N.Y. Personal Property Law § 503: Total cost

§ 503. Total cost. 1. A merchant shall maintain records that establish

the merchant's cost for each item of merchandise that is the subject of

the rental-purchase agreement. A copy of each rental-purchase agreement

and of the records required by this subdivision shall be maintained for

at least two years following the termination of the agreement.

2. The maximum cash price for the merchant's first rental of the

merchandise that is the subject of the rental-purchase agreement may not

exceed 1.75 times the merchant's cost for appliances, 1.75 times the

merchant's cost for electronic sets having merchant cost less than one

hundred fifty dollars, 2.0 times the merchant's costs for electronic

sets having merchant cost greater than or equal to one hundred fifty

dollars, 2.15 times the merchant's cost for furniture, 2.0 times the

merchant's cost for automotive accessories, jewelry, and musical

instruments, and 1.75 times the merchant's cost for all other items.

3. The maximum total of payments may not exceed 2.25 times the maximum

cash price that could have been charged for the first rental of the

merchandise under subdivision two of this section.

4. The maximum total of payments for the merchant's second and

subsequent rental of the merchandise that is the subject of the

rental-purchase agreement may not exceed the maximum total of payments

permitted under the terming matrix contained in subdivision five of this

section.

5. (a) The terming matrix provided for in paragraph (b) of this

subdivision shall be used to lower the number of periodic payments,

which shall result in a lower total of payments and a lower maximum cash

price for the used merchandise based on its age and condition, or, in

the event that the merchant chooses to maintain the number of periodic

payments of the original term when new, the merchant shall lower the

total of payments and maximum cash price on a pro-rata basis. The

merchant shall keep in electronic or hard copy form, the matrix used,

together with a record of the number of periodic payments provided in

the first agreement for the item when it was offered as new, as well as

a record of the item's condition as determined by the merchant pursuant

to such matrix each time it is priced as used. This requirement shall

be satisfied by a record of the number of periodic payments and cash

price from each rental-purchase agreement under which merchandise was

rented. These records shall be maintained as long as the item is owned

by the merchant. No merchant shall price used goods in excess of the

prices dictated by the matrix.

(b) The attorney general shall make available in printed form to

merchants and publish on the website of the department of law a terming

matrix in chart form to be used by merchants as required pursuant to

paragraph (a) of this subdivision. The chart shall have as its title

"Terming Matrix for Used Merchandise". The matrix chart shall conform to

the example set forth in this paragraph and shall consist of five rows

and five columns and shall be printed in at least ten point type.

TERMING MATRIX FOR USED MERCHANDISE

Original Term 91 weeks

in Weeks 34 weeks 35 - 38 weeks 39 - 90 weeks or more

when New or less

EXCELLENT subtract a subtract a subtract a subtract a

CONDITION minimum of 1 minimum of 2 minimum of 3 minimum of

week from weeks from weeks from 4 weeks

original original original from ori-

term term term ginal term

GOOD subtract a subtract a subtract a subtract a

CONDITION minimum of 3 minimum of 5 minimum of 7 minimum of

weeks from weeks from weeks from 9 weeks

original original original from ori-

term term term ginal term

FAIR subtract a subtract a subtract a subtract a

CONDITION minimum of 4 minimum of 7 minimum of 10 minimum of

weeks from weeks from weeks from 13 weeks

original original original from ori-

term term term ginal term

POOR subtract a subtract a subtract a subtract a

CONDITION minimum of 6 minimum of 10 minimum of 15 minimum of

weeks from weeks from weeks from 20 weeks

original original original from ori-

term or cash term or cash term or cash ginal term

sale sale sale or cash

sale

(c) Immediately below the terming matrix, the following language shall

be printed in ten point type.

New = Full Term

Excellent = In great shape. Refurbished to look like new.

Good = In good working order. Refurbished, but imperfections still

exist.

Fair = Completely operational, but refurbishment has not concealed

obvious wear and tear.

Poor = Ripped, faded, cracked or broken and refurbishment did not change

it.

6. The maximum cash price for merchandise on its second or subsequent

rental may not exceed the maximum total of payments for that merchandise

as permitted under subdivision five of this section divided by 2.25.

7. Upon the written request of the attorney general a merchant shall

provide copies of the records described in this section.

8. If a merchant intentionally discloses a cash price or a total of

payments that exceeds the amount permitted by this section, the

rental-purchase agreement is void, the consumer shall retain the

merchandise without any obligation, and the merchant shall refund to the

consumer all amounts paid.