2010 New York Code
PEP - Personal Property
Article 11 - (500 - 508) RENTAL PURCHASE AGREEMENTS
503 - Total cost.

* §  503.  Total  cost.  No  merchant  shall  offer  a rental-purchase
  agreement requiring periodic payments totalling  more  than  an  amount,
  fifty  percent  of  which  equals  the  cash  price of merchandise. When
  periodic payments made by a consumer total an amount, fifty  percent  of
  which  equals  the  cash  price  of  the merchandise, the consumer shall
  acquire ownership of the merchandise and the  rental-purchase  agreement
  shall terminate.
    * NB Effective until January 26, 2011
    * §  503.  Total  cost.  1.  A  merchant  shall  maintain records that
  establish the merchant's cost for each item of merchandise that  is  the
  subject of the rental-purchase agreement. A copy of each rental-purchase
  agreement  and  of  the  records  required  by this subdivision shall be
  maintained for at least two  years  following  the  termination  of  the
  agreement.
    2.  The  maximum  cash  price  for  the merchant's first rental of the
  merchandise that is the subject of the rental-purchase agreement may not
  exceed 1.75 times the merchant's cost for  appliances,  1.75  times  the
  merchant's  cost  for electronic sets having merchant cost less than one
  hundred fifty dollars, 2.0 times the  merchant's  costs  for  electronic
  sets  having  merchant  cost  greater than or equal to one hundred fifty
  dollars, 2.15 times the merchant's cost for  furniture,  2.0  times  the
  merchant's   cost  for  automotive  accessories,  jewelry,  and  musical
  instruments, and 1.75 times the merchant's cost for all other items.
    3. The maximum total of payments may not exceed 2.25 times the maximum
  cash price that could have been charged for  the  first  rental  of  the
  merchandise under subdivision two of this section.
    4.  The  maximum  total  of  payments  for  the  merchant's second and
  subsequent rental  of  the  merchandise  that  is  the  subject  of  the
  rental-purchase  agreement  may not exceed the maximum total of payments
  permitted under the terming matrix contained in subdivision five of this
  section.
    5. (a) The terming matrix  provided  for  in  paragraph  (b)  of  this
  subdivision  shall  be  used  to  lower the number of periodic payments,
  which shall result in a lower total of payments and a lower maximum cash
  price for the used merchandise based on its age and  condition,  or,  in
  the  event  that the merchant chooses to maintain the number of periodic
  payments of the original term when new, the  merchant  shall  lower  the
  total  of  payments  and  maximum  cash  price  on a pro-rata basis. The
  merchant shall keep in electronic or hard copy form,  the  matrix  used,
  together  with  a  record of the number of periodic payments provided in
  the first agreement for the item when it was offered as new, as well  as
  a  record of the item's condition as determined by the merchant pursuant
  to such matrix each time it is priced as used. This requirement shall be
  satisfied by a record of the number of periodic payments and cash  price
  from  each rental-purchase agreement under which merchandise was rented.
  These records shall be maintained as long as the item is  owned  by  the
  merchant.  No  merchant  shall  price used goods in excess of the prices
  dictated by the matrix.
    (b) The attorney general shall  make  available  in  printed  form  to
  merchants  and publish on the website of the department of law a terming
  matrix in chart form to be used by merchants  as  required  pursuant  to
  paragraph  (a)  of  this  subdivision. The chart shall have as its title
  "Terming Matrix for Used Merchandise". The matrix chart shall conform to
  the example set forth in this paragraph and shall consist of  five  rows
  and five columns and shall be printed in at least ten point type.
 
                     TERMING MATRIX FOR USED MERCHANDISE

Original Term                                               91 weeks
    in Weeks      34 weeks      35 - 38 weeks  39 - 90 weeks  or more
    when New       or less
 
  EXCELLENT      subtract a     subtract a     subtract a     subtract a
  CONDITION      minimum of 1   minimum of 2   minimum of 3   minimum of
                 week from      weeks from     weeks from     4 weeks
                 original       original       original       from ori-
                 term           term           term           ginal term
 
  GOOD           subtract a     subtract a     subtract a     subtract a
  CONDITION      minimum of 3   minimum of 5   minimum of 7   minimum of
                 weeks from     weeks from     weeks from     9 weeks
                 original       original       original       from ori-
                 term           term           term           ginal term
 
  FAIR           subtract a     subtract a     subtract a     subtract a
  CONDITION      minimum of 4   minimum of 7   minimum of 10  minimum of
                 weeks from     weeks from     weeks from     13 weeks
                 original       original       original       from ori-
                 term           term           term           ginal term
 
  POOR           subtract a     subtract a     subtract a     subtract a
  CONDITION      minimum of 6   minimum of 10  minimum of 15  minimum of
                 weeks from     weeks from     weeks from     20 weeks
                 original       original       original       from ori-
                 term or cash   term or cash   term or cash   ginal term
                 sale           sale           sale           or cash
                                                              sale
 
  (c)  Immediately  below the terming matrix, the following language shall
  be printed in ten point type.
  New = Full Term
  Excellent = In great shape. Refurbished to look like new.
  Good = In good  working  order.  Refurbished,  but  imperfections  still
  exist.
  Fair  =  Completely  operational,  but  refurbishment  has not concealed
  obvious wear and tear.
  Poor = Ripped, faded, cracked or broken and refurbishment did not change
  it.
    6. The maximum cash price for merchandise on its second or  subsequent
  rental may not exceed the maximum total of payments for that merchandise
  as permitted under subdivision five of this section divided by 2.25.
    7.  Upon  the written request of the attorney general a merchant shall
  provide copies of the records described in this section.
    8. If a merchant intentionally discloses a cash price or  a  total  of
  payments  that  exceeds  the  amount  permitted  by  this  section,  the
  rental-purchase  agreement  is  void,  the  consumer  shall  retain  the
  merchandise without any obligation, and the merchant shall refund to the
  consumer all amounts paid.
    * NB Effective January 26, 2011