PRIOR PRINTER'S NO. 439 PRINTER'S NO. 1715
No. 404 Session of 1987
INTRODUCED BY KUKOVICH, DeLUCA, STEWART, TIGUE, DAWIDA, WASS,
RYBAK, LLOYD, PRESTON, SAURMAN, CORRIGAN, COWELL, FOX,
YANDRISEVITS, ARGALL, PISTELLA, CAWLEY, KOSINSKI, LUCYK,
HALUSKA, BALDWIN, DALEY, WAMBACH, MRKONIC, PUNT, BELFANTI,
DISTLER, TRELLO, BROUJOS, ITKIN, COLAFELLA, GRUPPO, McHALE,
DeWEESE, OLASZ, JOHNSON, VEON, FREEMAN, RITTER, HERSHEY,
SCHEETZ, LEVDANSKY, CAPPABIANCA, MICHLOVIC, BLAUM, LAUGHLIN,
STABACK, JOSEPHS, FISCHER, HUGHES, WOZNIAK AND JACKSON,
FEBRUARY 23, 1987
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 8, 1987
AN ACT
1 Requiring certain contracts to be written in plain language; and <--
2 providing remedies and penalties.
3 REQUIRING CERTAIN STATUTES, RULES, REGULATIONS AND CONTRACTS TO <--
4 BE WRITTEN IN PLAIN LANGUAGE; AND PROVIDING REMEDIES AND
5 PENALTIES.
6 TABLE OF CONTENTS
7 CHAPTER 1. SHORT TITLE
8 SECTION 101. SHORT TITLE.
9 CHAPTER 2. CONTRACTS
10 SECTION 201. LEGISLATIVE FINDINGS AND INTENT.
11 SECTION 202. DEFINITIONS.
12 SECTION 203. APPLICATION OF CHAPTER; INTERPRETATION.
13 SECTION 204. TEST OF READABILITY.
14 SECTION 205. LANGUAGE REQUIRED BY OTHER LAW.
15 SECTION 206. DAMAGES; ENFORCEMENT; ASSURANCE OF VOLUNTARY
1 COMPLIANCE; CIVIL PENALTIES.
2 SECTION 207. LIMITATIONS ON LIABILITY.
3 SECTION 208. REVIEW BY ATTORNEY GENERAL.
4 SECTION 209. WAIVER OF RIGHTS INVALID.
5 SECTION 210. OTHER RIGHTS AND REMEDIES PRESERVED.
6 CHAPTER 3. STATUTES, RULES AND REGULATIONS
7 SECTION 301. GENERAL RULE.
8 SECTION 302. TEST OF READABILITY.
9 SECTION 303. COMPLIANCE.
10 CHAPTER 4. SEVERABILITY; EFFECTIVE DATE
11 SECTION 401. SEVERABILITY.
12 SECTION 402. EFFECTIVE DATE.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Short title. <--
16 This act shall be known and may be cited as the Plain
17 Language Consumer Contract Act.
18 Section 2. Legislative findings and intent.
19 (a) Legislative findings.--The General Assembly finds that
20 many consumer contracts are written, arranged and designed in a
21 way that makes them hard for consumers to understand.
22 Competition would be aided if these contracts were easier to
23 understand.
24 (b) Legislative intent.--By passing this act, the General
25 Assembly wants to promote the writing of consumer contracts in
26 plain language. This act will protect consumers from making
27 contracts that they do not understand. It will help consumers to
28 know better their rights and duties under those contracts.
29 Section 3. Definitions.
30 The following words and phrases when used in this act shall
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1 have the meanings given to them in this section unless the
2 context clearly indicates otherwise:
3 "Consumer." Any individual who borrows, buys, leases or
4 obtains credit, money, services or property under a consumer
5 contract.
6 "Consumer contract" or "contract." A written agreement
7 between a consumer and a party acting in the usual course of
8 business, made primarily for personal, family or household
9 purposes in which a consumer does any of the following:
10 (1) Borrows money.
11 (2) Buys, leases or rents personal property, real
12 property or services for cash or on credit.
13 (3) Obtains credit.
14 Section 4. Application of act; interpretation.
15 (a) General rule.--This act applies to all contracts that
16 are made, solicited or intended to be performed in this
17 Commonwealth.
18 (b) Exclusions.--This act does not apply to the following:
19 (1) Property descriptions in deeds and mortgages, real
20 estate certificates of title and title insurance contracts.
21 (2) Contracts to buy securities.
22 (3) Contracts of insurance.
23 (4) Consumer contracts involving amounts of more than
24 $50,000. However, no dollar limit shall apply to consumer
25 contracts involving real estate.
26 (c) Interpretation.--This act must be liberally interpreted
27 to protect consumers.
28 Section 5. Test of readability.
29 (a) General rule.--All consumer contracts executed after the
30 effective date of this act shall be written, organized and
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1 designed so that they are easy to read and understand.
2 (b) Language guidelines.--In determining whether a contract
3 meets the requirements of subsection (a), a court or the
4 Attorney General shall consider the following language
5 guidelines:
6 (1) The contract should use short words, sentences and
7 paragraphs as much as possible.
8 (2) The contract should use active verb forms as much as
9 possible.
10 (3) The contract should not use technical legal terms,
11 other than commonly understood legal terms, such as
12 "mortgage" and "warranty."
13 (4) The contract should not use Latin and foreign words
14 or any other word whenever its use requires reliance upon an
15 obsolete meaning.
16 (5) If the contract defines words, the words should be
17 defined by using commonly understood meanings.
18 (6) When the contract refers to the parties to the
19 contract, the reference should use personal pronouns, the
20 actual or shortened names of the parties, the terms "seller"
21 and "buyer" or the terms "lender" and "borrower."
22 (7) The contract should not use sentences that contain
23 more than one condition.
24 (8) The contract should not use cross references, except
25 cross references that briefly and clearly describe the
26 substances of the item to which reference is made.
27 (9) The contract should not use sentences with double
28 negatives or exceptions to exceptions.
29 (c) Visual guidelines.--In determining whether a contract
30 meets the requirements of subsection (a), a court or the
19870H0404B1715 - 4 -
1 Attorney General shall consider the following guidelines:
2 (1) The contract should have type size, line length,
3 column width, margins and spacing between lines and
4 paragraphs that make the contract easy to read.
5 (2) The contract should caption sections in boldface
6 type in a larger size than the type used in the rest of the
7 contract.
8 (3) The contract should use ink that contrasts sharply
9 with the paper.
10 (d) Consumer restrictions highlighted.--
11 (1) A contract shall have a statement on its front page,
12 in a box, that highlights all of the following:
13 (i) A general description of the property that may
14 be taken or affected if the consumer does not meet the
15 terms of the contract. The statement is not required to
16 list all possible exemptions. As it may apply, the
17 following statement may be used: "If you do not meet your
18 contract obligations, you may lose your house, the
19 property that you bought with this loan, other household
20 goods and furniture, your motor vehicle or money in your
21 account with us."
22 (ii) Contract waivers of a consumer's rights.
23 (2) If the contract is printed, the highlighted
24 statement shall appear in a 10-point boldface type and not in
25 all capitals but shall have this caption in all capitals:
26 "PLEASE READ THIS" in a 12-point boldface type. If the
27 contract is typed, the text of the statement shall be
28 underlined and the caption "PLEASE READ THIS" shall appear in
29 all capitals.
30 (3) If the disclosures required by the Truth-in-Lending
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1 Act (15 U.S.C. § 1601 et seq.) are made on the contract, then
2 the highlighted statement of consumer restrictions shall
3 appear immediately following these disclosures.
4 Section 6. Language required by other law.
5 The use of specific language or a form required or authorized
6 by Federal or State statute, rule, regulation or an official,
7 published regulatory interpretation does not violate this act.
8 Section 7. Damages; enforcement; assurance of voluntary
9 compliance; civil penalties.
10 (a) Damages and other remedies.--Any creditor, lessor or
11 seller who does not comply with the test of readability set
12 forth in section 5 is liable to that consumer for all of the
13 following items:
14 (1) Out-of-pocket expenses.
15 (2) Statutory damages of $100. If the total amount of
16 the contract is less than $100, these damages are limited to
17 the total amount of the contract.
18 (3) Court costs.
19 (4) Any equitable and other relief ordered by the court.
20 (b) Enforcement.--The Attorney General or a district
21 attorney may bring a lawsuit in the name of the Commonwealth
22 against any person to enforce this act. The Attorney General or
23 a district attorney may seek equitable and legal relief,
24 including the stopping of violations of the act, the recovery of
25 money lost by consumers and statutory damages.
26 (c) Assurance of voluntary compliance.--The Attorney General
27 or a district attorney may also accept an assurance of voluntary
28 compliance as to any suspected violation of this act from any
29 person who has done or was about to do the act suspected to be a
30 violation. The assurance may include an agreement to give back
19870H0404B1715 - 6 -
1 any money or property belonging to a consumer. The assurance
2 shall be in writing and shall be filed with the Commonwealth
3 Court or the court of common pleas of the judicial district
4 where the suspected violator resides, has his main place of
5 business or is doing business. When filed, the assurance has the
6 same effect as a court order. The assurance is not an admission
7 of a violation for any purpose.
8 (d) Civil penalties.--If any person violates the provisions
9 of an injunction granted in a lawsuit brought by the Attorney
10 General or a district attorney or the provisions of an assurance
11 of voluntary compliance properly filed in court, this person is
12 liable to the Commonwealth for a civil penalty of not more than
13 $5,000 for each violation. For the type of cases described in
14 this subsection, the court which granted the injunction, or in
15 which the assurance of voluntary compliance was filed, shall
16 retain jurisdiction over the case, and the subject matter of the
17 case may be reviewed again because the case shall not be
18 considered finished. In this type of case, the Attorney General,
19 or the appropriate district attorney, may petition to the court
20 for recovery of civil penalties and any other equitable relief
21 which is necessary or proper.
22 Section 8. Limitations on liability.
23 (a) Limitations generally.--There shall be no liability
24 under section 7 if any of the following occurs:
25 (1) All parties have finished what was required under
26 the contract.
27 (2) The consumer wrote the contract or the part of it
28 that violates this act.
29 (3) The creditor, seller or lessor shows by a
30 preponderance of the evidence that its violation of the act
19870H0404B1715 - 7 -
1 was not intentional and that it attempted in good faith to
2 comply with this act. The violation must have happened in
3 spite of the use of reasonable procedures that were designed
4 to avoid this type of violation.
5 (4) The Attorney General has certified that the contract
6 complies with this act.
7 (b) Time limit for starting a lawsuit.--A lawsuit under this
8 act must be started within four years from the date on which the
9 contract was last signed.
10 (c) Contract validity.--A violation of this act will not
11 void a contract.
12 Section 9. Review by Attorney General.
13 (a) Advisory opinion.--A creditor, seller, lessor or any
14 person who prepares and sells consumer contract forms may
15 request an opinion from the Attorney General on compliance with
16 this act. The Attorney General shall furnish the opinion within
17 a reasonable period of time. The Bureau of Consumer Protection
18 shall perform the review of contracts under this act for the
19 Attorney General. The bureau will begin to accept these
20 contracts for review within nine months of the effective date of
21 this act.
22 (b) Determining compliance.--The Attorney General shall
23 apply the test of readability set forth in section 5.
24 (c) Review.--After reviewing the contract, the Attorney
25 General may:
26 (1) certify that the contract complies with this act;
27 (2) decline to certify that the contract complies with
28 this act and note his objections to the contractual language;
29 (3) decline to issue an opinion on the contract because
30 its compliance with this act is the subject of pending
19870H0404B1715 - 8 -
1 litigation; or
2 (4) decline to issue an opinion on the contract because
3 the contract is not subject to this act.
4 (d) Compliance.--Any consumer contract certified under this
5 section complies with this act. Certification of a contract
6 under this section does not constitute a certification that the
7 contract meets other legal requirements.
8 (e) Good faith.--The failure of a creditor, lessor or seller
9 to submit a contract to the Attorney General for review under
10 this section does not show a lack of good faith and does not
11 create a presumption that the contract violates this act.
12 (f) Fee.--The Attorney General may charge a reasonable fee
13 to persons who submit contracts for review under this act.
14 Section 10. Waiver of rights invalid.
15 A consumer cannot waive the rights given by this act. Any
16 waiver is void, not just voidable.
17 Section 11. Other rights and remedies preserved.
18 The rights and remedies under this act are in addition to any
19 other legal rights, remedies, claims and defenses.
20 Section 12. Severability.
21 The provisions of this act are severable. If any provision of
22 this act or its application to any person or circumstance is
23 held invalid, the invalidity shall not affect other provisions
24 or applications of this act which can be given effect without
25 the invalid provision or application.
26 Section 13. Effective date.
27 This act shall take effect in one year.
28 CHAPTER 1 <--
29 SHORT TITLE
30 SECTION 101. SHORT TITLE.
19870H0404B1715 - 9 -
1 THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE PLAIN
2 LANGUAGE ACT.
3 CHAPTER 2
4 CONTRACTS
5 SECTION 201. LEGISLATIVE FINDINGS AND INTENT.
6 (A) LEGISLATIVE FINDINGS.--THE GENERAL ASSEMBLY FINDS THAT
7 MANY CONSUMER CONTRACTS ARE WRITTEN, ARRANGED AND DESIGNED IN A
8 WAY THAT MAKES THEM HARD FOR CONSUMERS TO UNDERSTAND.
9 COMPETITION WOULD BE AIDED IF THESE CONTRACTS WERE EASIER TO
10 UNDERSTAND.
11 (B) LEGISLATIVE INTENT.--BY PASSING THIS CHAPTER, THE
12 GENERAL ASSEMBLY WANTS TO PROMOTE THE WRITING OF CONSUMER
13 CONTRACTS IN PLAIN LANGUAGE. THIS CHAPTER WILL PROTECT CONSUMERS
14 FROM MAKING CONTRACTS THAT THEY DO NOT UNDERSTAND. IT WILL HELP
15 CONSUMERS TO BETTER KNOW THEIR RIGHTS AND DUTIES UNDER THOSE
16 CONTRACTS.
17 SECTION 202. DEFINITIONS.
18 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
19 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
20 CONTEXT CLEARLY INDICATES OTHERWISE:
21 "CONSUMER." ANY INDIVIDUAL WHO BORROWS, BUYS, LEASES OR
22 OBTAINS CREDIT, MONEY, SERVICES OR PROPERTY UNDER A CONSUMER
23 CONTRACT.
24 "CONSUMER CONTRACT" OR "CONTRACT." A WRITTEN AGREEMENT
25 BETWEEN A CONSUMER AND A PARTY ACTING IN THE USUAL COURSE OF
26 BUSINESS MADE PRIMARILY FOR PERSONAL, FAMILY OR HOUSEHOLD
27 PURPOSES IN WHICH A CONSUMER DOES ANY OF THE FOLLOWING:
28 (1) BORROWS MONEY.
29 (2) BUYS, LEASES OR RENTS PERSONAL PROPERTY, REAL
30 PROPERTY OR SERVICES FOR CASH OR ON CREDIT.
19870H0404B1715 - 10 -
1 (3) OBTAINS CREDIT.
2 SECTION 203. APPLICATION OF CHAPTER; INTERPRETATION.
3 (A) GENERAL RULE.--THIS CHAPTER APPLIES TO ALL CONTRACTS
4 THAT ARE MADE, SOLICITED OR INTENDED TO BE PERFORMED IN THIS
5 COMMONWEALTH AFTER THE EFFECTIVE DATE OF THIS ACT.
6 (B) EXCLUSIONS.--THIS CHAPTER DOES NOT APPLY TO THE
7 FOLLOWING:
8 (1) PROPERTY DESCRIPTIONS IN DEEDS AND MORTGAGES, REAL
9 ESTATE CERTIFICATES OF TITLE AND TITLE INSURANCE CONTRACTS.
10 (2) CONSUMER CONTRACTS INVOLVING AMOUNTS OF MORE THAN
11 $50,000. HOWEVER, NO DOLLAR LIMIT SHALL APPLY TO CONSUMER
12 CONTRACTS INVOLVING REAL ESTATE.
13 (3) MARITAL AGREEMENTS.
14 (4) CONTRACTS DEVELOPED, EMPLOYED OR USED BY PERSONS OR
15 CORPORATIONS REGULATED UNDER TITLE 66 OF THE PENNSYLVANIA
16 CONSOLIDATED STATUTES (RELATING TO PUBLIC UTILITIES).
17 (C) INTERPRETATION.--THIS CHAPTER MUST BE LIBERALLY
18 INTERPRETED TO PROTECT CONSUMERS.
19 SECTION 204. TEST OF READABILITY.
20 (A) GENERAL RULE.--ALL CONSUMER CONTRACTS EXECUTED AFTER THE
21 EFFECTIVE DATE OF THIS ACT SHALL BE WRITTEN, ORGANIZED AND
22 DESIGNED SO THAT THEY ARE EASY TO READ AND UNDERSTAND.
23 (B) LANGUAGE GUIDELINES.--IN DETERMINING WHETHER A CONTRACT
24 MEETS THE REQUIREMENTS OF SUBSECTION (A), A COURT OR THE
25 ATTORNEY GENERAL SHALL CONSIDER THE FOLLOWING LANGUAGE
26 GUIDELINES:
27 (1) THE CONTRACT SHOULD USE SHORT WORDS, SENTENCES AND
28 PARAGRAPHS AS MUCH AS POSSIBLE.
29 (2) IT SHOULD USE ACTIVE VERB FORMS AS MUCH AS POSSIBLE.
30 (3) IT SHOULD NOT USE TECHNICAL LEGAL TERMS, OTHER THAN
19870H0404B1715 - 11 -
1 COMMONLY UNDERSTOOD LEGAL TERMS, SUCH AS "MORTGAGE" AND
2 "WARRANTY."
3 (4) IT SHOULD NOT USE LATIN AND FOREIGN WORDS OR ANY
4 OTHER WORD WHENEVER ITS USE REQUIRES RELIANCE UPON AN
5 OBSOLETE MEANING.
6 (5) IF THE CONTRACT DEFINES WORDS, THE WORDS SHOULD BE
7 DEFINED BY USING COMMONLY UNDERSTOOD MEANINGS.
8 (6) WHEN THE CONTRACT REFERS TO THE PARTIES TO THE
9 CONTRACT, THE REFERENCE SHOULD USE PERSONAL PRONOUNS, THE
10 ACTUAL OR SHORTENED NAMES OF THE PARTIES, THE TERMS "SELLER"
11 AND "BUYER" OR THE TERMS "LENDER" AND "BORROWER."
12 (7) IT SHOULD NOT USE SENTENCES THAT CONTAIN MORE THAN
13 ONE CONDITION.
14 (8) IT SHOULD NOT USE CROSS REFERENCES, EXCEPT CROSS
15 REFERENCES THAT BRIEFLY AND CLEARLY DESCRIBE THE SUBSTANCE OF
16 THE ITEM TO WHICH REFERENCE IS MADE.
17 (9) IT SHOULD NOT USE SENTENCES WITH DOUBLE NEGATIVES OR
18 EXCEPTIONS TO EXCEPTIONS.
19 (C) VISUAL GUIDELINES.--IN DETERMINING WHETHER A CONTRACT
20 MEETS THE REQUIREMENTS OF SUBSECTION (A), A COURT OR THE
21 ATTORNEY GENERAL SHALL CONSIDER THE FOLLOWING GUIDELINES:
22 (1) THE CONTRACT SHOULD HAVE TYPE SIZE, LINE LENGTH,
23 COLUMN WIDTH, MARGINS AND SPACING BETWEEN LINES AND
24 PARAGRAPHS THAT MAKE THE CONTRACT EASY TO READ.
25 (2) IT SHOULD CAPTION SECTIONS IN BOLDFACE TYPE IN A
26 LARGER SIZE THAN THE TYPE USED IN THE REST OF THE CONTRACT.
27 (3) IT SHOULD USE INK THAT CONTRASTS SHARPLY WITH THE
28 PAPER.
29 SECTION 205. LANGUAGE REQUIRED BY OTHER LAW.
30 THE USE OF SPECIFIC LANGUAGE REQUIRED, RECOMMENDED OR
19870H0404B1715 - 12 -
1 APPROVED BY A FEDERAL OR STATE STATUTE, RULE, REGULATION OR
2 OFFICIAL INTERPRETATION THEREUNDER, INCLUDING, BUT NOT LIMITED
3 TO, THE TRUTH IN LENDING ACT (PUBLIC LAW 90-321, 15 U.S.C. §
4 1601 ET SEQ.), OR THE USE OF MODEL FORMS REQUIRED, AUTHORIZED,
5 APPROVED OR RECOMMENDED BY FEDERAL OR STATE AUTHORITIES SHALL
6 NOT VIOLATE THIS CHAPTER.
7 SECTION 206. DAMAGES; ENFORCEMENT; ASSURANCE OF VOLUNTARY
8 COMPLIANCE; CIVIL PENALTIES.
9 (A) DAMAGES AND OTHER REMEDIES.--ANY CREDITOR, LESSOR OR
10 SELLER WHO DOES NOT COMPLY WITH THE TEST OF READABILITY SET
11 FORTH IN SECTION 204 MAY BE LIABLE TO THAT CONSUMER FOR ALL OF
12 THE FOLLOWING ITEMS:
13 (1) OUT-OF-POCKET EXPENSES INCURRED IN THE ENFORCEMENT
14 OF RIGHTS UNDER THIS ACT EXCLUSIVE OF ATTORNEY FEES.
15 (2) STATUTORY DAMAGES OF $100. IF THE TOTAL AMOUNT OF
16 THE CONTRACT IS LESS THAN $100, THESE DAMAGES ARE LIMITED TO
17 THE TOTAL AMOUNT OF THE CONTRACT.
18 (3) COURT COSTS.
19 (4) ATTORNEY FEES.
20 (5) ANY EQUITABLE AND OTHER RELIEF ORDERED BY THE COURT.
21 (B) ENFORCEMENT.--THE ATTORNEY GENERAL OR A DISTRICT
22 ATTORNEY MAY BRING A LAWSUIT IN THE NAME OF THE COMMONWEALTH
23 AGAINST ANY PERSON TO ENFORCE THIS CHAPTER. THE ATTORNEY GENERAL
24 OR A DISTRICT ATTORNEY MAY SEEK EQUITABLE AND LEGAL RELIEF,
25 INCLUDING THE STOPPING OF VIOLATIONS OF THIS CHAPTER, THE
26 RECOVERY OF MONEY LOST BY CONSUMERS AND STATUTORY DAMAGES.
27 (C) ASSURANCE OF VOLUNTARY COMPLIANCE.--THE ATTORNEY GENERAL
28 OR A DISTRICT ATTORNEY MAY ALSO ACCEPT AN ASSURANCE OF VOLUNTARY
29 COMPLIANCE AS TO ANY SUSPECTED VIOLATION OF THIS CHAPTER FROM
30 ANY PERSON WHO HAS DONE OR WAS ABOUT TO DO THE ACT SUSPECTED TO
19870H0404B1715 - 13 -
1 BE A VIOLATION. THE ASSURANCE MAY INCLUDE AN AGREEMENT TO GIVE
2 BACK ANY MONEY OR PROPERTY BELONGING TO A CONSUMER. THE
3 ASSURANCE SHALL BE IN WRITING AND SHALL BE FILED WITH THE
4 COMMONWEALTH COURT OR THE COURT OF COMMON PLEAS OF THE JUDICIAL
5 DISTRICT WHERE THE SUSPECTED VIOLATOR RESIDES, HAS HIS PRINCIPAL
6 PLACE OF BUSINESS OR IS DOING BUSINESS. WHEN FILED, THE
7 ASSURANCE HAS THE SAME EFFECT AS A COURT ORDER. THE ASSURANCE IS
8 NOT AN ADMISSION OF A VIOLATION FOR ANY PURPOSE.
9 (D) CIVIL PENALTIES.--IF ANY PERSON VIOLATES THE PROVISIONS
10 OF AN INJUNCTION GRANTED IN A LAWSUIT BROUGHT BY THE ATTORNEY
11 GENERAL OR A DISTRICT ATTORNEY OR THE PROVISIONS OF AN ASSURANCE
12 OF VOLUNTARY COMPLIANCE PROPERLY FILED IN COURT, THIS PERSON IS
13 LIABLE TO THE COMMONWEALTH FOR A CIVIL PENALTY OF NOT MORE THAN
14 $5,000 FOR EACH VIOLATION. FOR THE TYPE OF CASES DESCRIBED IN
15 THIS SUBSECTION, THE COURT WHICH GRANTED THE INJUNCTION, OR IN
16 WHICH THE ASSURANCE OF VOLUNTARY COMPLIANCE WAS FILED, SHALL
17 RETAIN JURISDICTION OVER THE CASE, AND THE SUBJECT MATTER OF THE
18 CASE MAY BE REVIEWED AGAIN BECAUSE THE CASE SHALL NOT BE
19 CONSIDERED FINISHED. IN THIS TYPE OF CASE, THE ATTORNEY GENERAL,
20 OR THE APPROPRIATE DISTRICT ATTORNEY, MAY PETITION TO THE COURT
21 FOR RECOVERY OF CIVIL PENALTIES AND ANY OTHER EQUITABLE RELIEF
22 WHICH IS NECESSARY OR PROPER.
23 SECTION 207. LIMITATIONS ON LIABILITY.
24 (A) LIMITATIONS GENERALLY.--THERE SHALL BE NO LIABILITY
25 UNDER SECTION 206 IF ANY OF THE FOLLOWING OCCUR:
26 (1) ALL PARTIES HAVE FINISHED WHAT WAS REQUIRED UNDER
27 THE CONTRACT.
28 (2) THE CONSUMER WROTE THE CONTRACT OR THE PART OF IT
29 THAT VIOLATES THIS CHAPTER.
30 (3) THE CREDITOR, SELLER OR LESSOR MADE A GOOD FAITH AND
19870H0404B1715 - 14 -
1 REASONABLE EFFORT TO COMPLY WITH THIS CHAPTER.
2 (4) THE ATTORNEY GENERAL HAS CERTIFIED THAT THE CONTRACT
3 COMPLIES WITH THIS CHAPTER. A CERTIFICATE OF COMPLIANCE BY
4 THE ATTORNEY GENERAL SHALL BE AN ABSOLUTE BAR TO ANY LEGAL
5 PROCEEDING UNDER THIS CHAPTER.
6 (5) THE CONSUMER WAS NOT SUBSTANTIALLY CONFUSED ABOUT
7 ANY OF THE RIGHTS, OBLIGATIONS OR REMEDIES UNDER THE CONTRACT
8 IN QUESTION.
9 (B) TIME LIMIT FOR STARTING A LAWSUIT.--A LAWSUIT UNDER THIS
10 CHAPTER MUST BE STARTED WITHIN FOUR YEARS FROM THE DATE ON WHICH
11 THE CONTRACT WAS LAST SIGNED.
12 (C) CONTRACT VALIDITY.--A VIOLATION OF THIS CHAPTER WILL NOT
13 VOID A CONTRACT.
14 SECTION 208. REVIEW BY ATTORNEY GENERAL.
15 (A) ADVISORY OPINION.--A CREDITOR, SELLER, LESSOR OR ANY
16 PERSON WHO PREPARES, USES, SUPPLIES OR SELLS CONSUMER CONTRACT
17 FORMS MAY REQUEST AN OPINION FROM THE ATTORNEY GENERAL ON
18 COMPLIANCE WITH THIS CHAPTER. THE ATTORNEY GENERAL SHALL FURNISH
19 THE OPINION WITHIN 60 DAYS OF RECEIPT OF THE REQUEST FOR THE
20 REVIEW. THE BUREAU OF CONSUMER PROTECTION SHALL PERFORM THE
21 REVIEW OF CONTRACTS UNDER THIS CHAPTER FOR THE ATTORNEY GENERAL.
22 THE BUREAU WILL BEGIN TO ACCEPT THESE CONTRACTS FOR REVIEW
23 BEGINNING NO LATER THAN 60 DAYS FOLLOWING THE DATE OF FINAL
24 ENACTMENT.
25 (B) DETERMINING COMPLIANCE.--THE ATTORNEY GENERAL SHALL
26 APPLY THE TEST OF READABILITY SET FORTH IN SECTION 204.
27 (C) REVIEW.--AFTER REVIEWING THE CONTRACT, THE ATTORNEY
28 GENERAL MAY:
29 (1) CERTIFY THAT THE CONTRACT COMPLIES WITH THIS
30 CHAPTER;
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1 (2) DECLINE TO CERTIFY THAT THE CONTRACT COMPLIES WITH
2 THIS CHAPTER AND NOTE HIS OBJECTIONS TO THE CONTRACTUAL
3 LANGUAGE;
4 (3) DECLINE TO ISSUE AN OPINION ON THE CONTRACT BECAUSE
5 ITS COMPLIANCE WITH THIS CHAPTER IS THE SUBJECT OF PENDING
6 LITIGATION; OR
7 (4) DECLINE TO ISSUE AN OPINION ON THE CONTRACT BECAUSE
8 THE CONTRACT IS NOT SUBJECT TO THIS CHAPTER.
9 (D) COMPLIANCE.--ANY CONSUMER CONTRACT CERTIFIED UNDER THIS
10 SECTION COMPLIES WITH THIS CHAPTER. CERTIFICATION OF A CONTRACT
11 UNDER THIS SECTION DOES NOT CONSTITUTE A CERTIFICATION THAT THE
12 CONTRACT MEETS OTHER LEGAL REQUIREMENTS.
13 (E) GOOD FAITH.--THE FAILURE OF A CREDITOR, LESSOR OR SELLER
14 TO SUBMIT A CONTRACT TO THE ATTORNEY GENERAL FOR REVIEW UNDER
15 THIS SECTION DOES NOT SHOW A LACK OF GOOD FAITH AND DOES NOT
16 CREATE A PRESUMPTION THAT THE CONTRACT VIOLATES THIS CHAPTER.
17 (F) FEE.--THE ATTORNEY GENERAL MAY CHARGE A REASONABLE FEE,
18 NOT TO EXCEED $50, TO PERSONS WHO SUBMIT CONTRACTS FOR REVIEW
19 UNDER THIS CHAPTER.
20 SECTION 209. WAIVER OF RIGHTS INVALID.
21 A CONSUMER CANNOT WAIVE THE RIGHTS GIVEN BY THIS CHAPTER. ANY
22 WAIVER IS VOID, NOT JUST VOIDABLE.
23 SECTION 210. OTHER RIGHTS AND REMEDIES PRESERVED.
24 THE RIGHTS AND REMEDIES UNDER THIS CHAPTER ARE IN ADDITION TO
25 ANY OTHER LEGAL RIGHTS, REMEDIES, CLAIMS AND DEFENSES.
26 CHAPTER 3
27 STATUTES, RULES AND REGULATIONS
28 SECTION 301. GENERAL RULE.
29 THIS CHAPTER SHALL APPLY TO ALL STATUTES ENACTED BY THE
30 GENERAL ASSEMBLY AND ALL RULES AND REGULATIONS PROMULGATED BY
19870H0404B1715 - 16 -
1 EVERY DEPARTMENT OF THE EXECUTIVE BRANCH, DEPARTMENTAL
2 ADMINISTRATIVE BOARD OR COMMISSION, INDEPENDENT BOARD OR
3 COMMISSION, AGENCY OR OTHER AUTHORITY OR INSTRUMENTALITY OF THE
4 COMMONWEALTH WHICH SHALL BECOME EFFECTIVE SUBSEQUENT TO THE
5 EFFECTIVE DATE OF THIS ACT.
6 SECTION 302. TEST OF READABILITY.
7 (A) GENERAL RULE.--ALL STATUTES, RULES AND REGULATIONS
8 PROMULGATED TO BECOME EFFECTIVE AFTER THE EFFECTIVE DATE OF THIS
9 ACT SHALL BE WRITTEN AND ORGANIZED, TO THE GREATEST EXTENT
10 POSSIBLE, IN A MANNER SO THAT THEY ARE EASY TO READ AND
11 UNDERSTAND.
12 (B) LANGUAGE GUIDELINES.--IN DETERMINING WHETHER A STATUTE,
13 RULE OR REGULATION MEETS THE REQUIREMENTS OF SUBSECTION (A), THE
14 FOLLOWING GUIDELINES SHALL BE CONSIDERED:
15 (1) SHORT WORDS, SENTENCES AND PARAGRAPHS SHOULD BE USED
16 AS MUCH AS POSSIBLE.
17 (2) HIGHLY TECHNICAL LEGAL TERMS OTHER THAN THOSE
18 COMMONLY UNDERSTOOD SHOULD BE AVOIDED.
19 (3) LATIN AND FOREIGN WORDS OR OTHER WORDS WITH OBSOLETE
20 OR ARCHAIC MEANINGS SHOULD NOT BE USED.
21 (4) WORDS SHOULD BE DEFINED BY USING COMMONLY UNDERSTOOD
22 MEANINGS.
23 (5) SENTENCES SHOULD NOT CONTAIN MORE THAN ONE
24 CONDITION.
25 (6) CROSS REFERENCES, WHEN USED, SHOULD BRIEFLY AND
26 CLEARLY DESCRIBE THE SUBSTANCE OF THE ITEM REFERENCED.
27 (7) SENTENCES WITH DOUBLE NEGATIVES OR WITH EXCEPTIONS
28 TO EXCEPTIONS SHOULD NOT BE USED.
29 SECTION 303. COMPLIANCE.
30 (A) COMPLIANCE BY GENERAL ASSEMBLY.--THE GENERAL ASSEMBLY
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1 SHALL STRIVE TO ADHERE TO THE GUIDELINES SET FORTH IN SECTION
2 302 AND SHALL BE THE EXCLUSIVE JUDGE OF ITS COMPLIANCE
3 THEREWITH.
4 (B) COMPLIANCE BY ADMINISTRATIVE AGENCIES.--EVERY DEPARTMENT
5 OF THE EXECUTIVE BRANCH, DEPARTMENTAL ADMINISTRATIVE BOARD OR
6 COMMISSION, INDEPENDENT BOARD OR COMMISSION, AGENCY OR OTHER
7 AUTHORITY OR INSTRUMENTALITY OF THE COMMONWEALTH SHALL COMPLY
8 WITH THE PROVISIONS OF SECTION 302 WHEN PROMULGATING RULES AND
9 REGULATIONS. ADHERENCE TO THOSE PROVISIONS SHALL BE REVIEWABLE
10 BY THE GENERAL ASSEMBLY AND THE INDEPENDENT REGULATORY REVIEW
11 COMMISSION PURSUANT TO THE ACT OF JUNE 25, 1982 (P.L.633,
12 NO.181), KNOWN AS THE REGULATORY REVIEW ACT.
13 CHAPTER 4
14 SEVERABILITY; EFFECTIVE DATE
15 SECTION 401. SEVERABILITY.
16 THE PROVISIONS OF THIS ACT ARE SEVERABLE. IF ANY PROVISION OF
17 THIS ACT OR ITS APPLICATION TO ANY PERSON OR CIRCUMSTANCE IS
18 HELD INVALID, THE INVALIDITY SHALL NOT AFFECT OTHER PROVISIONS
19 OR APPLICATIONS OF THIS ACT WHICH CAN BE GIVEN EFFECT WITHOUT
20 THE INVALID PROVISION OR APPLICATION.
21 SECTION 402. EFFECTIVE DATE.
22 THIS ACT SHALL TAKE EFFECT IN ONE YEAR.
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