(1) 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.
(2) 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.”.

Terms Used In Kentucky Statutes 372.160

  • Attorney: means attorney-at-law. See Kentucky Statutes 446.010
  • Contract: A legal written agreement that becomes binding when signed.
  • Federal: refers to the United States. See Kentucky Statutes 446.010
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
  • Trial: A hearing that takes place when the defendant pleads "not guilty" and witnesses are required to come to court to give evidence.
  • Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC

(3) 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.
(4) 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.
(5) 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.
(6) 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 KRS 367.300. Remedies available for a violation of KRS 367.170 to KRS 367.300 shall be in addition to any remedies available at common
law or under this section.
(7) 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.
(8) 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.
(9) 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.