Advertisement: means a commercial message in any medium that aids, promotes, or assists directly or indirectly a rental-purchase agreement. See Tennessee Code 47-18-603
Consumer: means a natural person who rents personal property under a rental-purchase agreement. See Tennessee Code 47-18-603
Consummation: means the time a consumer becomes contractually obligated on a rental-purchase agreement. See Tennessee Code 47-18-603
Counterclaim: A claim that a defendant makes against a plaintiff.
Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
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.
Lessor: means a person who, in the ordinary course of business, regularly leases, offers to lease, or arranges for the leasing of property under a rental-purchase agreement. See Tennessee Code 47-18-603
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 a natural person, consumer, individual, governmental agency, partnership, corporation, trust, estate, incorporated or unincorporated association, and any other legal or commercial entity however organized. See Tennessee Code 47-18-2102
Rental-purchase agreement: means an agreement for the use of personal property by a natural person primarily for personal, family, or household purposes, for an initial period of four (4) months or less (whether or not there is any obligation beyond the initial period) that is automatically renewable with each payment and that permits the consumer to become the owner of the property. See Tennessee Code 47-18-603
(1) A lessor who fails to comply with a requirement imposed in § 47-18-604 or §§ 47-18-606 – 47-18-608 with respect to a consumer is liable to the consumer in an amount equal to the greater of:
(A) The actual damages sustained by the customer as a result of the violation; or(B)(i) In the case of an individual action, twenty-five percent (25%) of the total of payments necessary to acquire ownership but not less than one hundred dollars ($100) nor greater than one thousand dollars ($1,000); or(ii) In the case of a class action, the amount the court determines to be appropriate with no minimum recovery as to each member. The total recovery in any class action or series of class actions arising out of the same violation may not be more than the lesser of five hundred thousand dollars ($500,000) or one percent (1%) of the net worth of the lessor. In determining the amount of any award in a class action, the court shall consider, among other relevant factors, the amount of actual damages awarded, the frequency and persistence of the violation, the lessor’s resources, and the extent to which the lessor’s violation was intentional.(2) Such lessor is also liable to the consumer for the costs of the action and reasonable attorneys’ fees as determined by the court.(b) In the case of an advertisement, any lessor who fails to comply with the requirements of § 47-18-610 with regard to any person is liable to that person for actual damages suffered from the violation, the costs of the action, and reasonable attorneys’ fees.(c) When there are multiple lessors, liability shall be imposed only on the lessor who made the disclosures. When no disclosures have been given, liability shall be imposed on all lessors.(d) When there are multiple consumers in a rental-purchase agreement, there shall be only one (1) recovery of damages under subsection (a) for a violation of this part.(e) Multiple violations in connection with a rental-purchase agreement entitle the consumer to a single recovery under this section.(f) A consumer may not take any action to offset any amount for which a lessor is potentially liable under subsection (a) against any amount owed by the consumer, unless the amount of the lessor’s liability has been determined by judgment of a court of competent jurisdiction in an action in which the lessor was a party. This subsection (f) does not bar a consumer then in default on the obligation from asserting a violation of this part as an original action, or as a defense or counterclaim to an action brought by lessor to collect amounts owed by the consumer.(g) In connection with any transaction covered under this part, the lessor shall preserve evidence of compliance with this part for not less than two (2) years from the date of consummation of the agreement.
