CHAPTER 738b

CONSUMER LAYAWAY PLANS

Table of Contents

Sec. 42-125aa. Definitions.

Sec. 42-125bb. Unfair trade practices under layaway plans.

Sec. 42-125cc. Buyer’s rights upon cancellation.


Sec. 42-125aa. Definitions. For the purposes of sections 42-125aa to 42-125cc, inclusive:

(1) “Consumer goods” means any article which is used or bought for use primarily for personal, family or household purposes, and

(2) “Layaway plan” means a plan by which a seller of consumer goods offers such goods for sale to the public on terms which permit periodic payment for such goods and with respect to which delivery is deferred until completion of payment of the entire purchase price.

(P.A. 78-353, S. 1.)

Sec. 42-125bb. Unfair trade practices under layaway plans. It shall be an unfair trade practice within the meaning of chapter 735a for any seller of consumer goods as defined in section 42-125aa on a layaway plan:

(a) To fail to provide the buyer at the time of entering into the layaway agreement with a written statement of the terms and conditions of the agreement, including the following information: (1) The amount of the deposit received; (2) the length of time the goods will be held on layaway, which may be expressed as a period of time or as a date when final payment for the goods is due; (3) a reasonable description of each of the goods, including but not limited to, where applicable, the type of item, name of manufacturer, color and size, style or model number; (4) the total purchase price of the goods, including a separate listing of the price of each item which could have been individually purchased and of any tax, installation, handling, processing, delivery or freight charges; (5) if all moneys paid on deposit will not be refunded upon cancellation of the layaway agreement, a statement of the portion of the deposit that will be forfeited upon cancellation, provided that any forfeiture of a deposit or portion thereof shall be subject to the provisions of section 42-125cc, title 42a and any other applicable law, and provided further that if any seller fails to comply with this subdivision all moneys paid on deposit shall be refunded upon cancellation; and (6) any other terms and conditions of the layaway agreement;

(b) To misrepresent in any way the seller’s policy with reference to a layaway plan to any buyer of consumer goods under such a plan;

(c) To represent to a buyer under a layaway plan that the specific consumer goods chosen by the buyer or an exact duplicate of such consumer goods are actually being physically retained for the buyer when such is not a fact;

(d) To deliver to the buyer after payments pursuant to the layaway plan are completed goods which are not identical or exact substitutes to those specified, unless approval in writing at the time of substitution has been received from the buyer and the provisions of section 42-125cc have been met;

(e) To increase the price of consumer goods purchased under a layaway plan either by increasing the payments or substituting consumer goods which are of a lower quality or price;

(f) To fail to deliver to the buyer, on any date payment is made, a receipt showing the amount and date of that payment and the amount of the balance due;

(g) To fail to deliver to the buyer, upon his request, any consumer goods which have been fully paid for and which were available for separate purchase, because other consumer goods also purchased are not yet fully paid for. Consumer goods of which delivery has been requested shall be deemed to be fully paid for if the total amount of payments equals or exceeds the price of such goods.

(P.A. 78-353, S. 2; P.A. 82-42, S. 1, 2.)

History: P.A. 82-42 amended Subsec. (a) by making it an unfair trade practice for a seller to fail to disclose to consumers its policies concerning refunds of money deposited upon cancellation of the layaway agreement as specified in new Subdiv. (5), relettering former Subdiv. (5) accordingly.

See Sec. 52-400f re priority of claims for deposits for consumer goods and services.

Sec. 42-125cc. Buyer’s rights upon cancellation. At any time prior to acceptance by the buyer of the goods subject to the layaway plan, the buyer may cancel the plan because of the seller’s violation of section 42-125bb, and the seller, at the election of the buyer, shall either (a) refund to the buyer the entire amount paid, or (b) give the buyer a credit, in the full amount of the moneys already paid to the seller, toward the purchase of any other consumer goods offered for sale to the public by the seller.

(P.A. 78-353, S. 3.)