2013 New York Consolidated Laws
GBS - General Business
Article 26 - (390 - 399-ZZZ) MISCELLANEOUS
396-P*2 - Contracts for the sale of new motor vehicles.

 
    * §  396-p.  Contracts  for  the  sale  of  new motor vehicles. 1. Any
  covenant or agreement in connection with or collateral to  any  contract
  entered into between
    (a)  a  manufacturer or distributor of new motor vehicles and a retail
  dealer thereof, or
    (b) a retail dealer of new motor vehicles and a consumer,
  pursuant to which the price of such motor vehicle to the  dealer  or  to
  the  consumer may be increased after such contract has been entered into
  shall be  deemed  to  be  void  as  against  public  policy  and  wholly
  unenforceable.
    2.  Every  contract  provided  for  in subdivision one of this section
  shall contain a conspicuous provision in bold face type stating that the
  price contained in such contract is the final contract  price  to  which
  the  parties  have  agreed,  and that no additional fee or charge may be
  imposed or collected. The provisions of this section shall be limited to
  the sale of those new motor vehicles for which the  dealer  has  a  bona
  fide  customer  order  as  evidenced by a written sales agreement with a
  retail customer.
    3. If a retail dealer of new motor vehicles accepts a deposit  from  a
  consumer  but does not have a bona fide customer order as evidenced by a
  written sales agreement, that dealer shall give the consumer  a  written
  form  indicating  what,  if any, options or equipment are desired by the
  consumer.  This  form  shall  be  signed  by  the  consumer  and   state
  conspicuously on its face:
    "This  Is  Not  An  Order  Form.  There Is No Guarantee That The Motor
  Vehicle Offered To You Will Match The Description Indicated On This Form
  Or Will Contain These And No Other Options. Should  You  Decide  Not  To
  Purchase  The  Motor Vehicle, You Have The Right To Obtain A Full Refund
  Of Your Deposit."
    4. If a retail dealer of new motor vehicles accepts a deposit  from  a
  consumer  pursuant to a written contract for the purchase of a new motor
  vehicle, such contract shall  contain  a  provision  setting  forth  the
  estimated  delivery date of the automobile and the place of delivery and
  a statement in immediate proximity to the estimated delivery date  that,
  if the automobile has not been delivered in accordance with the contract
  within  thirty days following such estimated delivery date, the consumer
  has the right to cancel the contract  and  to  receive  a  full  refund,
  unless the delay in delivery is attributable to the consumer.
    5. (a) Prior to the sale and delivery of a new motor vehicle, a retail
  dealer or employee of a retail dealer shall provide written notification
  to the consumer of any repairs undertaken to repair physical damage with
  a  retail  value  in  excess  of  five  percent  of  the  lesser  of the
  manufacturer's or distributor's suggested retail price  performed  after
  shipment  from  the  manufacturer to the dealer, including damage to the
  vehicle while in transit. This notice requirement  shall  not  apply  to
  identical   replacement  of  stolen  or  damaged  accessories  or  their
  components. This dollar amount shall include  the  cost  of  the  retail
  charge for parts and labor, at the dealer's stated labor rate.
    (b)  If  a retail dealer has provided notice to a consumer pursuant to
  paragraph (a) of this subdivision, the consumer  shall  be  entitled  to
  cancel  the  purchase order or other documentation of intent to purchase
  such vehicle and receive a full refund for any deposit made pursuant  to
  this transaction.
    (c)  If  a  retail  dealer  has failed to provide notice to a consumer
  pursuant to paragraph (a) of this subdivision,  the  consumer  shall  be
  entitled  to  a  full  refund  of the purchase price of the vehicle, any
  trade-in allowance plus fees and charges within four  months  after  the
  date of purchase. Such fees and charges shall include but not be limited

  to  all  license  fees,  registration  fees and any similar governmental
  charges, less an allowance for the consumer's  use  of  the  vehicle  in
  excess  of  one  thousand miles for each month or part thereof which has
  expired since sale and delivery of the vehicle and the date the consumer
  surrenders the vehicle to the retail dealer to receive a refund pursuant
  to  this  subdivision,  and  a  reasonable  allowance for any damage not
  attributable to normal wear or usage. The amount of  the  deduction  for
  mileage  in excess of the appropriate allowed amount shall be determined
  by dividing the mileage in excess of the allowed amount by  one  hundred
  thousand  miles  and  multiplying  the  result times the purchase price.
  Adjustment shall  also  be  made  for  any  modifications  made  by  the
  purchaser  after  delivery  of  the  vehicle  which  either  increase or
  decrease the market value of the vehicle. A dealer which accepts  return
  of  the  motor  vehicle  because  notice  of repairs was not provided in
  accordance with this subdivision shall notify the  commissioner  of  the
  department  of  motor  vehicles of such return. Refunds shall be made to
  the consumer and lienholder, if any, as their interests  may  appear  on
  the  records  of  ownership  kept  by  the department of motor vehicles.
  Refunds shall be accompanied by the proper  application  for  credit  or
  refund  of state and local sales taxes as published by the department of
  taxation and finance and by a notice that the  sales  tax  paid  on  the
  purchase  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.
    (d)   Any  manufacturer,  distributor  or  retail  dealer  selling  or
  transferring a new motor vehicle which has been subjected to repairs  of
  a value described in this subdivision, shall notify any retail dealer to
  whom  such  new  motor  vehicle so repaired is sold or transferred. Such
  notice shall be in writing, advise of  such  repairs,  and  be  provided
  prior  to  the  receipt  of  any  payment for such motor vehicle. If the
  manufacturer, distributor, or retail dealer shall fail to  provide  such
  notice,  any  retail  dealer  suffering a loss by reason of such failure
  shall be entitled to reimbursement from the  manufacturer,  distributor,
  or retail dealer who has failed to provide such notice.
    6.  Any  dealer  or  employee  of  a  dealer  who  violates any of the
  provisions of this section shall be subject to a civil  penalty  not  to
  exceed fifty dollars for the first offense and two hundred fifty dollars
  for the second and each subsequent offense.
    * NB There are 2 396-p's