PRIOR PRINTER'S NO. 605 PRINTER'S NO. 1806
No. 538 Session of 1983
INTRODUCED BY KUKOVICH, DeWEESE, WAMBACH, IRVIS, SEVENTY, TIGUE,
WACHOB, CIMINI, WOZNIAK, SWEET, GALLAGHER, COWELL, WILSON,
ARTY, FATTAH, AFFLERBACH, OLIVER, PRATT, GRUPPO, LEVIN,
PISTELLA, HOEFFEL, CAWLEY, ZWIKL, J. L. WRIGHT, EVANS,
SHOWERS, LLOYD, FARGO, CLARK, MICOZZIE, PETRARCA, BELARDI,
COY, HALUSKA, MICHLOVIC, LETTERMAN, D. R. WRIGHT, DAWIDA,
MORRIS, LASHINGER, BLAUM, VAN HORNE, PRESTON, WARGO, JACKSON,
BELFANTI, MERRY, BALDWIN, GANNON, STEIGHNER, PERZEL, COHEN,
FISCHER, ITKIN, F. E. TAYLOR, DeLUCA, DAVIES, RICHARDSON,
McHALE, MURPHY, McINTYRE, MAYERNIK, COLAFELLA, WIGGINS AND
TELEK, MARCH 21, 1983
AS REPORTED FROM COMMITTEE ON CONSUMER AFFAIRS, HOUSE OF
REPRESENTATIVES, AS AMENDED, SEPTEMBER 28, 1983
AN ACT
1 Requiring all consumer contracts to be written in plain <--
2 language.
3 TABLE OF CONTENTS
4 Section 1. Short title.
5 Section 2. Legislative findings and intent.
6 Section 3. Definitions.
7 Section 4. Application of act.
8 Section 5. Tests of readability.
9 Section 6. Guidelines for averaging sentences and
10 syllables.
11 Section 7. Damages, other remedies, and enforcement.
12 Section 8. Limitations on liability.
13 Section 9. Language required by other law.
1 Section 10. Invalid consumer contract provisions.
2 Section 11. Other rights and defenses preserved.
3 Section 12. Effective date.
4 REQUIRING ALL CONSUMER CONTRACTS TO BE WRITTEN IN PLAIN <--
5 LANGUAGE.
6 TABLE OF CONTENTS
7 SECTION 1. SHORT TITLE.
8 SECTION 2. LEGISLATIVE FINDINGS AND INTENT.
9 SECTION 3. DEFINITIONS.
10 SECTION 4. APPLICATION OF ACT; INTERPRETATION.
11 SECTION 5. TESTS OF READABILITY.
12 SECTION 6. LANGUAGE REQUIRED BY OTHER LAW.
13 SECTION 7. DAMAGES; ENFORCEMENT; ASSURANCE OF VOLUNTARY
14 COMPLIANCE.
15 SECTION 8. LIMITATIONS ON LIABILITY.
16 SECTION 9. REVIEW BY ATTORNEY GENERAL.
17 SECTION 10. WAIVER OF RIGHTS INVALID.
18 SECTION 11. OTHER RIGHTS AND REMEDIES PRESERVED.
19 SECTION 12. EFFECTIVE DATE.
20 The General Assembly of the Commonwealth of Pennsylvania
21 hereby enacts as follows:
22 Section 1. Short title. <--
23 This act is named and may be cited as the Plain Language
24 Consumer Contract Act.
25 Section 2. Legislative findings and intent.
26 (a) Legislative findings.--The General Assembly finds that
27 most consumer contracts are written and arranged in a way that
28 makes them hard for consumers to understand. Competition would
29 be aided if these contracts were easier to understand.
30 (b) Legislative intent.--By passing this act, the General
19830H0538B1806 - 2 -
1 Assembly wants to promote the writing of consumer contracts in
2 plain language. This act will protect consumers from making
3 contracts that they do not understand. It will help consumers to
4 know better their rights and duties under those contracts. This
5 act must be liberally interpreted to protect consumers.
6 Section 3. Definitions.
7 The following words and phrases when used in this act have
8 the meanings given to them in this section:
9 "Consumer" means a man or woman, or both, who borrows, buys,
10 leases or obtains credit, money, services or property under a
11 consumer contract.
12 "Consumer contract" or "contract" means a written agreement
13 made mainly for personal, family or household purposes in which
14 a consumer does any of the following:
15 (1) Borrows money.
16 (2) Buys, leases or rents for cash or on credit personal
17 property, real property or services.
18 (3) Obtains credit.
19 (4) Obtains insurance coverage. This act also applies to
20 the statements of a group insurance policy that are given out
21 to members of the group.
22 Section 4. Application of act.
23 (a) General application.--This act applies to all consumer
24 contracts that are made, solicited or intended to be performed
25 in this Commonwealth.
26 (b) Exclusions.--This act does not apply to the following:
27 (1) Property descriptions in deeds and mortgages, real
28 estate certificates of title, and title insurance contracts.
29 (2) Contracts to buy securities.
30 (3) Contracts between people who are not acting in the
19830H0538B1806 - 3 -
1 usual course of business.
2 Section 5. Tests of readability.
3 (a) General rule.--All consumer contracts made or renewed
4 after the effective date of this act must be written and
5 organized so they are easy to read and understand.
6 (b) Language requirements.--A contract must pass all six of
7 the following language tests:
8 (1) The contract as a whole has sentences with an
9 average of no more than 20 words.
10 (2) It has words with an average of no more than 1.5
11 syllables.
12 (3) It does not use technical legal terms, Latin words,
13 archaic English, words specially defined in the consumer
14 contract, or everyday words used in a specialized legal
15 sense.
16 (4) It uses only the personal pronouns you, your or
17 yours when referring to the consumers in the body of the
18 contract. It uses only we, us, or our when referring to the
19 creditor, lessor, insurer, or seller in the body of the
20 contract.
21 (5) It does not have sentences with double negatives or
22 exceptions to exceptions.
23 (6) It does not have bare references to other provisions
24 in the same contract, to outside documents, or to laws of any
25 type. References must clearly describe their substance.
26 (c) Visual requirements.--A contract must pass all four of
27 the following visual tests:
28 (1) The type is at least 10 point in size.
29 (2) It has line length, column width, margins, and
30 spacing between lines and paragraphs that make the contract
19830H0538B1806 - 4 -
1 easy to read.
2 (3) It captions each section in boldface type of at
3 least 12 point in size. If the contract is typed, the
4 captions are underlined.
5 (4) It uses ink that contrasts sharply with the paper.
6 (d) Consumer restrictions highlighted.--
7 (1) A contract must have a statement on its front page,
8 in a box, that highlights all of the following:
9 (i) Limitations on making claims, filing a lawsuit,
10 the type of relief or warranties.
11 (ii) Waivers or limitations of rights.
12 (iii) Exclusions.
13 (iv) Property that may be taken or affected if the
14 consumer does not meet the terms of the contract.
15 (2) The highlighted statement must be in 10-point
16 boldface type and not in all capitals. It must have this
17 caption in all capitals: "PLEASE READ THIS" in 12-point
18 boldface type. If the contract is typed, the text of the
19 statement must be underlined and the caption "PLEASE READ
20 THIS" in all capitals.
21 (3) Any part of the contract that must be highlighted
22 under this subsection but is not highlighted as required is
23 void, not just voidable.
24 Section 6. Guidelines for averaging sentences and syllables.
25 (a) General guidelines.--The following guidelines are to be
26 used to check compliance with the tests of readability set out
27 in section 5:
28 (1) Do not count words or numbers used in titles,
29 headings, section and paragraph numbers, date lines, and
30 signature lines. Do not count language required by statute,
19830H0538B1806 - 5 -
1 regulation or rule.
2 (2) A "sentence" is a unit of written language that ends
3 with a period, question mark, or exclamation point. Disregard
4 paragraph breaks, colons, semicolons, or dashes.
5 (3) A "syllable" is a unit of spoken language made up of
6 one or more letters of a word, as the word is divided by any
7 dictionary. Count the syllables in words as they are
8 pronounced. Count abbreviations, numbers, or symbols as one-
9 syllable words. If there are two or more accepted ways to
10 pronounce a word, use the one with fewer syllables. If in
11 doubt, check a dictionary.
12 (b) How to average words per sentence.--Count the total
13 number of words and sentences in the whole contract, except for
14 the items listed in subsection (a)(1). Then divide the number of
15 words by the number of sentences. This gives you the average
16 number of words per sentence.
17 (c) How to average syllables per word.--Count the total
18 number of syllables and words in the whole contract, except for
19 the items listed in subsection (a)(1). Then divide the number of
20 syllables by the number of words. This gives you the average
21 number of syllables per word.
22 Section 7. Damages, other remedies, and enforcement.
23 (a) Damages and other remedies.--Any creditor, lessor,
24 insurer, or seller who does not comply with the tests of
25 readability set out in section 5 is liable to that consumer for
26 all of these items:
27 (1) Out-of-pocket damages.
28 (2) Statutory damages of $500. If the total amount of
29 the contract is less than $500, the damages are the total
30 amount of the contract.
19830H0538B1806 - 6 -
1 (3) Court costs and reasonable attorney's fees.
2 (4) Any equitable and other relief that the court thinks
3 necessary and proper.
4 (b) Enforcement.--The Attorney General or a district
5 attorney may bring a lawsuit in the name of the Commonwealth
6 against any person to enforce this act. In this lawsuit the
7 Attorney General or district attorney may seek equitable and
8 legal relief, including stopping violations of the act from
9 occurring, getting the consumer's money back, and seeking
10 statutory damages.
11 (c) Assurance of voluntary compliance.--The Attorney General
12 or a district attorney may also accept an assurance of voluntary
13 compliance as to any suspected violation of this act from any
14 person who has done or was about to do the act thought to be a
15 violation. The assurance may include an agreement to give back
16 to consumers their money or property. The assurance must be in
17 writing and must be filed with the court of common pleas where
18 the suspected violator lives, has his main place of business, or
19 is doing business, or with the Commonwealth Court. When filed,
20 the assurance has the same force and effect as a court order.
21 The assurance is not an admission of violation for any purpose.
22 The Attorney General or a district attorney may at any time
23 reopen a matter closed by an assurance for more proceedings in
24 the public interest.
25 Section 8. Limitations on liability.
26 (a) Limitations generally.--There will be no liability under
27 section 7 if any of the following occur:
28 (1) The contract has been carried out by all the parties
29 or their rights and duties have been fulfilled.
30 (2) The contract was drawn up only by the consumer.
19830H0538B1806 - 7 -
1 (3) The creditor, seller, insurer, or lessor shows by a
2 preponderance of the evidence that its violation of the act
3 was not intentional and that the violation was the result of
4 a good faith clerical error. This error must have happened in
5 spite of the use of reasonable procedures that were designed
6 to avoid this type of error.
7 (b) Time limit for starting a lawsuit.--A lawsuit under this
8 act must be started within four years after the date on which
9 the contract was last signed.
10 Section 9. Language required by other law.
11 The use of specific language required by Federal or State
12 statute, regulation, or rule does not violate this act. This
13 language must be excluded when using the tests of readability
14 set out in section 5.
15 Section 10. Invalid consumer contract provisions.
16 (a) Contract provisions that violate the act.--Any part of a
17 contract that does not pass any of the tests of readability set
18 out in section 5, except for the test for averages of sentences
19 and syllables, is void, not just voidable, as used against a
20 consumer. A creditor, lessor, insurer, or seller may not void
21 the entire contract solely because a consumer voids one or more
22 sections as allowed by this section.
23 (b) Waiver of rights invalid.--A consumer cannot waive the
24 rights given by this act. Such a waiver is void, not just
25 voidable.
26 Section 11. Other rights and defenses preserved.
27 A consumer may make any claim or raise any defense that he or
28 she could have used if this act were not in effect.
29 Section 12. Effective date.
30 This act will take effect in one year.
19830H0538B1806 - 8 -
1 SECTION 1. SHORT TITLE. <--
2 THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE PLAIN
3 LANGUAGE CONSUMER CONTRACT ACT.
4 SECTION 2. LEGISLATIVE FINDINGS AND INTENT.
5 (A) LEGISLATIVE FINDINGS.--THE GENERAL ASSEMBLY FINDS THAT
6 MANY CONSUMER CONTRACTS ARE WRITTEN, ARRANGED AND DESIGNED IN A
7 WAY THAT MAKES THEM HARD FOR CONSUMERS TO UNDERSTAND.
8 COMPETITION WOULD BE AIDED IF THESE CONTRACTS WERE EASIER TO
9 UNDERSTAND.
10 (B) LEGISLATIVE INTENT.--BY PASSING THIS ACT, THE GENERAL
11 ASSEMBLY WANTS TO PROMOTE THE WRITING OF CONSUMER CONTRACTS IN
12 PLAIN LANGUAGE. THIS ACT WILL PROTECT CONSUMERS FROM MAKING
13 CONTRACTS THAT THEY DO NOT UNDERSTAND. IT WILL HELP CONSUMERS TO
14 KNOW BETTER THEIR RIGHTS AND DUTIES UNDER THOSE CONTRACTS.
15 SECTION 3. DEFINITIONS.
16 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL
17 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
18 CONTEXT CLEARLY INDICATES OTHERWISE:
19 "CONSUMER." ANY INDIVIDUAL WHO BORROWS, BUYS, LEASES OR
20 OBTAINS CREDIT, MONEY, SERVICES OR PROPERTY UNDER A CONSUMER
21 CONTRACT.
22 "CONSUMER CONTRACT" OR "CONTRACT." A WRITTEN AGREEMENT MADE
23 MAINLY FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES IN WHICH A
24 CONSUMER DOES ANY OF THE FOLLOWING:
25 (1) BORROWS MONEY.
26 (2) BUYS, LEASES OR RENTS PERSONAL PROPERTY, REAL
27 PROPERTY OR SERVICES FOR CASH OR ON CREDIT.
28 (3) OBTAINS CREDIT.
29 SECTION 4. APPLICATION OF ACT; INTERPRETATION.
30 (A) GENERAL RULE.--THIS ACT APPLIES TO ALL CONTRACTS THAT
19830H0538B1806 - 9 -
1 ARE MADE, SOLICITED OR INTENDED TO BE PERFORMED IN THIS
2 COMMONWEALTH.
3 (B) EXCLUSIONS.--THIS ACT DOES NOT APPLY TO THE FOLLOWING:
4 (1) PROPERTY DESCRIPTIONS IN DEEDS AND MORTGAGES, REAL
5 ESTATE CERTIFICATES OF TITLE AND TITLE INSURANCE CONTRACTS.
6 (2) CONTRACTS TO BUY SECURITIES.
7 (3) CONTRACTS BETWEEN PARTIES WHO ARE NOT ACTING IN THE
8 USUAL COURSE OF BUSINESS.
9 (4) CONTRACTS OF INSURANCE.
10 (C) INTERPRETATION.--THIS ACT MUST BE LIBERALLY INTERPRETED
11 TO PROTECT CONSUMERS.
12 SECTION 5. TESTS OF READABILITY.
13 (A) GENERAL RULE.--ALL CONSUMER CONTRACTS MADE OR RENEWED
14 AFTER THE EFFECTIVE DATE OF THIS ACT SHALL BE WRITTEN, ORGANIZED
15 AND DESIGNED SO THEY ARE EASY TO READ AND UNDERSTAND.
16 (B) LANGUAGE REQUIREMENTS.--A CONTRACT SHALL PASS ALL TEN OF
17 THE FOLLOWING LANGUAGE TESTS:
18 (1) IT USES SHORT WORDS, SENTENCES AND PARAGRAPHS AS
19 MUCH AS POSSIBLE THROUGHOUT THE CONTRACT.
20 (2) IT USES ACTIVE VERB FORMS AS MUCH AS POSSIBLE.
21 (3) IT DOES NOT USE TECHNICAL LEGAL TERMS EXCEPT THOSE
22 TERMS COMMONLY UNDERSTOOD, SUCH AS "MORTGAGE" AND "WARRANTY."
23 (4) IT DOES NOT USE WORDS WITH OBSOLETE MEANINGS OR
24 LATIN, FRENCH AND ARCHAIC ENGLISH WORDS.
25 (5) IF THE CONTRACT DEFINES WORDS, THEY ARE DEFINED IN A
26 SENSE THAT IS COMMONLY UNDERSTOOD.
27 (6) IT DOES NOT USE WORDS THAT DIFFER IN THEIR LEGAL
28 MEANING FROM THEIR ORDINARY MEANING. THIS REQUIREMENT DOES
29 NOT INCLUDE THOSE WORDS THAT ARE GIVEN ADDITIONAL MEANINGS BY
30 LAW OR REGULATION, SUCH AS "FULL WARRANTY."
19830H0538B1806 - 10 -
1 (7) IT USES PERSONAL PRONOUNS, THE ACTUAL OR SHORTENED
2 NAMES OF THE PARTIES TO THE CONTRACT, OR BOTH, WHEN REFERRING
3 TO THOSE PARTIES. HOWEVER, A CONTRACT FOR THE SALE OF REAL
4 ESTATE OR PERSONAL PROPERTY MAY USE THE TERMS "SELLER" AND
5 "BUYER" WHEN REFERRING TO THE PARTIES. A CONTRACT IN WHICH
6 CREDIT IS GRANTED MAY USE THE TERMS "LENDER" AND "BORROWER."
7 (8) IT DOES NOT USE SENTENCES WITH DOUBLE NEGATIVES OR
8 EXCEPTIONS TO EXCEPTIONS.
9 (9) IT DOES NOT USE COMPLEX CONDITIONAL SENTENCES. THIS
10 MEANS THAT NO SENTENCE SHOULD HAVE MORE THAN ONE SIMPLE
11 CONDITIONAL CLAUSE.
12 (10) IT DOES NOT HAVE REFERENCES TO OTHER PROVISIONS IN
13 THE SAME CONTRACT, TO OUTSIDE DOCUMENTS OR TO ANY LAWS OF ANY
14 TYPE UNLESS THE REFERENCE CLEARLY DESCRIBES THE SUBSTANCE OF
15 THE ITEM TO WHICH IT RELATES.
16 (C) VISUAL REQUIREMENTS.--A CONTRACT SHALL PASS ALL FIVE OF
17 THE FOLLOWING VISUAL TESTS:
18 (1) THE TYPE IS AT LEAST 10-POINT IN SIZE, EXCEPT FOR
19 THE DISCLOSURES IN CONSUMER CREDIT CONTRACTS THAT ARE
20 REQUIRED BY THE FEDERAL TRUTH IN LENDING ACT.
21 (2) IT HAS LINE LENGTH, COLUMN WIDTH, MARGINS AND
22 SPACING BETWEEN LINES AND PARAGRAPHS THAT MAKE THE CONTRACT
23 EASY TO READ.
24 (3) IT CAPTIONS EACH SECTION IN BOLDFACE TYPE OF AT
25 LEAST 12-POINT IN SIZE, EXCEPT FOR THE DISCLOSURES IN
26 CONSUMER CREDIT CONTRACTS THAT ARE REQUIRED BY THE FEDERAL
27 TRUTH IN LENDING ACT. IF THE CONTRACT IS TYPED, THE CAPTIONS
28 ARE UNDERLINED.
29 (4) IT USES INK THAT CONTRASTS SHARPLY WITH THE PAPER.
30 (5) IT HAS A TABLE OF CONTENTS OR ALPHABETICAL INDEX IF
19830H0538B1806 - 11 -
1 THE CONTRACT HAS MORE THAN 3,000 WORDS.
2 (D) CONSUMER RESTRICTIONS HIGHLIGHTED.--
3 (1) A CONTRACT SHALL HAVE A STATEMENT ON ITS FRONT PAGE,
4 IN A BOX, THAT HIGHLIGHTS ALL OF THE FOLLOWING:
5 (I) A GENERAL DESCRIPTION OF THE PROPERTY THAT MAY
6 BE TAKEN OR AFFECTED IF THE CONSUMER DOES NOT MEET THE
7 TERMS OF THE CONTRACT. THE STATEMENT IS NOT REQUIRED TO
8 LIST ALL POSSIBLE EXEMPTIONS. AS IT MAY APPLY, THE
9 FOLLOWING STATEMENT MAY BE USED: "IF YOU DO NOT MAKE YOUR
10 PAYMENTS ON TIME, YOU MAY LOSE YOUR HOUSE, THE PROPERTY
11 THAT YOU BOUGHT WITH THIS LOAN, OTHER HOUSEHOLD GOODS AND
12 FURNITURE, YOUR MOTOR VEHICLE OR MONEY IN YOUR ACCOUNT
13 WITH US."
14 (II) CONTRACT WAIVERS OF A CONSUMER'S RIGHTS.
15 (2) IF THE CONTRACT IS PRINTED, THE HIGHLIGHTED
16 STATEMENT SHALL APPEAR IN 10-POINT BOLDFACE TYPE AND NOT IN
17 ALL CAPITALS BUT SHALL HAVE THIS CAPTION IN ALL CAPITALS:
18 "PLEASE READ THIS" IN 12-POINT BOLDFACE TYPE. IF THE
19 CONTRACT IS TYPED, THE TEXT OF THE STATEMENT SHALL BE
20 UNDERLINED AND THE CAPTION "PLEASE READ THIS" IN ALL
21 CAPITALS.
22 (3) IF THE DISCLOSURES REQUIRED BY THE FEDERAL TRUTH IN
23 LENDING ACT ARE MADE ON THE CONTRACT, THEN THE HIGHLIGHTED
24 STATEMENT OF CONSUMER RESTRICTIONS SHALL APPEAR IMMEDIATELY
25 FOLLOWING THESE DISCLOSURES.
26 (E) RULES AND REGULATIONS.--THE ATTORNEY GENERAL MAY, IN THE
27 MANNER PROVIDED BY LAW, ADOPT RULES AND REGULATIONS TO CLARIFY
28 FURTHER THE REQUIREMENTS OF SUBSECTION (D).
29 SECTION 6. LANGUAGE REQUIRED BY OTHER LAW.
30 THE USE OF SPECIFIC LANGUAGE REQUIRED BY A FEDERAL OR STATE
19830H0538B1806 - 12 -
1 STATUTE, RULE OR REGULATION DOES NOT VIOLATE THIS ACT. THIS
2 REQUIRED LANGUAGE SHALL BE EXCLUDED WHEN USING THE TESTS OF
3 READABILITY SET OUT IN SECTION 5.
4 SECTION 7. DAMAGES; ENFORCEMENT; ASSURANCE OF VOLUNTARY
5 COMPLIANCE.
6 (A) DAMAGES AND OTHER REMEDIES.--ANY CREDITOR, LESSOR OR
7 SELLER WHO DOES NOT COMPLY WITH THE TESTS OF READABILITY SET OUT
8 IN SECTION 5 IS LIABLE TO THAT CONSUMER FOR ALL OF THE FOLLOWING
9 ITEMS:
10 (1) OUT-OF-POCKET EXPENSES.
11 (2) STATUTORY DAMAGES OF $100. IF THE TOTAL AMOUNT OF
12 THE CONTRACT IS LESS THAN $100, THE DAMAGES ARE THE TOTAL
13 AMOUNT OF THE CONTRACT.
14 (3) COURT COSTS AND REASONABLE ATTORNEY'S FEES.
15 (4) ANY EQUITABLE AND OTHER RELIEF ORDERED BY THE COURT.
16 (B) ENFORCEMENT.--THE ATTORNEY GENERAL OR A DISTRICT
17 ATTORNEY MAY BRING A LAWSUIT IN THE NAME OF THE COMMONWEALTH
18 AGAINST ANY PERSON TO ENFORCE THIS ACT. THE ATTORNEY GENERAL OR
19 DISTRICT ATTORNEY MAY SEEK EQUITABLE AND LEGAL RELIEF, INCLUDING
20 THE STOPPING OF VIOLATIONS OF THE ACT, THE RECOVERY OF MONEY
21 LOST BY CONSUMERS AND STATUTORY DAMAGES.
22 (C) ASSURANCE OF VOLUNTARY COMPLIANCE.--THE ATTORNEY GENERAL
23 OR A DISTRICT ATTORNEY MAY ALSO ACCEPT AN ASSURANCE OF VOLUNTARY
24 COMPLIANCE AS TO ANY SUSPECTED VIOLATION OF THIS ACT FROM ANY
25 PERSON WHO HAS DONE OR WAS ABOUT TO DO THE ACT THOUGHT TO BE A
26 VIOLATION. THE ASSURANCE MAY INCLUDE AN AGREEMENT TO GIVE BACK
27 ANY MONEY OR PROPERTY BELONGING TO A CONSUMER. THE ASSURANCE
28 SHALL BE IN WRITING AND SHALL BE FILED WITH THE COURT OF COMMON
29 PLEAS OF THE JUDICIAL DISTRICT WHERE THE SUSPECTED VIOLATOR
30 RESIDES, HAS HIS MAIN PLACE OF BUSINESS OR IS DOING BUSINESS OR
19830H0538B1806 - 13 -
1 WITH THE COMMONWEALTH COURT. WHEN FILED, THE ASSURANCE HAS THE
2 SAME EFFECT AS A COURT ORDER. THE ASSURANCE IS NOT AN ADMISSION
3 OF A VIOLATION FOR ANY PURPOSE. THE ATTORNEY GENERAL OR A
4 DISTRICT ATTORNEY MAY AT ANY TIME REOPEN A MATTER CLOSED BY AN
5 ASSURANCE FOR MORE PROCEEDINGS IN THE PUBLIC INTEREST.
6 SECTION 8. LIMITATIONS ON LIABILITY.
7 (A) LIMITATIONS GENERALLY.--THERE SHALL BE NO LIABILITY
8 UNDER SECTION 7 IF ANY OF THE FOLLOWING OCCUR:
9 (1) ALL PARTIES HAVE FINISHED WHAT WAS REQUIRED UNDER
10 THE CONTRACT.
11 (2) THE CONSUMER WROTE THE CONTRACT OR THE PART OF IT
12 THAT VIOLATES THIS ACT.
13 (3) THE CREDITOR, SELLER OR LESSOR SHOWS BY A
14 PREPONDERANCE OF THE EVIDENCE THAT ITS VIOLATION OF THE ACT
15 WAS NOT INTENTIONAL AND THAT IT ATTEMPTED IN GOOD FAITH TO
16 COMPLY WITH THIS ACT. THE VIOLATION MUST HAVE HAPPENED IN
17 SPITE OF THE USE OF REASONABLE PROCEDURES THAT WERE DESIGNED
18 TO AVOID THIS TYPE OF VIOLATION.
19 (4) THE CONTRACT HAS BEEN CERTIFIED BY THE ATTORNEY
20 GENERAL TO BE IN COMPLIANCE WITH THIS ACT.
21 (B) TIME LIMIT FOR STARTING A LAWSUIT.--A LAWSUIT UNDER THIS
22 ACT MUST BE STARTED WITHIN FOUR YEARS FROM THE DATE ON WHICH THE
23 CONTRACT WAS LAST SIGNED.
24 SECTION 9. REVIEW BY ATTORNEY GENERAL.
25 (A) ADVISORY OPINION.--A CREDITOR, SELLER, LESSOR OR ANY
26 PERSON WHO PREPARES AND SELLS CONSUMER CONTRACT FORMS, MAY
27 REQUEST AN OPINION FROM THE ATTORNEY GENERAL ON COMPLIANCE WITH
28 THIS ACT. THE ATTORNEY GENERAL SHALL FURNISH THE OPINION WITHIN
29 A REASONABLE PERIOD OF TIME NOT TO EXCEED 120 DAYS FOLLOWING THE
30 DATE THE REQUEST IS MADE. FAILURE BY THE ATTORNEY GENERAL TO ACT
19830H0538B1806 - 14 -
1 UNDER THIS SECTION WITHIN 120 DAYS SHALL BE CONSIDERED A
2 CERTIFICATION OF THE CONTRACT'S COMPLIANCE. THE BUREAU OF
3 CONSUMER PROTECTION IN THE OFFICE OF ATTORNEY GENERAL SHALL
4 REVIEW CONTRACTS UNDER THIS ACT AND SHALL ACCEPT CONTRACTS
5 SUBMITTED FOR REVIEW FOR COMPLIANCE WITH THIS ACT NO LATER THAN
6 NINE MONTHS PRIOR TO THE EFFECTIVE DATE OF THIS ACT.
7 (B) DETERMINING COMPLIANCE.--THE ATTORNEY GENERAL SHALL
8 APPLY THE TESTS OF READABILITY SET OUT IN SECTION 5.
9 (C) REVIEW.--AFTER REVIEWING THE CONTRACT, THE ATTORNEY
10 GENERAL MAY:
11 (1) CERTIFY THAT THE CONTRACT COMPLIES WITH THIS ACT.
12 (2) DECLINE TO CERTIFY THAT THE CONTRACT COMPLIES WITH
13 THIS ACT AND NOTE HIS OBJECTIONS TO THE CONTRACTUAL LANGUAGE.
14 (3) DECLINE TO REVIEW THE CONTRACT AND REFER THE PARTY
15 SUBMITTING THE CONTRACT TO OTHER PREVIOUSLY CERTIFIED
16 CONTRACTS OF THE SAME TYPE.
17 (4) DECLINE TO REVIEW THE CONTRACT BECAUSE ITS
18 COMPLIANCE WITH THIS ACT IS THE SUBJECT OF PENDING
19 LITIGATION.
20 (5) DECLINE TO REVIEW THE CONTRACT BECAUSE THE CONTRACT
21 IS NOT SUBJECT TO THIS ACT.
22 (D) COMPLIANCE.--ANY CONSUMER CONTRACT CERTIFIED UNDER THIS
23 SECTION COMPLIES WITH THIS ACT. CERTIFICATION OF A CONTRACT
24 UNDER THIS SECTION DOES NOT REPRESENT THAT THE CONTRACT MEETS
25 OTHER LEGAL REQUIREMENTS.
26 (E) GOOD FAITH.--IF A CONTRACT IS NOT SUBMITTED TO THE
27 ATTORNEY GENERAL FOR REVIEW UNDER THIS SECTION, IT WILL NOT SHOW
28 A LACK OF GOOD FAITH NOR SHALL IT RAISE A PRESUMPTION THAT THE
29 CONTRACT VIOLATES THIS ACT.
30 (F) FEE.--THE ATTORNEY GENERAL SHALL CHARGE A REASONABLE FEE
19830H0538B1806 - 15 -
1 TO PERSONS WHO SUBMIT CONTRACTS FOR REVIEW UNDER THIS ACT.
2 SECTION 10. WAIVER OF RIGHTS INVALID.
3 A CONSUMER CANNOT WAIVE THE RIGHTS GIVEN BY THIS ACT. SUCH A
4 WAIVER IS VOID, NOT JUST VOIDABLE.
5 SECTION 11. OTHER RIGHTS AND REMEDIES PRESERVED.
6 THE RIGHTS AND REMEDIES UNDER THIS ACT ARE IN ADDITION TO ANY
7 OTHER LEGAL RIGHTS, REMEDIES, CLAIMS AND DEFENSES.
8 SECTION 12. EFFECTIVE DATE.
9 THIS ACT SHALL TAKE EFFECT IN ONE YEAR.
B7L12JLW/19830H0538B1806 - 16 -