Bill Text: NY S08456 | 2017-2018 | General Assembly | Introduced

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Bill Title: Establishes restrictions on consumer and employment contracts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-05-08 - REFERRED TO JUDICIARY [S08456 Detail]

Download: New_York-2017-S08456-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          8456
                    IN SENATE
                                       May 8, 2018
                                       ___________
        Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
          printed to be committed to the Committee on Judiciary
        AN ACT to  amend  the  general  obligations  law,  in  relation  to  the
          provisions of consumer and employment contracts
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The general obligations law is  amended  by  adding  a  new
     2  section 5-303 to read as follows:
     3    §  5-303.  Consumer and employment contracts. 1. Findings. Obscure and
     4  overly complex language in consumer and employment contracts  interferes
     5  with  employees'  and consumers' ability to provide meaningful assent to
     6  their consumer and employment contracts. To ensure that private  parties
     7  comprehend  the  material terms of the consumer and employment contracts
     8  into which they enter, this section requires that merchants and  employ-
     9  ers  in  designated  forms  of  contracts  adequately disclose terms and
    10  conditions.
    11    2. Non-conforming coverage.  This section shall apply to the contracts
    12  designated in subdivision one of this  section  that  meet  any  of  the
    13  following criteria:
    14    (a)  an employment or consumer contract not written in plain language,
    15  pursuant to section 5-702 of this article, that a reasonable consumer or
    16  employee would understand; or
    17    (b) if a consumer contract, all of the material terms are not found in
    18  a single document.
    19    3. Covered contracts. The provisions of this section  shall  apply  to
    20  the following types of contracts:
    21    (a) consumer contracts; and
    22    (b) employment contracts.
    23    4.  Rights  when  a  covered contract is non-conforming. A consumer or
    24  employee may seek a court order reforming any contract covered  by  this
    25  section.  Such reformed agreement shall reflect the understanding of the
    26  parties, and the court may exclude terms not written in plain English or
    27  found in a separate document.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04561-03-8
        S. 8456                             2
     1    5. Pre-existing rules. The provisions of this section shall be applied
     2  in conjunction with pre-existing  rules  regarding  contract  formation,
     3  including  rules regarding reasonable notice, and the conduct a consumer
     4  or employee must manifest in order to  assent  to  an  agreement.    The
     5  provisions  of this subdivision shall not apply to agreements negotiated
     6  with any labor union through collective bargaining.
     7    § 2. This act shall take effect on the one hundred eightieth day after
     8  it shall have become a law.