Chapter 646A — Trade Regulation

2011 EDITION

TRADE REGULATION

TRADE REGULATIONS AND PRACTICES

SALES

(Health Spas)

646A.030 Definitions for ORS 646A.030 to 646A.042

646A.032 Price list for health spa services

646A.034 Contracts; contents

646A.036 Contracts and rules; delivery to buyer

646A.038 Moneys paid prior to facility opening; disposition; priority of claim; refund

646A.040 Waiver of provisions of ORS 646A.030 to 646A.042

646A.042 Remedies and obligations supplementary to existing remedies

(Manufactured Dwellings)

646A.050 Definitions

646A.052 Form of purchase agreement

646A.054 Rules

(Purchase of Used Goods)

646A.060 Purchase of used goods; records; application to pawnbrokers

646A.062 Penalty for violation of ORS 646A.060

(Telephonic Equipment)

646A.070 Sale of telephonic equipment; disclosure requirements; enforcement; penalty

646A.072 Exceptions to disclosure requirements

(Retail Pet Stores)

646A.075 Required information prior to purchase of dog

646A.077 Qualification for full refund; replacement dog; reimbursement for cost of veterinary care; exceptions

(Miscellaneous Transactions)

646A.080 Sale of novelty item containing mercury; penalty

646A.081 Prohibition on sale or installation of mercury vapor outdoor lighting fixtures

646A.082 Floral retail sales; disclosure of principal place of business; enforcement; penalty

646A.085 Sale of rights by distributor to exhibit motion picture without first giving exhibitor opportunity to view motion picture prohibited; attorney fees

646A.090 Offer to sell or lease motor vehicle subject to future acceptance by lender; disposition of trade-in vehicle and items of value; liability

646A.092 Advertisements for sale or lease of motor vehicle; exceptions

646A.095 Disclosure required when purchaser of product offered technical support through information delivery system

646A.097 Payment of sales commissions following termination of contract between sales representative and principal; definitions; civil action

(Going Out of Business Sales)

646A.100 Definitions for ORS 646A.100 to 646A.110

646A.102 Notice of intent to conduct going out of business sale; display and filing; exceptions; prohibited activities

646A.104 Information required in notice of intent

646A.106 Circumstances in which going out of business sale prohibited

646A.108 Prohibited conduct

646A.110 Applicability of ORS 646A.100 to 646A.110 and 646A.112

646A.112 Injunction of sham sale; evidence; attorney fees; defense; definitions

646A.115 Software prohibited that interferes with sale of admission tickets to entertainment events; unlawful practice

RENTAL AND LEASE AGREEMENTS

(Lease-Purchase Agreements)

646A.120 Definitions for ORS 646A.120 to 646A.134

646A.122 Applicability of ORS 646A.120 to 646A.134

646A.124 General disclosure requirements

646A.126 Specific disclosure requirements

646A.128 Provisions prohibited in lease-purchase agreements

646A.130 Reinstatement of lease-purchase agreement by consumer; receipt for each payment

646A.132 Renegotiation or extension of lease-purchase agreement

646A.134 Disclosures required in advertisement for lease-purchase agreements

(Collision Damage Waivers in Vehicle Rentals)

646A.140 Definitions for ORS 646A.140 and 646A.142

646A.142 Rental vehicle collision damage waiver notice

SERVICE CONTRACTS

646A.150 Applicability of ORS 646A.150 to 646A.172

646A.152 Definitions for ORS 646A.150 to 646A.172

646A.154 Service contract defined; registration; proof of financial stability; bond; action; rules; applicability of Insurance Code

646A.156 Required contents of service contracts

646A.158 Prohibited conduct

646A.160 Service contract obligor as agent of insurer; indemnification or subrogation rights of insurer

646A.162 Investigation of violations; inspection of records; subpoenas; discontinue or desist order; civil penalties

646A.164 Complaints and investigations confidential; exceptions

646A.166 Refusal to continue or suspension or revocation of registration

646A.168 Assessment fee; rules; purpose; registration fee

646A.170 Remedies not exclusive

646A.172 Rules; exemption of certain obligors

CREDIT AND PURCHASING

(Credit and Debit Card Receipts)

646A.200 Definitions for ORS 646A.202 and 646A.204

646A.202 Payment processing systems

646A.204 Customer information

646A.206 Rules

(Numbers, Expiration Dates or Personal Information in Credit or Debit Card Transactions)

646A.210 Requiring credit card number as condition for accepting check or share draft prohibited; exceptions

646A.212 “Credit card” defined

646A.214 Verification of identity in credit or debit card transactions

(Credit and Charge Card Solicitation Disclosure Requirements)

646A.220 Credit card solicitation; required disclosure; definitions

646A.222 Charge card solicitation; required disclosure; definitions

(Enforcement)

646A.230 Action by Attorney General or district attorney; civil penalties

646A.232 Effect of compliance with federal law

(Extension of Credit)

646A.240 Treatment of child support obligations by creditor in applications for extensions of credit

646A.242 “Creditor” defined

646A.244 Cause of action for violation of ORS 646A.240; injunction; attorney fees; defenses

(Gift Cards)

646A.274 Definitions for ORS 646A.276 and 646A.278

646A.276 Sale of gift card that expires, declines in value, includes fee or does not give option to redeem

646A.278 Requirements for sale of gift card that expires

(Simulated Invoices)

646A.280 Definitions for ORS 646A.280 to 646A.290

646A.282 Simulated invoices prohibited

646A.284 Cause of action by Attorney General; judgment; attorney fees

646A.286 Cause of action by private party; judgment; attorney fees

646A.288 Presumptions in cause of action brought under ORS 646A.284 or 646A.286

646A.290 Construction; other remedies

(Automatic Renewal and Continuous Service Offers)

646A.292 Legislative intent

646A.293 Definitions for ORS 646A.293 and 646A.295

646A.295 Prohibited actions; requirements; timing; failure to obtain consent; exceptions

REPURCHASING

(Repurchase of Farm Implements by Supplier From Retailer)

646A.300 Definitions for ORS 646A.300 to 646A.322

646A.302 Application of ORS 646A.300 to 646A.322 to successor in interest or assignee of supplier

646A.304 Payment for farm implements, parts, software, tools and signs upon termination of retailer agreement

646A.306 Repurchase of inventory by supplier; effect of new retailer agreement

646A.308 Civil action for supplier’s failure to pay; venue

646A.310 Prohibited conduct by supplier

646A.312 Termination, cancellation or failure to renew retailer agreement; notice; good cause

646A.314 New or relocated dealership; notice; area of responsibility

646A.316 Warranty claims; payment; time for completion

646A.318 Warranty claims; processing

646A.320 Retailer’s improvements to products

646A.322 Remedies; arbitration; cause of action; attorney fees; injunctive relief

(Repurchase of Motor Vehicles)

646A.325 Repurchase of motor vehicle by manufacturer; notice to dealer; contents of notice; notice to prospective buyer

646A.327 Attorney fees for action under ORS 646A.325

MAILINGS AND DELIVERIES

(Mail Agents)

646A.340 Definitions for ORS 646A.340 to 646A.348

646A.342 Prohibited conduct; required verifications and notice

646A.344 Bond or letter of credit; action; exceptions

646A.346 Damages

646A.348 Action by Attorney General; civil penalty; injunction; damages; attorney fees and costs

(Delivery of Hazardous Materials)

646A.350 Delivery of unrequested hazardous substances prohibited

646A.352 Penalty

(Other Mailings or Deliveries)

646A.360 Unsolicited facsimile machine transmissions

646A.362 Exclusion of name from sweepstakes promotion mailing list; written request; rules

646A.365 Check, draft or payment instrument creating obligation for payment

AUTOMATIC DIALING AND ANNOUNCING DEVICES

646A.370 Definitions for ORS 646A.370 to 646A.374

646A.372 Limits on usage of automatic dialing and announcing device

646A.374 Prohibited actions

646A.376 Enforcement; civil penalty

WARRANTY REGULATION AND ENFORCEMENT

(Enforcement of Express Warranties on New Motor Vehicles)

646A.400 Definitions for ORS 646A.400 to 646A.418

646A.402 Availability of remedy

646A.404 Consumer’s remedies; manufacturer’s affirmative defenses

646A.405 Manufacturer action under ORS 646A.404; request to Department of Transportation; notice to buyer; unlawful practice; rules

646A.406 Presumption of reasonable attempt to conform; extension of time for repairs; notice to manufacturer

646A.408 Use of informal dispute settlement procedure as condition for remedy; binding effect on manufacturer

646A.410 Informal dispute settlement procedure; recordkeeping; review by Department of Justice

646A.412 Action in court; damages if manufacturer does not act in good faith; attorney fees; expert witness fees; costs

646A.414 Limitations on actions against dealers

646A.416 Limitation on commencement of action

646A.418 Remedies supplementary to existing statutory or common law remedies; election of remedies

(Vehicle Protection Product Warranties)

646A.430 Definitions for ORS 646A.430 to 646A.450

646A.432 Applicability of ORS 646A.430 to 646A.450; applicability of other law

646A.434 Sale of vehicle protection product; conditions and requirements

646A.436 Warrantor registration; requirements; expiration; fees; rules

646A.438 Reimbursement insurance; requirements; insurer qualifications

646A.440 Required provisions of reimbursement insurance policy; cancellation; notice

646A.442 Vehicle protection product warranty administrator

646A.444 Recordkeeping requirements for warrantor; record retention

646A.446 Prohibited conduct for warrantor

646A.448 Prohibited activities

646A.450 Rules; investigative powers of department

646A.452 Enforcement by Attorney General

(Warranties on Assistive Devices)

646A.460 Definitions for ORS 646A.460 to 646A.476

646A.462 Express warranty; duration

646A.464 Repair of assistive device

646A.466 Replacement or refund after attempt to repair

646A.468 Procedures for replacement or refund

646A.470 Sale or lease of returned assistive device

646A.472 Dispute resolution

646A.474 Applicability of other laws; waiver

646A.476 Civil action for damages; attorney fees; limitation on actions

VEHICLE REPAIR SHOPS

646A.480 Definitions for ORS 646A.480 to 646A.495

646A.482 Estimate required before beginning work; contents; evaluation

646A.486 Prohibited actions if estimate exceeds $200; revision of estimate; methods to obtain owner authorization

646A.490 Additional prohibited actions; reassembly required; copies

646A.495 Owner designee; waiver of authorization requirement

INFANT CRIB SAFETY

646A.500 Legislative findings; declaration of purpose

646A.502 Short title

646A.504 Definitions for ORS 646A.500 to 646A.514

646A.506 Prohibited conduct

646A.508 Penalties

646A.510 Exemptions

646A.512 Private right of action; attorney fees

646A.514 Scope of remedies

CHILDREN’S PRODUCTS

646A.525 Definitions for ORS 646A.525 to 646A.535

646A.530 Prohibited sales of certain children’s products; recall notices and warnings; disposal of recalled children’s products; compliance with warning instructions

646A.535 Assistance of Attorney General in obtaining recall notices

LICENSES

646A.550 Short title

646A.555 License to engage in business activity not required for individual under 17 years of age

PORTABLE ELECTRONICS INSURANCE

646A.575 Definitions for ORS 646A.575 to 646A.590

646A.577 Limited license required; application; fee; renewal; prohibited representations

646A.580 Cost of coverage; billing requirements; remission to insurer or supervising entity; funds held in trust; compensation

646A.582 Written disclosure requirements

646A.585 Exceptions to license requirement; prohibited representations; acts of employees

646A.588 Restrictions on modification or termination of coverage; notice

646A.590 Rules

646A.592 Enforcement

IDENTITY THEFT PREVENTION

646A.600 Short title

646A.602 Definitions for ORS 646A.600 to 646A.628

646A.604 Notice of breach of security; delay; methods of notification; contents of notice; application of notice requirement

646A.606 Security freeze; requirements; effect

646A.608 Deadline for placement of security freeze; confirmation; personal identification number; lifting and removal; fees

646A.610 Permissible fees

646A.612 Conditions for lifting or removing security freeze

646A.614 Effect of security freeze on use of consumer reports

646A.616 Effect of request for consumer report subject to security freeze

646A.618 Prohibition on changes to consumer report subject to security freeze; entities subject to requirement to place security freeze

646A.620 Prohibition on printing, displaying or posting Social Security numbers; exemptions

646A.622 Requirement to develop safeguards for personal information; conduct deemed to comply with requirement

646A.624 Powers of director; penalties

646A.626 Rules

646A.628 Allocation of moneys

MORTGAGE RESCUE FRAUD PREVENTION ACT

(Foreclosure Consultants)

646A.700 Short title

646A.702 Definitions for ORS 646A.702 to 646A.720

646A.705 Persons that are not foreclosure consultants

646A.710 Foreclosure consulting contract; requirements; void provisions

646A.715 Cancellation; effective date; payment for services provided before cancellation or breach; form; sufficiency of notice

646A.720 Prohibited acts of foreclosure consultant

(Equity Conveyances)

646A.725 Definitions for ORS 646A.725 to 646A.750

646A.730 Persons that are not equity purchasers

646A.735 Written contract; requirements; void provisions; power of attorney prohibited

646A.740 Cancellation; effective date; rebuttable presumption of delivery; payment for services; form; sufficiency of notice; return of documents

646A.745 Required and prohibited acts

646A.750 Rebuttable presumptions; accounting; bona fide purchaser; memorandum of agreement; form

646A.755 Acts not precluded

646A.760 Civil action for damages; attorney fees and costs; limitation on commencement of action

(Penalties)

646A.765 Penalties

SALES

646A.010 [Formerly 646.185; repealed by 2009 c.170 §4]

646A.012 [Formerly 646.187; repealed by 2009 c.170 §4]

646A.014 [Formerly 646.189; repealed by 2009 c.170 §4]

646A.016 [Formerly 646.191; repealed by 2009 c.170 §4]

646A.018 [Formerly 646.193; repealed by 2009 c.170 §4]

646A.020 [Formerly 646.195; repealed by 2009 c.170 §4]

(Health Spas)

646A.030 Definitions for ORS 646A.030 to 646A.042. As used in ORS 646A.030 to 646A.042, unless the context requires otherwise:

(1) “Business day” means any day except a Sunday or a legal holiday.

(2) “Buyer” means a person who purchases health spa services.

(3) “Conspicuous” has the meaning given that term in ORS 71.2010 (2)(j).

(4) “Health spa” means any person engaged, as a primary purpose, in the sale of instruction, training, assistance or use of facilities that are purported to assist patrons in physical exercise, weight control or figure development. The term also includes any person engaged primarily in the sale of the right or privilege to use tanning booths, exercise equipment or facilities, such as a sauna, whirlpool bath, weight-lifting room, massage, steam room, or other exercising machine or device. “Health spa” does not include any facility owned and operated by the State of Oregon or any of its political subdivisions.

(5) “Health spa services” means services, privileges or rights offered for sale by a health spa.

(6) “Person” has the meaning given that term in ORS 646.605 (4). [Formerly 646.661; 2009 c.181 §106]

646A.032 Price list for health spa services. (1) Each health spa shall prepare and provide to each prospective buyer a written list of prices of all forms or plans of health spa services offered for sale by the health spa.

(2) A health spa may not sell any form or plan of health spa services not included in the list. [Formerly 646.666]

646A.034 Contracts; contents. A contract for the sale of health spa services must be in writing and a copy must be given to the buyer at the time the buyer signs the contract. The contract must contain all of the following:

(1) Identification of the person providing the health spa services.

(2) A description of the health spa services to be provided, or acknowledgment in a conspicuous form that the buyer has received a written description of the health spa services to be provided. If any of the health spa services are to be delivered at a planned facility, at a facility under construction or through substantial improvement to an existing facility, the description must include a date for the completion of the facility, construction or improvement.

(3) A complete statement of the rules of the health spa or an acknowledgment in a conspicuous form that the buyer has received a copy of the rules.

(4) A statement of the duration of the obligation of the health spa to provide health spa services to the buyer. The duration shall not exceed three years from the date of the contract.

(5) A provision for cancellation of the contract:

(a) If the buyer dies or becomes physically unable to use a substantial portion of those health spa services used by the buyer from the date of the contract until the time of disability. The contract may require that disability be confirmed by an examination of a physician agreeable to the buyer and the health spa.

(b) If the health spa goes out of business.

(c) If the health spa moves its facility closest to the residence of the buyer on the date of the contract to a location more than five additional miles from that residence.

(d) If a facility, construction or improvement is not completed by the date represented in the contract.

(e) If the health spa materially changes the health spa services promised as a part of the initial contract.

(6) A provision for a refund upon cancellation in an amount computed by dividing the contract price by the number of weeks in the contract term and multiplying the result by the number of weeks remaining in the contract term.

(7) A provision under a conspicuous caption in capital letters and boldfaced type stating:

______________________________________________________________________________

BUYER’S RIGHT TO CANCEL

If you wish to cancel this contract, without penalty, you may cancel it by delivering or mailing a written notice to the health spa. The notice must say that you do not wish to be bound by the contract and must be delivered or mailed before midnight of the third business day after you sign this contract. The notice must be mailed to: _________(insert name and mailing address of health spa). If you cancel within the three days, the health spa will return to you within 15 days all amounts you have paid.

______________________________________________________________________________ [Formerly 646.671]

646A.036 Contracts and rules; delivery to buyer. Upon request, a health spa must deliver to a prospective buyer copies of the contract required by ORS 646A.034, and the rules of the health spa if not stated in the contract, and must allow the prospective buyer to retain the copies so provided. [Formerly 646.676]

646A.038 Moneys paid prior to facility opening; disposition; priority of claim; refund. (1) All moneys paid to a health spa by a buyer prior to the opening of the facility shall promptly be deposited by the health spa in a trust account, maintained by the health spa for the purpose of holding such moneys for the buyer, in a bank, savings and loan association, mutual savings bank or licensed escrow agent located in Oregon.

(2) The health spa shall within seven days of the first deposit notify the office of the Attorney General, in writing, of the name, address and location of the depository and any subsequent change thereof.

(3) The health spa shall provide the buyer with a written receipt for the moneys and shall provide written notice of the name, address and location of the depository and any subsequent change thereof.

(4) If prior to the opening of the facility the status of the health spa is transferred to another, any sums in the trust account affected by such transfer shall simultaneously be transferred to an equivalent trust account of the successor, and the successor shall promptly notify the buyer and the office of the Attorney General of the transfer and of the name, address and location of the new depository.

(5) The buyer’s claim to any moneys under this section is prior to that of any creditor of the health spa, including a trustee in bankruptcy or receiver, even if such moneys are commingled.

(6) After the health spa receives a notice of cancellation of the agreement or if the health spa fails to open a facility at the stated date of completion the health spa shall within 10 days give a full refund to the buyer, including the buyer’s pro rata share of any interest earned thereon.

(7) All sums received by a health spa in excess of the health spa’s normal monthly dues shall be placed in escrow subject to the terms and provisions stated in this section in the event that the health spa is not fully operational or in the event that the health spa is promising future construction or improvements. [Formerly 646.681]

646A.040 Waiver of provisions of ORS 646A.030 to 646A.042. A health spa shall not request a buyer to waive any provision of ORS 646A.030 to 646A.042. Any waiver by a buyer of any provision of ORS 646A.030 to 646A.042 is contrary to public policy and is void and unenforceable. [Formerly 646.686]

646A.042 Remedies and obligations supplementary to existing remedies. The remedies and obligations provided in ORS 646A.030 to 646A.042 are in addition to any other remedies and obligations, civil or criminal, existing at common law or under the laws of this state. [Formerly 646.691]

(Manufactured Dwellings)

646A.050 Definitions. As used in this section and ORS 646A.052:

(1) “Base price” means the total retail cost of the following unless separately disclosed as described in ORS 646A.052 (2):

(a) The manufactured dwelling as provided by the manufacturer;

(b) Features added by the dealer, if any;

(d) Delivery and installation as stated in the purchase agreement.

(2) “Buyer” means a person who buys or agrees to buy a manufactured dwelling.

(3) “Improvements” means goods and services not included in the base price that are, in general, needed to prepare a site and complete the setup of a manufactured dwelling. “Improvements” includes, but is not limited to, permits, site preparation, sidewalks, concrete, utility connections, skirting, steps, railings, decks, awnings, carports, garages, sheds, gutters, downspouts, rain drains, heat pumps, air conditioning, basements, plants and landscaping, installation fees and system development charges.

(4) “Manufactured dwelling” has the meaning given that term in ORS 446.003.

(5) “Manufactured dwelling dealer” or “dealer” means a person who sells a manufactured dwelling in a manner that makes the person subject to the license requirement of ORS 446.671.

(6) “Purchase agreement” means the written contract between the manufactured dwelling dealer and the buyer for the purchase of a manufactured dwelling. “Purchase agreement” does not include documents of a retail installment contract or loan agreement entered into as part of the purchase transaction. [Formerly 646.400]

646A.052 Form of purchase agreement. (1) A manufactured dwelling dealer who sells a manufactured dwelling shall use a purchase agreement form that complies with this section and rules adopted in accordance with ORS 646A.054.

(2) The purchase agreement shall include the base price and a written itemization that clearly and conspicuously discloses the retail prices of the following, if not included in the base price:

(a) Manufactured dwelling options that are ordered by the buyer.

(b) The amount of any refundable or nonrefundable administrative or processing fees paid to or collected by the dealer and the circumstances under which the fees may be returned to the buyer.

(c) The amount of any earnest money paid and the circumstances under which the earnest money may be returned to the buyer.

(d) Improvements provided by the dealer, or by a third party at the request of the dealer, to the extent known to the dealer at the time of sale. The written itemization of improvements under this paragraph excuses the dealer from providing the buyer with a separate statement of estimated costs under ORS 90.518 for those itemized improvements.

(e) All loan fees and credit report fees paid to or collected by the dealer to obtain financing for the buyer’s purchase of the manufactured dwelling and the circumstances under which the fees may be returned to the buyer.

(f) Alterations and upgrades to the manufactured dwelling made by the dealer or by a third party at the request of the dealer.

(g) Goods and services provided by the dealer, or by a third party at the request of the dealer, that are not otherwise disclosed pursuant to this section.

(h) Fees for the issuance or updating of an ownership document.

(i) The extended warranty contract, if any.

(j) Delivery, installation or site access costs that are not otherwise disclosed pursuant to this section, if any.

(3) The purchase agreement form must be accompanied by a list, provided by the Department of Justice, of governmental consumer protection agencies having jurisdiction over manufactured dwelling issues.

(4) Failure of a manufactured dwelling dealer to use a purchase agreement form that complies with this section and rules adopted in accordance with ORS 646A.054 is an unlawful practice under ORS 646.608.

(5) Except as provided in ORS 41.740, a purchase agreement is considered to contain all of the terms of the contract between the buyer and the manufactured dwelling dealer. No evidence of the terms of the contract may be presented other than the contents of the purchase agreement. As used in this subsection, “contract” does not include a retail installment contract or loan agreement entered into as part of a purchase transaction. [Formerly 646.402]

646A.054 Rules. The Department of Justice may adopt rules necessary and proper for the administration and enforcement of ORS 646A.052. [Formerly 646.404]

(Purchase of Used Goods)

646A.060 Purchase of used goods; records; application to pawnbrokers. (1) A person doing business as a consignment store, a buy-sell store, a secondhand store or a similar store or enterprise that in the regular course of business buys used goods from individuals for the purpose of resale shall:

(a) Require that the individual from whom the person buys the used goods present proof of identification; and

(b) Maintain a record of the name and address of the individual, the type of identification provided by the individual, the date and a description of the goods bought from the individual.

(2) If the goods described in subsection (1) of this section are private metal property or are constructed of or contain parts made of nonferrous metal property as those terms are defined in ORS 165.116, in addition to the requirements of subsection (1) of this section, the person shall comply with and is subject to the penalty provided for violating a provision of ORS 165.107, 165.118 or 165.122 that is applicable to a scrap metal business as defined in ORS 165.116.

(3) The person shall make all records required to be maintained by subsection (1) of this section available to any peace officer on demand.

(4) This section does not apply to pawnbrokers licensed under ORS 726.080.

(5) This section does not preempt, invalidate or in any way affect the operation of any provision of a county, city or district ordinance regulating the activities of consignment stores, buy-sell stores, secondhand stores or similar stores or enterprises that in the regular course of business buy used goods from individuals for the purpose of resale. [Formerly 646.848; 2009 c.811 §13]

646A.062 Penalty for violation of ORS 646A.060. A person that violates ORS 646A.060 (1) commits a Class B violation. [Formerly 646.849; 2009 c.811 §14]

(Telephonic Equipment)

646A.070 Sale of telephonic equipment; disclosure requirements; enforcement; penalty. (1) Any person offering for sale or selling new or reconditioned telephone handsets or keysets, private branch exchanges or private automatic branch exchanges of not more than a 20-station capacity shall disclose clearly, in writing, when reasonable, before sale all of the following information:

(a) Whether the equipment uses pulse, tone, pulse-or-tone or other signaling methods.

(b) Whether the equipment can access tone generated services.

(d) The person responsible for repair of the equipment.

(e) Minimum charges, if any, for repairs, handling and shipping.

(f) The terms of any written warranty offered with the equipment.

(2) A person who violates subsection (1) of this section commits an unlawful practice under ORS 646.608. The requirement under subsection (1) of this section is subject to enforcement and penalty as provided under ORS 646.605 to 646.652. [Formerly 646.850]

646A.072 Exceptions to disclosure requirements. (1) The requirement of disclosure under ORS 646A.070 does not apply:

(a) To any medium of advertising that accepts advertising in good faith without knowledge that the advertising violates any requirement under ORS 646A.070.

(b) To the sale or the offering for sale of radio equipment used for land, marine or air mobile service or any like service, regardless of whether such equipment is capable of interconnection by manual or automatic means to a telephone line.

(c) To equipment not intended for connection to the telephone network or to used equipment located on the customer’s premises.

(2) The requirement of disclosure under ORS 646A.070 (1)(d), (e) and (f) does not apply if the seller satisfies applicable requirements under the federal Magnuson-Moss Warranty Act (15 U.S.C. 2301 to 2312), except that the seller must provide the purchaser a copy of the warranty at the time of sale. [Formerly 646.855]

(Retail Pet Stores)

646A.075 Required information prior to purchase of dog. (1) As used in this section:

(a) “Dog” means a member of the subspecies Canis lupus familiaris or a hybrid of that subspecies.

(b) “Litter” means one or more dogs, sold individually or together, that are all or part of a group of dogs born to the same mother at the same time.

(d) “Retail pet store” does not mean a person that sells or offers to sell only dogs:

(A) That were bred or raised by the person; or

(B) That are kept primarily for the purpose of reproduction.

(2) A retail pet store that offers a dog for sale shall, prior to accepting an offer to purchase the dog, provide the person making the offer with the following information, in writing, regarding the dog:

(a) If known, the breed, age and date of birth for the dog.

(b) The sex and color of the dog.

(c) A list, and accompanying proof, of all inoculations that have been given to the dog by any person, and the date of those inoculations.

(d) A list of all medical treatment provided to the dog by any person, the date or treatment and the reasons for the treatment.

(e) The name and business address of the breeder and of the facility where the dog was born.

(f) If the breeder holds a license issued by the United States Department of Agriculture, the breeder’s federal identification number.

(g) The retail price of the dog.

(h) Any congenital disorder or hereditary diseases in the parents of the dog known to the pet dealer.

(i) If the dog is being sold with the representation that the dog qualifies for registration with a pedigree organization:

(A) The name and registration numbers of the parents of the dog; and

(B) The name and address of the pedigree organization with which the parents of the dog are registered.

(j) If the dog has previously been sold by the retail pet store and returned by the purchaser, the reason for the return.

(k) A statement in substantially the following form, with the applicable provision number circled:

______________________________________________________________________________

The facility in which this dog was born has produced:

1. 0 to 2 litters during the one-year period preceding the day this dog was born.

2. 3 to 10 litters during the one-year period preceding the day this dog was born.

3. 11 to 39 litters during the one-year period preceding the day this dog was born.

4. 40 or more litters during the one-year period preceding the day this dog was born.

______________________________________________________________________________ [2009 c.297 §5]

646A.077 Qualification for full refund; replacement dog; reimbursement for cost of veterinary care; exceptions. (1) As used in this section:

(a) “Litter” means one or more dogs, sold individually or together, that are all or part of a group of dogs born to the same mother at the same time.

(b) “Pet dealer” means, except as provided in paragraph (c) of this subsection, a person that sells five or more litters of dogs during a one-year period.

(2) Except as otherwise provided in this section, a pet dealer shall provide the purchaser of a dog that complies with subsection (3) of this section with a full refund of the purchase price for the dog if:

(a) No later than 15 days after purchasing the dog from the pet dealer the purchaser has the dog examined by a veterinarian and the examination reveals that the dog is diseased; or

(b) No later than one year after purchasing the dog from the pet dealer the purchaser has the dog examined by a veterinarian and the examination reveals that the dog has a congenital disorder that significantly limits the dog’s quality of life.

(3) To qualify for a refund under this section, the purchaser, no later than four business days after the veterinary examination that revealed the disease or disorder, must:

(a) Return the dog to the pet dealer;

(b) Provide the pet dealer with a dated written statement by the examining veterinarian that the dog has a disease or has a congenital defect; and

(4) Upon mutual agreement of the purchaser and pet dealer, the purchaser may accept a replacement dog instead of a refund.

(5) A purchaser that complies with subsection (2) of this section may, instead of obtaining a refund, require that the pet dealer reimburse the purchaser for the cost of veterinary care provided in connection with the disease or congenital disorder described in subsection (2) of this section. The duty of the pet dealer to reimburse the purchaser for the cost of veterinary care shall be limited to the purchase price of the dog. A purchaser that agrees to accept reimbursement under this subsection waives any other claim against the pet dealer for reimbursement of the cost of veterinary care for the dog.

(6) Notwithstanding subsections (1) to (5) of this section, a pet dealer is not required to refund the purchase price for a dog, provide a replacement dog or reimburse the purchaser for veterinary care if the pet dealer:

(a) At the time of sale made a clear and conspicuous disclosure in writing, initialed or signed by the purchaser, that disclosed the disease or disorder; or

(b) Had the dog examined by a veterinarian not more than 14 days prior to the date of sale and the examination did not disclose the disease or congenital disorder. [2009 c.297 §4]

(Miscellaneous Transactions)

646A.080 Sale of novelty item containing mercury; penalty. (1) A person may not sell or offer for sale a novelty item that contains encapsulated liquid mercury.

(2) Upon notification to the Department of Environmental Quality by any person that a novelty item for sale in the state contains encapsulated liquid mercury, the department shall notify persons identified as selling the novelty item of the prohibition on the sale of such items.

(3) The department may impose a penalty as provided in ORS 459.995 if a person continues to sell a novelty item that contains encapsulated liquid mercury after notification of the prohibition on the sale of such items. [Formerly 646.845]

646A.081 Prohibition on sale or installation of mercury vapor outdoor lighting fixtures. (1) As used in this section:

(a) “Mercury vapor lighting fixture” means an artificial illumination device that produces a high-intensity discharge of light by passing electricity through mercury vapor.

(b) “Outdoor lighting fixture” has the meaning given that term in ORS 757.765.

(2) A person may not sell an outdoor lighting fixture that is a mercury vapor lighting fixture.

(3) A person may not install a mercury vapor lighting fixture outdoors. This subsection does not apply to the reinstallation of an existing fixture after servicing or repair.

(4) State moneys may not be expended for the installation or reinstallation of outdoor lighting fixtures that are mercury vapor lighting fixtures. [2009 c.588 §3]

646A.082 Floral retail sales; disclosure of principal place of business; enforcement; penalty. (1) Any person engaging in floral retail sales shall disclose the person’s principal place of business in any written communications sent to customers, listings, advertising or websites that provide information about the person’s floral retail sales activities.

646A.085 Sale of rights by distributor to exhibit motion picture without first giving exhibitor opportunity to view motion picture prohibited; attorney fees. (1) As used in this section:

(a) “Distributor” means any person engaged in the business of distributing or supplying motion pictures to exhibitors by rental, sales, license or any other agreement to sell rights to exhibit a motion picture.

(b) “Exhibitor” means any person engaged in the business of operating one or more theaters in which motion pictures are exhibited to the public for a charge.

(c) “Market” means any geographical area in this state for which a distributor solicits exhibitors to compete, by bidding or other negotiations, for the rights to exhibit a motion picture.

(2) No distributor shall sell rights to exhibit a motion picture in this state unless each exhibitor solicited by the distributor for an offer to exhibit the motion picture is first allowed a reasonable opportunity to view the motion picture within the state. Any waiver of this subsection is void and unenforceable.

(3) Nothing in this section applies to any form of solicitation of offers for, negotiation concerning or sale of rights to exhibit a motion picture:

(a) That has been exhibited in this state before October 3, 1979.

(b) In a market where the motion picture has been exhibited for one week or more.

(4) An exhibitor may enforce this section by bringing an action in the appropriate court of this state. In enforcing this section a court may:

(a) Issue an injunction to prohibit violation of this section; and

(b) Award an exhibitor any actual damages arising from violation of this section.

(5) In any suit under subsection (4) of this section, the court shall award reasonable attorney fees at trial and on appeal to the prevailing party. [Formerly 646.868]

646A.090 Offer to sell or lease motor vehicle subject to future acceptance by lender; disposition of trade-in vehicle and items of value; liability. (1) As used in this section:

(a) “Buyer” means the purchaser or lessee of a motor vehicle.

(b) “Final approval of funding” means a lender’s irrevocable agreement to finance a sale or lease of a motor vehicle according to the exact terms that the seller and buyer have negotiated.

(d) “Motor vehicle” means a motor vehicle, as defined in ORS 801.360, that is sold or leased in this state for personal, family or household purposes.

(e) “Seller” means a holder of a current, valid vehicle dealer certificate issued under ORS 822.020 or renewed under ORS 822.040.

(2) A seller may make an offer to sell or lease a motor vehicle to a buyer or prospective buyer that is subject to future acceptance by a lender that may finance the transaction at the request of the seller.

(3) In any transaction described in subsection (2) of this section:

(a) If a lender does not agree to finance the transaction on the exact terms negotiated between the seller and the buyer within 14 days after the date on which the buyer takes possession of the motor vehicle and the seller has not received final approval of funding from the lender, the seller shall return to the buyer all items of value received from the buyer as part of the transaction; and

(b) If the seller has accepted a trade-in motor vehicle from the buyer or prospective buyer, the seller shall not sell or lease the buyer’s or prospective buyer’s trade-in motor vehicle before the seller has received final approval of funding from the lender.

(4) In any transaction described in subsection (2) of this section, if the buyer has accepted a motor vehicle from the seller, and a lender does not agree to finance the transaction on the exact terms negotiated between the seller and the buyer, the buyer shall return to the seller all items of value received from the seller as part of the transaction. The offer or contract to sell or lease the motor vehicle may provide in writing that the buyer is liable to the seller for:

(a) The fair market value of damage to, excessive wear and tear on or loss of the motor vehicle occurring between the date the buyer takes possession of the motor vehicle and the date the buyer returns the motor vehicle to the seller’s custody; and

(b) If, within 14 days of the date the buyer takes possession of the motor vehicle, the seller sends notice to the buyer by first class mail that financing is unavailable, a reasonable charge per mile for the use of the motor vehicle. If the buyer returns the motor vehicle within five days of the mailing of the notice, the seller may charge the buyer for miles driven during the first 14 days that the buyer had possession of the motor vehicle. If the buyer does not return the vehicle within five days of the mailing of the notice, the seller may charge the buyer for all miles driven while the buyer has possession of the motor vehicle. The charge may not exceed the rate per mile allowed under federal law as a deduction for federal income tax purposes for an ordinary and necessary business expense.

(5) It is an affirmative defense to a claim or charge of violating subsection (3)(a) of this section that the buyer failed to return the motor vehicle after the seller sent notice to the buyer by first class mail that financing was unavailable. [Formerly 646.877]

646A.092 Advertisements for sale or lease of motor vehicle; exceptions. (1) As used in this section:

(a) “Advertisement” means any public notice or announcement of a motor vehicle for sale or lease.

(b) “Motor vehicle” has the meaning given that term in ORS 801.360, except that “motor vehicle” does not include commercial vehicles, as defined in ORS 801.210, or commercial motor vehicles, as defined in ORS 801.208.

(d) “Trade publication” means a motor vehicle price guide that is nationally recognized and distributed.

(2) An advertisement for the sale or lease of a motor vehicle may not claim that a seller will value property being offered in exchange for payment toward the motor vehicle:

(a) At a specific amount;

(b) Within a range of specified amounts;

(d) As a multiple of or an increase in trade-in allowance.

(3) This section does not apply to an advertisement for a used motor vehicle that:

(a) References a value cited in a trade publication that is not published by the seller and that is readily accessible by the public;

(b) Clearly and conspicuously discloses the name of the trade publication being referenced;

(c) Clearly and conspicuously includes the following disclaimer in at least 10-point bold type: “THE VALUE OF USED MOTOR VEHICLES VARIES WITH MILEAGE, USAGE, INCLUDED ACCESSORIES AND CONDITION. BOOK VALUES SHOULD BE CONSIDERED ESTIMATES ONLY.”; and

(d) If the publisher of the trade publication publishes and distributes separate issues for specific geographic regions, references the value cited for the geographic region in which the motor vehicle is being offered for sale. [2011 c.57 §1]

646A.095 Disclosure required when purchaser of product offered technical support through information delivery system. (1) Whenever the purchaser of a product sold at retail is offered ongoing technical support or service relating to the operation or use of the product, and the support or service is offered exclusively or in part through an information delivery system, the product or package of the product shall contain, in clear view to the purchaser before the product is opened, a statement disclosing that the technical support or service is provided through an information delivery system and listing the cost per minute of the support or service. The manufacturer of the product is responsible for providing the statement required under this subsection.

(2) As used in this section:

(a) “Information delivery system” means any telephone-recorded messages, interactive program or other information services that are provided on a pay-per-call basis through an exclusive telephone number prefix or service access code; and

(b) “Manufacturer” means a person who manufactures a product described in subsection (1) of this section. When the product is distributed or sold under a name other than that of the actual manufacturer of the product, the term “manufacturer” includes any person under whose name the product is distributed or sold. [Formerly 646.871]

646A.097 Payment of sales commissions following termination of contract between sales representative and principal; definitions; civil action. (1) As used in this section:

(a) “Commission” means compensation accruing to a sales representative for payment by a principal, the rate of which is expressed as a percentage of the amount of orders or sales or as a specified amount per order or per sale.

(b) “Principal” means a person who does not have a permanent or fixed place of business in this state and who:

(A) Manufactures, produces, imports or distributes a tangible product for wholesale;

(B) Contracts with a sales representative to solicit orders for the product; and

(A) Contracts with a principal to solicit wholesale orders;

(B) Is compensated, in whole or in part, by commission;

(D) Does not sell or take orders for the sale of products to the ultimate consumer.

(2) When a contract between a sales representative and a principal is terminated for any reason, the principal shall pay the sales representative all commissions accrued under the contract to the sales representative within 14 days after the effective date of the termination.

(3) A principal who fails to comply with the provisions of subsection (2) of this section is liable to the sales representative in a civil action for:

(a) All amounts due the sales representative plus interest on the amount due at the rate of nine percent per annum until paid; and

(b) Treble damages, if the failure to comply with the provisions of subsection (2) of this section is willful.

(4) The court shall award court costs and attorney fees actually and reasonably incurred by the prevailing party in an action to recover amounts, interest or damages due under subsection (3) of this section.

(5) A nonresident principal who contracts with a sales representative to solicit orders in this state is subject to the jurisdiction of the courts of this state to the extent specified in ORS 14.030.

(6) Any action commenced pursuant to this section must be commenced in the county in which the plaintiff resides at the time the action is commenced or in the county where the cause of action arose.

(7) Nothing in this section shall invalidate or restrict any other or any additional right or remedy available to a sales representative, or preclude a sales representative from seeking to recover in one action all claims against a principal.

(8) A provision in any contract between a sales representative and a principal purporting to waive any provision of this section, whether by expressed waiver or by a contract subject to the laws of another state, shall be void. [Formerly 646.878]

(Going Out of Business Sales)

646A.100 Definitions for ORS 646A.100 to 646A.110. As used in ORS 646A.100 to 646A.110:

(1) “Affiliated business” means a business or business location that is directly or indirectly controlled by, or under common control with, the business location listed in the notice of a going out of business sale or that has a common ownership interest in the merchandise to be sold at the business location listed in the notice of the sale.

(2)(a) “Going out of business sale” means a sale or auction advertised or held out to the public as the disposal of merchandise in anticipation of cessation of business, including but not limited to a sale or auction advertised or held out to the public as a “going out of business sale,” a “closing out sale,” a “quitting business sale,” a “loss of lease sale,” a “must vacate sale,” a “liquidation sale,” a “bankruptcy sale,” a “sale to prevent bankruptcy” or another description suggesting price reduction due to the imminent closure of the business.

(b) “Going out of business sale” does not include a sale conducted by a bankruptcy trustee or a court-appointed receiver.

(3) “Merchandise” means goods, wares or other property or services capable of being the object of a sale regulated under ORS 646A.100 to 646A.110.

(4) “Notice of intent” means a notice filed with the Secretary of State that a person intends to conduct a going out of business sale.

(5) “Person” has the meaning given that term in ORS 646.605. [2007 c.820 §1]

646A.102 Notice of intent to conduct going out of business sale; display and filing; exceptions; prohibited activities. (1) Except as provided in subsection (3) of this section, a person may not sell, offer for sale or advertise for sale merchandise at a going out of business sale unless the person has filed a notice of intent with the Secretary of State.

(2) A person must display a copy of the notice of intent filed with the Secretary of State in a prominent place on the premises where the going out of business sale is being conducted.

(3) If a going out of business sale is conducted as part of a bankruptcy, receivership or other court-ordered action, a person:

(a) Need not file a notice of intent with the Secretary of State.

(b) Shall display the court order or judgment ordering the sale in a prominent place on the premises where the going out of business sale is being conducted.

(4) A person may not:

(a) Conduct a going out of business sale for more than 90 days from the beginning date of the sale listed on the notice of intent.

(b) Continue to conduct a going out of business sale beyond the ending date listed on the notice of intent.

(5) A person who has conducted a going out of business sale may not conduct another going out of business sale for a period of one year after the ending date of the sale listed on the notice of intent. [2007 c.820 §2]

646A.104 Information required in notice of intent. A person filing a notice of intent with the Secretary of State shall provide all of the following information in the notice of intent:

(1) The name, address and telephone number of the owner of the merchandise to be sold. If the owner is a corporation, trust, unincorporated association, partnership or other legal entity, the person signing the notice must be an officer of the entity and must identify the person’s title.

(2) The name, address and telephone number of the person who will be in charge of and responsible for the conduct of the sale.

(3) The descriptive name, location and beginning and ending dates of the sale. [2007 c.820 §3]

646A.106 Circumstances in which going out of business sale prohibited. A person may not conduct a going out of business sale if a person who has an ownership interest in the business or in the merchandise to be sold is subject to a court order resulting from a civil enforcement action under ORS 646.608 or 646A.100 to 646A.110. [2007 c.820 §4]

646A.108 Prohibited conduct. (1) A person intending to conduct a going out of business sale may not transfer merchandise from an affiliated business or business location to the location of the sale.

(2) A person, after filing a notice of intent, may not buy or order merchandise, take merchandise on consignment or receive a transfer of merchandise from an affiliated business or business location for the purpose of selling the merchandise at the sale or sell such merchandise in a going out of business sale. [2007 c.820 §5]

646A.110 Applicability of ORS 646A.100 to 646A.110 and 646A.112. (1) ORS 646.608 (1)(ddd), 646A.100 to 646A.110 and 646A.112 apply only to persons who engage in the retail sale of merchandise in the regular course of their business.

(2) ORS 646.608 (1)(ddd), 646A.100 to 646A.110 and 646A.112 do not apply to public officials acting within the scope of their duties as public officials. [2007 c.820 §6; 2009 c.170 §2; 2009 c.604 §26]

646A.112 Injunction of sham sale; evidence; attorney fees; defense; definitions. (1) As used in this section:

(a) “Appropriate court” has the meaning given that term in ORS 646.605.

(b) “Relevant market” means:

(A) A product market that consists of products or services that a consumer would regard as interchangeable or substitutable by reason of the products’ or services’ characteristics, prices and intended use; or

(B) A geographic market that consists of the area in which the persons concerned are involved in the supply of a product or service and in which the conditions of competition are sufficiently homogenous.

(c) “Sham sale” means a going out of business sale, as defined in ORS 646A.100, conducted with the intent to continue the same or a similar business in the same location or at a location within the same relevant market but that is a sale that is represented as being conducted due to a cessation of business.

(2) A person may bring an action in an appropriate court to enjoin another person in the same relevant market from conducting a sham sale if the person reasonably believes the other person is conducting a sham sale. The court may provide such equitable relief as it deems necessary or proper.

(3) In an action brought by a person under this section, the court may award reasonable attorney fees to the person.

(4) It is prima facie evidence that a person alleged to be conducting a sham sale has the intent to continue the same or a similar business if:

(a) The person regularly receives additional inventory during the sham sale or, immediately prior to the sham sale, receives additional inventory that is not regularly delivered;

(b) The sham sale exceeds 90 days; or

(c) The same or a similar business that consists of inventory remaining from the sham sale and that has the same principal ownership resumes business in the same relevant market within 12 months from the cessation of the business.

(5) It is an affirmative defense to an action brought under this section that, during an alleged sham sale, the person no longer needed to go out of business and immediately canceled the alleged sham sale. [2007 c.820 §7]

646A.115 Software prohibited that interferes with sale of admission tickets to entertainment events; unlawful practice. (1) As used in this section:

(a) “Admission ticket” means evidence of a purchaser’s right of entry to a venue or an entertainment event.

(b) “Entertainment event” means a performance, recreation, amusement, diversion, spectacle, show or similar event including, but not limited to, a theatrical or musical performance, concert, film, game, ride or sporting event.

(c) “Operator” means a person that owns, operates or controls a venue or that produces or promotes an entertainment event, or the person’s agent or employee.

(d) “Resale” means a sale other than an operator’s initial sale of an admission ticket for a venue that is located in or an entertainment event that occurs in this state, irrespective of the location in which the sale occurs or the means by which a reseller solicits or advertises the sale or delivers or receives payment for the admission ticket.

(e) “Reseller” means a person other than an operator that conducts a resale.

(2) A person may not intentionally sell or use software, the purpose of which is to circumvent, thwart, interfere with or evade a control or measure, including a security measure or an access control system, that an operator or reseller establishes or uses to ensure an equitable distribution, sale or resale of admission tickets for an entertainment event.

(3) Violation of subsection (2) of this section is an unlawful practice under ORS 646.608 that is subject to an action under ORS 646.632 and 646.638. [2009 c.310 §1]

RENTAL AND LEASE AGREEMENTS

(Lease-Purchase Agreements)

646A.120 Definitions for ORS 646A.120 to 646A.134. As used in ORS 646A.120 to 646A.134:

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

(2) “Cash price” means the price at which the lessor would have sold the property to the consumer for cash on the date of the lease-purchase agreement.

(3) “Consumer” means an individual who rents personal property under a lease-purchase agreement to be used primarily for personal, family or household purposes.

(4) “Consummation” means the time a consumer becomes contractually obligated on a lease-purchase agreement.

(5) “Lease-purchase agreement” means an agreement for the use of personal property by an individual 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, but does not obligate or require the consumer to continue leasing or using the property beyond the initial period, and that permits the consumer to become the owner of the property.

(6) “Lessor” means a person who regularly provides the use of property through lease-purchase agreements and to whom lease payments are initially payable on the face of the lease-purchase agreement. [Formerly 646.245]

646A.122 Applicability of ORS 646A.120 to 646A.134. (1) Lease-purchase agreements that comply with ORS 646A.120 to 646A.134 are not governed by laws relating to:

(a) A security interest under ORS chapter 79.

(b) A retail installment contract under ORS 83.010 to 83.190.

(2) ORS 646A.120 to 646A.134 do not apply to the following:

(a) Lease-purchase agreements primarily for business, commercial or agricultural purposes, or those made with governmental agencies or instrumentalities or with organizations;

(b) A lease of a safe deposit box;

(c) A lease or bailment of personal property which is incidental to the lease of real property, and which provides that the consumer has no option to purchase the leased property; or

(d) A lease of a motor vehicle. [Formerly 646.247]

646A.124 General disclosure requirements. (1) The lessor shall disclose to the consumer the information required by ORS 646A.126. In a transaction involving more than one lessor, only one lessor need make the disclosures, but all lessors shall be bound by the disclosures.

(2) The disclosures shall be made at or before consummation of the lease-purchase agreement.

(3) The disclosures shall be made clearly and conspicuously in writing and a copy of the lease-purchase agreement shall be provided to the consumer. The disclosures required under ORS 646A.126 shall be made on the face of the contract above the line for the consumer’s signature.

(4) If a disclosure becomes inaccurate as the result of any act, occurrence or agreement by the consumer after delivery of the required disclosures, the resulting inaccuracy is not a violation of ORS 646A.120 to 646A.134.

(5) If any portion of the transaction is conducted in any language other than English, the disclosures required under ORS 646A.120 to 646A.134 shall be in the language other than English. This subsection does not apply if any portion of the transaction is conducted through an interpreter supplied by the lessee. [Formerly 646.249]

646A.126 Specific disclosure requirements. For each lease-purchase agreement, the lessor shall disclose in the agreement the following items, as applicable:

(1) Whether the periodic payment is weekly, monthly or otherwise, the dollar amount of each payment and the total number and total dollar amount of all periodic payments necessary to acquire ownership of the property;

(2) A statement that the consumer will not own the property until the consumer has made the total payment necessary to acquire ownership;

(3) A statement advising the consumer whether the consumer is liable for loss or damage to the property, and, if so, the maximum amount for which the consumer is liable;

(4) A brief description of the leased property, sufficient to identify the property to the consumer and the lessor, including an identification number, if applicable, and a statement indicating whether the property is new or used. A statement that indicates new property is used is not a violation of ORS 646A.120 to 646A.134;

(5) A statement of the cash price of the property. Where one agreement involves a lease of two or more items as a set, a statement of the aggregate cash price of all items shall satisfy this requirement;

(6) The total of initial payments paid or required at or before consummation of the agreement or delivery of the property, whichever is later;

(7) A statement that the total amount of payments does not include other charges, such as late payment, default, pickup and reinstatement fees. Fees listed in this subsection shall be disclosed separately in the agreement;

(8) A statement clearly summarizing the terms of the consumer’s option to purchase, including a statement that the consumer has the right to exercise an early purchase option, and the price, formula or method for determining the price at which the property may be so purchased;

(9) A statement identifying the party responsible for maintaining or servicing the property while it is being leased, together with a description of that responsibility, and a statement that if any part of a manufacturer’s express warranty covers the lease property at the time the consumer acquires ownership of the property, it shall be transferred to the consumer, if allowed by the terms of the warranty;

(10) The date of the transaction and the identities of the lessor and consumer;

(11) A statement that the consumer may terminate the agreement without penalty by voluntarily surrendering or returning the property in good repair, reasonable wear and tear excepted, upon expiration of any lease term along with any past due rental payments; and

(12) Notice of the right to reinstate an agreement as provided in ORS 646A.120 to 646A.134. [Formerly 646.251]

646A.128 Provisions prohibited in lease-purchase agreements. A lease-purchase agreement may not contain:

(1) A confession of judgment;

(2) A negotiable instrument;

(3) A security interest or any other claim of a property interest in any goods except those goods delivered by the lessor pursuant to the lease-purchase agreement;

(4) A wage assignment;

(5) A waiver by the consumer of claims or defenses;

(6) A provision authorizing the lessor or a person acting on the lessor’s behalf to enter upon the consumer’s premises without the permission of the consumer or to commit any breach of the peace in the repossession of goods;

(7) A provision requiring the purchase of insurance or liability damage waiver from the lessor for property that is the subject of the lease-purchase agreement;

(8) A provision that mere failure to return property constitutes probable cause for a criminal action;

(9) A provision requiring the lessee to make a payment in addition to regular lease payments in order to acquire ownership of the leased property, or a provision requiring the lessee to make lease payments totaling more than the dollar amount necessary to acquire ownership, as disclosed pursuant to ORS 646A.126;

(10) A provision requiring a late charge or reinstatement fee unless a periodic payment is late more than two days on a weekly agreement, or five days on a monthly agreement;

(11) A late charge or reinstatement fee in excess of $5; or

(12) More than one late charge or reinstatement fee on any one periodic payment regardless of the period of time during which it remains in default. [Formerly 646.253]

646A.130 Reinstatement of lease-purchase agreement by consumer; receipt for each payment. (1) A consumer who fails to make a timely rental payment may reinstate the agreement, without losing any rights or options which exist under the agreement, by the payment of:

(a) All past due rental charges;

(b) If the property has been picked up, the reasonable costs of pickup and redelivery; and

(c) Any applicable late fee, within five days of the renewal date if the consumer pays monthly, or within two days of the renewal date if the consumer pays more frequently than monthly.

(2) In the case of a consumer who has paid less than two-thirds of the total of payments necessary to acquire ownership and where the consumer has returned or voluntarily surrendered the property, other than through judicial process, during the applicable reinstatement period set forth in subsection (1) of this section, the consumer may reinstate the agreement during a period of not less than 21 days after the date of the return of the property.

(3) In the case of a consumer who has paid two-thirds or more of the total of payments necessary to acquire ownership, and where the consumer has returned or voluntarily surrendered the property, other than through judicial process, during the applicable period set forth in subsection (1) of this section, the consumer may reinstate the agreement during a period of not less than 30 days after the date of the return of the property.

(4) Nothing in this section shall prevent a lessor from attempting to repossess property during the reinstatement period, but such a repossession shall not affect the consumer’s right to reinstate. Upon reinstatement, the lessor shall provide the consumer with the same property or substitute property of comparable quality and condition.

(5) A lessor shall provide the consumer with a written receipt for each payment made by cash or money order. [Formerly 646.255]

646A.132 Renegotiation or extension of lease-purchase agreement. (1) A renegotiation shall occur when an existing lease-purchase agreement is satisfied and replaced by a new agreement undertaken by the same lessor and consumer. A renegotiation shall be considered a new agreement requiring new disclosures. A renegotiation shall not include:

(a) The addition or return of property in a multiple item agreement or the substitution of the lease property, if in either case the average payment allocable to a payment period is not changed by more than 10 percent;

(b) A deferral or extension of one or more periodic payments, or portions of a periodic payment;

(d) A lease or agreement involved in a court proceeding.

(2) No disclosures are required for any extension of a lease-purchase agreement. [Formerly 646.257]

646A.134 Disclosures required in advertisement for lease-purchase agreements. (1) If an advertisement for a lease-purchase agreement refers to or states the dollar amount of any payment and the right to acquire ownership for any one specific item, the advertisement shall also clearly and conspicuously state the following items, as applicable:

(a) That the transaction advertised is a lease-purchase agreement;

(b) The total of payments necessary to acquire ownership; and

(2) Any owner or personnel of any medium in which an advertisement appears or through which it is disseminated shall not be liable under this section.

(3) The provisions of subsection (1) of this section shall not apply to an advertisement which does not refer to or state the amount of any payment, or which is published in the yellow pages of a telephone directory or in any similar directory of business.

(4) Every item displayed or offered under a lease-purchase agreement shall have clearly and conspicuously indicated in Arabic numerals, so as to be readable and understandable by visual inspection, each of the following stamped upon or affixed to the item:

(a) The cash price of the item;

(b) The amount of the periodic payment; and

(Collision Damage Waivers in Vehicle Rentals)

646A.140 Definitions for ORS 646A.140 and 646A.142. As used in this section and ORS 646A.142:

(1) “Authorized driver” means:

(a) The person renting the vehicle;

(b) The spouse of the person renting the vehicle, if the spouse is a licensed driver and meets any minimum age requirements contained in the rental agreement;

(c) The employer or coworker of the person renting the vehicle if the employer or coworker is engaged in a business activity with the person renting the vehicle and the employer or coworker meets any minimum age requirements contained in the rental agreement;

(d) Any person driving the vehicle during an emergency; and

(e) Any person expressly listed by the rental company on the rental agreement as an authorized driver.

(2) “Collision damage waiver” means an agreement between the renter and the rental company in which the company waives its right to impose a financial obligation on the renter or authorized driver if the vehicle is returned with physical damage.

(3) “Damage” means any damage or loss to the rented vehicle, including loss of use and any costs and expenses incident to the damage or loss.

(4) “Private passenger automobile” or “vehicle” means a motor vehicle designed primarily for transportation of persons.

(5) “Rental agreement” means any written agreement setting forth the terms and conditions governing the use of a private passenger automobile provided by a rental company.

(6) “Rental company” means any person engaged in the business of renting private passenger automobiles to the public.

(7) “Renter” means any person or organization obtaining the use of a private passenger automobile from a rental company under the terms of a rental agreement. [Formerly 646.857]

646A.142 Rental vehicle collision damage waiver notice. (1) Every auto rental company doing business in the State of Oregon that offers collision damage waivers shall post a sign approved by the Department of Consumer and Business Services which states “OUR CONTRACTS OFFER OPTIONAL COLLISION DAMAGE WAIVERS AT AN ADDITIONAL COST.”

(2)(a) No rental company shall sell or offer to sell to a renter a collision damage waiver as part of a rental agreement unless the renter is provided the following written notice in at least 10-point type:

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NOTICE: Our contracts offer, for an additional charge, a collision damage waiver to cover your responsibility for damage to the vehicle. Before deciding whether or not to purchase the collision damage waiver, you may wish to determine whether your own vehicle insurance affords you coverage for damage to the rental vehicle and the amount of the deductible under your own insurance coverage. The purchase of this collision damage waiver is not mandatory and may be waived.

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(b) The notice required by this subsection shall either appear at the top of the rental agreement or shall be on a separate piece of paper attached to the top of the agreement. [Formerly 646.859]

SERVICE CONTRACTS

646A.150 Applicability of ORS 646A.150 to 646A.172. (1) ORS 646A.150 to 646A.172:

(a) Create a legal framework within which service contracts may be sold in this state;

(b) Encourage innovation in the marketing and development of more economical and effective means of providing services under service contracts, while placing the risk of innovation on the obligors rather than on consumers; and

(c) Permit and encourage fair and effective competition among different systems of providing and paying for service contracts.

(2) ORS 646A.150 to 646A.172 do not apply to:

(a) Warranties; or

(b) Maintenance agreements. [Formerly 646.263]

646A.152 Definitions for ORS 646A.150 to 646A.172. As used in ORS 646A.150 to 646A.172:

(1) “Maintenance agreement” means a contract of limited duration that provides for scheduled maintenance only.

(2) “Obligor” means the person who is contractually obligated to the service contract holder to provide service under a service contract and who:

(a) Sold the merchandise covered by the service contract;

(b) Sells merchandise similar to that covered by the service contract; or

(c) Is acting through or with the written consent of the manufacturer, importer or seller of the merchandise covered by the service contract.

(3) “Person” means an individual, partnership, corporation, incorporated or unincorporated association, joint stock company, reciprocal, syndicate or any similar entity or combination of entities acting in concert.

(4) “Service contract” is a contract described in ORS 646A.154.

(5) “Service contract holder” or “contract holder” means a person who is the purchaser or holder of a service contract.

(6) “Service contract seller” means a person who markets, sells or offers to sell a service contract.

(7) “Warranty” means a warranty made solely by the manufacturer, importer or seller of property or services, without charge, that is not negotiated or separated from the sale of the product and is incidental to the sale of the product, and that guarantees indemnity for defective parts, mechanical or electrical breakdown, labor or other remedial measures, such as repair or replacement of the property or repetition of services. [Formerly 646.265]

646A.154 Service contract defined; registration; proof of financial stability; bond; action; rules; applicability of Insurance Code.