Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Jan 14, 2011 |
referred to consumer protection |
Senate Bill S1947
2011-2012 Legislative Session
Sponsored By
(D) Senate District
Archive: Last Bill Status - In Senate Committee Consumer Protection Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
2011-S1947 (ACTIVE) - Details
- Current Committee:
- Senate Consumer Protection
- Law Section:
- General Business Law
- Laws Affected:
- Add ยง218-b, Gen Bus L
- Versions Introduced in 2009-2010 Legislative Session:
-
S899
2011-S1947 (ACTIVE) - Sponsor Memo
BILL NUMBER:S1947 TITLE OF BILL: An act to amend the general business law, in relation to regulating service contracts issued by mercantile establishments PURPOSE/SUMMARY OF PROVISIONS: To eliminate lifetime warranties and encourage finite term warranties. The general business law is amended by adding a new section two hundred eighteen-b. JUSTIFICATION: A retail operation, usually an appliance store, offers a lifetime warranty on a product as a marketing inducement for sale. When the company goes out of business, the consumer suddenly realizes that the warranty was not for the life of the product, but rather the life of the business. The consumer is then stuck holding a product with a worthless warranty. In western New York alone, many examples of this situation have occurred over the years. Recently, a business in Western New York named Burnhams Inc. suddenly went out of business, leaving well over 100 consumers holding meaningless warranties. This legislation addresses this situation by abolishing lifetime warranties which, in reality, do not exist. In fact, reputable retailers admit that lifetime warranties are unrealistic to administer.
2011-S1947 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 1947 2011-2012 Regular Sessions I N S E N A T E January 14, 2011 ___________ Introduced by Sen. KRUGER -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection AN ACT to amend the general business law, in relation to regulating service contracts issued by mercantile establishments THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The general business law is amended by adding a new section 218-b to read as follows: S 218-B. SERVICE CONTRACTS. 1. NO RETAIL MERCANTILE ESTABLISHMENT SHALL SELL OR OFFER FOR SALE LIFETIME SERVICE CONTRACTS ON ANY GOODS, WARES OR MERCHANDISE OFFERED TO THE PUBLIC EXCEPT AS AUTHORIZED IN THIS SECTION. 2. FOR ANY SERVICE CONTRACT OFFERED BY A RETAIL MERCANTILE ESTABLISH- MENT ON ANY PRODUCT SOLD, PROPER INSURANCE SHALL BE PURCHASED FOR THE CORRESPONDING LENGTH OF SAID CONTRACT TO ASSURE THE PURCHASER THAT THE TERMS OF SAID SERVICE CONTRACT SHALL BE CARRIED OUT IN THE CASE THAT THE RETAIL MERCANTILE ESTABLISHMENT DECLARES BANKRUPTCY OR INSOLVENCY OR IS UNABLE TO PERFORM THE TERMS OF SUCH CONTRACT DUE TO ANY OTHER REASON. IF, HOWEVER, INSURANCE IS NOT AVAILABLE TO THE RETAIL MERCANTILE ESTAB- LISHMENT AT A REASONABLE BUSINESS RATE, SAID ESTABLISHMENT SHALL HAVE THE OPTION TO ESTABLISH INTEREST BEARING ESCROW ACCOUNTS IN WHICH MONEY PAID BY THE PURCHASER FOR SERVICE CONTRACTS SHALL BE DEPOSITED. 3. THE RETAIL MERCANTILE ESTABLISHMENT MAY WITHDRAW TEN PERCENT OF THE MONEY DEPOSITED FOR EACH SUCH CONTRACT EACH YEAR WHICH SHALL BECOME THE PROPERTY OF THE ESTABLISHMENT. AT THE TIME WHEN SUCH ESTABLISHMENT IS ENTITLED TO THE FINAL TEN PERCENT OF THE MONEY PAID ON SUCH CONTRACT OR AGREEMENT, IT MAY ALSO WITHDRAW THE INTEREST EARNED ON SUCH MONEY. 4. IF SUCH RETAIL MERCANTILE ESTABLISHMENT IS UNABLE TO PERFORM THE TERMS OF SUCH CONTRACT OR AGREEMENT BECAUSE OF BANKRUPTCY OR INSOLVENCY OR FOR ANY OTHER REASON, OR IF IT IS DETERMINED THAT SUCH ESTABLISHMENT HAS BREACHED THE TERMS OF SUCH CONTRACT OR AGREEMENT, THE PURCHASER OF EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07083-01-1
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