44-6801

44-6801. Definitions

In this chapter, unless the context otherwise requires:

1. "Advertisement" means a commercial message in any medium that solicits a
consumer to enter a rental-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 rental-purchase agreement.

3. "Consumer" means an individual who rents personal property under a
rental-purchase agreement to be used primarily for personal, family or household
purposes.

4. "Consummation" means the date on which a consumer becomes contractually
obligated under a rental-purchase agreement or on the date the first payment is made,
whichever is earlier.

5. "Cost of rental" means the difference between the total of all periodic payments
necessary to acquire ownership under the rental-purchase agreement and the cash price of
the rental property that is subject to the rental-purchase agreement.

6. "Fee" means any charge, fee, cost or expense, however denominated, other than a
rental payment.

7. "Lessor" means a person who, in the ordinary course of business, regularly
leases, offers to lease or arranges for the leasing of property under a rental-purchase
agreement.

8. "Rental-purchase agreement" means an agreement that is for the use of personal
property by an individual for personal, family or household purposes, that is for an
initial period of four months or less, that is automatically renewable with each payment
after the initial period and that permits the consumer to become the owner of the
property but that does not obligate or require the consumer to continue leasing or using
the property beyond the initial period.