Definitions

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  • For purposes of the chapter:
    • (a) The term “advertisement” means a commercial message in any medium that aids, promotes or assists, directly or indirectly, a rental-purchase agreement.

    • (b) The term “agricultural purpose” includes:

      • (1) the production, harvest, exhibition, marketing transformation, processing or manufacture of agricultural products by a natural person who cultivates plants or propagates or nurtures agricultural products; and

      • (2) the acquisition of farmlands, real property with a farm residence, or personal property and services used primarily in farming.

    • (c) A term or clause is “clear and conspicuous” when it is so written that a reasonable person against whom it is to operate ought to have noticed it. A printed heading in capitals is conspicuous. Language in the body of a form is conspicuous if it is in a larger or other contrasting type or color. Whether a term or clause is clear and conspicuous is for decision by the court.

    • (d) The term “consumer” means a natural person who leases or rents personal property pursuant to a rental purchase agreement.

    • (e) The term “date of consummation” means the date on which a consumer becomes contractually obligated under a rental-purchase agreement.

    • (f) The term “merchant” means a person who regularly provides the use of property through a rental-purchase agreement in the ordinary course of business and to whom a consumer's initial obligation under the agreement is payable.

    • (g) The term “personal property” means property that is not real property under the laws of the state or territory where the property is located when it is offered or made available under a rental-purchase agreement, unless otherwise stated.

    • (h) The term “rental-purchase agreement” means a contract between a consumer and a merchant:

      • (1) under which the merchant agrees to provide the consumer the use of the personal property for an initial period of four months or less;

      • (2) that is automatically renewable with each payment by the consumer; and

      • (3) that permits, but does not obligate, the consumer to become the owner of the property.


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