15-10-201.  Notice requirement.

(1)  Except as provided in Subsection (2)(b), a service contract may not contain an automatic renewal provision unless the seller provides the consumer written notice complying with Subsection (2) that informs the consumer of the automatic renewal provision.

Terms Used In Utah Code 15-10-201

  • 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
    (2) 

    (a)  For a service contract executed on or after July 1, 2011, that exceeds 12 months for a renewal period, a seller shall provide written notice of an automatic renewal provision prominently displayed on the first page of the service contract.

    (b)  In addition to complying with Subsection (2)(a), a seller shall provide written notice required under Subsection (1) to the consumer:

    (i)  personally;

    (ii)  by certified mail; or

    (iii)  prominently displayed on the first page of a monthly statement.

    (c) 

    (i)  A seller shall provide written notice under Subsection (2)(b):

    (A)  no later than 30 calendar days before the last day on which the consumer may give notice of the consumer’s intention to terminate the service contract; and

    (B)  no sooner than 90 calendar days before the last day on which the consumer may give notice of the consumer’s intention to terminate the service contract.

    (ii)  A seller may not provide written notice required under Subsection (1) except:

    (A)  as provided in Subsection (2)(a); or

    (B)  during the time period described in Subsection (2)(c)(i).

    (d)  Written notice required under Subsection (1) shall be:

    (i)  written in clear and understandable language; and

    (ii)  printed in an easy-to-read type size and style.

    Amended by Chapter 189, 2014 General Session