An automatic renewal provision in violation of this chapter is unenforceable and void. If a person sends merchandise or provides a service as a result of an automatic renewal of agreement without complying with the requirements of section 51-37-02 or sends merchandise or provides a service after a buyer undertook an affirmative act to cancel or otherwise avoid charges, the merchandise or service is considered to be an unconditional gift to the buyer who may dispose of the gift in any manner the buyer sees fit without any obligation to the person.

Terms Used In North Dakota Code 51-37-04

  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • 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.
  • Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
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