2014 New York Laws
GBS - General Business
Article 26 - (390 - 399-ZZZ) MISCELLANEOUS
395-A - Maintenance agreements.

  395-a.  Maintenance agreements. 1. Definitions. For the purposes of
  this section, a "maintenance agreement" shall refer to any  contract  or
  representation whereby the seller or manufacturer of a retail sales item
  or  the  seller  of  a  service contract shall offer the defined service
  and/or parts for an additional fee. Said maintenance  agreement  can  be
  offered at the time of purchase or at a later date.
2.  No  maintenance  agreement  covering parts and/or service shall be
  terminated at the election of the  party  providing  such  parts  and/or
  service  during  the  term  of  the  agreement  unless  prior to or upon
  delivery of a copy of the agreement the buyer  is  notified  in  writing
  that the agreement may be cancelled for:
a. non-payment; or
b.  use  of  the  item  primarily  for commercial purposes, unless the
  agreement so  provides.  When  a  maintenance  agreement  is  terminated
  because  of use of the item primarily for commercial purposes, the party
  providing the parts and/or service must reimburse the  buyer  on  a  pro
  rata  basis  for  the remaining period of time or mileage for the unused
  portion of the maintenance agreement less the cost of any  parts  and/or
  service already provided from the date of termination; or
c.  change in the buyer's residence beyond the disclosed service area,
  except where the buyer provides transportation or shipping to  and  from
  the  site of service. When a maintenance agreement is terminated because
  of a change in the buyer's residence beyond the disclosed service  area,
  either  the  buyer  or  the party providing the parts and/or service may
  terminate the maintenance agreement. Reimbursement to the buyer shall be
  made on a pro rata basis for the remaining period of time or mileage for
  the unused portion of the maintenance agreement from the date of  notice
  of change in the buyer's residence.
3.  Pre-sale  availability of maintenance agreement. Sellers of retail
  products purchased for personal, family  or  household  purposes,  which
  offer maintenance agreements shall provide the buyer with an opportunity
  to  review  the maintenance agreement before it is purchased and provide
  the buyer with a copy of  the  maintenance  agreement  at  the  time  of
  purchase.  The  provisions  of  this section shall not apply to sales by
  mail order companies as defined in section three hundred ninety-six-m of
  this chapter.
4. A violation of the provisions of this section shall  be  punishable
  by a civil penalty of not more than three hundred dollars recoverable in
  an action by the attorney general in the name of the people of the state
  or  by  the  corporation  counsel  for  any  city  or by the appropriate
  attorney of any other political subdivision as shall  be  designated  by
  the governing body of such political subdivision.