Requires motor vehicle sales contracts to be written in the language in which such contracts were negotiated

Summary of provisions

Section 396-p of the general business law, as added by chapter 736 of the laws of 1978, is amended by adding a new subdivision 2-a to include any retail automobile dealer who negotiates a contract in a language other than English, is required to give the consumer a written translation of the contract in the language in which the contract was negotiated. Failure to comply shall allow the aggrieved consumer to rescind the contract. Cancellation shall take effect when the termination is given to the retail dealer. If the cancellation is mailed, the day of the postmark is the date of the cancellation.

There will be no penalty imposed by the retail dealer for cancellation. If the contract has been sold to a financial institution, any restitution from the consumer to the retail dealer, from the retail dealer to the consumer or from the retail dealer to the financial institution shall be made. At that point the retail dealer shall repurchase the contract from the consumer.

The terms of the contract which are executed in the English language shall determine the rights and obligations of the parties. The translation of the contract in which the contract was negotiated shall be admissible in evidence only to show that no contract was entered into because of a substantial difference in the material terms and conditions of the contract and the translation.

The General Business Law is amended by adding a new section 198-c. This section deals with the sale or lease of used motor vehicles and applies the same criteria for contract negotiation as above. Additionally, this section provides that a violation of this section shall be subject to a civil penalty not to exceed fifty dollars for the first offense and two hundred fifty dollars for the second and each subsequent offense.

Section 337 of the personal property law is amended by adding a new subdivision 5-a. Again, the same criteria for negotiating a contract apply.

Justification

New York State's population has become increasingly diverse. The number of New Yorkers who speak a language other than English as their primary language has increased significantly. According to a report by the Drum

Major Institute, June 2005, almost 25% of New Yorkers do not speak English, and almost 50 percent speak a language other than English in the home. Asian immigrants account for 24.6% of this number. According to the 2006-2008 American Community Survey, in New York city 48 percent of the population speaks other than English as their primary language. of that forty eight percent, 23.5 percent speak English less than very well. This represents 1,821,098 people in NYC alone per the 2006-2008 Survey.

Despite their growing and powerful presence in New York State, many new immigrants, because of their limited English skills, have found themselves to be easy targets for unscrupulous business owners. New immigrants have fallen victim to deceptive business practices that attempt to prey on and profit from their inability to fully comprehend the English language. This is especially true in complex business transactions.

This predatory behavior is exemplified by unscrupulous car dealers who offer to negotiate in a consumer's primary language, only to present the consumer with a written contract in English - one which, unbeknown to the customer, may not accurately reflect negotiated terms. Many New York car dealerships have begun using translators to negotiate with non-English speaking consumers. However, when these verbal negotiations are put in writing, they are written in English without including a copy in the language in which the contract was negotiated. Non-English speaking consumers would gain a measure of confidence in dealing with dealerships who offer to meet their unique needs in this way.

Ethnic communities contribute greatly to the economic and political vitality of the state and serve as a powerful force in the marketplace. This law would provide much needed protection for non-English speaking consumers.

Legislative history

This legislation was previously introduced.

Fiscal implications

None to the state.

Effective date

This act shall take effect on the one hundred twentieth day after it shall have become a law and shall apply to contracts entered into on or after such date.