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

New York § 396-P*2

• Jurisdiction: New York
• Law GBS: General Business
• Art. 26: Miscellaneous

Text

* § 396-p. Contracts for the sale of new motor vehicles. 1. Any\ncovenant or agreement in connection with or collateral to any contract\nentered into between\n (a) a manufacturer or distributor of new motor vehicles and a retail\ndealer thereof, or\n (b) a retail dealer of new motor vehicles and a consumer,\npursuant to which the price of such motor vehicle to the dealer or to\nthe consumer may be increased after such contract has been entered into\nshall be deemed to be void as against public policy and wholly\nunenforceable.\n 2. Every contract provided for in subdivision one of this section\nshall contain a conspicuous provision in bold face type stating that the\nprice contained in such contract is the final contract price to which\nthe parties have agreed, and that no additional fee or charge may be\nimposed or collected. The provisions of this section shall be limited to\nthe sale of those new motor vehicles for which the dealer has a bona\nfide customer order as evidenced by a written sales agreement with a\nretail customer.\n 3. If a retail dealer of new motor vehicles accepts a deposit from a\nconsumer but does not have a bona fide customer order as evidenced by a\nwritten sales agreement, that dealer shall give the consumer a written\nform indicating what, if any, options or equipment are desired by the\nconsumer. This form shall be signed by the consumer and state\nconspicuously on its face:\n "This Is Not An Order Form. There Is No Guarantee That The Motor\nVehicle Offered To You Will Match The Description Indicated On This Form\nOr Will Contain These And No Other Options. Should You Decide Not To\nPurchase The Motor Vehicle, You Have The Right To Obtain A Full Refund\nOf Your Deposit."\n 4. If a retail dealer of new motor vehicles accepts a deposit from a\nconsumer pursuant to a written contract for the purchase of a new motor\nvehicle, such contract shall contain a provision setting forth the\nestimated delivery date of the automobile and the place of delivery and\na statement in immediate proximity to the estimated delivery date that,\nif the automobile has not been delivered in accordance with the contract\nwithin thirty days following such estimated delivery date, the consumer\nhas the right to cancel the contract and to receive a full refund,\nunless the delay in delivery is attributable to the consumer.\n 5. (a) Prior to the sale and delivery of a new motor vehicle, a retail\ndealer or employee of a retail dealer shall provide written notification\nto the consumer of any repairs undertaken to repair physical damage with\na retail value in excess of five percent of the lesser of the\nmanufacturer's or distributor's suggested retail price performed after\nshipment from the manufacturer to the dealer, including damage to the\nvehicle while in transit. This notice requirement shall not apply to\nidentical replacement of stolen or damaged accessories or their\ncomponents. This dollar amount shall include the cost of the retail\ncharge for parts and labor, at the dealer's stated labor rate.\n (b) If a retail dealer has provided notice to a consumer pursuant to\nparagraph (a) of this subdivision, the consumer shall be entitled to\ncancel the purchase order or other documentation of intent to purchase\nsuch vehicle and receive a full refund for any deposit made pursuant to\nthis transaction.\n (c) If a retail dealer has failed to provide notice to a consumer\npursuant to paragraph (a) of this subdivision, the consumer shall be\nentitled to a full refund of the purchase price of the vehicle, any\ntrade-in allowance plus fees and charges within four months after the\ndate of purchase. Such fees and charges shall include but not be limited\nto all license fees, registration fees and any similar governmental\ncharges, less an allowance for the consumer's use of the vehicle in\nexcess of one thousand miles for each month or part thereof which has\nexpired since sale and delivery of the vehicle and the date the consumer\nsurrenders the vehicle to the retail dealer to receive a refund pursuant\nto this subdivision, and a reasonable allowance for any damage not\nattributable to normal wear or usage. The amount of the deduction for\nmileage in excess of the appropriate allowed amount shall be determined\nby dividing the mileage in excess of the allowed amount by one hundred\nthousand miles and multiplying the result times the purchase price.\nAdjustment shall also be made for any modifications made by the\npurchaser after delivery of the vehicle which either increase or\ndecrease the market value of the vehicle. A dealer which accepts return\nof the motor vehicle because notice of repairs was not provided in\naccordance with this subdivision shall notify the commissioner of the\ndepartment of motor vehicles of such return. Refunds shall be made to\nthe consumer and lienholder, if any, as their interests may appear on\nthe records of ownership kept by the department of motor vehicles.\nRefunds shall be accompanied by the proper application for credit or\nrefund of state and local sales taxes as published by the department of\ntaxation and finance and by a notice that the sales tax paid on the\npurchase price or portion thereof being refunded is refundable by the\ncommissioner of taxation and finance in accordance with the provisions\nof subdivision (f) of section eleven hundred thirty-nine of the tax law.\n (d) Any manufacturer, distributor or retail dealer selling or\ntransferring a new motor vehicle which has been subjected to repairs of\na value described in this subdivision, shall notify any retail dealer to\nwhom such new motor vehicle so repaired is sold or transferred. Such\nnotice shall be in writing, advise of such repairs, and be provided\nprior to the receipt of any payment for such motor vehicle. If the\nmanufacturer, distributor, or retail dealer shall fail to provide such\nnotice, any retail dealer suffering a loss by reason of such failure\nshall be entitled to reimbursement from the manufacturer, distributor,\nor retail dealer who has failed to provide such notice.\n 6. Any dealer or employee of a dealer who violates any of the\nprovisions of this section shall be subject to a civil penalty not to\nexceed fifty dollars for the first offense and two hundred fifty dollars\nfor the second and each subsequent offense.\n * NB There are 2 396-p's\n