In a rent-to-own transaction, a lessor rents personal property, such as a television, to a renter for the renter's use. The lessor owns the property unless and until the renter purchases it by one of the methods described in this Legal Guide.
The rent-to-own ("RTO") contract between the lessor and the renter allows the renter to use the personal property. In return for use of the property, the renter must pay a periodic (weekly or monthly) payment to the lessor. In order for the renter to continue to use the property, the renter must make the next periodic payment.
If the renter makes all of the periodic payments scheduled under the contract (for example, 78 weekly payments) or exercises the purchase option, the renter acquires ownership of the property.
If the renter does not make the next periodic payment when it is due, the RTO contract ends. If the renter promptly returns the property to the lessor undamaged, the renter is not liable for any other payments under the contract (but is liable for any past-due payments and lawful unpaid fees). The renter normally can reinstate the contract by paying past-due payments and properly-imposed late fees.
Part 1 of this Legal Guide explains RTO transactions and what you (the renter) need to understand before you sign an RTO contract. This part also discusses RTO contracts, the lessor's and your duties in the RTO transaction, your rights to reinstate the RTO contract if you default, and your options for purchasing the rental property.
Part 2 of this Legal Guide discusses resolving issues that may arise in RTO transactions, such as the renter's liability for damaged or stolen rental property, limits on the lessor's repossession and collection activities, and the lessor's and the renter's legal remedies.
In this Legal Guide, "lessor" means a rent-to-own business that rents or offers to rent personal property to a renter under a rent-to-own agreement. "Personal property" or "property" means an item such as a washer, dryer, television or VCR that is used by a renter for personal, family or household purposes. "Renter" means a consumer who rents personal property from a rent-to-own business. "You" means a renter.
Part 1: UNDERSTANDING RTO TRANSACTIONS
I. BEFORE YOU ENTER INTO AN RTO TRANSACTION
A. The Cost of Renting-to-Own
Rent-to-own transactions are more expensive than they appear on the surface. The periodic payment required to rent the property usually seems low. But the total of the periodic payments often is quite high compared to the actual value of the property. Experts agree that a consumer will pay more to purchase property under an RTO contract than the consumer would pay to make a cash or credit purchase of the same item at a retail store. 1 For example, one study found that a television available for purchase at a department store for $250 (cash price) would cost more than $1,000 to purchase under an RTO contract at $13 a week for 78 weeks. 2
Before you sign an RTO contract, you should understand what the rental property will actually cost you if you purchase it under the RTO contract. Look carefully at the disclosure box on the price tag of the property that you are thinking about renting. The disclosure box looks like this:
RTO Disclosure Box
TOTAL OF PAYMENTS
$ 1,014
COST OF RENTAL
$ 764
Amount over cash price you will pay if you make all regular payments.
CASH PRICE
$ 250
Property available at this price for cash from retailers in this area.
You must pay this amount to own the property if you make all the regular payments.
You can buy the property for less under the early purchase option.
AMOUNT OF EACH PAYMENT
$ 13 per
week
(insert period)
NUMBER OF PAYMENTS
78
RENTAL PERIOD
18 months
[Disclosures must be in 10-point boldface type, or capital letters if typed.]
The "Total of Payments" box tells you how much you will have to pay to own the property if you make all of the payments scheduled under the RTO contract (in this example, $1,014). The "Cash Price" box tells you the cash price that the property is selling for at retail stores in your area (in this example, $250). The "Cost of Rental" box tells you how much more than the cash price you will pay if you make all of the payments scheduled under the RTO contract (in this example, $764). The calculation looks like this:
Total of Payments - Cash Price = Cost of Rental
(in this example, $1,014 - $250 = $764)
You should compare these costs to the costs of purchasing the same item for cash and on credit from a retail store.
You can purchase the rental property using the RTO contract's purchase option for less than the total of payments. (See IV below for an explanation of the purchase option.) However, you still will usually pay more than the cash price of the property.
On the other hand, if you intend only to use the rental property for a while and then return it to the lessor, an RTO transaction may be a logical choice.
B. Aides to Understanding RTO Transactions
In California, RTO transactions are governed by the California Rental-Purchase Act ("Act") 3 . The Act contains several disclosure requirements that are designed to help you understand the RTO transaction before you enter into it. Some of these requirements are described in this section.
The tag or sticker also must disclose whether the property is new or used. If it is new, the model year or the date the lessor acquired it must be disclosed; if used, the age or model year must be disclosed, if known. 5
II. THE RENT-TO-OWN CONTRACT
A. Renter's Cancellation Right
You can cancel an RTO contract under several circumstances.
A renter who has just signed an RTO contract can cancel it without obligation within three business days of signing it if both of the following are true:
You also can cancel an RTO contract if you have not taken possession of the rental property. 9
Of course, a renter in possession of rental property can cancel the contract at any time by not making the next periodic payment and promptly requesting the lessor to pick up the property.
B. Required Contract Contents
The lessor cannot obtain your signature on an RTO contract if it contains blank spaces to be filled in later 13
If the rental property is used, the contract cannot state a cash price that is more than the cash price for the same or similar new property. 22
C. Prohibited Contract Contents
The RTO contract cannot contain any of the following terms: 28
III. DEFAULT AND REINSTATEMENT
If you fail to make a periodic payment, you will be in "default." Default means that the RTO contract has ended, and that you are not entitled to use or keep the rental property. However, you may be able to reinstate the contract, as described in this section.
If your RTO contract requires weekly periodic payments, you will be in default if you do not make the payment by the end of the seventh day after its due date. If your RTO contract requires longer-than-weekly periodic payments (for example, monthly payments), you will be in default at the end of the tenth day after the payment is due. 38
A renter who is in default under an RTO contract can usually reinstate the contract. "Reinstate" means that the contract takes effect again because you have paid all past-due payments and any properly-imposed late payment fees. This section explains the time periods allowed for reinstatement and the circumstances under which the lessor can deny you the right to reinstate the contract.
These are the only reasons a lessor can deny you the right to reinstate; the lessor has the burden of proving that a denial was permitted and in good faith. 47
C. Reduced Periodic Payments
If your income has been interrupted or significantly reduced, you may have the right to make reduced periodic payments if you want to continue to use the rental property. If you have made at least half the total scheduled periodic payments, the lessor must reduce the amount of your periodic payments when the income of any person who signed the RTO contract has been interrupted or significantly reduced. The interruption or reduction in income must be caused by involuntary job loss, involuntary reduced employment, illness, or pregnancy. You must provide the lessor evidence of the amount and cause of the interruption or reduction of income. 48
IV. PURCHASING THE RENTAL PROPERTY
In an RTO transaction, you can purchase the rental property in one of two ways: by paying all of the periodic payments scheduled under the RTO contract, or by using the purchase option. Both of these methods are explained below.
A. Paying All of The Periodic Payments
You can easily tell how much it would cost to purchase the rental property by paying all of the scheduled periodic payments. Just look in the "Total of Payments" box in the RTO disclosure box in your RTO contract.
By looking at the "Total of Payments" box, you can tell that it would cost $1,014 to purchase the property in that example if you were to pay all of the 78 payments scheduled under the contract.
B. Using the Purchase Option
You can use the purchase option at any time after you make the first periodic payment. Purchasing the rental property under the purchase option is cheaper than making all of the periodic payments. The purchase option price is:
Calculating the Purchase Option Price 49
[number of remaining scheduled periodic payments total number of scheduled periodic payments]
= [Purchase option price]
You also must pay all past-due payments and properly-imposed fees.
Example: In the transaction described in the RTO disclosure box, suppose that you decide to use the purchase option after making 39 payments. Suppose also that you have made one payment late, have missed the current payment, and owe $4.00 in late fees. The purchase option price is calculated as follows:
$250 x 39/78 = $125
$125 + $13 past-due payment + $4 late fees = $142
You would have to pay $142 to purchase the rental property by exercising the purchase option. Your total cost for the property would be:
$13 x 39 payments already made = $507
$507 + $142 purchase option price = $649
By exercising the purchase option after making one-half of the scheduled payments, you would save $365 over making all of the scheduled periodic payments. However, you still would have paid $649 for property with a cash price of $250.
V. YOUR DUTIES AS A RENTER
You have three basic duties under an RTO contract: to take proper care of the rental property, to make the periodic payments in a timely manner, and to promptly return the rental property undamaged when the RTO contract ends. Each of these duties is discussed below.
A. Ordinary Care
You must exercise "ordinary care" in using and caring for the rental property. 50 This means that you must take ordinary precautions to make sure that the property is not damaged while it is in your possession. An example of lack of ordinary care would be your leaving a window open above a rented television so that it is damaged by rain.
Under California law, a renter of personal property must repair any damage to the property caused by his or her failure to exercise ordinary care. 51 In the example of the rain-damaged television, you would have a duty to repair the damage to the television caused by the rain coming through the window.
The RTO contract can hold you liable (financially responsible) for damage to the rental property caused by your negligent, reckless or intentional act. 52 Leaving the window open so that the television is damaged by rain is an example of a negligent act. An example of a reckless act would be your throwing a baseball near the rented television and accidentally breaking the picture tube. An example of an intentional act would be your throwing the rented television out the window.
You would be liable to the lessor for damage to the television in each of these examples, if the RTO contract states that you are liable for damages caused by negligent, reckless or intentional acts. The Act limits the amount of your liability to either the fair market value of the property at the time of the loss or damage, or the amount necessary to exercise the purchase option at that time, whichever is less. 53
The contract also can hold you liable in some circumstances where the rental property is stolen. 54 (See Liability for Loss or Damage and Damaged, Lost or Stolen Rental Property.)
B. Periodic Payments
While you have the rental property, you must make the periodic payments in a timely manner. Late payments may be subject to a late-payment fee 55 and may cause you to be in default under the RTO contract 56 . Renters have generous reinstatement rights under the Act (the reinstatement period is one year in some circumstances). See details on default and reinstatement rights.
If you decide that you do not want to continue to use the rental property, you should promptly notify the lessor and ask the lessor to pick up the property. See the next heading on return of the rental property.
C. Return of Property
Lessors usually pick up rental property when the RTO contract ends for any reason (for example, the renter decides not to continue to use the property, or the renter is in default and the contract has ended). You must make the rental property available to the lessor (or return it to the lessor, if that is your agreement with the lessor).
If you have not damaged the rental property, have promptly notified the lessor to pick up the property, and have made the property available for pick up, you have no further obligation to the lessor. However, you are liable to the lessor for any unpaid periodic payments and any properly-imposed late fees. If you have damaged the property, or if the property has been lost or stolen, you may be liable to the lessor for the damage or loss. (See Renter's Liability for Loss, Renter's Duty of Care, Liability for Loss or Damage, and Damaged, Lost or Stolen Rental Property.)
VI. THE LESSOR'S DUTIES IN AN RTO TRANSACTION
Lessors have a number of duties under the Act. In general, lessors cannot engage in unfair, unlawful or deceptive conduct, and cannot make any untrue or misleading statement in connection with an RTO contract, including any violation of the Act. 57 Other duties include:
A. Defective Rental Property
A lessor cannot deliver any rental property to a renter that the lessor knows or has reason to know is defective. 58
B. Duty to Maintain Property
The lessor's duty to maintain the property does not apply to repair of damage caused by your intentional, willful, wanton, reckless or negligent conduct. 60
Replacement property must be the same brand as the original property, if available, and comparable to it in age, condition, and warranty coverage. If the same brand is not available, the replacement brand must be acceptable to you. 63
C. Receipt for Payment
The lessor must give you a written receipt for each payment made. 65
D. Notice of Amount to Acquire Ownership
The lessor must give you a statement of the amount necessary to acquire ownership of the rental property upon your request, and automatically when you have made half the total periodic payments necessary to acquire ownership. The statement must state the total amount that you would have to pay to acquire ownership by using the purchase option and by making all the remaining periodic payments scheduled under the RTO agreement. 66
E. Transfer of Warranties
If you purchase the property from the lessor, the lessor must transfer the unexpired portion of any transferable warranties made by the manufacturer, distributor or seller. These warranties then apply as if you were the original purchaser of the rental property. 67
F. Refund of Security Deposit
If you have paid a security deposit, the lessor must return it within two weeks after getting the property back from you.
The lessor can deduct an amount reasonably necessary to pay for loss or repair of the property. However, the loss or damage cannot be due to reasonable wear and tear, and must be for something that you can be held liable for under the RTO contract and the Act (for example, damage caused by your intentional conduct). (See Ordinary Care and Liability for Loss and see Damaged, Lost or Stolen Rental Property.)
The Act limits the amount that the lessor can deduct from your security deposit to either the fair market value of the property at the time of loss, or the amount necessary for the renter to purchase the property under the purchase option at that time, whichever is less.
If the lessor makes a deduction from your security deposit, the lessor must give you an itemized statement of the amount of the security and the amount and reason for the deduction. The refund and statement must be delivered together (within the two week period), and may be delivered personally or by mail. 68
G. Notice to Cosigners
If more than one person signs the RTO contract, the lessor must deliver a cosigner notice to each person before they sign the contract. The lessor does not have to give the notice to cosigners who are married to each other or who both receive possession of the rental property.
The content of the notice is set forth in the Act; generally, the notice explains that the cosigner has the same obligation to make payments that the renter has. The notice must be in English, and in the same language as was principally used in the sales presentation or negotiations leading to the signing of the RTO contract. The notice may be in the RTO contract (above or adjacent to the disclosure box), or on a separate piece of paper. 69
A cosigner who does not receive a copy of the cosigner notice and the RTO agreement as required by the Act has no liability in connection with the RTO transaction. 70
H. Sale of Service Contracts and Liability Waivers
A lessor cannot offer or sell you a service contract for rental property that provides coverage while the RTO contract is in effect. 71
However, the lessor may offer or sell a service contract that provides coverage after you acquire ownership of the rental property if both of the following are true: the offer or sale is not made until you have paid at least half the scheduled periodic payments or have used the purchase option; and, before the sale, the lessor has clearly and conspicuously informed you in writing that the purchase of the service contract is optional. 72
If you have purchased a service contract but you default on the RTO contract or do not acquire ownership of the property within the rental period stated in the contract, the lessor must refund everything that you have paid for the service contract. The lessor must make this refund within two weeks after receiving your last rental payment. 73
The Act prohibits the lessor from selling the renter insurance or a liability waiver against loss or damage to rental property. 74
Part 2: RESOLVING ISSUES AND DISPUTES IN RTO TRANSACTIONS
I. DAMAGED, LOST OR STOLEN RENTAL PROPERTY
One of your basic duties as a renter is to exercise ordinary care in using and caring for the rental property. You are liable (financially responsible) to the lessor for loss or damage to the property that is caused by your failure to exercise ordinary care. The RTO contract can also hold you liable for loss or damage to the rental property caused by your reckless or intentional acts.
The RTO contract can also hold you liable if the property is stolen. However, you are not liable for loss due to theft if there is evidence of burglary (for example, physical evidence or a police report), or if you establish by a preponderance of the evidence that you did not steal the property or aid or abet in its theft. 75
The Act sets a limit on the amount the lessor can hold you liable for if the property is damaged, lost or stolen: You are liable only for the fair market value of the property at the time of the damage, loss or theft, or for the amount necessary to use the purchase option at that time, whichever is less. 76
To figure out your liability for damaged, lost or stolen rental property, you must first figure out the purchase option price at the time of loss or theft. The example on calculating the purchase option price shows how to do this.
Using the example, assume that the property was destroyed due to your negligence after you had made 39 payments, and that the property's fair market value when it was destroyed was $150. Your liability for the rental property would be $142 (the amount necessary to use the purchase option), because that amount is less than the property's fair market value ($150).
II. LIMITS ON THE LESSOR'S COLLECTION AND REPOSSESSION ACTIVITIES
The Act significantly limits the lessor's collection and repossession activities. 77 Some of the most important limitations are described below.
A. Deceptive, Harassing and Unlawful Conduct
A lessor cannot engage in any unfair, unlawful or deceptive conduct and cannot make any untrue or misleading statement in connection with collecting payments or repossessing property. A lessor cannot engage in collection activity that would be unlawful in collecting a debt under the California Fair Debt Collection Practices Act. 78
A lessor cannot harass, oppress, or abuse any person in connection with an RTO agreement. For example, a lessor cannot use abusive language or cause a telephone to ring repeatedly with intent to annoy any person. 79
B. Communications with Renter
Generally, the lessor cannot communicate regarding an RTO agreement with any person other than the renter, or the renter's or lessor's attorney. 80 The lessor generally cannot communicate with the renter in connection with the collection of payments or the recovery of rental property at the renter's place of employment or at a time or place that is unusual or inconvenient to the renter (8:00 a.m. to 9:00 p.m. at the renter's location is assumed to be convenient absent knowledge to the contrary). 81
Generally, the lessor must cease further communication with the renter if the renter sends the lessor a written request to do so. 82
C. Communications with Others
The lessor may communicate with others to the extent that the communication is reasonably necessary to obtain information about the location of the renter or any rental property, subject to restrictions in the Act. 83 For example, when communicating with others for this purpose, the lessor must identify itself and state that it is confirming location information about the renter. The lessor generally cannot communicate with any person more than once. 84
III. LESSOR'S REMEDIES
The lessor may recover unpaid periodic payments and certain unpaid fees from the renter, subject to the conditions described below.
If the lessor makes a deduction from the security deposit, the lessor must give the renter an itemized statement of the amount of the security and the amount and reason for the deduction. The refund and statement must be delivered together (within the two week period), and may be delivered personally or by mail. 93
Technically, the lessor's failure to properly return (or account for deductions and return the balance of) the renter's security deposit would be a violation of the Act which the renter could assert in an action against the lessor. 94
B. Loss or Damage to the Rental Property
The lessor may recover from the renter for damage, loss or theft of the rental property, subject to the conditions described below.
The renter can be held liable for loss due to theft, but not if there is evidence of burglary (for example, physical evidence or a police report), or if the renter establishes by a preponderance of the evidence that he or she did not steal the property or aid or abet in its theft. 102 The same monetary limit on recovery applies to a loss due to theft. 103
Since the amount of the renter's liability is the lesser of the property's fair market value or its purchase option price, both must be determined. As shown in the purchase option example, it is necessary to know the cash price of the property in order to calculate the purchase option price. Therefore, in order for a court to determine which of these amounts is less, it seems that the lessor should be required to produce records or evidence that properly substantiates the cash price of the property. 104
The cash price is essentially the retail cash price of the rental property in retail stores in the area where the lessor does business. 105 The Act requires the lessor to keep records that establish that the cash price disclosed in the RTO contract is the cash price under this definition. The Act lists three examples of methods that the lessor may use to establish the cash price of rental property:
Under the Act, the renter can be held liable for loss or damage to the rental property, if the RTO contract so provides. 113 Assuming the requisite contract language, the renter's refusal to return the property may be treated as a "loss" caused by the renter's "intentional act." The Act limits the renter's liability for loss caused by the renter's intentional act to the property's fair market value at the time of loss, or the purchase option price at that time, whichever is less. 114 Thus it seems clear that the lessor in these situations cannot, consistent with the Act, recover all of the unpaid periodic payments scheduled under the RTO contract.
See the formula for calculating the purchase option price. (see also Damaged, Lost or Stolen Property). The formula includes past due payments. Since the lessor cannot know with certainty that the RTO contract will not be reinstated until the renter has defaulted on three consecutive periodic payments. 115 , it is suggested that the past-due payments component of the purchase option formula be limited to no more than the amount of three periodic payments (plus associated late fees that are properly imposed). 116
Appropriate credit should be given for any period during which the rented property or any substitute property was not in good working order. 117
An alternative approach would be to treat the renter as having converted the rental property. 118 The usual measure of damages for conversion is the market value of the converted property at the time of conversion, plus interest from that time. 119 The lessor also can recover fair compensation for its time and money (if any) properly expended pursuing the property. 120
C. Lessor Must Observe Act's Limitations
A consumer who is damaged by the lessor's violation of the Act may bring an action against the lessor for damages. 121 For example, if the lessor attempted to hold the renter liable for loss or damage to the property except as permitted by the Act, or attempted to recover a prohibited or excessive fee, or included a prohibited contract provision, the lessor would have violated the Act, and the renter who was damaged could assert the violation in an action against the lessor. 122
Further, if the lessor included a provision in the RTO contract that is prohibited by the Act, the provision is void, and the renter can void the contract. 123
A lessor's suit against the renter must be filed in the proper venue. Venue in a lawsuit on an RTO contract is proper in the county where the contract was signed or where the renter lives at the time the lawsuit is filed. 124 The RTO contract cannot authorize the lessor or its agent to bring suit against the renter in an improper venue. 125
IV. RENTER'S REMEDIES
B. Unenforceable Provisions
If a lessor willfully discloses a cash price in an RTO contract that is more than the cash price under the Act's definition, the contract is void. 127 In addition, the renter is entitled to keep the property without any obligation, and the lessor must return to the renter all amounts paid. 128 The cash price for used property cannot exceed the cash price for the same or similar new property. 129 The renter can void an RTO contract that violates this prohibition. 130
An RTO contract is not enforceable against the renter until the renter has received a copy of the fully-completed and signed contract. 131
C. Renter's Cause of Action
A consumer who is damaged by the lessor's violation of the Act is entitled to recover all of the following:
The Act's rights, remedies and penalties are cumulative to those under other laws. 135
D. Multiple Plaintiffs
Where more than one consumer is a party to an RTO contract, these limitations apply to all of them in the aggregate, and they may recover only one recovery for each violation. 136
E. Correction of Errors
The lessor is not liable for a violation of the Act arising from a "bona fide error," if the lessor gives the renter written notice of the error within 30 calendar days after discovering it and before an action under the Act is filed or before the lessor receives written notice of the error from the renter. 137
If correction of the error would increase the amount of any payment, the lessor may not collect the amount of the increase, and the renter may enforce the RTO agreement as initially written. 138 However, if correction of the error would decrease the amount of any payment, the lessor must refund to the renter the amount of the overpayment since the beginning of the transaction. 139
F. Willful Violation a Misdemeanor
Willful violation of the Act is a misdemeanor. 140
Part 3: OTHER RESOURCES
Consumer Law Sourcebook for Small Claims Court Judicial Officers, Rent-to-Own Transactions, §§ 27.125-27.197 (California Department of Consumer Affairs, 1996).
Witkin, Summary of California Law (9th ed. 1987), Sales, § 320 (¶ 27a) (1998 Supplement).
NOTICE: The Department of Consumer Affairs strives to make its legal guides accurate as of the date of publication, but they are only guidelines and not definitive statements of the law. Questions about the law's application to particular cases should be directed to a specialist.
Senior Staff Counsel,
Legal Services Unit, October, 1998
This document may be copied, if all of the following conditions are met: the meaning of the copied text is not changed; credit is given to the Department of Consumer Affairs; and all copies are distributed free of charge.
CC = Civil Code
§ = section;
§§ = sections
1 For example, see National Consumer Law Center, Unfair and Deceptive Acts and Practices (4th ed. 1997), § 5.7.4 and following; Consumer Action, "Rent-to-Own: It's a Bad Deal" (December, 1993).
2 Consumer Action, "Rent-to-Own: It's a Bad Deal" (December, 1993); see CalPIRG, "Don't Rent To Own: The 1997 PIRG Rent-To-Own National Survey" (June, 1997).
3 CC §§ 1812.620-1812.649. The Act also is called the "Karnette Rental-Purchase Act."
4 CC § 1812.623(b),(c). See these sections regarding rental items that are not on display but that appear in photographs or catalogs.
5 CC §§ 1812.623(a)(2).
6 CC § 1812.629(a).
7 CC § 1812.630(a)(1). This section also requires the lessor's ad to disclose that a renter does not acquire ownership of the property until all the payments necessary to acquire ownership have been made, and that the property is used, if that is the case. In print advertisements that advertise more than one item, a schedule or table may be used to meet the requirements of CC § 1812.630(a)(1). (See CC § 1812.630(a)(2).) See definition of "advertisement" at CC § 1812.622(a).
8 CC §§ 1812.628(a), 1689.5. In legal terms, the renter can cancel the contract without obligation within three business days of signing it if the contract has an initial term of more than one week and if it was made at "other than appropriate trade premises."
9 CC § 1812.628(b).
10 CC § 1812.623(a).
11 CC § 1812.629(c).
12 CC § 1812.629(c).
13 CC § 1812.629(b).
14 CC § 1812.623(b).
15 CC § 1812.623(a)(10).
16 Required contract disclosures are set forth at CC § 1812.623. Prohibited contract provisions are set forth at CC § 1812.624.
17 CC §§ 1812.623(a)(1),(2).
18 CC § 1812.623(a)(3).
19 CC §§ 1812.623(a)(4),(11). See CC § 1812.632.
20 CC §§ 1812.623(a)(5),(6).
21 CC § 1812.622(e). In legal terms, the cash price is the price at which retail sellers are selling and retail buyers are buying the same or similar property in the same trade area in which the lessor's place of business is located. See CC § 1812.644 regarding evidence of cash price and record keeping requirements.
22 CC § 1812.624(a)(17).
23 CC § 1812.622(f).
24 CC §§ 1812.623(a)(7),(8).
25 CC § 1812.626.
26 CC § 1812.625(a).
27 CC §§ 1812.623(a)(9), 1812.627(a). See CC § 1812.632(a).
28 Prohibited contract provisions are set forth at CC § 1812.624. Required contract disclosures are set forth at CC § 1812.623. The lessor cannot require the renter to sign any document that contains a prohibited provision. (CC § 1812.624(a).)
29 CC § 1812.624(a)(2).
30 CC § 1812.624(a)(9).
31 CC §§ 1812.623(a)(9). See CC §§ 1812.624(a)(9),(11), 1812.627.
32 CC § 1812.624(a)(11).
33 CC §§ 1812.627(a),(b).
34 CC § 1812.627(a). See CC § 1812.632(a).
35 CC §§ 1812.624(a)(5),(6),(7),(8),(14). The lessor has the burden of proving that any fee imposed under CC § 1812.624(a)(7) was reasonable and was an actual cost incurred by the lessor.
36 CC § 1812.624(a)(12).
37 CC § 1812.630(b). See CC § 1812.640 (limits reports that lessors can make to consumer credit reporting agencies).
38 CC § 1812.631(a).
39 CC §§ 1812.631(a),(b).
40 CC § 1812.624(a)(5).
41 CC §§ 1812.631(a),(c).
42 CC § 1812.624(a)(5).
43 CC §§ 1812.631(b),(c).
44 CC §§ 1812.631(b),(c).
45 CC § 1812.631(d).
46 CC § 1812.631(e).
47 CC § 1812.631(e).
48 CC § 1812.632(c). See this section for important additional details.
49 CC § 1812.632(a).
50 See CC §§ 1812.624(a)(9), 1928, 1929.
51 CC §§ 1928, 1929.
52 CC §§ 1812.623(a)(9), 1812.624(a)(9),(11), 1812.627(b).
53 CC §§ 1812.623(a)(9), 1812.627(a). See CC §1812.632(a).
54 CC §§ 1812.623(a)(9), 1812.627(b).
55 CC §§ 1812.623(a)(7), 1812.626. The fee must be specified in the RTO contract.
56 CC § 1812.631(a).
57 CC § 1812.639.
58 CC § 1812.633(h).
59 CC §§ 1812.633(a),(f).
60 CC § 1812.633(g). If the lessor does not maintain the property for one of these reasons, the lessor has the burden of proving that it acted justifiably and in good faith.
61 CC § 1812.633(b).
62 CC § 1812.633(c).
63 CC § 1812.633(d).
64 CC § 1812.633(e).
65 CC § 1812.629(d).
66 CC § 1812.632(b). The statement must be delivered or mailed to the renter within seven days after the renter's request or the date on which half of the periodic payments have been made.
67 CC § 1812.634. See CC § 1812.623(a)(13).
68 CC §§ 1812.625(a),(b).
69 CC §§ 1812.643(d),(e).
70 CC § 1812.643(g). See this section for additional details.
71 CC § 1812.635(a). "Service contract" is defined at CC § 1791(o).
72 CC § 1812.635(b).
73 CC § 1812.635(c). (See this section and CC §§ 1794.4, 1794.41 on cancellation rights.)
74 CC § 1812.624(a)(3).
75 CC § 1812.627(b).
76 CC § 1812.627(a). See CC § 1812.632(a).
77 CC § 1812.638. These limitations are based on those in the California Fair Debt Collection Practices Act (CC § 1788 and following) and the federal Fair Debt Collection Practices Act (15 United States Code § 1692 and following).
78 CC § 1812.638(a).
79 CC § 1812.638(f). See this section for additional details.
80 CC § 1812.638(d). See this section for exceptions.
81 CC § 1812.638(c).
82 CC § 1812.638(e). See this section for exceptions.
83 CC § 1812.638(d)(1). See CC §§ 1812.638(b)(1)-(5) for these restrictions.
84 CC §§ 1812.638(b)(1),(2). See these sections for additional details.
85 CC § 1812.629(c).
86 CC § 1812.643. Under CC § 1812.643, cosigners who are married to each other or who receive possession of the rental property do not have to be given the cosigner notice.
87 CC §§ 1812.623(a)(7), 1812.624(a)(13), 1812.626.
88 CC §§ 1812.624(a)(5),(6),(7),(8),(14). The lessor has the burden of proving that any fee imposed under CC § 1812.624(a)(7) was reasonable and was an actual cost incurred by the lessor.
89 CC § 1812.624(a)(12).
90 CC §§ 1812.623(a)(7), 1812.624(a)(7). Under CC § 1812.624(a)(7), the lessor must prove that the fee was reasonable and was actually incurred.
91 CC §§ 1812.633(a),(f),(g). If the lessor does not repair the property because of the renter's intentional, wilful, wanton, reckless or negligent conduct, the lessor has the burden of proof to establish that its refusal was justified and in good faith.
92 CC § 1812.625.
93 CC §§ 1812.625(a),(b).
94 CC § 1812.636(a).
95 CC § 1812.635(c). The lessor must refund all consideration paid for the service contract if the renter defaults or does not acquire ownership of the property within the rental period stated in the contract.
96 CC § 1812.636(a).
97 CC § 1812.646.
98 CC § 1812.631(e).
99 CC § 1812.636(a).
100 CC §§ 1812.623(a)(9), 1812.624(a)(11), 1812.627.
101 CC §§ 1812.624(a)(11), 1812.627.
102 CC § 1812.627(b).
103 CC § 1812.627.
104 CC § 1812.632(a). See CC § 1812.644.
105 CC § 1812.622(e). See endnote 21.
106 CC § 1812.644(b). "Home appliance" and "home electronic product" are defined at CC §§ 1791(r) and (s), respectively.
107 CC § 1812.644(d).
108 CC § 1812.624(a)(17).
109 CC § 1812.624(b).
110 CC § 1812.625(b).
111 See CC § 1812.635(c).
112 CC § 1812.635(c).
113 CC §§ 1812.623(9), 1812.624(a)(9),(11), 1812.627(b).
114 CC § 1812.627(a).
115 CC § 1812.631(e)(2). Default in making payments on three consecutive occasions is one of the circumstances under which the lessor can deny the renter the right to reinstate
116 An amount corresponding to fewer past-due payments should be allowed if the lessor denied the right to reinstate earlier on the ground that the renter stole or unlawfully disposed of the rental property. (See CC § 1812.631(e)(2).)
117 CC § 1812.633(f).
118 CC § 1925; Witkin, Summary of California Law (9th ed. 1987), Torts, § 610.
119 CC § 3336; 14 Cal.Jur.3d, Conversion §§ 38, 45. This is the measure of damages in conversion actions unless it would be manifestly unjust, in which case CC § 3336's alternate measure of damages ("loss indemnification") is used. (Krueger v. Bank of America (1983) 145 Cal.App.3d 204, 215 [193 Cal.Rptr. 322, 329]; see e.g., Myers v. Stephens (1965) 233 Cal.App.2d 104, 116 [43 Cal.Rptr. 420, 430 (lost profit awarded instead of value of converted property where lost profit was 12 times greater than value of converted property).)
120 CC § 3336. Attorneys fees and expenses incurred in preparation for litigation cannot be recovered under this provision. (14 Cal.Jur.3d, Conversion § 47.)
121 CC § 1812.636.
122 CC § 1812.636(a).
123 CC § 1812.624(b).
124 CC § 1812.645.
125 CC § 1812.624(a)(16).
126 CC § 1812.624(b).
127 CC § 1812.644(d).
128 CC § 1812.644(d).
129 CC § 1812.624(a)(17).
130 CC § 1812.624(b).
131 CC § 1812.629(c). See CC §§ 1812.643 on cosigners.
132 CC §§ 1812.624(a)(4),(15).
133 CC § 1812.646.
134 CC § 1812.636(a).
135 CC § 1812.648.
136 CC § 1812.636(b).
137 CC § 1812.637(a). See this section for the definition of "bona fide error."
138 CC § 1812.637(b).
139 CC § 1812.637(c).
140 CC § 1812.647.