Bill Text: NY A09545 | 2015-2016 | General Assembly | Introduced
Bill Title: Requires mandatory arbitration clauses in certain consumer contracts to be disclosed and explained to the consumer.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Engrossed - Dead) 2016-06-15 - REFERRED TO RULES [A09545 Detail]
Download: New_York-2015-A09545-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9545 IN ASSEMBLY March 16, 2016 ___________ Introduced by M. of A. DINOWITZ, WEINSTEIN -- read once and referred to the Committee on Consumer Affairs and Protection AN ACT to amend the general business law, in relation to requiring notice of mandatory arbitration clauses in certain consumer contracts The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 399-c of the general business law, as added by 2 chapter 946 of the laws of 1984, is amended to read as follows: 3 § 399-c. Mandatory arbitration clauses in certain consumer contracts 4 [prohibited]. 1. Definitions. 5 a. The term "consumer" shall mean a natural person residing in this 6 state. 7 b. The term "consumer goods" shall mean goods, wares, paid merchandise 8 or services purchased or paid for by a consumer, or employment, the 9 intended use or benefit of which is intended for the personal, family or 10 household purposes of such consumer. 11 c. The term "mandatory arbitration clause" shall mean a term or 12 provision contained in a written contract for the sale or purchase of 13 consumer goods or employment, which requires the parties to such 14 contract to submit any controversy thereafter arising under such 15 contract to arbitration prior to the commencement of any legal action to 16 enforce the provisions of such contract and which also further provides 17 language to the effect that the decision of the arbitrator or panel of 18 arbitrators in its application to the consumer party shall be final and 19 not subject to court review. 20 d. The term "arbitration" shall mean the use of a decision making 21 forum conducted by an arbitrator or panel of arbitrators within the 22 meaning and subject to the provisions of article seventy-five of the 23 civil practice law and rules. 24 e. The term "representative" shall mean an employee or agent of a 25 company who is responsible for administering a contract for consumer 26 goods, services, or employment to a consumer. 27 2. a. Prohibition. No written contract for the sale or purchase of 28 consumer goods, entered into on or after the effective date of this EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14283-02-6