§ 395-a. Maintenance agreements. 1. Definitions. For the purposes of
this section, a "maintenance agreement" shall refer to any contract or
representation whereby the seller or manufacturer of a retail sales item
or the seller of a service contract shall offer the defined service
and/or parts for an additional fee. Said maintenance agreement can be
offered at the time of purchase or at a later date.

2. No maintenance agreement covering parts and/or service shall be
terminated at the election of the party providing such parts and/or
service during the term of the agreement unless prior to or upon
delivery of a copy of the agreement the buyer is notified in writing
that the agreement may be cancelled for:

a. non-payment; or

b. use of the item primarily for commercial purposes, unless the
agreement so provides. When a maintenance agreement is terminated
because of use of the item primarily for commercial purposes, the party
providing the parts and/or service must reimburse the buyer on a pro
rata basis for the remaining period of time or mileage for the unused
portion of the maintenance agreement less the cost of any parts and/or
service already provided from the date of termination; or

c. change in the buyer's residence beyond the disclosed service area,
except where the buyer provides transportation or shipping to and from
the site of service. When a maintenance agreement is terminated because
of a change in the buyer's residence beyond the disclosed service area,
either the buyer or the party providing the parts and/or service may
terminate the maintenance agreement. Reimbursement to the buyer shall be
made on a pro rata basis for the remaining period of time or mileage for
the unused portion of the maintenance agreement from the date of notice
of change in the buyer's residence.

3. Pre-sale availability of maintenance agreement. Sellers of retail
products purchased for personal, family or household purposes, which
offer maintenance agreements shall provide the buyer with an opportunity
to review the maintenance agreement before it is purchased and provide
the buyer with a copy of the maintenance agreement at the time of
purchase. The provisions of this section shall not apply to sales by
mail order companies as defined in section three hundred ninety-six-m of
this chapter.

4. A violation of the provisions of this section shall be punishable
by a civil penalty of not more than three hundred dollars recoverable in
an action by the attorney general in the name of the people of the state
or by the corporation counsel for any city or by the appropriate
attorney of any other political subdivision as shall be designated by
the governing body of such political subdivision.