Title 42 — Title 42: Business, Selling, Trading and Collection Practices

Sec. 42-390. Short title: Consumer Leases Act. Sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive, may be cited as the Consumer Leases Act. (P.A. 02-81, S. 1; P.A. 09-134, S. 2.) History: P.A. 02-81 effective July 1, 2003; P.A. 09-134 changed short title from …

Sec. 42-391. Definitions. (a) In sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive: (1) “Conspicuous”, with reference to a provision or statement, means so written, displayed or presented that a reasonable person against which it is to operate should have not…

Sec. 42-392. Time of consummation. Expiration. Termination. (a) Consummation of a consumer lease occurs when the lessee signs a record evidencing the lessee's contractual obligation under the lease. A lessee may consummate a consumer lease even if it is subject to subsequent cred…

Sec. 42-393. Scope. Exclusions. Sale incident to lease. (a) Except as otherwise provided in subsections (b) to (e), inclusive, of this section, sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive, apply to a consumer lease. (b) Sections 42-270 to 42-271a, inclu…

Sec. 42-394. Characterization of lease. Applicability by agreement. (a) A consumer lease may not be deemed a credit sale, loan or security interest to make the transaction subject to coverage by other law in lieu of sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inc…

Sec. 42-395. Supplemental provisions and principles of law applicable. Limitations. Restrictions. The provisions of sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive, are supplemented by other applicable statutory provisions and by general principles of law a…

Sec. 42-396. Waiver. Agreement to forego rights in settlement of claim. (a) Except as otherwise permitted by sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive, a lessee may waive or agree to forego rights, benefits or remedies under sections 42-270 to 42-271a…

Sec. 42-397. Limitation on choice of law and venue. (a) The parties to a consumer lease may not choose the law of a jurisdiction unless it is a jurisdiction in which: (1) The lessee principally resides when the lease is consummated; (2) The lessee will principally reside within t…

Sec. 42-398. Obligation of good faith. Every contract subject to, or duty imposed by, sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive, imposes an obligation of good faith in its performance or enforcement. (P.A. 02-81, S. 9.) History: P.A. 02-81 effective J…

Sec. 42-399. Unconscionability. (a) If the court as a matter of law finds that a consumer lease or any provision of the lease was unconscionable when the lease was consummated, the court may refuse to enforce the lease, enforce the remainder of the lease without the unconscionabl…

Sec. 42-400. Relation to Electronic Signatures in Global and National Commerce Act. Sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive, modify, limit, and supersede the federal Electronic Signatures in Global and National Commerce Act, 15 USC Section 7001 et s…

Sec. 42-401. Advertising. (a) In this section, “advertisement” means a commercial message in any medium that directly or indirectly promotes a consumer lease. (b) An advertisement must comply with the requirements of the federal Consumer Leasing Act for advertising. If the advert…

Sec. 42-402. Availability of sample lease form. (a) Before consummation of a consumer lease, a lessor, on request of an individual, shall promptly give a copy or reproduction of its current consumer lease form to the individual at the lessor's place of business. If a lessor contr…

Sec. 42-403. Disclosure. Form of consumer lease. Copy to lessee. (a) A lessor shall make the disclosures required by the federal Consumer Leasing Act. If the lease is not subject to said act, the lessor shall make the disclosures as if the lease were subject to said act. (b) Befo…

Sec. 42-404. Insurance. Insurance disclosures. (a) A lessor may require that the lessee maintain casualty insurance on the leased goods, or liability insurance against personal injury or property damage caused to others, or both, during the period of the lease. If a lessor requir…

Sec. 42-405. Notice to guarantor. (a) The obligation of a guarantor with respect to a consumer lease is not enforceable unless: (1) Before the guarantor signs a record evidencing the obligation, the lessor provides to the guarantor a clear statement in a record which identifies t…

Sec. 42-406. Information during term of lease. Computer equipment leases. Satisfaction of lease. (a) During the period of a consumer lease, the following rules apply: (1) A person that receives a payment in money from a lessee under a consumer lease shall furnish the lessee a wri…

Sec. 42-407. Payment or trade-in pending approval of lease. Refund or return. (a) If a lessee's application for a consumer lease is not approved on the terms submitted, the following rules apply: (1) Except as otherwise provided in subdivision (2) of this subsection or in subsect…

Sec. 42-408. Prohibited lease provisions. (a) A provision of a consumer lease may not: (1) Authorize the holder to accelerate the maturity of all or part of the amount owing on the lease whenever the holder deems itself insecure; (2) Require the lessee to execute an authorization…

Sec. 42-409. Security interest restricted. Security deposit. (a) Except as otherwise provided in subsection (b) of this section, a consumer lease or other record signed by the lessee in connection with the lease may not provide for the creation of a security interest in personal …

Sec. 42-410. Late fees. Delinquency and default charges. Attorney's fees. (a) A holder may impose on the lessee a late charge on a periodic payment that is delinquent for ten days or more in an amount specified in the consumer lease but not exceeding the lesser of ten dollars or …

Sec. 42-411. Assignment of lease. Preservation of lessee's claims and defenses. (a) Until thirty days after a lessee receives from the assignor or assignee of the lease a signed notice in a record that the consumer lease has been assigned and containing the name and address of th…

Sec. 42-412. Sublease. (a) Except as otherwise provided in subsection (b) of this section, a lessee under a consumer lease may sublease or assign the lessee's rights and interest. (b) A consumer lease may contain a specific and conspicuous provision requiring the holder's consent…

Sec. 42-413. Open-end consumer lease. (a) In an open-end consumer lease, the estimated residual value must be a reasonable approximation of the anticipated fair market value of the goods on expiration of the lease. The estimated residual value of the goods is presumed to be unrea…

Sec. 42-414. Limit on insurance charges. Termination or replacement of insurance. (a) A charge for casualty, liability or credit insurance included in a consumer lease or added under subsection (c) of this section may not exceed the premium imposed by the insurer for the insuranc…

Sec. 42-415. Rebate or discount for referrals. A person may not induce or attempt to induce a lessee to consummate a consumer lease by offering a postconsummation rebate, discount, commission or other consideration on the condition that the lessee provide information or assistanc…

Sec. 42-416. Limitation on supplier's disclaimer of implied warranty. (a) As used in this section: (1) “Magnuson-Moss Warranty Act” means 15 USC Sections 2301 to 2312, inclusive, as amended, and includes rules, regulations, statements and interpretations issued by the Federal Tra…

Sec. 42-417. Liability for gap amount on total loss of goods. (a) In this section, “gap amount” means the amount that would be owed by the lessee if a total loss of the goods occasioned by theft, physical damage or other occurrence were considered an early termination of the leas…

Sec. 42-418. Lessee's default. Right to cure. (a) A provision of a consumer lease stating events of default by the lessee is enforceable only to the extent that: (1) The lessee does not make a payment required by the lease; or (2) The holder establishes that the prospect of payme…

Sec. 42-419. Repossession. Application of realized value. Electronic self help. (a) Except as otherwise provided in subsection (d) of this section and subject to section 42-418, on a lessee's default, the holder may repossess the goods by judicial process or by self-help without …

Sec. 42-420. Determining realized value. (a) Subject to subsection (b) of this section, the amount of the realized value, if used to determine the lessee's liability on termination of a consumer lease, is the sum of: (1) The amount of the rebate of premiums or charges for insuran…

Sec. 42-421. Early termination liability. (a) A consumer lease may provide a measure or formula for the lessee's liability on early termination, but only at an amount reasonable in light of the anticipated or actual harm caused by the early termination, the difficulties of proof …

Sec. 42-422. Reporting early termination to consumer reporting agency. If a consumer lease is terminated before its scheduled expiration by mutual agreement of the holder and lessee, the holder may not report the early termination to a consumer reporting agency as a default by th…

Sec. 42-423. Excess wear and tear. Excess mileage. (a) A consumer lease may prescribe standards and impose liability on the lessee for excess wear and tear of the leased goods if the standards and amounts of liability are reasonable and reasonably applied to compensate the holder…

Sec. 42-424. Private remedies. (a) In sections 42-424 to 42-431, inclusive, with respect to violations of sections 42-405 and 42-422, “lessee” includes a guarantor. (b) A holder that violates sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive, is liable to the…

Sec. 42-425. Reliance on lessee's representations. A holder is not liable to any person, and a holder's rights under a lease are not affected, because of any act or omission arising out of the holder's reasonable belief that a transaction is not a consumer lease if the holder's b…

Sec. 42-426. Statute of limitations. (a) Except as otherwise provided in subsections (b) to (d), inclusive, of this section, an action under sections 42-424 to 42-431, inclusive, may not be commenced more than three years after the termination of the lease that is the subject of …

Sec. 42-427. Limitations on private remedies. (a) A holder is not liable for statutory damages under subsection (d) of section 42-424 if, within sixty days after discovering a violation of sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive, and before commence…

Sec. 42-428. Civil liability of assignees. (a) Except as otherwise provided in subsection (b) of this section, the liability of a holder for a violation of sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive, by a previous holder is subject to subsection (b) of…

Sec. 42-429. Effect of violation on rights of parties. Single recovery. (a) Except as otherwise provided in sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive, a violation of sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive, by a holder d…

Sec. 42-430. Administrative enforcement. The Commissioner of Consumer Protection shall enforce the provisions of sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive. For this purpose, the commissioner has the power and is entitled to the remedies provided in th…

Sec. 42-431. Administration. (a) The Commissioner of Consumer Protection shall administer sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive, and may adopt regulations designed to effectuate consumer protection under sections 42-270 to 42-271a, inclusive, and …

Sec. 42-432. Severability. If any provision of sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive, or the application of said sections to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of sections 42…

Sec. 42-433. Transition. A consumer lease entered into before July 1, 2003, and the rights, duties and interests resulting from it may be terminated, completed or enforced as required or permitted by any statute, rule of law or other law amended, repealed or modified by sections …

Sec. 42-434. Uniformity. In applying and construing sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. (P.A. 02-81, S. 45.)…

Secs. 42-435 to 42-449. Reserved for future use.