Section 407.661

Title XXVI TRADE AND COMMERCE

Chapter 407

Effective - 28 Aug 1988   

  407.661.  Definitions. — As used in sections 407.660 to 407.665 the following terms shall mean:

  (1)  "Advertisement", the attempt by publication, dissemination, solicitation, circulation, or any other means to induce, directly or indirectly, any person to enter into any obligation or acquire any title or interest in any merchandise, or any commercial message in any medium that directly or indirectly promotes or assists a rental-purchase agreement;

  (2)  "Cash price", the price for which the merchant would have sold the merchandise to the consumer for cash on the date of the rental-purchase agreement;

  (3)  "Consumer", an individual who leases personal property under a rental-purchase agreement;

  (4)  "Merchandise", the personal property that is the subject of a rental-purchase agreement;

  (5)  "Merchant", a person who, in the ordinary course of business, regularly leases, offers to lease, or arranges for the leasing of merchandise under a rental-purchase agreement;

  (6)  "Rental-purchase agreement", an agreement between a merchant and a consumer for the use of merchandise by the consumer for personal, family, or household purposes, for an initial period of four months or less that is automatically renewable with each payment after the initial period, and that permits the consumer to become the owner of the merchandise.  A rental-purchase agreement shall not be construed to be nor be governed by any of the following:

  (a)  A lease or agreement which constitutes a credit sale as defined in 12 CFR 226.2(a)(16) and section 1602(g) of the Truth-in-Lending Act, 15 U.S.C. 1601 et seq.;

  (b)  A lease which constitutes a consumer lease as defined in 12 CFR 213.2(a)(6);

  (c)  Any lease for agricultural, business, or commercial purposes;

  (d)  Any lease made to an organization;

  (e)  A lease or agreement which constitutes a retail time contract or retail time transaction as defined in subdivisions (14) and (15) of section 408.250;

  (f)  A security interest as defined in subdivision (35)^* of section 400.1-201; or

  (g)  A home solicitation sale as that term is defined in section 407.700;

  (7)  "Period", a day, week, month, or other subdivision of a year.

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(L. 1988 H.B. 988)

*In 2017 statutory reference to subdivision "(37)" changed to "(35)" in accordance with section 3.060.