Bill Text: NJ S2767 | 2016-2017 | Regular Session | Introduced
Bill Title: Prohibits imposition of fee for early termination of consumer contract in certain circumstances.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2016-11-10 - Introduced in the Senate, Referred to Senate Commerce Committee [S2767 Detail]
Download: New_Jersey-2016-S2767-Introduced.html
Sponsored by:
Senator SAMUEL D. THOMPSON
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Prohibits imposition of fee for early termination of consumer contract in certain circumstances.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the early termination of consumer contracts and supplementing P.L.1980, c.125.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A consumer contract shall allow a consumer to terminate the contract prior to the term of the contract and shall include written disclosure that the contract may be terminated early under the conditions set forth in this section.
b. A fee shall not be assessed or imposed for the early termination of a consumer contract in the event of a consumer's death, or if the consumer is incapacitated to the point that the consumer can no longer use the products or services provided for under the contract. A spouse, family member, guardian, or estate administrator or executor shall provide a death certificate or other satisfactory proof to be eligible under this section.
c. A consumer contract shall not require, in the event of a consumer's death, that the decedent's surviving spouse, family member, guardian, or estate administrator or executor purchase any products or services offered through the contract, buy out the remainder of the contract, or continue the contract under the original terms of the consumer contract.
2. This act shall take effect on the first day of the third month next following enactment and apply to any consumer contract entered into on or after the effective date of this act.
STATEMENT
This bill prohibits the imposition of a fee for the early termination of a consumer contract under certain circumstances.
The bill provides that a consumer contract must allow a consumer to terminate the contract prior to the term of the contract; however, no early termination fee can be assessed or imposed if the person dies or is incapacitated to the point that he or she can no longer use the contracted products or services. A spouse, family member, guardian, or estate administrator or executor would provide a death certificate or other satisfactory proof to be eligible.
Additionally, in the event of a consumer's death, the decedent's surviving spouse, family member, guardian, or estate administrator or executor would not be required to purchase the products or services offered through the contract, buy out the remainder of the contract, or continue the contract under its original terms.
