(a) A rental-purchase agreement shall not contain a provision:
(1) Requiring a confession of judgment;
(2) Authorizing a merchant or agent of the merchant to commit a breach of the peace while repossessing merchandise;
(3) Waiving a defense, counterclaim, or right the consumer may have against the merchant or an agent of the merchant; or
(4) Requiring the purchase of insurance from the merchant to cover the merchandise.
(b) A rental-purchase agreement must disclose:
(1) Whether the merchandise is new or used;
(2) The amount and timing of regular rental payments;
(3) The total number of payments necessary and the total amount to be paid to acquire ownership;
(4) The amounts and purpose of any other payment, charge, or fee in addition to the regular periodic rental payment;
(5) That the consumer does not acquire any ownership rights until the consumer has complied with the ownership terms of the agreement;
(6) Whether the consumer is liable for loss or damage to the merchandise, and if so, the maximum amount for which the consumer may be held liable; and
(7) Notice of the right to reinstate an agreement as provided in § 4-92-106(a).
Structure Arkansas Code