2015 Kentucky Revised Statutes CHAPTER 372 - CONTRACTS AGAINST PUBLIC POLICY 372.160 Mailing that contains item that appears to be check -- Disclosure of consequences of signing -- Offer for contract formation not valid without disclosure -- Notice relating to time limit -- Delivery of goods or services does not form contract -- Remedies -- Jurisdiction.
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372.160 Mailing that contains item that appears to be check -- Disclosure of
consequences of signing -- Offer for contract formation not valid without
disclosure -- Notice relating to time limit -- Delivery of goods or services does
not form contract -- Remedies -- Jurisdiction.
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Any term which is defined in the Uniform Commercial Code, KRS Chapter 355,
shall have that same meaning in this section, unless the context otherwise requires.
Any person soliciting business in this Commonwealth who intends to make an offer
for contract formation by sending through the mail, as part of the solicitation, what
appears to be a check or other item payable to the recipient where the indorsement
and subsequent negotiation of the item by the recipient is intended by any party to
the item, or agent or assignee thereof, to form an acceptance of the contract shall
make the following disclosure in upper case twelve (12) point bold face type
immediately adjacent to the designated place of indorsement: "BY SIGNING AND
DELIVERING THIS DOCUMENT YOU AGREE TO PAY FOR FUTURE
SERVICES ARISING OUT OF THIS CONTRACT.".
A purported offer described in subsection (2) of this section that does not contain
the required disclosure, to the extent a subsequent indorsement and negotiation of
the item would otherwise constitute an acceptance, shall not be a valid offer for
contract formation in this Commonwealth.
If a purported offer which meets the requirements in subsection (2) of this section
relates to a free membership period, trial period, or some other similar acceptance
incentive that is prescribed by a time limit and which purports to form a contract
without a cancellation, rescission, revocation, or other form of termination by the
recipient prior to the end of such a period, then the offeror shall send notice to the
recipient at least two (2) weeks prior to the end of that time period of the
recipient’s purported obligation to cancel, rescind, revoke, or otherwise
terminate the recipient's purported acceptance before a purported contract is formed.
The notice shall be readily apparent on any communication from the offeror and it
shall be in upper case twelve (12) point bold face type and in the following form:
"YOU MUST ACT NOW TO AVOID FUTURE CHARGES." Any time period
described under this subsection that is part of a purported offer described in
subsection (2) of this section and that is less than two (2) weeks shall not be a valid
offer for contract formation in this Commonwealth.
If a purported offer described in subsection (2) of this section does not contain the
required disclosure, or is not followed by the required notice, then any goods or
services delivered to the recipient pursuant to the purported offer shall not operate
to form a contract by or between the offeror and the recipient. Any such offer or
purported contract as a result thereof is void as against the public policy of the
Commonwealth.
An attempt by an offeror, or an agent or assignee thereof, to enforce a purported
contract or to bind a recipient to a purported acceptance arising out of a purported
offer that does not comply with this section shall be a violation of the Consumer
Protection Act, KRS 367.170 to 367.300. Remedies available for a violation of
KRS 367.170 to 367.300 shall be in addition to any remedies available at common
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law or under this section.
The Attorney General, Commonwealth's attorneys, and county attorneys shall have
concurrent jurisdiction to enforce the provisions of this section in a court of the
county where the purported offer was received.
Any waiver by the recipient of jurisdiction for actions arising out of a purported
offer under this section shall be void. Any depository bank or holder in due course
of an item which does not meet the requirements of subsection (2) of this section or,
as the case may be subsection (4) of this section, shall be held harmless by the
offeror of the item, or an agent or assignee thereof.
Nothing contained in this section shall apply to licensed lenders that are regulated
by the Commonwealth of Kentucky, or to a bank regulated by the federal
government or any agency thereof.
Effective: July 15, 2002
History: Created 2002 Ky. Acts ch. 216, sec. 1, effective July 15, 2002.
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