Section 12-1101 - Definitions.

§ 12-1101. Definitions.
 

(a)  In general.- In this subtitle the following words have the meanings indicated. 

(b)  Advertisement.-  

(1) "Advertisement" means a commercial message in any medium that aids, promotes, or assists, directly or indirectly, a rental-purchase agreement. 

(2) "Advertisement" does not include in-store merchandising ads. 

(c)  Cash price.- "Cash price" means the price at which the lessor would have sold rental property covered by a rental-purchase agreement to the consumer unconditionally for cash on the date of consummation. 

(d)  Consumer.- "Consumer" means an individual who rents personal property under a rental-purchase agreement primarily for personal, family, or household purposes. 

(e)  Consummation.- "Consummation" means the time at which a consumer enters into a rental-purchase agreement. 

(f)  Lessor.- "Lessor" means a person who regularly provides the use of personal property through rental-purchase agreements to consumers and to whom rental payments are initially payable on the face of a rental-purchase agreement. 

(g)  Rental property.- "Rental property" means personal property that is the subject of a rental-purchase agreement. 

(h)  Rental-purchase agreement.- "Rental-purchase agreement" means an agreement that: 

(1) Is for the use of personal property by an individual primarily for personal, family, or household purposes; 

(2) Is for an initial period of 4 months or less; 

(3) Is automatically renewable for a weekly or monthly period with each rental payment after the initial period; and 

(4) Allows but does not obligate the consumer to become the owner of the property. 
 

[1989, ch. 620.]