§ 399-c. Mandatory arbitration clauses in certain consumer contracts\nprohibited.
1.Definitions.\n a. The term "consumer" shall mean a natural person residing in this\nstate.\n b. The term "consumer goods" shall mean goods, wares, paid merchandise\nor services purchased or paid for by a consumer, the intended use or\nbenefit of which is intended for the personal, family or household\npurposes of such consumer.\n c. The term "mandatory arbitration clause" shall mean a term or\nprovision contained in a written contract for the sale or purchase of\nconsumer goods which requires the parties to such contract to submit any\ncontroversy thereafter arising under such contract to arbitration prior\nto the commencement of any legal action to enforce the provisions of\nsuch contract and which
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§ 399-c. Mandatory arbitration clauses in certain consumer contracts\nprohibited. 1. Definitions.\n a. The term "consumer" shall mean a natural person residing in this\nstate.\n b. The term "consumer goods" shall mean goods, wares, paid merchandise\nor services purchased or paid for by a consumer, the intended use or\nbenefit of which is intended for the personal, family or household\npurposes of such consumer.\n c. The term "mandatory arbitration clause" shall mean a term or\nprovision contained in a written contract for the sale or purchase of\nconsumer goods which requires the parties to such contract to submit any\ncontroversy thereafter arising under such contract to arbitration prior\nto the commencement of any legal action to enforce the provisions of\nsuch contract and which also further provides language to the effect\nthat the decision of the arbitrator or panel of arbitrators in its\napplication to the consumer party shall be final and not subject to\ncourt review.\n d. The term "arbitration" shall mean the use of a decision making\nforum conducted by an arbitrator or panel of arbitrators within the\nmeaning and subject to the provisions of article seventy-five of the\ncivil practice law and rules.\n 2. a. Prohibition. No written contract for the sale or purchase of\nconsumer goods, entered into on or after the effective date of this\nsection, to which a consumer is a party, shall contain a mandatory\narbitration clause. Nothing contained herein shall be construed to\nprohibit a non-consumer party from incorporating a provision within such\ncontract that such non-consumer party agrees that the decision of the\narbitrator or panel of arbitrators shall be final in its application to\nsuch non-consumer party and not subject to court review.\n b. Mandatory arbitration clause null and void. The provisions of a\nmandatory arbitration clause shall be null and void. The inclusion of\nsuch clause in a written contract for the sale or purchase of consumer\ngoods shall not serve to impair the enforceability of any other\nprovision of such contract.\n