Wednesday, March 25, 2009
Consumer Contracts at Risk
HB 1048, which has passed the House of Delegates, would weaken the ability of businesses to enforce consumer contracts in the event of a consumer default and subject businesses to penalties as an Unfair and Deceptive Trade Practice. Does your company have written agreements with customers for the sale or lease of goods, services, or credit? If so, you need to take a close look at this bill. The bill would prohibit (1) Consumer contracts from reserving the right to change a material term to the detriment of the consumer if the change affects existing obligations; or (2) Triggering a default or penalty based on a default of another obligation or event not directly related to the consumer’s performance under the contract. We need to know if your company is impacted by this sweeping legislation. Contact Ron Wineholt for further information at .(JavaScript must be enabled to view this email address).
