(a) Definition.
Caterer. "Caterer" means any person or business engaged in serving food or beverages for private functions in New York City.
(b) Cancellation.
(1) If a consumer cancels a catering contract and the caterer can re-book the date, the caterer's cancellation fee may not exceed 5 percent of the total contract price or $100, whichever is less, plus actual expenses reasonably incurred.
(2) If a consumer cancels a catering contract and the caterer cannot re-book the date, the caterer's cancellation fee may not exceed the difference between the total contract price and the cost of performance, plus actual expenses reasonably incurred. The caterer must be able to show diligent efforts to re-book and must fairly calculate the cost of performance.
(3) It will be presumed that a caterer who receives notice of cancellation six months or more before the scheduled date of the function will be able to re-book.
(4) Cancellation occurs:
(i) when the consumer mails the caterer a notice of intent to cancel; or
(ii) when the caterer has actual notice of the consumer's intent to cancel.
(c) Refunds. As soon as reasonably practicable after cancellation (and never later than 30 days after re-booking) the caterer must return to the consumer any sum received which exceeds the permissible cancellation fee.
(d) Contract forms. Contract forms must conspicuously disclose the caterer's cancellation fee.
(e) Delegation of performance. A caterer may not delegate performance of any contract to another caterer without the consumer's consent. This consent may be obtained only after the caterer advises the consumer of its inability to perform under the contract.