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S2817Senate2019-2020 SessionSame asA852

Make Contracts Clearer

Official title

“Establishes restrictions on consumer and employment contracts”

Sponsor Leroy ComrieSD-14Affects Legal
Status
In Senate Committee
Judiciary
Impact
6/10
Moderate
Passage
0%

Bill progress

Step 2 of 7

In committee · Judiciary

What's happening

This bill requires consumer and employment contracts to be written in plain language and allows courts to reform non-conforming contracts.

Why it matters

  1. Strengthens legal rights for consumers and employees. by allowing them to challenge and reform contracts that are not written in plain language or do not present all material terms in a single document, potentially reducing exploitative or unfair contract terms.

  2. Increases pressure on businesses and employers. to draft contracts that are clear, understandable, and consolidated, which may lead to more transparent and equitable agreements and reduce confusion or misunderstandings.

  3. Empowers courts to actively reshape non-conforming contracts. so that the reformed version reflects what the parties actually understood, and to remove terms that are hidden in separate documents or not stated in plain English.

  4. Excludes collective bargaining agreements from these requirements,. signaling that the law targets standard form contracts rather than those negotiated by unions, and maintains compatibility with existing contract law principles such as reasonable notice and mutual assent.

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Who cares

Headline styles

Make Contracts Clearer

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Leroy Comrie

Senator · Senate District 14

Chair, Corporations, Authorities And Commissions

No co-sponsors yet.

History

  1. Referred to judiciary
  2. Referred to judiciary

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

A852Assembly

Require Clear Contracts

Assembly Floor Calendar · Sponsor Aravella Simotas

Impact 6 · Moderate0% to pass

Full text

2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

2817

2019-2020 Regular Sessions

IN SENATE

January 29, 2019

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 Assembly, do enact as follows:

Section 1. The general obligations law is amended by adding a new section 5-303 to read as follows:

§ 5-303. Consumer and employment contracts. 1. Findings. Obscure and overly complex language in consumer and employment contracts interferes with employees' and consumers' ability to provide meaningful assent to their consumer and employment contracts. To ensure that private parties comprehend the material terms of the consumer and employment contracts into which they enter, this section requires that merchants and employers in designated forms of contracts adequately disclose terms and conditions.

2. Non-conforming coverage. This section shall apply to the contracts designated in subdivision one of this section that meet any of the following criteria:

(a) an employment or consumer contract not written in plain language, pursuant to section 5-702 of this article, that a reasonable consumer or employee would understand; or

(b) if a consumer contract, all of the material terms are not found in a single document.

3. Covered contracts. The provisions of this section shall apply to the following types of contracts:

(a) consumer contracts; and

(b) employment contracts.

4. Rights when a covered contract is non-conforming. A consumer or employee may seek a court order reforming any contract covered by this section. Such reformed agreement shall reflect the understanding of the

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD01382-01-9

S. 2817 2

parties, and the court may exclude terms not written in plain English or found in a separate document.

5. Pre-existing rules. The provisions of this section shall be applied in conjunction with pre-existing rules regarding contract formation, including rules regarding reasonable notice, and the conduct a consumer or employee must manifest in order to assent to an agreement. The provisions of this subdivision shall not apply to agreements negotiated with any labor union through collective bargaining.

§ 2. This act shall take effect on the one hundred eightieth day after it shall have become a law.

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

Title of bill

An act to amend the general obligations law, in relation to the provisions of consumer and employment contracts

Purpose or general idea of bill

The purpose of this bill is to clarify basic precepts in law concerning contract formation.

Summary of specific provisions

This bill would give consumers and employees the right to reform contracts which are not written in plain language or which are not whol- ly encompassed within a single document. The right to reform is intended to give effect to the reasonable meaning of the contract, as well as the reasonable expectations of the parties to the contract.

Effects of present law which this bill would alter

This bill would provide clarification concerning the law of contract formation.

Justification

This bill was adapted from the Model State Consumer & Employee Justice Enforcement Act, as originally drafted by the National Consumer Law Center. The bill requires that merchants and employers provide clear notice of all material contractual terms in plain language that the consumer or employee can reasonably understand. The bill also allows for a right of contract reformation, if contractual terms are not contained within a single document, i.e. without incorporating by reference other non-contiguous documents.

This bill does not dispense with well-settled rules of contract forma- tion. Instead, it incorporates them in a way as to give further effect to the assent which must be manifest in order to hold a consumer or employee to the terms of the contract.

Prior legislative history

2017-18: S.8456 (Comrie) | A.2485-A (Simotas) JUDICIARY | Third Reading

Fiscal implications for state and local governments

None.

Effective date

On the one hundred and eightieth day after it shall become law.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.