Bill Text: NY A08374 | 2011-2012 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Requires automobile manufacturers to directly, or through affiliated dealerships, provide the original purchaser or lessee with information about parts of warranty coverage that would extend coverage beyond the original expressed warranty expiration date.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2012-05-03 - advanced to third reading cal.518 [A08374 Detail]

Download: New_York-2011-A08374-Amended.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        8374--A
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                     June 15, 2011
                                      ___________
       Introduced  by  M.  of A. DINOWITZ, REILICH -- read once and referred to
         the Committee on Consumer Affairs and Protection -- recommitted to the
         Committee on Consumer Affairs and Protection in accordance with Assem-
         bly Rule 3, sec. 2 --  committee  discharged,  bill  amended,  ordered
         reprinted as amended and recommitted to said committee
       AN  ACT  to  amend  the  general business law, in relation to automobile
         manufacturers' warranty adjustment programs
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The general business law is amended by adding a new section
    2  198-d to read as follows:
    3    S  198-D.  AUTOMOBILE MANUFACTURERS' WARRANTY ADJUSTMENT PROGRAMS. (A)
    4  FOR THE PURPOSES OF THIS SECTION:
    5    (1) "CONSUMER" MEANS THE PURCHASER, OTHER THAN FOR PURPOSES OF RESALE,
    6  OF A MOTOR VEHICLE, A LESSEE OF A MOTOR VEHICLE, ANY PERSON TO WHOM SUCH
    7  MOTOR VEHICLE IS TRANSFERRED DURING THE DURATION OF AN EXPRESS  WARRANTY
    8  APPLICABLE TO SUCH MOTOR VEHICLE AND ANY PERSON ENTITLED BY THE TERMS OF
    9  SUCH WARRANTY TO ENFORCE THE OBLIGATIONS OF THE WARRANTY.
   10    (2)  "DEALER" MEANS ANY PERSON SELLING OR AGREEING TO SELL, LEASING OR
   11  AGREEING TO LEASE IN THIS STATE ONE  OR  MORE  MOTOR  VEHICLES  UNDER  A
   12  RETAIL  AGREEMENT  WITH A MANUFACTURER, MANUFACTURER BRANCH, DISTRIBUTOR
   13  OR DISTRIBUTOR BRANCH, OR AGENT OF ANY OF THEM.
   14    (3) "LESSEE" MEANS ANY CONSUMER WHO LEASES A MOTOR VEHICLE PURSUANT TO
   15  A WRITTEN LEASE WHICH  PROVIDES  THAT  THE  LESSEE  IS  RESPONSIBLE  FOR
   16  REPAIRS TO SUCH MOTOR VEHICLES.
   17    (4)  "ADJUSTMENT  PROGRAM" MEANS ANY PROGRAM OR POLICY THAT EXPANDS OR
   18  EXTENDS THE CONSUMER'S WARRANTY BEYOND ITS STATED LIMIT OR UNDER WHICH A
   19  MANUFACTURER OFFERS TO PAY FOR ALL OR ANY PART OF THE COST OF REPAIRING,
   20  OR TO REIMBURSE CONSUMERS FOR ALL OR ANY PART OF THE COST OF  REPAIRING,
   21  ANY  CONDITION  THAT  MAY SUBSTANTIALLY AFFECT VEHICLE DURABILITY, RELI-
   22  ABILITY OR PERFORMANCE, OTHER THAN SERVICE PROVIDED UNDER  A  SAFETY  OR
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00799-02-1
       A. 8374--A                          2
    1  EMISSION-RELATED RECALL CAMPAIGN. THIS TERM DOES NOT INCLUDE ADJUSTMENTS
    2  MADE BY A MANUFACTURER ON A CASE BY CASE BASIS.
    3    (5)  "MANUFACTURER" MEANS (I) ANY PERSON WHO MANUFACTURES OR ASSEMBLES
    4  NEW MOTOR VEHICLES FOR SALE OR DISTRIBUTION OR (II) ANY  PERSON  WHO  IS
    5  ENGAGED  IN  THE  BUSINESS  OF  IMPORTING NEW MOTOR VEHICLES FOR SALE OR
    6  DISTRIBUTION TO DEALERS OR THROUGH DISTRIBUTORS, OR FACTORY BRANCHES.
    7    (6) "MOTOR VEHICLE" MEANS A MOTOR VEHICLE EXCLUDING OFF-ROAD VEHICLES,
    8  WHICH WAS SUBJECT TO A MANUFACTURER'S EXPRESS WARRANTY AT  THE  TIME  OF
    9  ORIGINAL DELIVERY AND EITHER (I) WAS PURCHASED, LEASED OR TRANSFERRED IN
   10  THIS  STATE WITHIN EITHER THE FIRST EIGHTEEN THOUSAND MILES OF OPERATION
   11  OR TWO YEARS FROM THE DATE OF ORIGINAL DELIVERY, WHICHEVER  IS  EARLIER,
   12  OR (II) IS REGISTERED IN THIS STATE.
   13    (7) "OFF-ROAD VEHICLE" MEANS ANY SELF-PROPELLED VEHICLE WHICH IS MANU-
   14  FACTURED  FOR SALE FOR OPERATION PRIMARILY ON OFF-HIGHWAY TRAILS OR OFF-
   15  HIGHWAY COMPETITIONS AND ONLY INCIDENTALLY OPERATED ON  PUBLIC  HIGHWAYS
   16  PROVIDED  THAT  SUCH  VEHICLE DOES NOT EXCEED SEVENTY INCHES IN WIDTH OR
   17  ONE THOUSAND POUNDS DRY WEIGHT.
   18    (8) "SERVICE BULLETIN" MEANS ANY DOCUMENT  ISSUED  BY  A  MANUFACTURER
   19  PERTAINING TO ANY ADJUSTMENT PROGRAM.
   20    (B) (1) A MANUFACTURER SHALL, WITHIN NINETY DAYS OF THE ADOPTION OF AN
   21  ADJUSTMENT  PROGRAM, NOTIFY, BY FIRST-CLASS MAIL, ALL CONSUMERS ELIGIBLE
   22  UNDER SUCH PROGRAM OF THE  CONDITION  IN  THE  MOTOR  VEHICLE  WHICH  IS
   23  COVERED  BY AN ADJUSTMENT PROGRAM AND THE PRINCIPAL TERMS AND CONDITIONS
   24  OF THE ADJUSTMENT PROGRAM.
   25    (2) WITHIN THIRTY DAYS OF THE ADOPTION OF ANY NEW ADJUSTMENT  PROGRAM,
   26  A  MANUFACTURER  SHALL  NOTIFY ITS DEALERS, IN WRITING, OF ALL THE TERMS
   27  AND CONDITIONS THEREOF.
   28    (3) COPIES OF ALL NOTICES MAILED IN ACCORDANCE WITH  THIS  SUBDIVISION
   29  SHALL  BE  SENT  TO  THE DEPARTMENT OF STATE AND THE DEPARTMENT OF MOTOR
   30  VEHICLES AND MADE AVAILABLE FOR PUBLIC INQUIRIES.
   31    (C) EACH MANUFACTURER EITHER DIRECTLY OR THROUGH ITS AUTHORIZED  AGENT
   32  SHALL  CAUSE  TO BE GIVEN TO THE ORIGINAL PURCHASER OF A NEW MOTOR VEHI-
   33  CLE, AT THE TIME OF PURCHASE, A NOTICE OUTLINING THE PROVISIONS OF  THIS
   34  SECTION  AND  THE  RIGHTS  AND REMEDIES PROVIDED UNDER THIS SECTION. THE
   35  WRITTEN NOTICE SHALL BE DEEMED SUFFICIENT IF DONE IN  SUBSTANTIALLY  THE
   36  FOLLOWING FORM:
   37    "SOMETIMES  (INSERT  MANUFACTURER'S  NAME) OFFERS A SPECIAL ADJUSTMENT
   38  PROGRAM TO PAY ALL OR PART OF THE COST OF  CERTAIN  REPAIRS  BEYOND  THE
   39  TERMS  OF THE WARRANTY.  CHECK WITH YOUR DEALER TO DETERMINE WHETHER ANY
   40  ADJUSTMENT PROGRAM IS APPLICABLE TO YOUR MOTOR VEHICLE."
   41    (D) (1) A DEALER SHALL DISCLOSE TO A CONSUMER SEEKING  REPAIRS  FOR  A
   42  PARTICULAR  CONDITION AT ITS REPAIR SHOP, THE PRINCIPAL TERMS AND CONDI-
   43  TIONS OF THE MANUFACTURER'S ADJUSTMENT PROGRAM COVERING  SUCH  CONDITION
   44  IF THE DEALER HAS RECEIVED A SERVICE BULLETIN CONCERNING SUCH ADJUSTMENT
   45  PROGRAM OR OTHERWISE HAS KNOWLEDGE OF IT.
   46    (2)  A  DEALER  SHALL  PROVIDE  NOTICE  TO  PROSPECTIVE PURCHASERS AND
   47  LESSEES THAT PROVIDES INFORMATION ON HOW TO GET COPIES OF SERVICE BULLE-
   48  TINS.  NOTHING IN THIS NOTICE SHALL BE CONSTRUED AS AN ADMISSION BY  THE
   49  DEALER  OR  MANUFACTURER  OF  THE EXISTENCE OR NONEXISTENCE OF A VEHICLE
   50  DEFECT. THE NOTICE SHALL BE DEEMED SUFFICIENT IF POSTED IN THE  SHOWROOM
   51  OR OTHER AREA CONSPICUOUS TO MOTOR VEHICLE PURCHASERS AND WRITTEN IN THE
   52  FOLLOWING FORM:
   53    FEDERAL  LAW  REQUIRES  MANUFACTURERS  TO FURNISH THE NATIONAL HIGHWAY
   54  TRAFFIC SAFETY ADMINISTRATION (N.H.T.S.A.) WITH BULLETINS DESCRIBING ANY
   55  DEFECTS IN THEIR VEHICLES.
       A. 8374--A                          3
    1    YOU MAY OBTAIN COPIES OF THESE BULLETINS, FOR A FEE,  FROM  EITHER  OF
    2  THE FOLLOWING:
    3    THE MANUFACTURER (ASK YOUR DEALER FOR THE TOLL-FREE NUMBER); OR
    4    N.H.T.S.A.--TECHNICAL  REFERENCE  DIVISION (INSERT THE CURRENT MAILING
    5  ADDRESS AND TELEPHONE NUMBER ESTABLISHED BY THE NATIONAL HIGHWAY TRAFFIC
    6  SAFETY ADMINISTRATION FOR RECEIVING REQUESTS FOR SERVICE BULLETINS).
    7    IN ADDITION, CERTAIN CONSUMER PUBLICATIONS PUBLISH THESE BULLETINS
    8    AND SOME COMPANIES WILL SEND THEM TO YOU, FOR A FEE.
    9    SUCH SIGN SHALL BE PRINTED WITH LETTERING THAT IS LEGIBLE AND SHALL BE
   10  AT LEAST THREE-QUARTERS OF AN INCH BOLDFACE TYPE.
   11    (E) A MANUFACTURER WHO ESTABLISHES AN ADJUSTMENT PROGRAM SHALL  IMPLE-
   12  MENT  PROCEDURES TO ASSURE REIMBURSEMENT OF EACH CONSUMER ELIGIBLE UNDER
   13  AN ADJUSTMENT PROGRAM WHO INCURS EXPENSES  FOR  REPAIR  OF  A  CONDITION
   14  SUBJECT  TO  THE  PROGRAM  PRIOR  TO ACQUIRING KNOWLEDGE OF THE PROGRAM.
   15  SUCH REIMBURSEMENT SHALL BE CONSISTENT WITH THE TERMS AND CONDITIONS  OF
   16  THE PARTICULAR PROGRAM.
   17    ANY  CLAIM  FOR  REIMBURSEMENT UNDER THIS SUBDIVISION SHALL BE MADE IN
   18  WRITING TO THE MANUFACTURER WITHIN TWO YEARS OF THE DATE OF THE  CONSUM-
   19  ER'S PAYMENT FOR REPAIR OF THE CONDITION.  THE MANUFACTURER SHALL NOTIFY
   20  THE  CONSUMER  WITHIN  TWENTY-ONE BUSINESS DAYS OF RECEIVING A CLAIM FOR
   21  REIMBURSEMENT WHETHER THE CLAIM WILL BE ALLOWED OR DENIED.  IF THE CLAIM
   22  IS DENIED, THE SPECIFIC REASONS FOR THE DENIAL SHALL BE STATED IN  WRIT-
   23  ING.
   24    (F)  A  VIOLATION  OF  ANY  OF THE PROVISIONS OF THIS SECTION SHALL BE
   25  DEEMED A DECEPTIVE ACT OR PRACTICE UNDER ARTICLE  TWENTY-TWO-A  OF  THIS
   26  CHAPTER.
   27    (G)  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO EXCLUDE, MODIFY, OR
   28  OTHERWISE LIMIT ANY OTHER REMEDY  PROVIDED  BY  LAW  TO  A  CONSUMER  OR
   29  LESSEE.
   30    S 2. This act shall take effect on the one hundred twentieth day after
   31  it shall have become a law.
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