Source: https://www.nysenate.gov/legislation/bills/2019/S4427
Timestamp: 2019-08-17 13:37:45
Document Index: 497570770

Matched Legal Cases: ['§198', '§ 2', '§ 2', '§  3', '§ 4', '§ 5', '§  6', '§ 7', '§ 8', '§  9', '§ 10', '§  11', '§ 12', '§  13', '§ 14', '§ 15', '§ 16', '§  17', '§ 18', '§ 19', '§ 20', '§ 21', '§ 22', '§  23', '§  24', '§ 25']

NY State Senate Bill S4427A
senate Bill S4427A
Get Status Alerts for S4427A
Jun 05, 2019 referred to consumer affairs and protection
Apr 30, 2019 1st report cal.550
Mar 26, 2019 print number 4427a
Mar 26, 2019 amend (t) and recommit to consumer protection
S4427 - Details
Amd §§198-a, 198-b & 198-c, Gen Bus L
S4427 - Summary
Provides certain warranties and protections for purchasers of new and used motor vehicles; includes commercial and business purchasers under the Lemon law.
S4427 - Sponsor Memo
BILL NUMBER: S4427
to the definition of a consumer
This legislation would add vehicles used primarily for commercial or
business purposes to the list of vehicles covered by the State's used
and new car Lemon Law.
Section 1 amends Paragraph 1 of subdivision (a) of section 198-a of the
general business law to add "commercial or business purposes" to the
definition of consumer in the New Car Lemon Law.
Section 2 amends Paragraph 1 of subdivision (a) of section 198-b of the
definition of consumer in the Used Car-Lemon Law.
Section 3 is the effective date
The purpose of the New York State Lemon Law is to protect consumers from
deceitful selling practices and faulty manufacturing. Currently, vehi-
cles that are used primarily for commercial or business purposes are not
covered, including those purchased by small businesses.  Businesses are
not exempt from being victims of predatory sellers, nor are the vehicles
they purchase immune to possible flaws in the manufacturing process.
More than half of all states already include vehicles purchased for
commercial purposes in their Lemon Law statutes.
2017-18: A538 Referred to Consumer Affairs
2015-16: A1834 Referred to Consumer Affairs
2014: A8352 Referred to Consumer Affairs
S4427 - Bill Text download pdf
AN ACT to amend the general business law, in relation to the  definition
Section 1. Paragraph 1 of subdivision (a)  of  section  198-a  of  the
general  business law, as amended by chapter 530 of the laws of 1990, is
(1) "Consumer" means the purchaser, lessee or transferee,  other  than
for  purposes  of resale, of a motor vehicle which is used primarily for
personal,  family  or  household  purposes  OR  COMMERCIAL  OR  BUSINESS
PURPOSES  and  any other person entitled by the terms of the manufactur-
er's warranty to enforce the obligations of such warranty;
§ 2. Paragraph 1 of subdivision a of  section  198-b  of  the  general
business  law, as amended by chapter 530 of the laws of 1990, is amended
1. "Consumer" means the purchaser, or lessee, other than for  purposes
of  resale, of a used motor vehicle primarily used for personal, family,
or household purposes OR COMMERCIAL OR BUSINESS PURPOSES and subject  to
a  warranty,  and  the spouse or child of the purchaser or the lessee if
either such motor vehicle or the lease of such motor vehicle  is  trans-
ferred to the spouse or child during the duration of any warranty appli-
cable  to such motor vehicle, and any other person entitled by the terms
of such warranty to enforce the obligations of the warranty;
LBD00481-01-9
S4427A (ACTIVE) - Details
S4427A (ACTIVE) - Summary
S4427A (ACTIVE) - Sponsor Memo
BILL NUMBER: S4427A
to warranties and protections for purchasers of new and used motor vehi-
The amendment to the bill replaces "consumer" with "purchaser."
S4427A (ACTIVE) - Bill Text download pdf
4427--A
AN ACT to amend the general business law, in relation to warranties  and
protections for purchasers of new and used motor vehicles
Section 1. Paragraphs 1 and 5 of subdivision (a) of section  198-a  of
the  general  business law, paragraph 1 as amended by chapter 530 of the
laws of 1990, paragraph 5 as added by chapter 799 of the laws  of  1986,
(1)  ["Consumer"] "PURCHASER" means the purchaser, lessee or transfer-
ee, other than for purposes of resale, of a motor vehicle which is  used
primarily  for  personal, family or household, OR COMMERCIAL OR BUSINESS
purposes and any other person entitled by the terms of  the  manufactur-
(5) "Lessee" means any [consumer] PURCHASER who leases a motor vehicle
pursuant  to a written lease agreement which provides that the lessee is
responsible for repairs to such motor vehicle.
§ 2. Subdivision (b) of section 198-a of the general business law,  as
amended  by  chapter  279 of the laws of 1989, paragraph 1 as amended by
chapter 217 of the laws of 1990, is amended to read as follows:
(b) (1) If a new motor vehicle which is sold and  registered  in  this
state  does not conform to all express warranties during the first eigh-
teen thousand miles of operation or  during  the  period  of  two  years
following  the  date  of  original delivery of the motor vehicle to such
[consumer] PURCHASER, whichever is  the  earlier  date,  the  [consumer]
PURCHASER  shall  during such period report the nonconformity, defect or
condition to the manufacturer, its agent or its  authorized  dealer.  If
the  notification  is received by the manufacturer's agent or authorized
LBD00481-02-9
S. 4427--A                          2
dealer, the agent or dealer shall  within  seven  days  forward  written
notice  thereof  to  the  manufacturer by certified mail, return receipt
requested, and shall include  in  such  notice  a  statement  indicating
whether  or not such repairs have been undertaken. The manufacturer, its
agent or its authorized dealer shall correct said nonconformity,  defect
or  condition  at no charge to the [consumer] PURCHASER, notwithstanding
the fact that such repairs are made after the expiration of such  period
of operation or such two year period.
(2)  If  a manufacturer's agent or authorized dealer refuses to under-
take repairs within seven days of receipt of the notice by a  [consumer]
PURCHASER  of a nonconformity, defect or condition pursuant to paragraph
one of  this  subdivision,  the  [consumer]  PURCHASER  may  immediately
forward  written notice of such refusal to the manufacturer by certified
mail, return receipt requested.   The  manufacturer  or  its  authorized
agent  shall  have twenty days from receipt of such notice of refusal to
commence such repairs. If within such twenty day period, the manufactur-
er or its authorized agent fails to commence such repairs, the  manufac-
turer,  at  the  option  of  the [consumer] PURCHASER, shall replace the
motor vehicle with a comparable motor vehicle, or accept return  of  the
vehicle  from  the  [consumer]  PURCHASER  and  refund to the [consumer]
PURCHASER the full purchase price or, if applicable, the lease price and
any trade-in allowance plus fees and  charges.  Such  fees  and  charges
shall  include but not be limited to all license fees, registration fees
and any similar governmental charges, less an allowance for the [consum-
er's] PURCHASER'S use of the vehicle in excess of the first twelve thou-
sand miles of  operation  pursuant  to  the  mileage  deduction  formula
defined  in  paragraph  four  of  subdivision (a) of this section, and a
reasonable allowance for any damage not attributable to normal  wear  or
§  3.  Paragraphs  1  and 2 of subdivision (c) of section 198-a of the
general business law, paragraph 1 as amended by chapter 234 of the  laws
of  1990,  paragraph 2 as amended by chapter 29 of the laws of 1989, are
(1) If, within  the  period  specified  in  subdivision  (b)  of  this
section, the manufacturer or its agents or authorized dealers are unable
to repair or correct any defect or condition which substantially impairs
the  value  of  the  motor  vehicle  to the [consumer] PURCHASER after a
reasonable number of attempts, the manufacturer, at the  option  of  the
[consumer]  PURCHASER, shall replace the motor vehicle with a comparable
motor vehicle, or accept return  of  the  vehicle  from  the  [consumer]
PURCHASER and refund to the [consumer] PURCHASER the full purchase price
or,  if applicable, the lease price and any trade-in allowance plus fees
and charges. Any return of a motor vehicle may, at  the  option  of  the
[consumer] PURCHASER, be made to the dealer or other authorized agent of
the manufacturer who sold such vehicle to the [consumer] PURCHASER or to
the  dealer or other authorized agent who attempted to repair or correct
the defect or condition which necessitated the return and shall  not  be
subject  to  any  further  shipping charges. Such fees and charges shall
include but not be limited to all license fees,  registration  fees  and
any similar governmental charges, less an allowance for the [consumer's]
PURCHASER'S  use  of  the vehicle in excess of the first twelve thousand
miles of operation pursuant to the mileage deduction formula defined  in
paragraph  four  of  subdivision  (a)  of this section, and a reasonable
allowance for any damage not attributable to  normal  wear  or  improve-
S. 4427--A                          3
(2)  A  manufacturer which accepts return of the motor vehicle because
the motor vehicle does not conform to  its  warranty  shall  notify  the
commissioner  of the department of motor vehicles that the motor vehicle
was returned to the manufacturer for nonconformity to its  warranty  and
shall  disclose,  in  accordance  with  the  provisions  of section four
hundred seventeen-a of the vehicle  and  traffic  law  prior  to  resale
either  at  wholesale  or retail, that it was previously returned to the
manufacturer for nonconformity to its warranty. Refunds shall be made to
the [consumer] PURCHASER and lienholder, if any, as their interests  may
appear on the records of ownership kept by the department of motor vehi-
cles.  Refunds shall be accompanied by the proper application for credit
or  refund of state and local sales taxes as published by the department
of taxation and finance and by a notice that the sales tax paid  on  the
purchase price, lease price or portion thereof being refunded is refund-
able  by the commissioner of taxation and finance in accordance with the
provisions of subdivision (f) of section eleven hundred  thirty-nine  of
the  tax  law.  If  applicable,  refunds shall be made to the lessor and
lessee as their interests may appear on the records of ownership kept by
the department of motor vehicles, as follows: the lessee  shall  receive
the  capitalized  cost and the lessor shall receive the lease price less
the aggregate deposit and rental payments previously paid to the  lessor
for  the  leased  vehicle. The terms of the lease shall be deemed termi-
nated contemporaneously with the date of the arbitrator's  decision  and
award and no penalty for early termination shall be assessed as a result
thereof. Refunds shall be accompanied by the proper application form for
credit  or  refund  of  state  and  local  sales tax as published by the
department of taxation and finance and a notice that the sales tax  paid
on  the  lease  price or portion thereof being refunded is refundable by
the  commissioner  of  taxation  and  finance  in  accordance  with  the
provisions  of  subdivision (f) of section eleven hundred thirty-nine of
§ 4. Subdivision (h) of section 198-a of the general business law,  as
amended  by  chapter  799  of  the  laws  of 1986, is amended to read as
(h) A manufacturer shall have up to thirty  days  from  the  date  the
[consumer]  PURCHASER notifies the manufacturer of his or her acceptance
of the arbitrator's decision to comply with the terms of that  decision.
Failure  to comply with the thirty day limitation shall also entitle the
[consumer] PURCHASER to recover a fee of twenty-five  dollars  for  each
business  day  of  noncompliance  up  to five hundred dollars. Provided,
however, that nothing contained in this  subdivision  shall  impose  any
liability  on  a manufacturer where a delay beyond the thirty day period
is attributable to a [consumer] PURCHASER who has requested  a  replace-
ment  vehicle  built to order or with options that are not comparable to
the vehicle being replaced or otherwise made compliance impossible with-
in said period. In  no  event  shall  a  [consumer]  PURCHASER  who  has
resorted  to  an informal dispute settlement mechanism be precluded from
seeking the rights or remedies available by law.
§ 5. Subdivision (i) of section 198-a of the general business law,  as
amended  by  chapter  415  of  the  laws  of 1987, is amended to read as
(i) Any agreement entered into  by  a  [consumer]  PURCHASER  for  the
purchase  of  a  new motor vehicle which waives, limits or disclaims the
rights set forth in this section shall be void  as  contrary  to  public
policy. Said rights shall inure to a subsequent transferee of such motor
S. 4427--A                          4
Any  provision of any agreement entered into by a [consumer] PURCHASER
for the purchase of a new motor vehicle which includes as an  additional
cost  for  such  motor  vehicle  an  expense identified as being for the
purpose of affording such [consumer] PURCHASER his or her  rights  under
this section, shall be void as contrary to public policy.
§  6. Subdivision (j) of section 198-a of the general business law, as
added by chapter 444 of the laws of 1983, is amended to read as follows:
(j) Any action brought pursuant to this  section  shall  be  commenced
within  four years of the date of original delivery of the motor vehicle
to the [consumer] PURCHASER.
§ 7. Subdivision (k) of section 198-a of the general business law,  as
amended  by  chapter  611  of  the  laws  of 2005, is amended to read as
(k) Each [consumer] PURCHASER shall have the option of submitting  any
dispute  arising  under  this  section  upon the payment of a prescribed
filing fee to an alternate arbitration mechanism established pursuant to
regulations promulgated hereunder by the New York state attorney  gener-
al.  Upon  application  of  the  [consumer] PURCHASER and payment of the
filing fee, all manufacturers  shall  submit  to  such  alternate  arbi-
Such  alternate arbitration shall be conducted by a professional arbi-
trator or arbitration firm appointed by  and  under  regulations  estab-
lished  by  the  New  York  state attorney general. Such mechanism shall
[insure] ENSURE the personal objectivity  of  its  arbitrators  and  the
right  of each party to present its case, to be in attendance during any
presentation made by the other party and to rebut or refute such presen-
tation. In all other  respects,  such  alternate  arbitration  mechanism
shall  be governed by article seventy-five of the civil practice law and
rules; provided, however, that notwithstanding paragraph (i) of subdivi-
sion (a) of section seventy-five hundred two of the civil  practice  law
and  rules,  special proceedings brought before a court pursuant to such
article seventy-five in relation to an arbitration  hereunder  shall  be
brought  only  in  the  county where the [consumer] PURCHASER resides or
where the arbitration was held or is pending.
§ 8. Subdivision (l) of section 198-a of the general business law,  as
amended  by  chapter  487  of  the  laws  of 1990, is amended to read as
(l) A court may award  reasonable  attorney's  fees  to  a  prevailing
plaintiff  or  to  a  [consumer]  PURCHASER who prevails in any judicial
action or proceeding arising  out  of  an  arbitration  proceeding  held
pursuant  to  subdivision (k) of this section. In the event a prevailing
plaintiff is required to retain the services of an attorney  to  enforce
collection  of  an award granted pursuant to this section, the court may
assess against the manufacturer reasonable attorney's fees for  services
rendered to enforce collection of said award.
§  9.  Subparagraph  (i)  of paragraph 1 of subdivision (m) of section
198-a of the general business law, as added by chapter 799 of  the  laws
of 1986, is amended to read as follows:
(i)  that  the arbitrators participating in such mechanism are trained
in arbitration and familiar with the provisions of  this  section,  that
the  arbitrators  and [consumers] PURCHASERS who request arbitration are
provided with a written copy of the provisions of this section, together
with the notice set forth below entitled "NEW  CAR  LEMON  LAW  BILL  OF
RIGHTS",  and  that  [consumers]  PURCHASERS, upon request, are given an
opportunity to make an oral presentation to the arbitrator;
S. 4427--A                          5
§ 10. Subparagraph (iv) of paragraph 3 of subdivision (m)  of  section
198-a  of  the general business law, as added by chapter 799 of the laws
(iv)  the  average  number  of  days  from  the date of a [consumer's]
PURCHASER'S initial request to arbitrate until the  date  of  the  final
arbitrator's  decision  and  the average number of days from the date of
the final arbitrator's decision to the date  on  which  performance  was
§  11. Paragraphs 4, 5, 6 and 7 of subdivision (n) of section 198-a of
the general business law, paragraphs 4, 5 and 7 as  amended  by  chapter
635  of  the  laws  of 2004, paragraph 6 as amended by chapter 26 of the
(4) If, within the first  eighteen  thousand  miles  of  operation  or
during  the  period of two years following the date of original delivery
of the motor vehicle to such  [consumer]  PURCHASER,  whichever  is  the
earlier  date,  the  manufacturer  of  a motor home or its agents or its
authorized dealers or repair shops to  which  they  refer  a  [consumer]
PURCHASER  are  unable to repair or correct any covered defect or condi-
tion which substantially impairs the value of  the  motor  home  to  the
[consumer]  PURCHASER  after  a reasonable number of attempts, the motor
home manufacturer, at the option  of  the  [consumer]  PURCHASER,  shall
replace the motor home with a comparable motor home, or accept return of
the  motor home from the [consumer] PURCHASER and refund to the [consum-
er] PURCHASER the full purchase price or, if applicable, the lease price
and any trade-in allowance plus fees and charges as well  as  the  other
fees  and  charges set forth in paragraph one of subdivision (c) of this
repair shop to which they refer a [consumer] PURCHASER refuses to under-
take repairs within seven days of receipt  of  notice  by  a  [consumer]
PURCHASER of a nonconformity, defect or condition within the first eigh-
teen  thousand  miles  of  operation  or  during the period of two years
following the date of original  delivery  of  the  motor  home  to  such
[consumer]  PURCHASER,  whichever  is  the  earlier date, the [consumer]
PURCHASER may immediately forward written notice of such refusal to  the
motor home manufacturer by certified mail, return receipt requested. The
motor  home  manufacturer  or  its  authorized agent or a repair shop to
which they refer a [consumer] PURCHASER  shall  have  twenty  days  from
receipt  of  such  notice of refusal to commence such repairs. If within
such twenty day period, the motor home manufacturer  or  its  authorized
agent  or  repair shop to which they refer a [consumer] PURCHASER, fails
to commence such repairs, the motor home manufacturer, at the option  of
the [consumer] PURCHASER, shall replace the motor home with a comparable
motor  home,  or  accept  return  of  the motor home from the [consumer]
or, if applicable, the lease price, and any trade-in allowance or  other
charges,  fees,  or  allowances. Such fees and charges shall include but
not be limited to all license fees, registration fees, and  any  similar
governmental charges, less an allowance for the [consumer's] PURCHASER'S
use of the vehicle in excess of the first twelve thousand miles of oper-
ation  pursuant  to  the  mileage deduction formula defined in paragraph
four of subdivision (a) of this section, and a reasonable allowance  for
any damage not attributable to normal wear or improvements.
(6) If within the first eighteen thousand miles of operation or during
the  period  of two years following the date of original delivery of the
motor home to such [consumer] PURCHASER, whichever is the earlier  date,
S. 4427--A                          6
the  same covered nonconformity, defect or condition in a motor home has
been subject to repair two times or a motor home has been out of service
by reason of repair for twenty-one days,  whichever  occurs  first,  the
[consumer]  PURCHASER must have reported this to the motor home manufac-
turer or  its  authorized  dealer  by  certified  mail,  return  receipt
requested,  and may institute any proceeding or other action pursuant to
this section if the motor home has been out  of  service  by  reason  of
three repair attempts or for at least thirty days. The special notifica-
tion requirements of this paragraph shall only apply if the manufacturer
or  its  authorized dealer provides a prior written copy of the require-
ments of this paragraph to the [consumer] PURCHASER and receipt  of  the
notice  is  acknowledged  by the [consumer] PURCHASER in writing. If the
[consumer] PURCHASER who has received notice from the manufacturer fails
to comply with the special notification requirements of this  paragraph,
additional  repair  attempts  or days out of service by reason of repair
shall not be taken into account in determining  whether  the  [consumer]
PURCHASER  is  entitled  to  a remedy provided in paragraph four of this
subdivision. However, additional repair attempts or days out of  service
by  reason  of repair that occur after the [consumer] PURCHASER complies
with such special notification requirements shall be taken into  account
in  making that determination. It shall not count as a repair attempt if
the repair facility is not  authorized  by  the  applicable  motor  home
manufacturer  to  perform warranty work on the identified nonconformity.
It shall count as only one repair attempt for a motor home if  the  same
nonconformity  is  being addressed a second time due to the [consumer's]
PURCHASER'S decision to continue traveling and to seek the repair of the
same nonconformity at another repair facility rather than wait  for  the
initial repair to be completed.
(7)  Nothing  in this section shall in any way limit any rights, reme-
dies or causes of action that  a  [consumer]  PURCHASER  or  motor  home
manufacturer  may  otherwise  have against the manufacturer of the motor
home's chassis, or its propulsion and other components.
§ 12. Clause (i) of subparagraph (A) and the second undesignated para-
graph of subparagraph (B) of paragraph 8 of subdivision (n)  of  section
198-a  of  the general business law, as added by chapter 635 of the laws
(i) that the arbitrators participating in such mechanism  are  trained
in  arbitration  and  familiar with the provisions of this section, that
the arbitrators and [consumers] PURCHASERS who request  arbitration  are
with  the notice set forth below entitled "NEW MOTOR HOME LEMON LAW BILL
OF RIGHTS", and that [consumers] PURCHASERS, upon request, are given  an
The  following  notice shall be provided to [consumers] PURCHASERS and
arbitrators and shall be printed in  conspicuous  ten  point  bold  face
§  13.  Clause 4 of subparagraph (B) of paragraph 8 of subdivision (n)
of section 198-a of the general business law, as added by chapter 635 of
EARLIER  DATE  THE  MANUFACTURER  OF  A  MOTOR HOME OR ITS AGENTS OR ITS
S. 4427--A                          7
AND ANY TRADE-IN ALLOWANCE, PLUS FEES AND CHARGES, AS WELL AS THE  OTHER
FEES  AND CHARGES, INCLUDING BUT NOT LIMITED TO ALL LICENSE FEES, REGIS-
TRATION FEES, AND ANY SIMILAR GOVERNMENTAL CHARGES,  LESS  AN  ALLOWANCE
FOR  THE [CONSUMER'S] PURCHASER'S USE OF THE VEHICLE IN EXCESS OF TWELVE
THOUSAND MILES TIMES THE PURCHASE PRICE, OR THE LEASE PRICE IF  APPLICA-
BLE, OF THE VEHICLE DIVIDED BY ONE HUNDRED THOUSAND MILES, AND A REASON-
ABLE  ALLOWANCE  FOR  ANY  DAMAGE  NOT  ATTRIBUTABLE  TO  NORMAL WEAR OR
§ 14. Subdivision (o) of section 198-a of the general business law, as
added by chapter 147 of the laws of 1994, is amended to read as follows:
(o) At the time of purchase or  lease  of  a  motor  vehicle  from  an
authorized  dealer  in this state, the manufacturer shall provide to the
dealer or leaseholder, and the dealer or leaseholder  shall  provide  to
the  [consumer] PURCHASER a notice, printed in not less than eight point
bold face type, entitled "New Car Lemon Law Bill of Rights". The text of
such notice shall be identical with the notice required by paragraph two
of subdivision (m) of this section.
§ 15. Paragraph 1 of subdivision a of section  198-b  of  the  general
1. ["Consumer"] "PURCHASER" means the purchaser, or lessee, other than
for purposes of resale, of a  used  motor  vehicle  primarily  used  for
personal, family[,] or household, OR BUSINESS OR COMMERCIAL purposes and
subject  to  a warranty, and the spouse or child of the purchaser or the
lessee if either such motor vehicle or the lease of such  motor  vehicle
is transferred to the spouse or child during the duration of any warran-
ty  applicable  to  such motor vehicle, and any other person entitled by
the terms of such warranty to enforce the obligations of the warranty;
§ 16. Paragraphs 1, 2 and 3 of subdivision b of section 198-b  of  the
general  business law, paragraph 1 as amended by chapter 857 of the laws
of 1990, paragraphs 2 and 3 as amended by chapter 444  of  the  laws  of
1.  No dealer shall sell or lease a used motor vehicle to a [consumer]
PURCHASER without giving the [consumer]  PURCHASER  a  written  warranty
which shall at minimum apply for the following terms:
(a)  If  the used motor vehicle has thirty-six thousand miles or less,
the warranty shall be at minimum ninety days  or  four  thousand  miles,
(b) If the used motor vehicle has more than thirty-six thousand miles,
but  less  than  eighty thousand miles, the warranty shall be at minimum
sixty days or three thousand miles, whichever comes first.
more than one hundred thousand miles, the warranty shall be at a minimum
thirty days or one thousand miles, whichever comes first.
2. The written warranty shall require  the  dealer  or  his  agent  to
repair  or,  at  the  election  of  the dealer, reimburse the [consumer]
PURCHASER for the reasonable cost of repairing the failure of a  covered
part. Covered parts shall at least include the following items:
(a)  Engine.  All  lubricated parts, water pump, fuel pump, manifolds,
engine block, cylinder head, rotary engine housings and flywheel.
S. 4427--A                          8
(b) Transmission. The  transmission  case,  internal  parts,  and  the
(d)  Brakes.  Master cylinder, vacuum assist booster, wheel cylinders,
(f) Steering. The steering gear housing and all internal parts,  power
(g)  Alternator,  generator,  starter,  ignition  system excluding the
3. Such repair or reimbursement shall be made by the  dealer  notwith-
standing  the  fact  that  the warranty period has expired, provided the
[consumer] PURCHASER notifies the dealer of the  failure  of  a  covered
part within the specified warranty period.
§  17.  Subparagraph  (i)  of  paragraph 4 of subdivision b of section
198-b of the general business law, as amended by chapter 444 of the laws
of 1989 and as renumbered by chapter 530 of the laws of 1990, is amended
(i) if the used motor vehicle is rented  to  someone  other  than  the
[consumer]  PURCHASER  as  defined  in paragraph one of subdivision a of
§ 18. Paragraph 1 of subdivision c of section  198-b  of  the  general
business  law, as amended by chapter 444 of the laws of 1989, is amended
1. If the dealer or his agent fails to correct a malfunction or defect
as required by the warranty specified in this section which substantial-
ly impairs the value  of  the  used  motor  vehicle  to  the  [consumer]
PURCHASER  after  a  reasonable  period of time, the dealer shall accept
return of the used motor  vehicle  from  the  [consumer]  PURCHASER  and
refund  to  the  [consumer] PURCHASER the full purchase price, or in the
case of a lease contract all payments made under the contract, including
sales or compensating use tax,  less  a  reasonable  allowance  for  any
damage  not attributable to normal wear or usage, and adjustment for any
modifications which either increase or decrease the market value of  the
vehicle  or  of the lease contract, and in the case of a lease contract,
shall cancel all further payments  due  from  the  [consumer]  PURCHASER
under  the  lease  contract.  In  determining  the  purchase price to be
refunded or in determining all payments made under a lease  contract  to
be  refunded,  the  purchase  price,  or all payments made under a lease
contract, shall be deemed equal to the sum of the actual cash difference
paid for the used motor vehicle, or for the lease contract, plus, if the
dealer elects to not return any vehicles  traded-in  by  the  [consumer]
PURCHASER,  the wholesale value of any such traded-in vehicles as listed
in the National Auto Dealers Association Used Car Guide, or  such  other
guide as may be specified in regulations promulgated by the commissioner
of  motor vehicles, as adjusted for mileage, improvements, and any major
physical or mechanical defects in the traded-in vehicle at the  time  of
trade-in.  The  dealer  selling  or leasing the used motor vehicle shall
deliver to the [consumer] PURCHASER a written notice including conspicu-
ous language indicating that if the [consumer] PURCHASER should be enti-
tled to a refund pursuant to this section,  the  value  of  any  vehicle
traded-in  by  the  [consumer]  PURCHASER,  if  the dealer elects to not
return it to the [consumer] PURCHASER, for purposes of  determining  the
amount  of  such  refund will be determined by reference to the National
Auto Dealers Association Used Car Guide wholesale value, or  such  other
S. 4427--A                          9
guide  as  may  be  approved  by  the commissioner of motor vehicles, as
adjusted for mileage, improvements, and any major physical or mechanical
defects, rather than the value listed in  the  sales  contract.  Refunds
shall  be  made  to  the [consumer] PURCHASER and lienholder, if any, as
their interests may appear on the  records  of  ownership  kept  by  the
department  of motor vehicles. If the amount to be refunded to the lien-
holder will be insufficient to discharge  the  lien,  the  dealer  shall
notify  the  [consumer]  PURCHASER in writing by registered or certified
mail that the [consumer] PURCHASER has thirty days to pay the lienholder
the amount which, together with the amount to be refunded by the dealer,
will be sufficient to discharge the lien. The notice to  the  [consumer]
PURCHASER  shall  contain  conspicuous  language  warning the [consumer]
PURCHASER that failure to pay such funds to the lienholder within thirty
days will terminate the dealer's obligation to provide a refund. If  the
[consumer]  PURCHASER fails to make such payment within thirty days, the
dealer shall have no further responsibility to provide  a  refund  under
this  section.   Alternatively, the dealer may elect to offer to replace
the used motor vehicle with  a  comparably  priced  vehicle,  with  such
adjustment in price as the parties may agree to. The [consumer] PURCHAS-
ER  shall  not  be  obligated  to  accept a replacement vehicle, but may
instead elect to receive the refund  provided  under  this  section.  It
shall be an affirmative defense to any claim under this section that:
(a)  The  malfunction  or  defect  does  not substantially impair such
(b) The malfunction or defect is  the  result  of  abuse,  neglect  or
§ 19. Subparagraph (b) of paragraph 2 and paragraph 4 of subdivision c
of  section 198-b of the general business law, as amended by chapter 444
(b) The vehicle is out of service by reason of repair  or  malfunction
or  defect  for  a  cumulative  total of fifteen or more days during the
warranty period. Said period shall not include days when the  dealer  is
unable to complete the repair because of the unavailability of necessary
repair  parts. The dealer shall be required to exercise due diligence in
attempting to obtain necessary repair parts. Provided, however, that  if
a  vehicle  has been out of service for a cumulative total of forty-five
days, even if a portion of that time is attributable to the unavailabil-
ity of replacement parts, the [consumer] PURCHASER shall be entitled  to
the replacement or refund remedies provided in this section.
4. The term of any warranty, service contract or repair insurance, and
the  fifteen  day  out-of-service  period, shall be extended by any time
during which  repair  services  are  not  available  to  the  [consumer]
PURCHASER  because  of  a  war, invasion or strike, fire, flood or other
§ 20. Subdivisions d and e of section 198-b of  the  general  business
law,  as  amended  by  chapter  444  of the laws of 1989, paragraph 3 of
subdivision d as amended by chapter 692 of the laws of 1994, are amended
d. Waiver void. 1. Any agreement entered into by a [consumer] PURCHAS-
ER for the purchase or lease of  a  used  motor  vehicle  which  waives,
limits  or  disclaims the rights set forth in this article shall be void
as contrary to public policy. Further, if a dealer  fails  to  give  the
written warranty required by this article, the dealer nevertheless shall
be deemed to have given said warranty as a matter of law.
S. 4427--A                         10
2.  Nothing in this section shall in any way limit the rights or reme-
dies which are otherwise available to a [consumer] PURCHASER  under  any
3.  Notwithstanding  paragraph  one  of this subdivision, this article
shall not apply to used motor vehicles sold for, or in  the  case  of  a
lease  where  the  value  of  the used motor vehicle as agreed to by the
[consumer] PURCHASER and the dealer which vehicle is the subject of  the
contract  is,  less  than  one thousand five hundred dollars, or to used
motor vehicles with over one hundred thousand miles at the time of  sale
or  lease if said mileage is indicated in writing at the time of sale or
lease. Further, this article shall not apply to the  sale  or  lease  of
historical  motor vehicles as defined in section four hundred one of the
e. Time of delivery, location of  warranty  and  notice.  The  written
warranty  provided  for in subdivision b of this section and the written
notice provided for in subdivision c of this section shall be  delivered
to  the  [consumer]  PURCHASER  at  or  before  the  time the [consumer]
PURCHASER signs the sales or lease contract for the used motor  vehicle.
The warranty and the notice may be set forth on one sheet or on separate
sheets.  They  may be separate from, attached to, or a part of the sales
or lease contract. If they are part of the sales or lease contract, they
shall be separated from the other contract provisions and each headed by
a conspicuous title.
§ 21. The opening paragraph of paragraph 1 of subdivision f of section
198-b of the general business law, as separately amended by chapters 444
and 609 of the laws of 1989, is amended to read as follows:
If a dealer has established or participates  in  an  informal  dispute
settlement  procedure which complies in all respects with the provisions
of part seven hundred three of title sixteen  of  the  code  of  federal
regulations  the  provisions  of  this  article  concerning  refunds  or
replacement shall not apply to any consumer who has not  first  resorted
to  such procedure. Dealers utilizing informal dispute settlement proce-
dures pursuant to this subdivision shall [insure] ENSURE  that  arbitra-
tors  participating  in  such informal dispute settlement procedures are
familiar with the provisions of this section and shall provide to  arbi-
trators  and  [consumers]  PURCHASERS who seek arbitration a copy of the
provisions of  this  section  together  with  the  following  notice  in
conspicuous ten point bold face type:
§ 22. Paragraphs 2, 3, 4, 5 and 6 of subdivision f of section 198-b of
the general business law, paragraphs 2, 4 and 6 as separately amended by
chapters  444  and  609  of  the laws of 1989, paragraph 3 as amended by
chapter 323 of the laws of 1997, paragraph 5 as amended by  chapter  487
2.  A  dealer  shall have up to thirty days from the date of notice by
the  [consumer]  PURCHASER  that  the  arbitrator's  decision  has  been
accepted  to  comply with the terms of such decision. Provided, however,
that nothing contained in this subdivision shall impose any liability on
a dealer where a delay beyond the thirty day period is attributable to a
[consumer] PURCHASER who has requested a particular replacement  vehicle
or otherwise made compliance impossible within said period.
3. Upon the payment of a prescribed filing fee, a [consumer] PURCHASER
shall  have  the  option  of  submitting  any dispute arising under this
section to an alternate arbitration mechanism  established  pursuant  to
regulations promulgated hereunder by the attorney general. Upon applica-
tion  of  the  [consumer]  PURCHASER  and payment of the filing fee, the
S. 4427--A                         11
Such alternate arbitration shall be conducted by a professional  arbi-
trator  or  arbitration  firm  appointed by and under regulations estab-
lished by the attorney general. Such mechanism shall ensure the personal
objectivity of its arbitrators and the right of each  party  to  present
its  case, to be in attendance during any presentation made by the other
party and to rebut or refute such presentation. In all  other  respects,
such alternate arbitration mechanism shall be governed by article seven-
ty-five of the civil practice law and rules.
The  notice  required  by  paragraph one of this subdivision, entitled
Used Car Lemon Law Bill of Rights, shall be provided to arbitrators  and
[consumers] PURCHASERS who seek arbitration under this subdivision.
A  dealer shall have thirty days from the date of mailing of a copy of
the arbitrator's decision to such dealer to comply  with  the  terms  of
such  decision.  Failure  to  comply  within the thirty day period shall
entitle the [consumer] PURCHASER to recover, in addition  to  any  other
recovery  to  which he may be entitled, a fee of twenty-five dollars for
each business day  beyond  thirty  days  up  to  five  hundred  dollars;
provided  however,  that  nothing  in  this subdivision shall impose any
liability on a dealer where a delay beyond  the  thirty  day  period  is
attributable  to  a  [consumer] PURCHASER who has requested a particular
replacement vehicle or otherwise made compliance impossible within  said
The  commissioner of motor vehicles or any person deputized by him may
deny the application of any person for registration under  section  four
hundred  fifteen  of the vehicle and traffic law and suspend or revoke a
registration under such section or refuse to issue a renewal thereof  if
he  or  such  deputy determines that such applicant or registrant or any
officer, director, stockholder, or partner, or any other person directly
or indirectly interested in the business has deliberately failed to  pay
an arbitration award, which has not been stayed or appealed, rendered in
an  arbitration  proceeding  pursuant  to  this paragraph for sixty days
after the date of mailing of a copy of the award to the registrant.  Any
action  taken  by  the  commissioner  of motor vehicles pursuant to this
paragraph shall be governed by the procedures set forth  in  subdivision
nine of section four hundred fifteen of the vehicle and traffic law.
4.  In  no  event  shall a [consumer] PURCHASER who has resorted to an
informal dispute settlement procedure  be  precluded  from  seeking  the
rights or remedies available by law.
5. In an action brought to enforce the provisions of this article, the
court  may award reasonable attorney's fees to a prevailing plaintiff or
to a [consumer]  PURCHASER  who  prevails  in  any  judicial  action  or
proceeding  arising  out  of  an arbitration proceeding held pursuant to
paragraph three of this subdivision. In the event a prevailing plaintiff
is required to retain the services of an attorney to enforce  collection
of  an  award  granted  pursuant  to  this section, the court may assess
against the dealer reasonable attorney's fees for services  rendered  to
enforce collection of said award.
6.  Any  action  brought  pursuant  to this article shall be commenced
within four years of the date of original delivery  of  the  used  motor
vehicle to the [consumer] PURCHASER.
§  23.  Subdivision g of section 198-b of the general business law, as
g. Notice of [consumer] PURCHASER rights. At the time of  purchase  or
lease  of  a  used motor vehicle from a dealer in this state, the dealer
shall provide to the [consumer] PURCHASER a notice, printed in not  less
than  eight  point  bold face type, entitled "Used Car Lemon Law Bill of
S. 4427--A                         12
Rights". The text of such notice shall  be  identical  with  the  notice
required by paragraph one of subdivision f of this section.
§  24.  Paragraph 3 of subdivision (b) of section 198-c of the general
business law, as added by chapter 254 of the laws of 2010, is amended to
(3) The time period specified in paragraph one or two of this subdivi-
sion may be shortened if the dealer and [consumer] PURCHASER  agree,  in
writing, to a shorter time period.
§ 25. This act shall take effect immediately.