2013 New York Consolidated Laws
GBS - General Business
Article 26 - (390 - 399-ZZZ) MISCELLANEOUS
399-C - Mandatory arbitration clauses in certain consumer contracts prohibited.

 
    §  399-c.  Mandatory arbitration clauses in certain consumer contracts
  prohibited. 1.  Definitions.
    a. The term "consumer" shall mean a natural person  residing  in  this
  state.
    b. The term "consumer goods" shall mean goods, wares, paid merchandise
  or  services  purchased  or  paid for by a consumer, the intended use or
  benefit of which is intended  for  the  personal,  family  or  household
  purposes of such consumer.
    c.  The  term  "mandatory  arbitration  clause"  shall  mean a term or
  provision contained in a written contract for the sale  or  purchase  of
  consumer goods which requires the parties to such contract to submit any
  controversy  thereafter arising under such contract to arbitration prior
  to the commencement of any legal action to  enforce  the  provisions  of
  such  contract  and  which  also further provides language to the effect
  that the decision of the arbitrator  or  panel  of  arbitrators  in  its
  application  to  the  consumer  party  shall be final and not subject to
  court review.
    d. The term "arbitration" shall mean the  use  of  a  decision  making
  forum  conducted  by  an  arbitrator  or panel of arbitrators within the
  meaning and subject to the provisions of  article  seventy-five  of  the
  civil practice law and rules.
    2.  a.  Prohibition.  No  written contract for the sale or purchase of
  consumer goods, entered into on or after  the  effective  date  of  this
  section,  to  which  a  consumer  is  a party, shall contain a mandatory
  arbitration clause.   Nothing contained herein  shall  be  construed  to
  prohibit a non-consumer party from incorporating a provision within such
  contract  that  such  non-consumer party agrees that the decision of the
  arbitrator or panel of arbitrators shall be final in its application  to
  such non-consumer party and not subject to court review.
    b.  Mandatory  arbitration  clause  null and void. The provisions of a
  mandatory arbitration clause shall be null and void.  The  inclusion  of
  such  clause  in a written contract for the sale or purchase of consumer
  goods shall  not  serve  to  impair  the  enforceability  of  any  other
  provision of such contract.