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

Sec. 42-133t. Liability of manufacturers and distributors for damages. Allocation of risk of loss. (a) Notwithstanding the terms, provisions or conditions of any agreement or franchise, manufacturers or distributors shall be liable for all damages to motor vehicles which occur pr…

Sec. 42-133u. Manufacturers or dealers to indemnify franchised dealers. Notwithstanding the terms of any franchise agreement, each manufacturer or distributor shall indemnify and hold harmless its franchised dealers against any judgment for damages, including, but not limited to,…

Sec. 42-133v. Cancellation, termination or nonrenewal of franchise. “Good cause” requirement. Notice. Appeal. (a) Notwithstanding the terms, provisions or conditions of any franchise agreement and notwithstanding the terms or provisions of any waiver or other agreement between th…

Sec. 42-133w. Manufacturer or distributor to compensate dealer upon termination, nonrenewal or cancellation. (a) Upon the termination, nonrenewal or cancellation of any franchise under sections 42-133r to 42-133ee, inclusive, initiated by the manufacturer, distributor or dealer, …

Sec. 42-133x. Effects of a franchise termination, cancellation or nonrenewal. (a) In the event of a termination, cancellation or nonrenewal under subdivision (2) of subsection (b) of section 42-133v or subsection (b) of this section: (1) If the dealer is leasing the dealership fa…

Sec. 42-133y. Succession to ownership interest in dealership by family member upon owner's death or incapacity. (a) Any owner may appoint by will, or other written instrument, a designated family member to succeed in the ownership interest of the owner in the dealer. (b) Unless g…

Sec. 42-133z. Refusal to honor succession by family member. Notice. (a) If a manufacturer or distributor believes that good cause exists for refusing to honor the succession by a family member of a deceased or incapacitated owner under the existing franchise agreement, the manufa…

Sec. 42-134. Definition. Section 42-134 is repealed. (1967, P.A. 749, S. 1; P.A. 76-165, S. 7, 8.)

Sec. 42-134a. Definitions. As used in this chapter: (a) “Home solicitation sale” means a sale, lease, or rental of consumer goods or services, whether under single or multiple contracts, in which the seller or his representative personally solicits the sale, including those in re…

Sec. 42-135. Notice in sales agreement. Seller to complete prior to signing by buyer. Section 42-135 is repealed. (1967, P.A. 749, S. 3; 1969, P.A. 178, S. 1; 1972, P.A. 141; P.A. 76-165, S. 7, 8.)

Sec. 42-135a. Notice in sales agreement. Notice of cancellation. Duties of seller. No agreement in a home solicitation sale shall be effective against the buyer if it is not signed and dated by the buyer or if the seller shall: (1) Fail to furnish the buyer with a fully completed…

Sec. 42-136. Note or evidence of indebtedness given by buyer. (a) Any note or other evidence of indebtedness given by a buyer in respect of a home solicitation sale shall be dated not earlier than the date of the agreement or offer to purchase. Any transfer of a note or other evi…

Sec. 42-137. Cancellation rights of buyer. (a) In addition to any right otherwise to revoke an offer, the buyer may cancel a home solicitation sale until midnight of the third business day after the day on which the buyer signs an agreement subject to the provisions of this chapt…

Sec. 42-138. Seller's obligations on cancellation. (a) Except as provided in this section, within ten business days after a home solicitation sale has been cancelled the seller shall tender to the buyer any payments made by the buyer and any note or other evidence of indebtedness…

Sec. 42-139. Buyer's obligations on cancellation. (a) Except as provided in subsection (c) of section 42-138, within twenty days after a home solicitation sale has been cancelled the buyer, upon demand, shall tender to the seller any goods delivered by the seller pursuant to the …

Sec. 42-140. Offer of commission or rebate where buyer provides prospective purchasers' names illegal, when. No seller in a home solicitation sale shall offer to pay a commission or give a rebate or discount to the buyer in consideration of the buyer's giving to the seller the na…

Sec. 42-141. Penalty. Violation made unfair or deceptive practice or act. (a) Any person who violates any provision of this chapter shall be guilty of a class C misdemeanor. Any sale made in respect to which a commission, rebate or discount is offered in violation of the provisio…

Sec. 42-142. Sale of insurance excepted. Section 42-142 is repealed. (1967, P.A. 749, S. 9; P.A. 76-165, S. 7, 8.)

Sec. 42-143. Short title: Home Solicitation Sales Act. This chapter may be cited as the “Home Solicitation Sales Act”. (1967, P.A. 749, S. 10.)

Sec. 42-144. Definitions. As used in this chapter: (a) “Advertisement” includes the attempt by publication, dissemination, solicitation or circulation, written or oral, to induce directly or indirectly, any person to enter into any obligation or acquire any title or interest in a…

Sec. 42-145. Contingent consideration void. The advertisement for sale, lease or rent, or the actual sale, lease or rental of any merchandise, service or rights or privileges at a price or with a rebate or payment or other consideration to the purchaser which is contingent upon t…

Sec. 42-146. Commissioner's powers to enforce. (a) In the discharge of the duties imposed by this chapter: (1) The commissioner or his duly authorized agent or agents shall at all reasonable times have access to records and documentary evidence of any person being investigated fo…

Sec. 42-147. Conciliation and voluntary compliance. In the administration of this chapter, the commissioner shall set up prehearing conciliation procedures and may accept an assurance of voluntary compliance with respect to any method, act or practice deemed in violation of this …

Sec. 42-148. Judicial enforcement. Whenever the commissioner has reason to believe that any person has been engaged or is engaged in any act or acts prohibited by this chapter, said commissioner may proceed as provided in section 42-147 or 42-150 or may request the Attorney Gener…

Sec. 42-149. Injunctive relief, costs, other remedies. (a) A person likely to be damaged by any practice of another prohibited by this chapter may be granted an injunction enjoining such practice under the principles of equity and on terms that the court considers reasonable. Pro…

Sec. 42-150. Powers granted under chapter not exclusive. Nothing contained in this chapter shall be construed as a limitation upon the power or authority of the state, the Attorney General or the commissioner to seek administrative, legal or equitable relief as provided by other …

Secs. 42-150a to 42-150t. Reserved for future use. Note: Chapters 741a and 741b are also reserved for future use.

Sec. 42-150aa. Attorney's fees limited in actions on consumer contracts or leases. (a) The holder of any contract or lease entered into on or after October 1, 1979, the subject of which is money, property or services intended to be used primarily for personal, family or household…

Sec. 42-150bb. Attorney's fees in action based on consumer contract or lease. Whenever any contract or lease entered into on or after October 1, 1979, to which a consumer is a party, provides for the attorney's fee of the commercial party to be paid by the consumer, an attorney's…

Sec. 42-150u. Enforceability of liquidated damages provision in consumer contracts. Consumer contract or consumer lease for personal emergency response system. Death of consumer. Exclusions. (a) No provision in a written contract for the purchase or lease of goods or services pri…

Sec. 42-151. Definitions. The following definitions shall apply in this chapter: (a) Consumer. A “consumer” is an individual who borrows, leases, buys or obtains money, property or services under a written agreement. (b) Consumer contract. A written agreement is a “consumer contr…

Sec. 42-152. Consumer contract to be written in plain language. (a) Standard. Every consumer contract entered into after June 30, 1980, shall be written in plain language. A consumer contract is written in plain language if it meets either the plain language tests of subsection (…

Sec. 42-153. Coverage. (a) Contracts covered. This chapter shall apply to all consumer contracts made, entered into or signed by the consumer in this state after June 30, 1980. (b) Exclusions. Mortgages, deeds of real estate, insurance policies and documents relating to securitie…

Sec. 42-154. Liability. Any creditor, seller or lessor which fails to comply with section 42-152 shall be liable to a consumer who is a party to the consumer contract for statutory damages of one hundred dollars plus, at the discretion of the court, an attorney's fee not to excee…

Sec. 42-155. Limitations on liability. (a) Contracts with more than one party. In any individual transaction, if there is more than one consumer who is a party to a single consumer contract, only one award of statutory damages may be made for that transaction. (b) Good faith. No …

Sec. 42-156. Exempt language. (a) Required and authorized language. The use of specific language expressly required or authorized by court decision, statute, regulation or governmental agency shall not be a violation of this chapter. (b) Legal descriptions of real property. The u…

Sec. 42-157. Rights of parties. (a) Enforceability. A consumer contract shall remain enforceable, even though it violates this chapter. (b) Other consumer rights. Nothing in this chapter shall preclude a consumer from making any claim or raising any defense which would have been …

Sec. 42-158. Test procedures. Use the following procedures to determine compliance with subsection (c) of section 42-152: (a) Words. To count the number of words in the contract, proceed as follows: (1) Count every word used in the text of the contract. (2) Do not count words or …

Sec. 42-158a. Definitions. Section 42-158a is repealed, effective July 1, 2003. (P.A. 99-278, S. 1; P.A. 00-219, S. 1; P.A. 02-81, S. 49.)

Sec. 42-158aa. Refuse removal or disposal contracts. Renewal. Conditions. Exceptions. (a) No provision of a contract for refuse removal or disposal which states that the term of such contract shall be deemed renewed for a specified additional period of time shall be enforceable u…

Secs. 42-158b and 42-158c. Required calculation of lease rate. Required disclosures in lease agreements. Sections 42-158b and 42-158c are repealed, effective July 1, 2002. (P.A. 99-278, S. 2, 3; P.A. 00-219, S. 4–6; P.A. 01-200, S. 2–4; P.A. 02-81, S. 50.)

Secs. 42-158d to 42-158g. Unfair trade practice. Conflict with state or federal law to be avoided. Terms excluding or modifying implied warranties or remedies for breach unenforceable. Required disclosures. Sections 42-158d to 42-158g, inclusive, are repealed, effective July 1, 2…

Sec. 42-158ff. Automatic renewal and continuous services provisions in consumer agreements. Definitions. Requirements. Disclosures. Termination. (a) For the purposes of this section: (1) “Automatic renewal provision” means any provision that is included in a consumer agreement un…

Sec. 42-158i. Definitions. As used in sections 42-158i to 42-158n, inclusive, unless the context otherwise requires: (1) “Owner” means any individual, corporation, nonprofit corporation, partnership, limited partnership, limited liability company or other business entity that is …

Sec. 42-158j. Required contract provisions re timely payment of contractors, subcontractors and suppliers. Payment requisition statement. Remedy for untimely payments. Penalties. Escrow accounts. Withholding payments due because of disputes prohibited. Progress payments. Rights o…

Sec. 42-158k. Retainage limitation. Payment by owner. Time limits. No construction contract may provide for any retainage in an amount that exceeds five per cent of the estimated amount of a progress payment for the life of the construction project. All retainage shall be paid by…