391-L - Personal Emergency Response Service Agreements; Required Cancellation Provisions.

NY Gen Bus L § 391-L (2019) (N/A)
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(b) In addition to the cancellation right created by paragraph (a) of this subdivision, the agreement providing for obtaining such service may be cancelled by the purchaser or other person obligated for any part of the purchase price or price for such service, upon thirty days prior written notice to the seller or supplier of such service, that the purchaser of such service has legally obligated himself or herself to commence residence in a nursing home or other health-related facility within such thirty-day period for what is expected to be a permanent stay or an extended stay of at least two months duration, or that residence therein with such expectation has already commenced. 3. (a) Cancellation under the terms of paragraph (a) of subdivision two of this section occurs when written notice of cancellation is given to the seller or provider of such service. Cancellation under the terms of such paragraph (a) shall be governed by the requirements of the "door-to-door sales protection act" contained in article ten-A of the personal property law, whether or not such sale is a "door-to-door sale" as defined therein, except where such requirements are inconsistent with the provisions of this section, in which case the provisions of this section shall prevail, and except that the transactional exclusions from the definition of "door-to-door sale" contained in paragraphs (a) through (f) of subdivision one of section four hundred twenty-six of the personal property law shall not apply to the sale or purchase of a personal emergency response service as defined herein.

(b) Cancellation under the terms of paragraph (b) of subdivision two of this section occurs upon the thirtieth day after written notice of cancellation is given to the seller or provider of such service. Upon the occurrence of cancellation under such paragraph (b), the purchaser or other person obligated for the purchaser shall remain obligated under such agreement to pay for the use of such service only for the period of time during which the service was provided prior to the occurrence of cancellation thereunder. For this purpose, under such paragraph (b) the price agreed to for the entire term of such agreement shall be prorated by multiplying such price by a fraction, the numerator of which is the period of time during which such service was provided prior to the occurrence of cancellation, and the denominator of which is the entire term of such agreement. Any overpayment made in advance for the provision of such service, the amount of which is determined by such proration shall be refunded to the purchaser or other person obligated for the purchaser, as the case may be, within ten business days from the date of the occurrence of cancellation under such paragraph (b). Such cancellation shall be without penalty to or other obligation on the part of, the purchaser or other person obligated for the purchaser.

(c) Written notice of cancellation, if given by first-class mail, shall be deemed given when deposited in a mailbox properly addressed and adequate postage prepaid. Such written notice under the terms of paragraph (a) of subdivision two of this section shall be effective irrespective of the form of such written notice if it indicates the intention of the purchaser or other person obligated not to be bound. Written notice of cancellation under the terms of paragraph (b) of subdivision two of this section, to be effective irrespective of the form of such written notice shall, in addition to indicating an intention not to be bound, state the date of expected commencement or commencement of residence in such nursing home or other health-related facility, the expected duration of such residence, and the name and address of such home or facility, and include with such notice a signed note from such person's physician or from the home or facility, or a copy of such person's agreement with such home or other facility, verifying that the terms of such paragraph (b) for cancellation have been satisfied. 4. In a sale or purchase of a personal emergency response service, the seller shall furnish to the purchaser:

(a) a fully completed receipt or copy of any agreement pertaining to such sale at the time of its execution, which is in the same language, e.g. Spanish, as that principally used in any oral sales presentation and which shows the date of the transaction and contains the name and address of the seller, and in immediate proximity to the space reserved in the contract for the signature of the purchaser or on the front page of the receipt if an agreement is not used and in not less than ten-point boldface type, statements in substantially the following form: "I. YOU, THE PURCHASER, MAY CANCEL THIS TRANSACTION WITH OR WITHOUT CAUSE AT ANY TIME PRIOR TO MIDNIGHT OF THE SEVENTH BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION." "II. ON AND AFTER MIDNIGHT OF SUCH SEVENTH DAY, YOU, THE PURCHASER, MAY CANCEL YOUR AGREEMENT WITH THE SELLER FOR YOU TO RECEIVE PERSONAL EMERGENCY RESPONSE SERVICE MORE THAN 30 DAYS AFTER YOUR NOTIFYING THE SELLER IN WRITING OF YOUR CANCELLING SUCH AGREEMENT, PROVIDED THAT YOU HAVE LEGALLY OBLIGATED YOURSELF TO BEGIN LIVING IN A NURSING HOME OR OTHER HEALTH-RELATED FACILITY WITHIN SUCH 30-DAY PERIOD FOR WHAT IS EXPECTED TO BE A PERMANENT STAY OR AN EXTENDED STAY FOR AT LEAST 2 MONTHS, OR THAT YOU HAVE ALREADY BEGUN LIVING THEREIN EXPECTING YOUR STAY TO BE PERMANENT OR FOR AT LEAST 2 MONTHS, AND PROVIDED THAT THESE FACTS ARE VERIFIED BY YOUR DOCTOR OR BY THE NURSING HOME OR OTHER HEALTH-RELATED FACILITY." "SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF THESE RIGHTS."

(b) at the time the purchaser signs the contract to obtain the personal emergency response service or otherwise agrees to purchase such service from the seller, a completed form in duplicate, captioned "NOTICE OF CANCELLATION", which shall be attached to the contract or receipt and easily detachable, and which shall contain in not less than ten-point boldface type the following information and statements in the same language, e.g. Spanish, as that used in the contract: NOTICE OF CANCELLATION _______________________________________________

(Date) I HEREBY CANCEL THIS TRANSACTION. ______________________ ______________________________ (Date)