Sec. 42-150u*. Enforceability of liquidated damages provision in consumer
contracts. (a) No provision in a written contract for the purchase or lease of goods
or services primarily for personal, family or household purposes that provides for the
payment of liquidated damages in the event of a breach of the contract shall be enforceable unless (1) the contract contains a statement in boldface type at least twelve points
in size immediately following such liquidated damages provision stating "I ACKNOWLEDGE THAT THIS CONTRACT CONTAINS A LIQUIDATED DAMAGES PROVISION", and (2) the person against whom such provision is to be enforced
signs such person's name or writes such person's initials next to such statement. Nothing
in this section shall validate a clause that is a penalty clause or is otherwise invalid under
the law of this state.
(b) The provisions of subsection (a) of this section shall not apply to (1) contracts between a consumer and an agency of the state or any political subdivision of the state or of the federal government, (2) negotiable instruments, and (3) contract provisions for late fees, prepayment penalties or default interest rates.
(P.A. 07-210, S. 1.)
*Note: This section is effective July 1, 2008, and is applicable to contracts entered into, renewed or extended on or after that date.
History: P.A. 07-210 effective July 1, 2008, and applicable to contracts entered into, renewed or extended on or after that date.
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