§ 198-b. Sale or lease of used motor vehicles. a. Definitions. As used
in this section, the following words shall have the following meanings:

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 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 warranty applicable to such motor vehicle, and any other
person entitled by the terms of such warranty to enforce the obligations
of the warranty;

2. "Used motor vehicle" means a motor vehicle, excluding motor homes
and off-road vehicles, which has been purchased, leased, or transferred
either after eighteen thousand miles of operation or two years from the
date of original delivery, whichever is earlier;

3. "Dealer" means any person or business which sells, offers for sale,
leases or offers for lease a used vehicle after selling, offering for
sale, leasing or offering for lease three or more used vehicles in the
previous twelve month period, but does not include:

(a) a bank or financial institution except in the case of a lease of a
used motor vehicle,

(b) a business selling a used vehicle to an employee of that business,

(c) a regulated public utility which sells at public auction vehicles
used in the ordinary course of its operations, provided that any
advertisements of such sales conspicuously disclose the "as is" nature
of the sale,

(d) the sale of a leased vehicle to that vehicle's lessee, a family
member of the lessee, or an employee of the lessee, or

(e) the state, its agencies, bureaus, boards, commissions and
authorities, and all of the political subdivisions of the state,
including the agencies and authorities of such subdivisions;

4. "Warranty" means any undertaking in connection with the sale or
lease by a dealer of a used motor vehicle to refund, repair, replace,
maintain or take other action with respect to such used motor vehicle
and provided at no extra charge beyond the price of the used motor
vehicle;

5. "Service contract" means a contract in writing for any period of
time or any specific mileage to refund, repair, replace, maintain or
take other action with respect to a used motor vehicle and provided at
an extra charge beyond the price of the used motor vehicle or of the
lease contract for the used motor vehicle;

6. "Repair insurance" means a contract in writing for any period of
time or any specific mileage to refund, repair, replace, maintain or
take other action with respect to a used motor vehicle and which is
regulated by the department of financial services.

b. Written warranty required; terms. 1. No dealer shall sell or lease
a used motor vehicle to a consumer without giving the consumer 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,
whichever comes first.

(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.

(c) If the used motor vehicle has eighty thousand miles or more but no
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 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.

(b) Transmission. The transmission case, internal parts, and the
torque converter.

(c) Drive axle. Front and rear drive axle housings and internal parts,
axle shafts, propeller shafts and universal joints.

(d) Brakes. Master cylinder, vacuum assist booster, wheel cylinders,
hydraulic lines and fittings and disc brake calipers.

(e) Radiator.

(f) Steering. The steering gear housing and all internal parts, power
steering pump, valve body, piston and rack.

(g) Alternator, generator, starter, ignition system excluding the
battery.

3. Such repair or reimbursement shall be made by the dealer
notwithstanding the fact that the warranty period has expired, provided
the consumer notifies the dealer of the failure of a covered part within
the specified warranty period.

4. The written warranty may contain additional language excluding
coverage:

(a) for a failure of a covered part caused by a lack of customary
maintenance;

(b) for a failure of a covered part caused by collision, abuse,
negligence, theft, vandalism, fire or other casualty and damage from the
environment (windstorm, lightning, road hazards, etc.);

(c) if the odometer has been stopped or altered such that the
vehicle's actual mileage cannot be readily determined or if any covered
part has been altered such that a covered part was thereby caused to
fail;

(d) for maintenance services and the parts used in connection with
such services such as seals, gaskets, oil or grease unless required in
connection with the repair of a covered part;

(e) for a motor tuneup;

(f) for a failure resulting from racing or other competition;

(g) for a failure caused by towing a trailer or another vehicle unless
the used motor vehicle is equipped for this as recommended by the
manufacturer;

(h) if the used motor vehicle is used to carry passengers for hire;

(i) if the used motor vehicle is rented to someone other than the
consumer as defined in paragraph one of subdivision a of this section;

(j) for repair of valves and/or rings to correct low compression
and/or oil consumption which are considered normal wear;

(k) to the extent otherwise permitted by law, for property damage
arising or allegedly arising out of the failure of a covered part; and

(l) to the extent otherwise permitted by law, for loss of the use of
the used motor vehicle, loss of time, inconvenience, commercial loss or
consequential damages.

c. Failure to honor warranty. 1. If the dealer or his agent fails to
correct a malfunction or defect as required by the warranty specified in
this section which substantially impairs the value of the used motor
vehicle to the consumer after a reasonable period of time, the dealer
shall accept return of the used motor vehicle from the consumer and
refund to the consumer 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 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, 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
a written notice including conspicuous language indicating that if the
consumer should be entitled to a refund pursuant to this section, the
value of any vehicle traded-in by the consumer, if the dealer elects to
not return it to the consumer, 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 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 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 lienholder will be
insufficient to discharge the lien, the dealer shall notify the consumer
in writing by registered or certified mail that the consumer 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 shall contain conspicuous language warning the
consumer 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 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 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
value; or

(b) The malfunction or defect is the result of abuse, neglect or
unreasonable modifications or alterations of the used motor vehicle.

2. It shall be presumed that a dealer has had a reasonable opportunity
to correct a malfunction or defect in a used motor vehicle, if:

(a) The same malfunction or defect has been subject to repair three or
more times by the selling or leasing dealer or his agent within the
warranty period, but such malfunction or defect continues to exist; or

(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
unavailability of replacement parts, the consumer shall be entitled to
the replacement or refund remedies provided in this section.

3. The term of any warranty, service contract or repair insurance
shall be extended by any time period during which the used motor vehicle
is in the possession of the dealer or his duly authorized agent for the
purpose of repairing the used motor vehicle under the terms and
obligations of said warranty, service contract or repair insurance.

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 because
of a war, invasion or strike, fire, flood or other natural disaster.

d. Waiver void. 1. Any agreement entered into by a consumer 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.

2. Nothing in this section shall in any way limit the rights or
remedies which are otherwise available to a consumer under any other
law.

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 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 vehicle and
traffic law.

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 at or before the time the consumer 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.

f. Arbitration and enforcement. 1. 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 procedures pursuant to this subdivision
shall insure that arbitrators participating in such informal dispute
settlement procedures are familiar with the provisions of this section
and shall provide to arbitrators and consumers who seek arbitration a
copy of the provisions of this section together with the following
notice in conspicuous ten point bold face type:

USED CAR LEMON LAW BILL OF RIGHTS

1. If you purchase a used car for more than one thousand five hundred
dollars, or lease a used car where you and the dealer have agreed that
the car's value is more than one thousand five hundred dollars, from
anyone selling or leasing three or more used cars a year, you must be
given a written warranty.

2. If your used car has 18,000 miles or less, you may be protected by
the new car lemon law.

3. (a) If your used car has more than 18,000 miles and up to and
including 36,000 miles, a warranty must be provided for at least 90 days
or 4,000 miles, whichever comes first.

(b) If your used car has more than 36,000 miles but less than 80,000
miles, a warranty must be provided for at least 60 days or 3,000 miles,
whichever comes first.

(c) If your used car has 80,000 miles or more but no more than 100,000
miles, a warranty must be provided for at least 30 days or 1,000 miles,
whichever comes first. Cars with over 100,000 miles are not covered.

4. If your engine, transmission, drive axle, brakes, radiator,
steering, alternator, generator, starter, or ignition system (excluding
the battery) are defective, the dealer or his agent must repair or, if
he so chooses, reimburse you for the reasonable cost of repair.

5. If the same problem cannot be repaired after three or more
attempts, you are entitled to return the car and receive a refund of
your purchase price or of all payments made under your lease contract,
and of sales tax and fees, minus a reasonable allowance for any damage
not attributable to normal usage or wear, and, in the case of a lease
contract, a cancellation of all further payments you are otherwise
required to make under the lease contract.

6. If your car is out of service to repair a problem for a total of
fifteen days or more during the warranty period you are entitled to
return the car and receive a refund of your purchase price or of all
payments made under your lease contract, and of sales tax and fees,
minus a reasonable allowance for any damage not attributable to normal
usage or wear, and, in the case of a lease contract, a cancellation of
all further payments you are otherwise required to make under the lease
contract.

7. A dealer may put into the written warranty certain provisions which
will prohibit your recovery under certain conditions; however, the
dealer may not cause you to waive any rights under this law.

8. A dealer may refuse to refund your purchase price, or the payments
made under your lease contract, if the problem does not substantially
impair the value of your car, or if the problem is caused by abuse,
neglect, or unreasonable modification.

9. If a dealer has established an arbitration procedure, the dealer
may refuse to refund your purchase price until you first resort to the
procedure. If the dealer does not have an arbitration procedure, you may
resort to any remedy provided by law and may be entitled to your
attorney's fees if you prevail.

10. As an alternative to the arbitration procedure made available
through the dealer you may instead choose to submit your claim to an
independent arbitrator, approved by the attorney general. You may have
to pay a fee for such an arbitration. Contact your local consumer office
or attorney general's office to find out how to arrange for independent
arbitration.

11. If any dealer refuses to honor your rights or you are not
satisfied by the informal dispute settlement procedure, complain to the
New York State Attorney General, Executive Office, Capitol, Albany, N.Y.
12224.

2. A dealer shall have up to thirty days from the date of notice by
the consumer 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
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 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 application of the
consumer and payment of the filing fee, the dealer shall submit to such
alternate arbitration.

Such alternate arbitration shall be conducted by a professional
arbitrator or arbitration firm appointed by and under regulations
established 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 seventy-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 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 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
who has requested a particular replacement vehicle or otherwise made
compliance impossible within said period.

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 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 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.

g. Notice of consumer 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 a notice, printed in not less than eight point bold face
type, entitled "Used Car Lemon Law Bill of Rights". The text of such
notice shall be identical with the notice required by paragraph one of
subdivision f of this section.