Agreement — Provisions prohibited and required

Checkout our iOS App for a better way to browser and research.

  1. (a) A rental-purchase agreement shall not contain a provision:

    1. (1) Requiring a confession of judgment;

    2. (2) Authorizing a merchant or agent of the merchant to commit a breach of the peace while repossessing merchandise;

    3. (3) Waiving a defense, counterclaim, or right the consumer may have against the merchant or an agent of the merchant; or

    4. (4) Requiring the purchase of insurance from the merchant to cover the merchandise.

  2. (b) A rental-purchase agreement must disclose:

    1. (1) Whether the merchandise is new or used;

    2. (2) The amount and timing of regular rental payments;

    3. (3) The total number of payments necessary and the total amount to be paid to acquire ownership;

    4. (4) The amounts and purpose of any other payment, charge, or fee in addition to the regular periodic rental payment;

    5. (5) That the consumer does not acquire any ownership rights until the consumer has complied with the ownership terms of the agreement;

    6. (6) Whether the consumer is liable for loss or damage to the merchandise, and if so, the maximum amount for which the consumer may be held liable; and

    7. (7) Notice of the right to reinstate an agreement as provided in § 4-92-106(a).


Download our app to see the most-to-date content.