N.Y. General Obligations Law § 5-702: Requirements for use of plain language in consumer transactions

§ 5-702. Requirements for use of plain language in consumer

transactions. a. Every written agreement entered into after November

first, nineteen hundred seventy-eight, for the lease of space to be

occupied for residential purposes, for the lease of personal property to

be used primarily for personal, family or household purposes or to which

a consumer is a party and the money, property or service which is the

subject of the transaction is primarily for personal, family or

household purposes must be:

1. Written in a clear and coherent manner using words with common and

every day meanings;

2. Appropriately divided and captioned by its various sections.

Any creditor, seller or lessor who fails to comply with this

subdivision shall be liable to a consumer who is a party to a written

agreement governed by this subdivision in an amount equal to any actual

damages sustained plus a penalty of fifty dollars. The total class

action penalty against any such creditor, seller or lessor shall not

exceed ten thousand dollars in any class action or series of class

actions arising out of the use by a creditor, seller or lessor of an

agreement which fails to comply with this subdivision. No action under

this subdivision may be brought after both parties to the agreement have

fully performed their obligation under such agreement, nor shall any

creditor, seller or lessor who attempts in good faith to comply with

this subdivision be liable for such penalties. This subdivision shall

not apply to a good faith attempt to describe the constant yield or

other method of determining the lease charge and depreciation portions

of each base rental payment under a lease of personal property. It also

shall not apply to agreements involving amounts in excess of two hundred

fifty thousand dollars nor prohibit the use of words or phrases or forms

of agreement required by state or federal law, rule or regulation or by

a governmental instrumentality.

b. A violation of the provisions of subdivision a of this section

shall not render any such agreement void or voidable nor shall it

constitute:

1. A defense to any action or proceeding to enforce such agreement; or

2. A defense to any action or proceeding for breach of such agreement.

c. In addition to the above, whenever the attorney general finds that

there has been a violation of this section, he may proceed as provided

in subdivision twelve of section sixty-three of the executive law.