2021 New York Laws
GBS - General Business
Article 26 - 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