Senate
Study
Bill
1027
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
ATTORNEY
GENERAL
BILL)
A
BILL
FOR
An
Act
relating
to
consumer
contract
terms.
1
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
2
TLSB
1296DP
(2)
86
jh/rj
S.F.
_____
H.F.
_____
Section
1.
NEW
SECTION
.
714.16D
Unfair
consumer
contract
1
terms.
2
1.
For
purposes
of
this
section:
3
a.
“Consumer”
means
a
person
who
buys,
leases,
or
rents
4
merchandise.
5
b.
“Merchandise”
means
the
same
as
defined
in
section
6
714.16.
7
c.
“Person”
means
the
same
as
defined
in
section
714.16.
8
2.
A
person
shall
not
include
in
a
contract
or
proposed
9
contract
for
the
sale
or
lease
of
merchandise
a
provision
10
waiving
a
consumer’s
right
to
make
any
statement
regarding
the
11
seller
or
lessor,
the
seller’s
or
lessor’s
employees
or
agents,
12
or
the
merchandise.
13
3.
A
person
shall
not
include
in
an
agreement
evidencing
the
14
resolution
of
a
dispute
regarding
a
contract
made
in
connection
15
with
the
sale
or
lease
of
merchandise
a
provision
barring
the
16
consumer
from
communicating
information
to
a
governmental
17
official
or
agency,
or
a
representative
of
a
governmental
18
official
or
agency.
19
4.
A
person
shall
not
seek,
threaten
to
enforce,
or
enforce
20
a
contract
provision
or
an
agreement
evidencing
the
resolution
21
of
a
dispute
that
violates
this
section.
A
person
shall
not
22
penalize
a
consumer
for
engaging
in
any
conduct
protected
by
23
this
section.
24
5.
A
waiver
of
any
provision
of
this
section
is
contrary
to
25
public
policy
and
is
void
and
unenforceable.
26
6.
An
attempt
by
a
person
to
have
a
consumer
waive
any
27
rights
given
in
this
section
is
a
violation
of
this
section.
28
7.
A
violation
of
this
section
is
an
unlawful
practice
29
pursuant
to
section
714.16,
and
all
remedies
of
section
714.16
30
are
available
for
an
action
brought
under
section
714.16.
31
EXPLANATION
32
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
33
the
explanation’s
substance
by
the
members
of
the
general
assembly.
34
This
bill
forbids
the
inclusion,
in
a
contract
for
the
35
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S.F.
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H.F.
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sale
or
lease
of
merchandise
or
in
an
agreement
evidencing
1
the
resolution
of
a
dispute
relating
to
the
sale
or
lease
of
2
merchandise,
of
any
provision
which
would
prohibit
a
consumer
3
from
making
any
statement
regarding
the
seller,
lessor,
or
4
the
merchandise,
including
a
statement
to
a
governmental
5
official
or
agency.
“Merchandise”
includes
any
objects,
6
wares,
goods,
commodities,
intangibles,
securities,
bonds,
7
debentures,
stocks,
real
estate
or
services.
Any
waiver
of
8
a
consumer’s
rights
to
make
statements
regarding
the
seller,
9
lessor,
or
merchandise
is
void
and
unenforceable.
An
attempt
10
by
a
person
to
have
a
consumer
waive
the
consumer’s
rights
to
11
make
a
statement
regarding
the
seller,
lessor,
or
merchandise
12
is
a
violation
of
the
new
Code
section
and
is
an
unlawful
13
practice
under
Code
section
714.16.
Under
Code
section
14
714.16,
with
regard
to
unlawful
practices,
the
attorney
general
15
has
the
authority
to
issue
subpoenas,
hold
hearings,
adopt
16
administrative
rules,
and
file
lawsuits
to
obtain
temporary
and
17
permanent
injunctive
relief,
consumer
reimbursement,
costs
and
18
attorney
fees,
and
civil
penalties
up
to
$40,000
per
violation.
19
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