§ 395-a. Maintenance agreements.
1.Definitions. For the purposes of\nthis section, a "maintenance agreement" shall refer to any contract or\nrepresentation whereby the seller or manufacturer of a retail sales item\nor the seller of a service contract shall offer the defined service\nand/or parts for an additional fee. Said maintenance agreement can be\noffered at the time of purchase or at a later date.\n 2. No maintenance agreement covering parts and/or service shall be\nterminated at the election of the party providing such parts and/or\nservice during the term of the agreement unless prior to or upon\ndelivery of a copy of the agreement the buyer is notified in writing\nthat the agreement may be cancelled for:\n a. non-payment; or\n b. use of the item primarily for commercial purp
Free access — add to your briefcase to read the full text and ask questions with AI
§ 395-a. Maintenance agreements. 1. Definitions. For the purposes of\nthis section, a "maintenance agreement" shall refer to any contract or\nrepresentation whereby the seller or manufacturer of a retail sales item\nor the seller of a service contract shall offer the defined service\nand/or parts for an additional fee. Said maintenance agreement can be\noffered at the time of purchase or at a later date.\n 2. No maintenance agreement covering parts and/or service shall be\nterminated at the election of the party providing such parts and/or\nservice during the term of the agreement unless prior to or upon\ndelivery of a copy of the agreement the buyer is notified in writing\nthat the agreement may be cancelled for:\n a. non-payment; or\n b. use of the item primarily for commercial purposes, unless the\nagreement so provides. When a maintenance agreement is terminated\nbecause of use of the item primarily for commercial purposes, the party\nproviding the parts and/or service must reimburse the buyer on a pro\nrata basis for the remaining period of time or mileage for the unused\nportion of the maintenance agreement less the cost of any parts and/or\nservice already provided from the date of termination; or\n c. change in the buyer's residence beyond the disclosed service area,\nexcept where the buyer provides transportation or shipping to and from\nthe site of service. When a maintenance agreement is terminated because\nof a change in the buyer's residence beyond the disclosed service area,\neither the buyer or the party providing the parts and/or service may\nterminate the maintenance agreement. Reimbursement to the buyer shall be\nmade on a pro rata basis for the remaining period of time or mileage for\nthe unused portion of the maintenance agreement from the date of notice\nof change in the buyer's residence.\n 3. Pre-sale availability of maintenance agreement. Sellers of retail\nproducts purchased for personal, family or household purposes, which\noffer maintenance agreements shall provide the buyer with an opportunity\nto review the maintenance agreement before it is purchased and provide\nthe buyer with a copy of the maintenance agreement at the time of\npurchase. The provisions of this section shall not apply to sales by\nmail order companies as defined in section three hundred ninety-six-m of\nthis chapter.\n 4. A violation of the provisions of this section shall be punishable\nby a civil penalty of not more than three hundred dollars recoverable in\nan action by the attorney general in the name of the people of the state\nor by the corporation counsel for any city or by the appropriate\nattorney of any other political subdivision as shall be designated by\nthe governing body of such political subdivision.\n