N.Y. General Business Law § 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