LD 1156
pg. 1
LD 1156 Title Page An Act to Update the Maine Consumer Credit Code Regarding Rental-purchase Agree... Page 2 of 2
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LR 1711
Item 1

 
Be it enacted by the People of the State of Maine as follows:

 
Sec. 1. 9-A MRSA §11-104, sub-§2, as enacted by PL 1991, c. 787, is
amended to read:

 
2. The consumer is a resident of this State at the time the
merchant, wherever located, offering the rental-purchase
agreement solicits the rental-purchase agreement or modification
of the rental-purchase agreement in this State, whether the
solicitation is made personally, by mail or by telephone.

 
For the purposes of this Article, the residence of the consumer
is the address given by the consumer as the consumer's residence
in any writing signed by the consumer in connection with the
rental-purchase agreement. Unless the consumer notifies the
merchant of a new or different residence address, the given
residence address is presumed to be unchanged.

 
Sec. 2. 9-A MRSA §11-105, sub-§§2 and 3, as enacted by PL 1991, c. 787,
are amended to read:

 
2. "Advertisement" means a commercial message in any medium
that directly or indirectly aids, promotes or assists a rental-
purchase agreement, but does not include in-store merchandising
aids such as window signs and ceiling banners.

 
3. "Cash price" means the price for which the merchant would
sell the property to the consumer for cash on the date of the
rental-purchase agreement. The "cash price" cash price must be
reasonably related to the fair market value of the property.
Either of the following is conclusive evidence of a reasonable
relationship to fair market value for new property, but a
reasonable relationship may also be demonstrated by other
evidence:

 
A.__Published prices or advertisements by retailers of
similar products selling in the same trade area in which the
merchant is located, if the prices were published or
disseminated within the 90-day period preceding consummation
of the rental-purchase agreement; or

 
B.__Cash price in an amount not exceeding twice the bona
fide actual cost, including freight charges, of the rental
property to the merchant from a wholesaler, distributor or
manufacturer, net of volume rebates, discounts or incentives
received by the merchant for the specific item and known by
the merchant at the time the merchant purchased the item.


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