Prohibited Terms of Agreement

  1. Law
  2. Tennessee Code
  3. Commercial Instruments and Transactions
  4. Consumer Protection
  5. Rental-Purchase Agreements
  6. Prohibited Terms of Agreement

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A rental-purchase agreement may not contain a provision:

  1. Requiring a confession of judgment;
  2. Requiring a garnishment of wages;
  3. Granting authorization to the lessor or a person acting on the lessor's behalf to enter unlawfully upon the consumer's premises or to commit any breach of the peace in the repossession of goods;
  4. Requiring the consumer to waive any defense, counterclaim, or right of action against the lessor or a person acting on the lessor's behalf in collection of payment under the lease or in the repossession of goods; or
  5. Requiring purchase of insurance from the lessor to cover the merchandise.


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