2006 New York Code - Requirements For Use Of Plain Language In Consumer Transactions.



 
    § 5-702. Requirements   for   use   of   plain  language  in  consumer
  transactions. a. Every written agreement  entered  into  after  November
  first,  nineteen  hundred  seventy-eight,  for  the lease of space to be
  occupied for residential purposes, for the lease of personal property to
  be used primarily for personal, family or household purposes or to which
  a consumer is a party and the money, property or service  which  is  the
  subject  of  the  transaction  is  primarily  for  personal,  family  or
  household purposes must be:
    1. Written in a clear and coherent manner using words with common  and
  every day meanings;
    2. Appropriately divided and captioned by its various sections.
    Any  creditor,  seller  or  lessor  who  fails  to  comply  with  this
  subdivision shall be liable to a consumer who is a party  to  a  written
  agreement  governed by this subdivision in an amount equal to any actual
  damages sustained plus a penalty  of  fifty  dollars.  The  total  class
  action  penalty  against  any  such creditor, seller or lessor shall not
  exceed ten thousand dollars in any  class  action  or  series  of  class
  actions  arising  out  of  the use by a creditor, seller or lessor of an
  agreement which fails to comply with this subdivision.  No action  under
  this subdivision may be brought after both parties to the agreement have
  fully  performed  their  obligation  under such agreement, nor shall any
  creditor, seller or lessor who attempts in good  faith  to  comply  with
  this  subdivision  be  liable for such penalties. This subdivision shall
  not apply to a good faith attempt to  describe  the  constant  yield  or
  other  method  of determining the lease charge and depreciation portions
  of each base rental payment under a lease of personal property. It  also
  shall  not  apply  to  agreements  involving  amounts in excess of fifty
  thousand dollars nor prohibit the use of words or phrases  or  forms  of
  agreement  required  by state or federal law, rule or regulation or by a
  governmental instrumentality.
    b. A violation of the provisions of  subdivision  a  of  this  section
  shall  not  render  any  such  agreement  void  or voidable nor shall it
  constitute:
    1. A defense to any action or proceeding to enforce such agreement; or
    2. A defense to any action or proceeding for breach of such agreement.
    c. In addition to the above, whenever the attorney general finds  that
  there  has  been a violation of this section, he may proceed as provided
  in subdivision twelve of section sixty-three of the executive law.

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