S T A T E   O F   N E W   Y O R K
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                                  8430

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              June 15, 2011
                               ___________

Introduced by M. of A. DINOWITZ, GALEF -- Multi-Sponsored by -- M. of A.
  CLARK,  COLTON,  COOK, HIKIND, MAGEE, MILLMAN, ORTIZ, J. RIVERA, SCAR-
  BOROUGH -- read once and referred to the Committee on Consumer Affairs
  and Protection

AN ACT to amend the general business law and the personal property  law,
  in relation to contracts for the sale of new motor vehicles

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 396-p of the general  business  law,  as  added  by
chapter  736 of the laws of 1978, is amended by adding a new subdivision
4-a to read as follows:
  4-A. (A) IN ADDITION TO ANY OTHER  RIGHTS  TO  REVOKE  AN  OFFER,  THE
CONSUMER  MAY  CANCEL  A  CONTRACT,  WHETHER  OR  NOT  SUCH CONSUMER HAS
RECEIVED A COPY OF SUCH CONTRACT SIGNED  BY  THE  RETAIL  DEALER,  UNTIL
MIDNIGHT  OF  THE NEXT BUSINESS DAY AFTER THE DATE ON WHICH THE CONSUMER
SIGNED THE CONTRACT OR THE DATE ON WHICH THE RETAIL DEALER  DELIVERED  A
COPY  OF  THE  CONTRACT  SIGNED  BY  HIM OR HER, WHICHEVER IS LATER. FOR
PURPOSES OF THIS PARAGRAPH, CANCELLATION WILL BE DEEMED TO HAVE OCCURRED
WHEN WRITTEN NOTICE OF CANCELLATION  IS  GIVEN  TO  THE  RETAIL  DEALER.
NOTICE  OF  CANCELLATION, IF GIVEN BY MAIL, SHALL BE DEEMED DELIVERED ON
THE DATE OF THE POSTMARK.  NOTICE OF CANCELLATION SHALL BE SUFFICIENT IF
IT INDICATES THE INTENTION OF THE CONSUMER NOT TO BE BOUND.
  (B) THE CONSUMER MAY, IN ORDER TO OBTAIN IMMEDIATE DELIVERY OF A MOTOR
VEHICLE, WAIVE THE RIGHT TO CANCEL AS PROVIDED IN PARAGRAPH (A) OF  THIS
SUBDIVISION. SUCH WAIVER MUST BE WRITTEN AND CLEARLY INDICATE THE INTEN-
TION OF THE CONSUMER TO WAIVE HIS OR HER RIGHT TO CANCEL THE CONTRACT.
  (C)  UNLESS  THE  CONSUMER  WAIVES  THE RIGHT TO CANCEL AS PROVIDED IN
PARAGRAPH (B) OF THIS SUBDIVISION, THE RETAIL DEALER IS NOT REQUIRED  TO
DELIVER  ANY  MOTOR VEHICLE TO A CONSUMER UNTIL AFTER THE CLOSE OF BUSI-
NESS ON THE NEXT BUSINESS DAY AFTER THE DAY ON  WHICH  THE  CONSUMER  OR
RETAIL DEALER SIGNS A MOTOR VEHICLE INSTALLMENT CONTRACT.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00865-01-1
              

A. 8430                             2

  (D)  FOR  PURPOSES OF A CANCELLATION PURSUANT TO PARAGRAPH (A) OF THIS
SUBDIVISION, IF A CONSUMER, PURSUANT TO AN  AGREEMENT  WITH  THE  RETAIL
DEALER,  REMOVES ANY TRADE-IN MOTOR VEHICLE FROM THE RETAIL DEALER'S LOT
AFTER SIGNING A MOTOR VEHICLE CONTRACT OR OFFER, BUT BEFORE THE  EXPIRA-
TION  OF  THE  PERIOD OF TIME DURING WHICH THE CONSUMER HAS THE RIGHT TO
CANCEL, THE RETAIL DEALER MAY REAPPRAISE THE VALUE OF THE TRADE-IN VEHI-
CLE UPON ITS RETURN TO THE RETAIL DEALER IF THE VEHICLE IS IN  A  CONDI-
TION  THAT  IS  NOT  SUBSTANTIALLY  THE  SAME  AS WHEN IT WAS ORIGINALLY
APPRAISED FOR TRADE-IN PURPOSES. HOWEVER, SUCH REAPPRAISAL SHALL NEITHER
EXTEND THE CANCELLATION PERIOD PROVIDED FOR IN  PARAGRAPH  (A)  OF  THIS
SUBDIVISION  NOR ENTITLE THE CONSUMER TO ANOTHER SUCH CANCELLATION PERI-
OD.
  (E) IF A CONSUMER CANCELS A CONTRACT PURSUANT  TO  THE  PROVISIONS  OF
THIS  SUBDIVISION,  THE  RETAIL  DEALER  MAY  RETAIN, FROM ANY CASH DOWN
PAYMENT PAID BY THE CONSUMER TO  THE  RETAIL  DEALER,  COMPENSATION  FOR
CANCELLATION  OF THE CONTRACT THAT SHALL NOT EXCEED ONE HUNDRED DOLLARS,
BUT SHALL NOT IMPOSE ANY OTHER PENALTY OR OBLIGATION.
  S 2. Section 198-b of the general business law is amended by adding  a
new subdivision a-1 to read as follows:
  A-1.  CONTRACTS; CANCELLATION.   1. IN ADDITION TO ANY OTHER RIGHTS TO
REVOKE AN OFFER, A CONSUMER MAY CANCEL A CONTRACT FOR THE SALE OR  LEASE
OF  A  USED  MOTOR  VEHICLE, WHETHER OR NOT SUCH CONSUMER HAS RECEIVED A
COPY OF SUCH CONTRACT SIGNED BY THE DEALER, PRIOR  TO  MIDNIGHT  OF  THE
NEXT BUSINESS DAY AFTER EITHER THE DATE ON WHICH THE CONSUMER SIGNED THE
CONTRACT  OR THE DATE ON WHICH THE DEALER DELIVERED A SIGNED COPY OF THE
CONTRACT, WHICHEVER IS  LATER.  FOR  THE  PURPOSES  OF  THIS  PARAGRAPH,
CANCELLATION  WILL  BE  DEEMED  TO  HAVE OCCURRED WHEN WRITTEN NOTICE OF
CANCELLATION IS GIVEN TO THE DEALER. IF  GIVEN  BY  MAIL,  A  NOTICE  OF
CANCELLATION  SHALL  BE  DEEMED  DELIVERED  ON THE DATE OF THE POSTMARK.
NOTICE OF CANCELLATION SHALL BE SUFFICIENT IF IT INDICATES THE INTENTION
OF THE CONSUMER NOT TO BE BOUND.
  2. THE CONSUMER MAY, IN ORDER TO OBTAIN IMMEDIATE DELIVERY OF A  MOTOR
VEHICLE,  WAIVE  THE RIGHT TO CANCEL A SALE OR LEASE CONTRACT WITHIN ONE
DAY AS PROVIDED IN PARAGRAPH ONE OF THIS SUBDIVISION. SUCH  WAIVER  MUST
BE  WRITTEN  AND CLEARLY INDICATE THE INTENTION OF THE CONSUMER TO WAIVE
HIS OR HER RIGHT TO CANCEL THE CONTRACT.
  3. UNLESS THE CONSUMER WAIVES THE RIGHT TO  CANCEL  A  SALE  OR  LEASE
CONTRACT  WITHIN  ONE  DAY AS PROVIDED IN PARAGRAPH TWO OF THIS SUBDIVI-
SION, THE DEALER IS NOT REQUIRED TO  DELIVER  ANY  MOTOR  VEHICLE  TO  A
CONSUMER  UNTIL  AFTER  THE  CLOSE  OF BUSINESS ON THE NEXT BUSINESS DAY
AFTER THE DAY ON WHICH THE CONSUMER OR  DEALER  SIGNS  A  MOTOR  VEHICLE
INSTALLMENT CONTRACT.
  4.  FOR  THE  PURPOSES  OF A CANCELLATION PURSUANT TO PARAGRAPH ONE OF
THIS SUBDIVISION, IF A CONSUMER, PURSUANT TO AN AGREEMENT WITH THE DEAL-
ER, REMOVES ANY TRADE-IN MOTOR VEHICLE FROM THE DEALER'S LOT AFTER SIGN-
ING A MOTOR VEHICLE CONTRACT OR OFFER, BUT BEFORE THE EXPIRATION OF  THE
PERIOD  OF  TIME  DURING WHICH THE CONSUMER HAS THE RIGHT TO CANCEL, THE
DEALER MAY REAPPRAISE THE VALUE OF THE TRADE-IN VEHICLE UPON ITS  RETURN
TO THE DEALER IF THE VEHICLE IS IN A CONDITION THAT IS NOT SUBSTANTIALLY
THE  SAME  AS  WHEN  IT  WAS ORIGINALLY APPRAISED FOR TRADE-IN PURPOSES.
HOWEVER, SUCH REAPPRAISAL SHALL NEITHER EXTEND THE  CANCELLATION  PERIOD
PROVIDED  FOR  IN  PARAGRAPH  ONE  OF  THIS  SUBDIVISION NOR ENTITLE THE
CONSUMER TO ANOTHER SUCH CANCELLATION PERIOD.
  5. IF A CONSUMER CANCELS A CONTRACT PURSUANT TO THE PROVISIONS OF THIS
SUBDIVISION, THE DEALER MAY RETAIN, FROM ANY CASH DOWN PAYMENT  PAID  BY
THE  CONSUMER  TO  THE  SELLER,  COMPENSATION  FOR  CANCELLATION  OF THE

A. 8430                             3

CONTRACT NOT EXCEEDING ONE HUNDRED DOLLARS, BUT  SHALL  NOT  IMPOSE  ANY
OTHER PENALTY OR OBLIGATION.
  S  3.  Section 337 of the personal property law is amended by adding a
new subdivision 5-a to read as follows:
  5-A. (A) IN ADDITION TO ANY OTHER RIGHTS TO REVOKE AN OFFER, A CONSUM-
ER MAY CANCEL A CONTRACT FOR THE LEASE OF A MOTOR  VEHICLE,  WHETHER  OR
NOT  SUCH  CONSUMER  HAS  RECEIVED A COPY OF SUCH CONTRACT SIGNED BY THE
LESSOR, PRIOR TO MIDNIGHT OF THE NEXT BUSINESS DAY AFTER EITHER THE DATE
ON WHICH THE CONSUMER SIGNED THE CONTRACT  OR  THE  DATE  ON  WHICH  THE
LESSOR DELIVERED A SIGNED COPY OF THE CONTRACT TO THE CONSUMER, WHICHEV-
ER  IS  LATER.  FOR THE PURPOSES OF THIS PARAGRAPH, CANCELLATION WILL BE
DEEMED TO HAVE OCCURRED WHEN WRITTEN NOTICE OF CANCELLATION IS GIVEN  TO
THE  LESSOR.  IF GIVEN BY MAIL, A NOTICE OF CANCELLATION SHALL BE DEEMED
DELIVERED ON THE DATE OF THE POSTMARK.  NOTICE OF CANCELLATION SHALL  BE
SUFFICIENT  IF  IT  INDICATES  THE  INTENTION  OF THE CONSUMER NOT TO BE
BOUND.
  (B) THE CONSUMER MAY, IN ORDER TO OBTAIN IMMEDIATE DELIVERY OF A MOTOR
VEHICLE, WAIVE THE RIGHT TO CANCEL AS PROVIDED IN PARAGRAPH (A) OF  THIS
SUBDIVISION. SUCH WAIVER MUST BE WRITTEN AND CLEARLY INDICATE THE INTEN-
TION OF THE CONSUMER TO WAIVE HIS OR HER RIGHT TO CANCEL THE CONTRACT.
  (C)  UNLESS  THE  CONSUMER  WAIVES  THE RIGHT TO CANCEL AS PROVIDED IN
PARAGRAPH (B) OF THIS SUBDIVISION, THE LESSOR IS NOT REQUIRED TO DELIVER
ANY MOTOR VEHICLE TO A CONSUMER UNTIL AFTER THE CLOSE OF BUSINESS ON THE
NEXT BUSINESS DAY AFTER THE DAY ON WHICH THE CONSUMER  OR  LESSOR  SIGNS
THE CONTRACT.
  (D)  FOR  THE  PURPOSES OF A CANCELLATION PURSUANT TO PARAGRAPH (A) OF
THIS SUBDIVISION, IF A CONSUMER,  PURSUANT  TO  AN  AGREEMENT  WITH  THE
LESSOR,  REMOVES  ANY TRADE-IN MOTOR VEHICLE FROM THE LESSOR'S LOT AFTER
SIGNING A MOTOR VEHICLE CONTRACT OR OFFER, BUT BEFORE THE EXPIRATION  OF
THE  PERIOD  OF  TIME DURING WHICH THE CONSUMER HAS THE RIGHT TO CANCEL,
THE LESSOR MAY REAPPRAISE THE VALUE OF THE  TRADE-IN  VEHICLE  UPON  ITS
RETURN  TO  THE  LESSOR  IF  THE  VEHICLE  IS IN A CONDITION THAT IS NOT
SUBSTANTIALLY THE SAME AS WHEN IT WAS ORIGINALLY APPRAISED FOR  TRADE-IN
PURPOSES.   HOWEVER, SUCH REAPPRAISAL SHALL NEITHER EXTEND THE CANCELLA-
TION PERIOD PROVIDED FOR IN PARAGRAPH (A) OF THIS SUBDIVISION NOR  ENTI-
TLE THE CONSUMER TO ANOTHER SUCH CANCELLATION PERIOD.
  (E)  IF  A  CONSUMER  CANCELS A CONTRACT PURSUANT TO THE PROVISIONS OF
THIS SUBDIVISION, THE LESSOR MAY RETAIN, FROM ANY DOWN PAYMENT  PAID  BY
THE  CONSUMER  TO  THE  LESSOR,  COMPENSATION  FOR  CANCELLATION  OF THE
CONTRACT THAT SHALL NOT EXCEED ONE HUNDRED DOLLARS, BUT SHALL NOT IMPOSE
ANY OTHER PENALTY OR OBLIGATION.
  S 4. This act shall take effect on the first of July  next  succeeding
the date on which it shall have become a law.