Requires a car dealer to notify the consumer as to whether the vehicle to be purchased was manufactured for introduction into the American market or into a foreign market.
TITLE OF BILL: An act to amend the general business law, in relation to requiring the disclosure of the market for which a vehicle was manufactured
PURPOSE: This legislation would require a car dealer doing business in New York State to notify a consumer as to whether the vehicle to be purchased was manufactured for introduction into the American market or into a foreign market.
SUMMARY OF PROVISIONS: Section 1 amends section 198-b of the General Business Law by adding a new subdivision h to require the disclosure of an intended market. The section requires that an automobile dealer must disclose in writing to the consumer whether the vehicle being purchased by the consumer was manufactured for introduction into the American market, or whether such vehicle was manufactured for introduction into a foreign market.
EXISTING LAW: Existing law requires that no dealer shall sell or lease a motor vehicle to a consumer without giving the consumer a written warranty. There are no provisions requiring disclosure that an automobile was built for a foreign market.
JUSTIFICATION: "Gray market" vehicles are automobiles that were purchased in Canada and sold in the United States. Upon entry to the US, these cars are considered to be "used" for resale purposes. Any warranty offered by the manufacturer of the vehicle is voided once the automobile is sold in the United States and as a result, "gray market" vehicles have no warranty protection provided by the manufacturer, and instead rely upon warranties purchased by the dealer selling the automobile.
This legislation would install a provision in the General Business Law requiring the seller of a new or used automobile to disclose in writing to the buyer if the vehicle to be sold was manufactured for the American market or a foreign market.
LEGISLATIVE HISTORY: 2001-02: S.6041 No action 2003-04: S.943 No action 2005-06: S.2087 Referred to Consumer Protection 2007-08: S.2751 Referred to Consumer Protection 2009-10: S.1966/A.3908 Referred to Consumer Protection
FISCAL IMPLICATIONS: None to New York State.
LOCAL FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This bill shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 3328 2011-2012 Regular Sessions IN SENATE February 16, 2011 ___________Introduced by Sen. KENNEDY -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection AN ACT to amend the general business law, in relation to requiring the disclosure of the market for which a vehicle was manufactured THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 198-b of the general business law is amended by adding a new subdivision h to read as follows: H. DISCLOSURE OF INTENDED MARKET. A DEALER MUST DISCLOSE IN WRITING TO THE CONSUMER WHETHER THE VEHICLE BEING PURCHASED BY THE CONSUMER WAS MANUFACTURED FOR INTRODUCTION INTO THE AMERICAN MARKETPLACE, OR WHETHER SUCH VEHICLE WAS MANUFACTURED FOR INTRODUCTION INTO A FOREIGN MARKET- PLACE. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07594-01-1