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