| Last Version Text |
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Umberg</ns0:AuthorText>
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<ns0:House>SENATE</ns0:House>
<ns0:Name>Umberg</ns0:Name>
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<ns0:Title>An act to add Section 1670.15 to the Civil Code, relating to contracts.</ns0:Title>
<ns0:RelatingClause>contracts</ns0:RelatingClause>
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<ns0:Subject>Contracts: consumer goods and services: dispute resolution provisions.</ns0:Subject>
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<html:p>Existing law regulates the formation and enforcement of contracts, including imposing certain restrictions on the terms of a contract for the sale or lease of consumer goods or services. In this regard, existing law prohibits a provision waiving the consumer’s right to make any statement regarding the seller, lessor, or its employees or agents, or concerning the goods or services. Existing law also prohibits a consumer service contract from limiting a consumer’s ability to file a complaint with a licensing board that regulates the consumer service provider or to participate in the board’s investigation into the consumer service provider, as specified.</html:p>
<html:p>This bill would, for a consumer use agreement, limit the dispute resolution terms and conditions to the use, payment, or provision of the good, service, money, or credit provided by the consumer use agreement. The bill would make a waiver of these provisions void and unenforceable, as provided, and would require that the provisions be liberally construed for the purpose of protecting consumers. The bill would provide that the duties and obligations it imposes are cumulative with, and do not limit or expand, duties and obligations imposed under any other
law, and do not limit any rights or remedies under any other law. The bill would define terms for purposes of these provisions.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 1670.15 is added to the
<ns0:DocName>Civil Code</ns0:DocName>
, to read:
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<ns0:LawSection id="id_91F121D3-5584-4832-9CA5-309FA03BFBE2">
<ns0:Num>1670.15.</ns0:Num>
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(a)
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As used in this section, the following definitions shall apply:
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(1)
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“Consumer” has the same meaning as defined in subdivision (c) of Section 302 of the Business and Professions Code.
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<html:p>
(2)
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“Consumer use agreement” means a contract between a person and a consumer that the consumer enters into in order to use, receive, or otherwise enjoy a good, service, money, or credit.
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<html:p>
(3)
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“Person” has the same meaning as defined in subdivision (d) of Section 302 of the Business and Professions Code.
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(b)
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Dispute resolution terms and conditions of a consumer use agreement shall be limited to the use, payment, or provision of the good, service, money, or credit provided by that consumer use agreement.
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(c)
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A waiver of the provisions of this section is contrary to public policy and void and unenforceable.
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(d)
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This section shall be liberally construed for the purpose of protecting consumers.
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(e)
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The duties and obligations imposed by this section are cumulative with duties or obligations imposed under any other law, shall not be construed to relieve any party from any duties or obligations imposed under any other law, and do not limit any rights or remedies under any other law.
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| Last Version Text Digest |
Existing law regulates the formation and enforcement of contracts, including imposing certain restrictions on the terms of a contract for the sale or lease of consumer goods or services. In this regard, existing law prohibits a provision waiving the consumer’s right to make any statement regarding the seller, lessor, or its employees or agents, or concerning the goods or services. Existing law also prohibits a consumer service contract from limiting a consumer’s ability to file a complaint with a licensing board that regulates the consumer service provider or to participate in the board’s investigation into the consumer service provider, as specified. This bill would, for a consumer use agreement, limit the dispute resolution terms and conditions to the use, payment, or provision of the good, service, money, or credit provided by the consumer use agreement. The bill would make a waiver of these provisions void and unenforceable, as provided, and would require that the provisions be liberally construed for the purpose of protecting consumers. The bill would provide that the duties and obligations it imposes are cumulative with, and do not limit or expand, duties and obligations imposed under any other law, and do not limit any rights or remedies under any other law. The bill would define terms for purposes of these provisions. |