2013 -- H 6174

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LC02659

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO DECEPTIVE TRADE PRACTICES --MODEL FAIR CONSUMER

CONTRACTS ACT

     Introduced By: Representatives Lima, Tanzi, Jacquard, Shekarchi, and Ferri

     Date Introduced: May 29, 2013

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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

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Trade Practices" is hereby repealed.

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

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

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

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

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

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     CHAPTER 13.4

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MODEL FAIR CONSUMER CONTRACTS ACT

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

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Act."

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

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enter into contracts, from exploitive terms and conditions.

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

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shall have the following meanings:

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

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primarily for personal, family or household purposes.

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

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to a consumer transaction.

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

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

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

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

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motor vehicles and other personal property.

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

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

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

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

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

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action.

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

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liberally to effectuate its declared purpose.

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     SECTION 3. This act shall take effect upon passage.

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LC02659

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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

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

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     This act would take effect upon passage.

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LC02659

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