§ 738 — Contracts; requirements and contents

New York § 738

• Jurisdiction: New York
• Law GBS: General Business
• Art. 35-B: Automobile Broker Business

Text

§ 738. Contracts; requirements and contents. 1. Prior to the purchase\nor lease of an automobile, the consumer and the automobile broker\nbusiness shall enter into a contract. Every contract between a consumer\nand an automobile broker business for the purchase or lease of an\nautomobile shall be in writing, shall be dated, shall contain the street\naddress of the place of business of the automobile broker business, the\nregistration number issued to the automobile broker business pursuant to\nsection four hundred fifteen of the vehicle and traffic law and the name\nand address of the consumer and shall be signed by the consumer and by\nthe automobile broker business. Every contract shall comply with the\nrequirements set forth in this section and contain the following:\n (a) A complete description of the automobile and each option, if any,\nordered; a statement of whether the automobile is or will be\nmanufactured in accordance with United States specifications and is or\nwill be certified by the manufacturer as such; if the automobile is not\nor will not be manufactured in accordance with United States safety and\nenvironmental specifications, and the consumer has retained the\nautomobile broker business to arrange for the modification of the\nautomobile to meet such specifications, the name and street address of\nthe modification facility and a statement in immediate proximity to such\ninformation that the automobile broker business assumes full financial\nresponsibility that the automobile will be properly modified to meet all\nUnited States safety and environmental specifications.\n (b) The price of the automobile including any options ordered. If the\nprice set forth is an estimated price, a statement in immediate\nproximity to the price that the price is an estimated price only and\nthat the consumer has the right to cancel the contract and to receive a\nfull refund if the final price exceeds the estimated price by more than\nfive percent.\n (c) The estimated delivery date of the automobile and the place of\ndelivery and a statement in immediate proximity to the estimated\ndelivery date that, if the automobile has not been delivered in\naccordance with the contract within thirty days following such estimated\ndelivery date, the consumer has the right to cancel the contract and to\nreceive a full refund, unless the delay in delivery is attributable to\nthe consumer.\n (d) A statement of whether or not the manufacturer's warranty\naccompanying the automobile is the same warranty as that furnished to\npurchasers of that make automobile from an authorized dealer located in\nthe United States.\n (e) A statement that the broker shall only accept payment for their\nservices from either the dealer selling or leasing the automobile or the\nbuyer or lessee of the automobile, but may not accept payment from both.\n (f) A statement that the consumer has the option to take delivery of a\nmotor vehicle at the selling or leasing dealership.\n (g) A description of any other services and an itemization of the\ncharges for each. Such description shall include disclosure of the\nautomobile dealer from which the automobile was purchased or leased, as\nwell as all fees, commissions or other valuable considerations paid by\nan automobile dealer to the automobile broker business for selling,\narranging, assisting or effecting the sale or lease of an automobile as\nagent, broker, or intermediary between the consumer and the automobile\ndealer.\n (h) If a consumer elects to cancel the contract pursuant to paragraph\n(b) or (c) of this subdivision, he or she shall notify in writing the\nautomobile broker business at the address specified in the contract. The\nautomobile broker business shall make a full refund to the consumer\nwithin ten business days following receipt of the request for a refund.\nThe contract shall contain a statement, setting forth the consumer's\nright to cancel the contract under paragraphs (b) and (c) of this\nsubdivision and the refund obligations of the automobile broker\nbusiness.\n (i) The statements required by paragraphs (a), (b), (c), (e), (f), (g)\nand (h) of this subdivision shall be printed in at least twelve point\nbold type.\n 2. The contract shall be accompanied by a completed form in duplicate,\ncaptioned "Notice of Cancellation" which shall be attached to the\ncontract and easily detachable, and which shall contain in at least\ntwelve point type the following:\n "Notice of Cancellation"\n "You may cancel this contract, without any penalty or obligation,\nwithin three days from the date that a copy of an executed contract is\nreceived by you or until the automobile described in Section ( ) of this\ncontract has been delivered to you, whichever is sooner, provided that\nif the automobile is not delivered to you in accordance with this\ncontract within thirty days of the estimated delivery date, you may\ncancel this contract and receive a full refund, unless the delay in\ndelivery is attributable to you. Additionally, you may cancel this\ncontract, without any penalty or obligation, for other grounds under New\nYork State law, including but not limited to the rights enumerated in\nSection 738 of the New York State General Business Law.\n To cancel this contract, mail or deliver a signed and dated copy\nof this cancellation notice, or any other written notice, to\n(__________________________________) at (________________________)\n name of automobile broker business address\nwithin the applicable timeframe.\nI hereby cancel this transaction."\n _________________________________\n (signature of consumer)\n _________________________\n (date)\n 3. An automobile broker business shall deliver to the consumer or mail\nto him or her at the address shown on the contract, an executed copy\nthereof.\n 4. An automobile broker business in any transaction involving the\nlease of a vehicle shall provide the retail lessee with a retail lease\nagreement as provided for in section three hundred thirty-seven of the\npersonal property law. The automobile broker shall provide a written\ndisclosure of the amount of any fee, commission or other consideration\npaid or expected to be paid by the lessor to the automobile broker\nbusiness in connection with a transaction involving the lease of a\nvehicle. Such disclosure shall be signed by the retail lessee. The\nautomobile broker business shall provide the retail lessee with a signed\ncopy of such disclosure together with the retail lease agreement\nreferenced herein.\n