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The Vermont Statutes Online
Title
09
:
Commerce and Trade
Chapter
004
:
INTEREST
Subchapter
001
:
INTEREST GENERALLY
§
41c. Rent-to-own; assistive devices
(a) As used in
this section:
(1)
"Assistive device" means any item, piece of equipment, or product
system, whether acquired commercially off-the-shelf, modified, or customized,
that is used or designed to be used to increase, maintain, or improve any
functional capability of an individual with disabilities. An assistive device
system, that as a whole is within the definition of this term, is itself an
assistive device, and, in such cases, this term also applies to each component
product of the assistive device system that is itself ordinarily an assistive
device. This term includes:
(A) wheelchairs
and scooters of any kind, and other aids that enhance the mobility or
positioning of an individual, such as motorization, motorized positioning
features, and the switches and controls for any motorized features;
(B) computer
equipment with voice output, artificial larynges, voice amplification devices,
and other alternative and augmentative communication devices or any devices
used for the purpose of communication;
(C) computer
equipment and reading devices with voice output, optical scanners, talking
software, braille printers, and other aids and devices that provide access to
text;
(D) hearing
aids, telephone communication devices for people who are deaf, and other
assistive listening devices;
(E) voice
recognition computer equipment, software and hardware accommodations, switches,
and other forms of alternative access to computers;
(F)
environmental control units;
(G) simple
mechanical aids that enhance the functional capabilities of an individual with
disabilities; and
(H) durable
medical equipment.
(2)
"Assistive devise lessee" means an individual with a disability or a
person renting or leasing on behalf of an individual with a disability who is
renting or leasing an assistive device for the purpose of increasing,
maintaining, or improving any functional capability related to the individual's
disability.
(b) A person in
the business of renting, or renting to own an assistive device to assistive
device lessees, who rents an assistive device for more than 60 days or who
rents an assistive device to own shall offer such assistive device lessees a
purchase option with reasonable terms and conditions. Such a purchase option
may be exercised at any time by the assistive device lessees, the reasonable
terms and conditions of which shall be included with the consumer's periodic
billing.
(1) A person in
the business of renting products that may be assistive devices may include the
following question in its rental application:
ARE YOU RENTING
THIS PRODUCT AS AN ACCOMMODATION FOR A DISABILITY OR AS AN ASSISTIVE DEVICE?
YES ________ NO ________
(A) If an
assistive device lessee answers "yes" to the question or requests
additional information, the business entity shall provide the following
statement:
ASSISTIVE DEVICE
PURCHASE OPTION RIGHTS
IF YOU ARE
RENTING THIS PRODUCT AS AN ACCOMMODATION FOR A DISABILITY OR AS AN ASSISTIVE
DEVICE, THE DEALER IS REQUIRED TO OFFER YOU A RENTAL TRANSACTION THAT INCLUDES
A PURCHASE OPTION. UNDER THE PURCHASE OPTION YOU MAY ACQUIRE OWNERSHIP OF THE
PRODUCT AT ANYTIME BY TENDERING AN AMOUNT EQUAL TO THE CASH PRICE OF THE
PRODUCT LESS 50% OF ALL PREVIOUS RENTAL PAYMENTS YOU HAVE MADE. OR, ONCE YOU
HAVE MADE RENTAL PAYMENTS EQUAL TO 200% OF THE CASH PRICE YOU MAY ACQUIRE
OWNERSHIP OF THE PRODUCT BY PAYING $1.00.
BEFORE YOU
DETERMINE WHETHER TO ELECT A TRANSACTION WITH OR WITHOUT A PURCHASE OPTION, THE
PERSON IN THE BUSINESS OF RENTING OR RENTING TO OWN THE ASSISTIVE DEVICE MUST
FULLY DISCLOSE THE TERMS OF BOTH TRANSACTIONS.
THE VALUE OF A
PURCHASE OPTION DEPENDS ON MANY FACTORS, WHICH MAY INCLUDE: (1) HOW LONG YOU
INTEND TO USE THE PRODUCT; (2) THE CASH PRICE OF THE PRODUCT; AND (3) THE COST
OF MAINTAINING THE PRODUCT.
ASSISTIVE DEVICE
PURCHASE OPTION RIGHTS: IF YOU ELECT A RENTAL TRANSACTION WITHOUT A PURCHASE
OPTION AND YOU CHANGE YOUR MIND AT A LATER DATE AND DECIDE TO ENTER INTO A
PURCHASE OPTION TRANSACTION, PAYMENTS THAT YOU HAVE MADE WILL NOT BE APPLIED TO
THE NEW TRANSACTIONS.
(B) The rental
dealer may add additional information or explanations to the information
required by subdivision (A) of this subsection, as long as the additional
information is not stated, utilized, or placed in a manner that will confuse
the assistive device lessee or that will contradict, obscure, or distract
attention from the required information. The additional information or
explanation shall not have the effect of circumventing, evading, or
complicating the information required by subdivision (A) of this subsection.
(2) Failure to
comply with this section is not a violation if the assistive device lessee
fails to inform the rental dealer that the product is being rented as an
assistive device after the rental dealer makes the written inquiry in
subdivision (b)(1) of this section.
(c)(1) When
periodic payments made by an assistive device lessee, exclusive of payments for
service, total 200 percent of the bona fide cash price, the person in the
business of renting or renting to own the assistive device shall notify the
individual with a disability and the assistive device lessee that the
individual with a disability and the assistive device lessee have the option of
acquiring ownership of the assistive device upon payment of $1.00, at which
time the rental or rent-to-own agreement shall terminate.
(2) The term
"bona fide cash price" means the price at which a merchant, in the
ordinary course of business, and taking into account the value of the
merchandise and its retail price in the trade area, would offer to sell the
merchandise to consumers for cash.
(d) Under a
rent-to-own program, at any time after the initial payment, the assistive
device lessee may acquire ownership of the property by tendering an amount
equal to the cash price of the merchandise minus 50 percent of all previous
rental-purchase payments made.
(e) When an
assistive device lessee has acquired ownership of an assistive device under
this section, the person in the business of renting or renting to own shall
offer, for a reasonable price and term, a contract to maintain and service the
device.
(f) This section
shall not apply to assistive devices provided pursuant to a Medicare or
Medicaid contract that either includes provisions for the acquisition of ownership
or prohibits purchase or the acquisition of ownership by an assistive device
lessee.
(g) A violation
of this section is deemed to be an unfair or deceptive act or practice in
commerce and a violation of chapter 63 of this title and all remedies and
penalties available to a consumer or the Attorney General under that chapter
shall apply, and the Attorney General shall have the same authority to make
rules, conduct civil investigations, and enter into assurances of
discontinuance as provided under subchapter 1 of chapter 63 of this title.
(Added 1999, No. 104 (Adj. Sess.), § 2; amended 2013, No. 96 (Adj. Sess.), §
26.)