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BartEsq
BartEsq, Researcher
Category: Business Law
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Experience:  Juris Doctor
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Does NY CLS Gen Oblig 5-903 apply when a New York company provides

Customer Question

Does NY CLS Gen Oblig 5-903 apply when a New York company provides service to a company located in New Jersey? Also, the T&C of the provider stipulates that Dispute Resolution should be conducted in New York, NY. This would imply that all rules and statutes upheld, be under the jurisdiction of NY law.

The NY service provider said the law does not apply to them because we are located in New Jersey and they are within their rights to auto-renew without notice.

Where do I, the NJ company, stand with this law?
Submitted: 5 years ago.
Category: Business Law
Expert:  BartEsq replied 5 years ago.

bart0358 :

Hello, Im researching your answer now.

bart0358 :

For your reference, here is a copy of the statute.

bart0358 :

§ 5-903. Automatic renewal provision of contract for service, maintenance or repair unenforceable by contractor unless notice thereof given to recipient of services

1. As used in this section, "person" means an individual, firm, company, partnership or corporation.

2. No provision of a contract for service, maintenance or repair to or for any real or personal property which states that the term of the contract shall be deemed renewed for a specified additional period unless the person receiving the service, maintenance or repair gives notice to the person furnishing such contract service, maintenance or repair of his intention to terminate the contract at the expiration of such term, shall be enforceable against the person receiving the service, maintenance or repair, unless the person furnishing the service, maintenance or repair, at least fifteen days and not more than thirty days previous to the time specified for serving such notice upon him, shall give to the person receiving the service, maintenance or repair written notice, served personally or by certified
mail, calling the attention of that person to the existence of such provision in the contract.

3. Nothing herein contained shall be construed to apply to a contract in which the automatic renewal period specified is one month or less.

bart0358 :

Whether it applies is not always clear. When doing business accross state lines, if the issue ever came up, it would depend on where the contract was entered into and where the majority of performance occurs. If the contract was entered into in NY and performed in NY, I would say it does apply.

bart0358 :

As far as where you stand, again its not clear. But the T&C conditions already preclude you form sueing in NJ so thats a bit of an advantage for the other company. Bluntly, its probably not worth the fight unless you have a substantial amount to recover. At this point, if they do not want to play nice, the only way to force thier hand is to go to court. And its going to come down to dollars and cents. Both sides have an argument. They have homefeild advantage.

JACUSTOMER-2wpkge61- :

The company I am referring to is Broadview Networks. After years of terrible service, I decided to switch back to Verizon after my plumbing company was without phone service for 2 weeks with no cooperation from Broadview. I was told I was no longer under contract by the very helpful reps in the Phillpines, but when I actually had Verizon port the 5 numbers over, they decided to enforce the auto-renewal and charge me $605 in early termination fees, which I have been receiving billing on for the past 3 months.

bart0358 :

I understand.

JACUSTOMER-2wpkge61- :

The original contract was discussed via phone and the contract was signed via fax. So where the contract was originated is a little in the gray area. Also the service was provided in NJ, via equipment, in a NJ Verizon central location. I don't have anything to recover, but I certainly don't want to pay them for service they haven't provided either, especially since there was a lapse in service on their part.

bart0358 :

If I were you, I would continue to try and get a refund. Keep, speaking with supervisors. Call different people and explain your tale until you get what you want. At some point, court would be your ultimate shot. It sounds like there is something there.

JACUSTOMER-2wpkge61- :

I figure I have 2 options here. I was going to let this go to collections and negotiate a lesser rate at that time, or suggest arbitration and see where that goes.

bart0358 :

How much in question?

JACUSTOMER-2wpkge61- :

They claim I owe a little over $600

bart0358 :

Arbitration will cost more than the claim is worth. Small claims will have a fileing fee a little less than that.

JACUSTOMER-2wpkge61- :

I am paid in full on all services rendered. This fee is strictly the early termination fee as a result of the auto-renew clause.

bart0358 :

Yeah, sometimes its easier just to pay it. Pick and chose your battles. To be honest, if you want to fight this, your looking at court.

JACUSTOMER-2wpkge61- :

I was hoping there was precedence that I could present to them so they could just end this nonsense and move on.

bart0358 :

No hardline rule under the circumstances. These issues are examined on a case by case bases and very fact sensitive. But you can pretty much be sure thier homefield advantage clause will keep litigation in NY.

bart0358 :

You might want to freeze your credit reports until you get this settled.

JACUSTOMER-2wpkge61- :

That's a good idea. ok thanks for your help

bart0358 :

No problem,

bart0358 :

Let me know if you need anything else. Please contact me if you have any problems. You can request me directly or just put "to bart" at the beginning of your question. Please remember to click "ACCEPT" so I can get credit for my work. Bonus is not mandatory but appreciated.

bart0358 :

Ive been getting stiffed alot today. Let me know if you need anything else. Please contact me if you have any problems. You can request me directly or just put "to bart" at the beginning of your question. Please remember to click "ACCEPT" so I can get credit for my work, or else I get nothing for my time and effort. Bonus is not mandatory but appreciated.