2012 New York Consolidated Laws
PEP - Personal Property
Article 11 - (500 - 508) RENTAL PURCHASE AGREEMENTS
503 - Total cost.

 
    § 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.