonconformity, defect or condition in a motor home has
55 been subject to repair two times or a motor home has been out of service
56 by reason of repair for twenty-one days, whichever occurs first, the
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1 [consumer] purchaser must have reported this to the motor home manufac-
2 turer or its authorized dealer by certified mail, return receipt
3 requested, and may institute any proceeding or other action pursuant to
4 this section if the motor home has been out of service by reason of
5 three repair attempts or for at least thirty days. The special notifica-
6 tion requirements of this paragraph shall only apply if the manufacturer
7 or its authorized dealer provides a prior written copy of the require-
8 ments of this paragraph to the [consumer] purchaser and receipt of the
9 notice is acknowledged by the [consumer] purchaser in writing. If the
10 [consumer] purchaser who has received notice from the manufacturer fails
11 to comply with the special notification requirements of this paragraph,
12 additional repair attempts or days out of service by reason of repair
13 shall not be taken into account in determining whether the [consumer]
14 purchaser is entitled to a remedy provided in paragraph four of this
15 subdivision. However, additional repair attempts or days out of service
16 by reason of repair that occur after the [consumer] purchaser complies
17 with such special notification requirements shall be taken into account
18 in making that determination. It shall not count as a repair attempt if
19 the repair facility is not authorized by the applicable motor home
20 manufacturer to perform warranty work on the identified nonconformity.
21 It shall count as only one repair attempt for a motor home if the same
22 nonconformity is being addressed a second time due to the [consumer's]
23 purchaser's decision to continue traveling and to seek the repair of the
24 same nonconformity at another repair facility rather than wait for the
25 initial repair to be completed.
26 (7) Nothing in this section shall in any way limit any rights, reme-
27 dies or causes of action that a [consumer] purchaser or motor home
28 manufacturer may otherwise have against the manufacturer of the motor
29 home's chassis, or its propulsion and other components.
30 § 12. Clause (i) of subparagraph (A) and the second undesignated para-
31 graph of subparagraph (B) of paragraph 8 of subdivision (n) of section
32 198-a of the general business law, as added by chapter 635 of the laws
33 of 2004, are amended to read as follows:
34 (i) that the arbitrators participating in such mechanism are trained
35 in arbitration and familiar with the provisions of this section, that
36 the arbitrators and [consumers] purchasers who request arbitration are
37 provided with a written copy of the provisions of this section, together
38 with the notice set forth below entitled "NEW MOTOR HOME LEMON LAW BILL
39 OF RIGHTS", and that [consumers] purchasers, upon request, are given an
40 opportunity to make an oral presentation to the arbitrator;
41 The following notice shall be provided to [consumers] purchasers and
42 arbitrators and shall be printed in conspicuous ten point bold face
43 type:
44 § 13. Clause 4 of subparagraph (B) of paragraph 8 of subdivision (n)
45 of section 198-a of the general business law, as added by chapter 635 of
46 the laws of 2004, is amended to read as follows:
47 (4) IF, WITHIN THE FIRST EIGHTEEN THOUSAND MILES OF OPERATION OR
48 DURING THE PERIOD OF TWO YEARS FOLLOWING THE DATE OF ORIGINAL DELIVERY
49 OF THE MOTOR VEHICLE TO SUCH [CONSUMER] PURCHASER, WHICHEVER IS THE
50 EARLIER DATE THE MANUFACTURER OF A MOTOR HOME OR ITS AGENTS OR ITS
51 AUTHORIZED DEALERS OR REPAIR SHOPS TO WHICH THEY REFER A [CONSUMER]
52 PURCHASER ARE UNABLE TO REPAIR OR CORRECT ANY COVERED DEFECT OR CONDI-
53 TION WHICH SUBSTANTIALLY IMPAIRS THE VALUE OF THE MOTOR HOME TO THE
54 [CONSUMER] PURCHASER AFTER A REASONABLE NUMBER OF ATTEMPTS, THE MOTOR
55 HOME MANUFACTURER, AT THE OPTION OF THE [CONSUMER] PURCHASER, SHALL
56 REPLACE THE MOTOR HOME WITH A COMPARABLE MOTOR HOME, OR ACCEPT RETURN OF
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1 THE MOTOR HOME FROM THE [CONSUMER] PURCHASER AND REFUND TO THE [CONSUM-
2 ER] PURCHASER THE FULL PURCHASE PRICE OR, IF APPLICABLE, THE LEASE PRICE
3 AND ANY TRADE-IN ALLOWANCE, PLUS FEES AND CHARGES, AS WELL AS THE OTHER
4 FEES AND CHARGES, INCLUDING BUT NOT LIMITED TO ALL LICENSE FEES, REGIS-
5 TRATION FEES, AND ANY SIMILAR GOVERNMENTAL CHARGES, LESS AN ALLOWANCE
6 FOR THE [CONSUMER'S] PURCHASER'S USE OF THE VEHICLE IN EXCESS OF TWELVE
7 THOUSAND MILES TIMES THE PURCHASE PRICE, OR THE LEASE PRICE IF APPLICA-
8 BLE, OF THE VEHICLE DIVIDED BY ONE HUNDRED THOUSAND MILES, AND A REASON-
9 ABLE ALLOWANCE FOR ANY DAMAGE NOT ATTRIBUTABLE TO NORMAL WEAR OR
10 IMPROVEMENTS.
11 § 14. Subdivision (o) of section 198-a of the general business law, as
12 added by chapter 147 of the laws of 1994, is amended to read as follows:
13 (o) At the time of purchase or lease of a motor vehicle from an
14 authorized dealer in this state, the manufacturer shall provide to the
15 dealer or leaseholder, and the dealer or leaseholder shall provide to
16 the [consumer] purchaser a notice, printed in not less than eight point
17 bold face type, entitled "New Car Lemon Law Bill of Rights". The text of
18 such notice shall be identical with the notice required by paragraph two
19 of subdivision (m) of this section.
20 § 15. Paragraph 1 of subdivision a of section 198-b of the general
21 business law, as amended by chapter 530 of the laws of 1990, is amended
22 to read as follows:
23 1. ["Consumer"] "Purchaser" means the purchaser, or lessee, other than
24 for purposes of resale, of a used motor vehicle primarily used for
25 personal, family[,] or household, or business or commercial purposes and
26 subject to a warranty, and the spouse or child of the purchaser or the
27 lessee if either such motor vehicle or the lease of such motor vehicle
28 is transferred to the spouse or child during the duration of any warran-
29 ty applicable to such motor vehicle, and any other person entitled by
30 the terms of such warranty to enforce the obligations of the warranty;
31 § 16. Paragraphs 1, 2 and 3 of subdivision b of section 198-b of the
32 general business law, paragraph 1 as amended by chapter 857 of the laws
33 of 1990, paragraphs 2 and 3 as amended by chapter 444 of the laws of
34 1989, are amended to read as follows:
35 1. No dealer shall sell or lease a used motor vehicle to a [consumer]
36 purchaser without giving the [consumer] purchaser a written warranty
37 which shall at minimum apply for the following terms:
38 (a) If the used motor vehicle has thirty-six thousand miles or less,
39 the warranty shall be at minimum ninety days or four thousand miles,
40 whichever comes first.
41 (b) If the used motor vehicle has more than thirty-six thousand miles,
42 but less than eighty thousand miles, the warranty shall be at minimum
43 sixty days or three thousand miles, whichever comes first.
44 (c) If the used motor vehicle has eighty thousand miles or more but no
45 more than one hundred thousand miles, the warranty shall be at a minimum
46 thirty days or one thousand miles, whichever comes first.
47 2. The written warranty shall require the dealer or [his] the dealer's
48 agent to repair or, at the election of the dealer, reimburse the
49 [consumer] purchaser for the reasonable cost of repairing the failure of
50 a covered part. Covered parts shall at least include the following
51 items:
52 (a) Engine. All lubricated parts, water pump, fuel pump, manifolds,
53 engine block, cylinder head, rotary engine housings and flywheel.
54 (b) Transmission. The transmission case, internal parts, and the
55 torque converter.
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1 (c) Drive axle. Front and rear drive axle housings and internal parts,
2 axle shafts, propeller shafts and universal joints.
3 (d) Brakes. Master cylinder, vacuum assist booster, wheel cylinders,
4 hydraulic lines and fittings and disc brake calipers.
5 (e) Radiator.
6 (f) Steering. The steering gear housing and all internal parts, power
7 steering pump, valve body, piston and rack.
8 (g) Alternator, generator, starter, ignition system excluding the
9 battery.
10 3. Such repair or reimbursement shall be made by the dealer notwith-
11 standing the fact that the warranty period has expired, provided the
12 [consumer] purchaser notifies the dealer of the failure of a covered
13 part within the specified warranty period.
14 § 17. Subparagraph (i) of paragraph 4 of subdivision b of section
15 198-b of the general business law, as amended by chapter 444 of the laws
16 of 1989, such paragraph as renumbered by chapter 530 of the laws of
17 1990, is amended to read as follows:
18 (i) if the used motor vehicle is rented to someone other than the
19 [consumer] purchaser as defined in paragraph one of subdivision a of
20 this section;
21 § 18. Paragraph 1 of subdivision c of section 198-b of the general
22 business law, as amended by chapter 444 of the laws of 1989, is amended
23 to read as follows:
24 1. If the dealer or [his] the dealer's agent fails to correct a
25 malfunction or defect as required by the warranty specified in this
26 section which substantially impairs the value of the used motor vehicle
27 to the [consumer] purchaser after a reasonable period of time, the deal-
28 er shall accept return of the used motor vehicle from the [consumer]
29 purchaser and refund to the [consumer] purchaser the full purchase
30 price, or in the case of a lease contract all payments made under the
31 contract, including sales or compensating use tax, less a reasonable
32 allowance for any damage not attributable to normal wear or usage, and
33 adjustment for any modifications which either increase or decrease the
34 market value of the vehicle or of the lease contract, and in the case of
35 a lease contract, shall cancel all further payments due from the
36 [consumer] purchaser under the lease contract. In determining the
37 purchase price to be refunded or in determining all payments made under
38 a lease contract to be refunded, the purchase price, or all payments
39 made under a lease contract, shall be deemed equal to the sum of the
40 actual cash difference paid for the used motor vehicle, or for the lease
41 contract, plus, if the dealer elects to not return any vehicles traded-
42 in by the [consumer] purchaser, the wholesale value of any such traded-
43 in vehicles as listed in the National Auto Dealers Association Used Car
44 Guide, or such other guide as may be specified in regulations promulgat-
45 ed by the commissioner of motor vehicles, as adjusted for mileage,
46 improvements, and any major physical or mechanical defects in the trad-
47 ed-in vehicle at the time of trade-in. The dealer selling or leasing the
48 used motor vehicle shall deliver to the [consumer] purchaser a written
49 notice including conspicuous language indicating that if the [consumer]
50 purchaser should be entitled to a refund pursuant to this section, the
51 value of any vehicle traded-in by the [consumer] purchaser, if the deal-
52 er elects to not return it to the [consumer] purchaser, for purposes of
53 determining the amount of such refund will be determined by reference to
54 the National Auto Dealers Association Used Car Guide wholesale value, or
55 such other guide as may be approved by the commissioner of motor vehi-
56 cles, as adjusted for mileage, improvements, and any major physical or
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1 mechanical defects, rather than the value listed in the sales contract.
2 Refunds shall be made to the [consumer] purchaser and lienholder, if
3 any, as their interests may appear on the records of ownership kept by
4 the department of motor vehicles. If the amount to be refunded to the
5 lienholder will be insufficient to discharge the lien, the dealer shall
6 notify the [consumer] purchaser in writing by registered or certified
7 mail that the [consumer] purchaser has thirty days to pay the lienholder
8 the amount which, together with the amount to be refunded by the dealer,
9 will be sufficient to discharge the lien. The notice to the [consumer]
10 purchaser shall contain conspicuous language warning the [consumer]
11 purchaser that failure to pay such funds to the lienholder within thirty
12 days will terminate the dealer's obligation to provide a refund. If the
13 [consumer] purchaser fails to make such payment within thirty days, the
14 dealer shall have no further responsibility to provide a refund under
15 this section. Alternatively, the dealer may elect to offer to replace
16 the used motor vehicle with a comparably priced vehicle, with such
17 adjustment in price as the parties may agree to. The [consumer] purchas-
18 er shall not be obligated to accept a replacement vehicle, but may
19 instead elect to receive the refund provided under this section. It
20 shall be an affirmative defense to any claim under this section that:
21 (a) The malfunction or defect does not substantially impair such
22 value; or
23 (b) The malfunction or defect is the result of abuse, neglect or
24 unreasonable modifications or alterations of the used motor vehicle.
25 § 19. Subparagraph (b) of paragraph 2 and paragraph 4 of subdivision c
26 of section 198-b of the general business law, as amended by chapter 444
27 of the laws of 1989, are amended to read as follows:
28 (b) The vehicle is out of service by reason of repair or malfunction
29 or defect for a cumulative total of fifteen or more days during the
30 warranty period. Said period shall not include days when the dealer is
31 unable to complete the repair because of the unavailability of necessary
32 repair parts. The dealer shall be required to exercise due diligence in
33 attempting to obtain necessary repair parts. Provided, however, that if
34 a vehicle has been out of service for a cumulative total of forty-five
35 days, even if a portion of that time is attributable to the unavailabil-
36 ity of replacement parts, the [consumer] purchaser shall be entitled to
37 the replacement or refund remedies provided in this section.
38 4. The term of any warranty, service contract or repair insurance, and
39 the fifteen day out-of-service period, shall be extended by any time
40 during which repair services are not available to the [consumer]
41 purchaser because of a war, invasion or strike, fire, flood or other
42 natural disaster.
43 § 20. Subdivisions d and e of section 198-b of the general business
44 law, as amended by chapter 444 of the laws of 1989, paragraph 3 of
45 subdivision d as amended by chapter 692 of the laws of 1994, are amended
46 to read as follows:
47 d. Waiver void. 1. Any agreement entered into by a [consumer] purchas-
48 er for the purchase or lease of a used motor vehicle which waives,
49 limits or disclaims the rights set forth in this article shall be void
50 as contrary to public policy. Further, if a dealer fails to give the
51 written warranty required by this article, the dealer nevertheless shall
52 be deemed to have given said warranty as a matter of law.
53 2. Nothing in this section shall in any way limit the rights or reme-
54 dies which are otherwise available to a [consumer] purchaser under any
55 other law.
A. 3541 10
1 3. Notwithstanding paragraph one of this subdivision, this article
2 shall not apply to used motor vehicles sold for, or in the case of a
3 lease where the value of the used motor vehicle as agreed to by the
4 [consumer] purchaser and the dealer which vehicle is the subject of the
5 contract is, less than one thousand five hundred dollars, or to used
6 motor vehicles with over one hundred thousand miles at the time of sale
7 or lease if said mileage is indicated in writing at the time of sale or
8 lease. Further, this article shall not apply to the sale or lease of
9 historical motor vehicles as defined in section four hundred one of the
10 vehicle and traffic law.
11 e. Time of delivery, location of warranty and notice. The written
12 warranty provided for in subdivision b of this section and the written
13 notice provided for in subdivision c of this section shall be delivered
14 to the [consumer] purchaser at or before the time the [consumer]
15 purchaser signs the sales or lease contract for the used motor vehicle.
16 The warranty and the notice may be set forth on one sheet or on separate
17 sheets. They may be separate from, attached to, or a part of the sales
18 or lease contract. If they are part of the sales or lease contract, they
19 shall be separated from the other contract provisions and each headed by
20 a conspicuous title.
21 § 21. The opening paragraph of paragraph 1 of subdivision f of section
22 198-b of the general business law, as separately amended by chapters 444
23 and 609 of the laws of 1989, is amended to read as follows:
24 If a dealer has established or participates in an informal dispute
25 settlement procedure which complies in all respects with the provisions
26 of part seven hundred three of title sixteen of the code of federal
27 regulations the provisions of this article concerning refunds or
28 replacement shall not apply to any consumer who has not first resorted
29 to such procedure. Dealers utilizing informal dispute settlement proce-
30 dures pursuant to this subdivision shall [insure] ensure that arbitra-
31 tors participating in such informal dispute settlement procedures are
32 familiar with the provisions of this section and shall provide to arbi-
33 trators and [consumers] purchasers who seek arbitration a copy of the
34 provisions of this section together with the following notice in
35 conspicuous ten point bold face type:
36 § 22. Paragraphs 2, 3, 4, 5 and 6 of subdivision f of section 198-b of
37 the general business law, paragraphs 2, 4 and 6 as separately amended by
38 chapters 444 and 609 of the laws of 1989, paragraph 3 as amended by
39 chapter 323 of the laws of 1997, paragraph 5 as amended by chapter 487
40 of the laws of 1990, are amended to read as follows:
41 2. A dealer shall have up to thirty days from the date of notice by
42 the [consumer] purchaser that the arbitrator's decision has been
43 accepted to comply with the terms of such decision. Provided, however,
44 that nothing contained in this subdivision shall impose any liability on
45 a dealer where a delay beyond the thirty day period is attributable to a
46 [consumer] purchaser who has requested a particular replacement vehicle
47 or otherwise made compliance impossible within said period.
48 3. Upon the payment of a prescribed filing fee, a [consumer] purchaser
49 shall have the option of submitting any dispute arising under this
50 section to an alternate arbitration mechanism established pursuant to
51 regulations promulgated hereunder by the attorney general. Upon applica-
52 tion of the [consumer] purchaser and payment of the filing fee, the
53 dealer shall submit to such alternate arbitration.
54 Such alternate arbitration shall be conducted by a professional arbi-
55 trator or arbitration firm appointed by and under regulations estab-
56 lished by the attorney general. Such mechanism shall ensure the personal
A. 3541 11
1 objectivity of its arbitrators and the right of each party to present
2 its case, to be in attendance during any presentation made by the other
3 party and to rebut or refute such presentation. In all other respects,
4 such alternate arbitration mechanism shall be governed by article seven-
5 ty-five of the civil practice law and rules.
6 The notice required by paragraph one of this subdivision, entitled
7 Used Car Lemon Law Bill of Rights, shall be provided to arbitrators and
8 [consumers] purchasers who seek arbitration under this subdivision.
9 A dealer shall have thirty days from the date of mailing of a copy of
10 the arbitrator's decision to such dealer to comply with the terms of
11 such decision. Failure to comply within the thirty day period shall
12 entitle the [consumer] purchaser to recover, in addition to any other
13 recovery to which [he] they may be entitled, a fee of twenty-five
14 dollars for each business day beyond thirty days up to five hundred
15 dollars; provided however, that nothing in this subdivision shall impose
16 any liability on a dealer where a delay beyond the thirty day period is
17 attributable to a [consumer] purchaser who has requested a particular
18 replacement vehicle or otherwise made compliance impossible within said
19 period.
20 The commissioner of motor vehicles or any person deputized by [him]
21 such commissioner may deny the application of any person for registra-
22 tion under section four hundred fifteen of the vehicle and traffic law
23 and suspend or revoke a registration under such section or refuse to
24 issue a renewal thereof if [he] the commissioner or such deputy deter-
25 mines that such applicant or registrant or any officer, director, stock-
26 holder, or partner, or any other person directly or indirectly inter-
27 ested in the business has deliberately failed to pay an arbitration
28 award, which has not been stayed or appealed, rendered in an arbitration
29 proceeding pursuant to this paragraph for sixty days after the date of
30 mailing of a copy of the award to the registrant. Any action taken by
31 the commissioner of motor vehicles pursuant to this paragraph shall be
32 governed by the procedures set forth in subdivision nine of section four
33 hundred fifteen of the vehicle and traffic law.
34 4. In no event shall a [consumer] purchaser who has resorted to an
35 informal dispute settlement procedure be precluded from seeking the
36 rights or remedies available by law.
37 5. In an action brought to enforce the provisions of this article, the
38 court may award reasonable attorney's fees to a prevailing plaintiff or
39 to a [consumer] purchaser who prevails in any judicial action or
40 proceeding arising out of an arbitration proceeding held pursuant to
41 paragraph three of this subdivision. In the event a prevailing plaintiff
42 is required to retain the services of an attorney to enforce collection
43 of an award granted pursuant to this section, the court may assess
44 against the dealer reasonable attorney's fees for services rendered to
45 enforce collection of said award.
46 6. Any action brought pursuant to this article shall be commenced
47 within four years of the date of original delivery of the used motor
48 vehicle to the [consumer] purchaser.
49 § 23. Subdivision g of section 198-b of the general business law, as
50 added by chapter 147 of the laws of 1994, is amended to read as follows:
51 g. Notice of [consumer] purchaser rights. At the time of purchase or
52 lease of a used motor vehicle from a dealer in this state, the dealer
53 shall provide to the [consumer] purchaser a notice, printed in not less
54 than eight point bold face type, entitled "Used Car Lemon Law Bill of
55 Rights". The text of such notice shall be identical with the notice
56 required by paragraph one of subdivision f of this section.
A. 3541 12
1 § 24. Paragraph 3 of subdivision (b) of section 198-c of the general
2 business law, as added by chapter 254 of the laws of 2010, is amended to
3 read as follows:
4 (3) The time period specified in paragraph one or two of this subdivi-
5 sion may be shortened if the dealer and [consumer] purchaser agree, in
6 writing, to a shorter time period.
7 § 25. This act shall take effect immediately.
