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