Legislation
SECTION 697-A
Warranty to consumers
General Business (GBS) CHAPTER 20, ARTICLE 33-B
§ 697-a. Warranty to consumers. 1. Every supplier of new farm
equipment which is sold within or outside of this state shall provide a
fair and reasonable warranty on all new farm equipment that shall be of
no less duration than twelve months following the date of original
delivery of the farm equipment to the consumer. If the new farm
equipment does not conform to all applicable express warranties during
the warranty period, and the consumer reports the nonconformity, defect
or condition to the supplier or its dealer in writing before the end of
the warranty period, or verbally within thirty days before the warranty
ends and then in writing within thirty days after the expiration of the
warranty period, such supplier or dealer shall make such repairs as are
necessary to conform the new equipment to such express warranties at no
charge to the consumer.
1-a. Farm equipment that is not specifically manufactured for the
United States market or in compliance with the laws and standards of the
United States is not covered by this article. A dealer who sells such
farm equipment shall receive written acknowledgement from the purchaser
that the purchaser has been made aware that such equipment is not
covered by this article.
2. If the supplier or its dealer are unable to conform the farm
equipment to any applicable express warranty by repairing the
nonconformity after a reasonable number of attempts, the supplier, at
the option of the consumer, shall replace the farm equipment with
comparable farm equipment provided that such comparable equipment is
available from the supplier, or accept return of the equipment from the
consumer and refund to the consumer the full purchase price or, if
applicable, the lease price and any trade-in allowance plus fees and
charges, less a deduction for use calculated pursuant to the formula
provided in subdivision four of section six hundred ninety-seven of this
article. For purposes of this section, fees and charges shall include
but not be limited to license fees, registration fees or other
governmental charges. Refunds shall be made to the consumer or
lienholder, if any, as their interests may appear on the records of
ownership. Such refund shall also be accompanied by the proper
application for credit for refund of state and local sales tax 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 refundable 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.
3. If a dealer refuses to undertake the repairs within the time
allotted pursuant to subdivision one of this section, the consumer may
immediately forward written notice of such refusal to the supplier, who
shall have twenty days from receipt of such notice to commence such
repairs.
4. (a) If the supplier refuses to undertake the repairs, the supplier
shall provide information for consumer complaint remedies which shall
inform the consumer of, among other things, whether an informal dispute
settlement mechanism has been established by the supplier and how the
consumer may avail himself or herself of such mechanism.
(b) If a supplier has established an informal dispute settlement
mechanism, such mechanism shall provide, at a minimum, the following:
(i) That the arbitrators and the consumers who request arbitration are
given a written copy of the provisions of this article together with the
notice set forth below entitled "New Farm Equipment Bill of Rights" and
that the arbitrators participating in such mechanism are trained in
arbitration and are familiar with the provisions of this article;
(ii) That the consumers, upon request, are given an opportunity to
make an oral presentation to the arbitrator; and
(iii) That the rights and procedures used in the mechanism comply with
federal regulations promulgated by the federal trade commission relating
to informal dispute settlement mechanisms.
(c) Each consumer 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 state attorney general. Upon
application of the consumer and payment of the filing fee, all suppliers
shall submit to such alternate arbitration, and shall pay a fee
established pursuant to regulations of the attorney general. Such
alternate arbitration shall be conducted by a professional arbitrator or
arbitration firm appointed by the state attorney general. Such mechanism
shall insure 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 and 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.
(d) A supplier shall have up to thirty days from the date the consumer
notifies the supplier 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 to
recover a fee of twenty-five dollars a day for each business day of
noncompliance up to five hundred dollars. Provided, however, that
nothing contained in this paragraph shall impose any liability on a
supplier where a delay beyond the thirty day period is attributable to a
consumer who has requested replacement farm equipment built to order or
with options that are not comparable to the farm equipment being
replaced or otherwise made compliance impossible within said period. In
no event shall a consumer who has resorted to an informal dispute
settlement mechanism be precluded from seeking the rights or remedies
available by law.
(e) A 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 (c) 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 supplier reasonable attorney's fees for services rendered to
enforce collection of such award.
(f) Any action brought pursuant to this section shall be commenced
within twenty-four months of the date of original delivery of the farm
equipment to the consumer.
(g) It shall be presumed that a reasonable number of attempts have
been undertaken to conform the farm equipment to the applicable express
warranties, if: (i) the same nonconformity, defect or condition has been
subject to repair four times by the supplier or its authorized dealers
and such nonconformity continues to exist; or (ii) the farm equipment is
out of service by reason of repair of one or more nonconformities by the
supplier or its dealer for a cumulative total of thirty calendar days
during the warranty period.
(h) The term of an express warranty, the one year warranty period and
the thirty day out of service period shall be extended by any reasonable
time during which repair services are not available to the consumer for
reasons which shall include war, terrorist attack, pestilence, invasion
or strike, fire, flood or other natural disaster or unforeseen and
unanticipated extraordinary circumstances.
equipment which is sold within or outside of this state shall provide a
fair and reasonable warranty on all new farm equipment that shall be of
no less duration than twelve months following the date of original
delivery of the farm equipment to the consumer. If the new farm
equipment does not conform to all applicable express warranties during
the warranty period, and the consumer reports the nonconformity, defect
or condition to the supplier or its dealer in writing before the end of
the warranty period, or verbally within thirty days before the warranty
ends and then in writing within thirty days after the expiration of the
warranty period, such supplier or dealer shall make such repairs as are
necessary to conform the new equipment to such express warranties at no
charge to the consumer.
1-a. Farm equipment that is not specifically manufactured for the
United States market or in compliance with the laws and standards of the
United States is not covered by this article. A dealer who sells such
farm equipment shall receive written acknowledgement from the purchaser
that the purchaser has been made aware that such equipment is not
covered by this article.
2. If the supplier or its dealer are unable to conform the farm
equipment to any applicable express warranty by repairing the
nonconformity after a reasonable number of attempts, the supplier, at
the option of the consumer, shall replace the farm equipment with
comparable farm equipment provided that such comparable equipment is
available from the supplier, or accept return of the equipment from the
consumer and refund to the consumer the full purchase price or, if
applicable, the lease price and any trade-in allowance plus fees and
charges, less a deduction for use calculated pursuant to the formula
provided in subdivision four of section six hundred ninety-seven of this
article. For purposes of this section, fees and charges shall include
but not be limited to license fees, registration fees or other
governmental charges. Refunds shall be made to the consumer or
lienholder, if any, as their interests may appear on the records of
ownership. Such refund shall also be accompanied by the proper
application for credit for refund of state and local sales tax 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 refundable 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.
3. If a dealer refuses to undertake the repairs within the time
allotted pursuant to subdivision one of this section, the consumer may
immediately forward written notice of such refusal to the supplier, who
shall have twenty days from receipt of such notice to commence such
repairs.
4. (a) If the supplier refuses to undertake the repairs, the supplier
shall provide information for consumer complaint remedies which shall
inform the consumer of, among other things, whether an informal dispute
settlement mechanism has been established by the supplier and how the
consumer may avail himself or herself of such mechanism.
(b) If a supplier has established an informal dispute settlement
mechanism, such mechanism shall provide, at a minimum, the following:
(i) That the arbitrators and the consumers who request arbitration are
given a written copy of the provisions of this article together with the
notice set forth below entitled "New Farm Equipment Bill of Rights" and
that the arbitrators participating in such mechanism are trained in
arbitration and are familiar with the provisions of this article;
(ii) That the consumers, upon request, are given an opportunity to
make an oral presentation to the arbitrator; and
(iii) That the rights and procedures used in the mechanism comply with
federal regulations promulgated by the federal trade commission relating
to informal dispute settlement mechanisms.
(c) Each consumer 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 state attorney general. Upon
application of the consumer and payment of the filing fee, all suppliers
shall submit to such alternate arbitration, and shall pay a fee
established pursuant to regulations of the attorney general. Such
alternate arbitration shall be conducted by a professional arbitrator or
arbitration firm appointed by the state attorney general. Such mechanism
shall insure 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 and 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.
(d) A supplier shall have up to thirty days from the date the consumer
notifies the supplier 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 to
recover a fee of twenty-five dollars a day for each business day of
noncompliance up to five hundred dollars. Provided, however, that
nothing contained in this paragraph shall impose any liability on a
supplier where a delay beyond the thirty day period is attributable to a
consumer who has requested replacement farm equipment built to order or
with options that are not comparable to the farm equipment being
replaced or otherwise made compliance impossible within said period. In
no event shall a consumer who has resorted to an informal dispute
settlement mechanism be precluded from seeking the rights or remedies
available by law.
(e) A 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 (c) 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 supplier reasonable attorney's fees for services rendered to
enforce collection of such award.
(f) Any action brought pursuant to this section shall be commenced
within twenty-four months of the date of original delivery of the farm
equipment to the consumer.
(g) It shall be presumed that a reasonable number of attempts have
been undertaken to conform the farm equipment to the applicable express
warranties, if: (i) the same nonconformity, defect or condition has been
subject to repair four times by the supplier or its authorized dealers
and such nonconformity continues to exist; or (ii) the farm equipment is
out of service by reason of repair of one or more nonconformities by the
supplier or its dealer for a cumulative total of thirty calendar days
during the warranty period.
(h) The term of an express warranty, the one year warranty period and
the thirty day out of service period shall be extended by any reasonable
time during which repair services are not available to the consumer for
reasons which shall include war, terrorist attack, pestilence, invasion
or strike, fire, flood or other natural disaster or unforeseen and
unanticipated extraordinary circumstances.