(1)  Subject to Subsection (2), if a seller does not comply with Section 15-10-201 with respect to a service contract containing an automatic renewal provision:

Terms Used In Utah Code 15-10-202

  • Automatic renewal provision: means a provision under which a service contract is renewed for one or more specified periods if:
(a) the renewal causes the service contract to be in effect more than six months after the day of the initiation of the service contract; and
(b) the renewal is effective unless the consumer gives notice to the seller of the consumer's intention to terminate the service contract. See Utah Code 15-10-102
  • Consumer: includes a representative of an association subject to:
    (i) Title 57, Chapter 8, Condominium Ownership Act; or
    (ii) Title 57, Chapter 8a, Community Association Act. See Utah Code 15-10-102
  • Contract: A legal written agreement that becomes binding when signed.
  • Seller: means a person providing service, maintenance, or repair under a service contract. See Utah Code 15-10-102
  • Service contract: means a contract for service, maintenance, or repair:
    (i) in connection with real property; or
    (ii) that provides a benefit to the real property. See Utah Code 15-10-102
    (a)  the automatic renewal provision is void and unconscionable as a matter of public policy; and

    (b)  the service contract shall automatically renew on a month-to-month basis.
  • (2)  Subsection (1) applies to an automatic renewal provision in a service contract with a business consumer for which a seller does not comply with Section 15-10-201 only if the service contract is executed on or after July 1, 2011.

    Amended by Chapter 262, 2011 General Session