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Tuesday, July 15, 2014

Plain language law 56:12-1 Definitions.

Plain language law 56:12-1  Definitions.

1.As used in this act:

"Consumer contract" means a written agreement in which an individual:

a.Leases or licenses real or personal property;

b.Obtains credit;

c.Obtains insurance coverage, except insurance coverage contained in policies subject to the "Life and Health Insurance Policy Language Simplification Act," P.L.1979, c.167 (C.17B:17-17 et seq.);

d.Borrows money;

e.Purchases real or personal property;

f.Contracts for services including professional services;

g.Enters into a service contract, as defined in section 1 of P.L.2013, c.197 (C.56:12-87), 

for cash or on credit and the money, property or services are obtained for personal, family or household purposes.  "Consumer contract" includes writings required to complete the consumer transaction. "Consumer contract" does not include a written agreement involving a transaction in securities with a broker-dealer registered with the Securities and Exchange Commission, or a transaction in commodities with a futures commission merchant registered with the Commodity Futures Trading Commission.

L.1980, c.125, s.1; amended 1981, c.464, s.1 (s.11 amended 1982, c.88, s.6); 1982, c.195; 2013, c.197, s.11.
56:12-2.  Contracts to be written in simple, clear, understandable and easily readable way    A consumer contract entered into on or after the effective date of this amendatory and supplementary act shall be written in a simple, clear, understandable and easily readable way.  In determining whether a consumer contract has been written in a simple, clear, understandable and easily readable way as a whole, a court, the Attorney General or the Commissioner of Insurance, in regard to contracts of insurance provided for in subsection c. of  section 1 of this act (C. 56:12-1c.), shall take into consideration the guidelines set forth in section 10 of this act.  Use of technical terms or words of art shall not in and of itself be a violation of this act.

     L.1980, c. 125, s. 2, eff. Oct. 16, 1980.  Amended by L.1981, c. 464, s. 2; L.1982, c. 88, s. 1, eff. July 23, 1982.
56:12-2.1  Cost of residential construction permits, disclosure by contractor; violations, penalties.
1. a. The final invoice regarding a consumer contract for construction or reconstruction at a residential premises shall contain a disclosure by the contractor of the cost of construction permits required to complete the construction or reconstruction of the residential premises, and the amount of any administrative or processing fees that the contractor will charge to obtain the required permits which amount shall not exceed the cost to the contractor to obtain the permit and to record any necessary documents.  For the purpose of this section, "construction or reconstruction" means any work on a residence which will require a permit to be obtained under the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.), or regulations promulgated thereto, but excluding work on any new home subject to the "New Home Warranty and Builders' Registration Act," P.L.1977, c.467 (C.46:3B-1 et seq.) and for which a certificate of occupancy has been issued

b.Upon written complaint filed by a consumer with the Division of Consumer Affairs in the Department of Law and Public Safety, a contractor found to be in violation of this provision shall be subject to a $500 penalty for each separate violation to be enforced pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).

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