Commercial Law General Regulatory Provisions
Unfair Sales Practices
§ 6-13-14 Automatic lease renewal
(a) For purposes of this section, "automatic lease renewal" means a provision
in a written lease of personal property providing that, unless the lessee gives
written notice to the contrary, the lease shall be automatically renewed for an
additional term at the end of the initial lease term or at the end of any
subsequent lease term.
(b) Subject to the exclusions stated in subsection (d) of
this section, every lessor of personal property under a written lease
containing an automatic lease renewal shall give written notice to the lessee
not more than ninety (90) nor less than forty-five (45) days prior to the
expiration of the lease term. The notice shall state the date upon which the
lease term will expire and shall advise the lessee that the lease will be
automatically renewed unless the lessee gives written notice to the contrary.
(c) In the event that the lessor fails to give notice as
required by subsection (b) of this section, the automatic lease renewal shall
be voidable at the option of the lessee.
(d) This section shall not apply to any lease having a term
of less than one year. This section shall not apply to any lease wherein the
fair market value of the property being leased exceeds one hundred thousand
dollars ($100,000) on the date the lease is executed.
History of Section.
(P.L. 1985, ch. 480, § 1.)