2014 -- H 7478

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LC004135

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO DECEPTIVE TRADE PRACTICES --MODEL FAIR CONSUMER

CONTRACTS ACT

     Introduced By: Representatives Lima, O`Neill, and Jacquard

     Date Introduced: February 13, 2014

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 6-13.1-4 of the General Laws in Chapter 6-13.1 entitled "Deceptive

Trade Practices" is hereby repealed.

     6-13.1-4. Exemptions. -- Nothing in this chapter shall apply to actions or transactions

permitted under laws administered by the department of business regulation or other regulatory

body or officer acting under statutory authority of this state or the United States.

     SECTION 2. Title 6 of the General Laws entitled "COMMERCIAL LAW - GENERAL

REGULATORY PROVISIONS" is hereby amended by adding thereto the following chapter:

CHAPTER 13.4

MODEL FAIR CONSUMER CONTRACTS ACT

     6-13.4-1. Short title. – This act shall be known as the "Model Fair Consumer Contracts

Act."

     6-13.4-2. Legislative purpose. – The purpose of this act is to protect consumers, who

enter into contracts, from exploitive terms and conditions.

     6-13.4-3. Definitions. – For the purposes of this chapter, the following words and terms

shall have the following meanings:

      (1) "Consumer" means a person who seeks or acquires goods or services intended

primarily for personal, family or household purposes.

     (2) "Consumer contract" means a written standardized form contract between the parties

to a consumer transaction.

     (3) "Consumer transaction" means any sale, lease, or rental of goods or services to a

consumer. This includes, but is not limited to, transactions involving: banking, credit cards,

home loans, and other financial services, health care services, brokerage services, home

construction and improvements, insurance, communications and the purchase, lease, or rental of

motor vehicles and other personal property.

     (4) "Merchant" means a person who, in the ordinary course of business sells, rents or

leases goods or services to consumers in a consumer transaction. The term includes an assignee

or other transferee of the merchant. The term does not include a surety.

     6-13.4-4. Prohibited contract provisions. – No consumer contract involving a consumer

transaction shall possess a clause which prohibits a consumer from pursuing a claim as a class

action.

     6-13.4-5. Liberal construction of chapter required. – This chapter shall be construed

liberally to effectuate its declared purpose.

     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO DECEPTIVE TRADE PRACTICES --MODEL FAIR CONSUMER

CONTRACTS ACT

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     This act would repeal exemptions to the deceptive trade practices act. This act would

create the "Model Fair Consumer Contracts Act" to protect consumers from exploitive contracts.

     This act would take effect upon passage.

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LC004135

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