Civil Code

Part 7 of 20 · provisions 1,201–1,400

This section names the act the Civil Code of the State of California and says it is divided into four parts.

Jurisdiction: United States — California
Instrument: Code
Citation: CIV
Version: Undated source snapshot
Language: en
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Occupancy can create title, but that title is subject to listed superior claims and does not by itself let the occupant bring or keep a quiet title action unless prescription has matured the title. Occupancy for the time required by the Code of Civil Procedure can create title by prescription, except for property dedicated to public use or owned by the state or a public entity. A use of land does not become a prescriptive easement if the owner posts notice signs at each entrance or every 200 feet along the boundary. Public use of private property does not create a permanent vested right unless there is an express written irrevocable offer of dedication that is accepted as required; special rules apply to certain coastal property. A person who in good faith and by mistake affixes improvements to another’s land may remove them, but must pay damages as required.

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Provisions of Civil Code

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1805.1.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 5. Finance Charge Limitation [1805.1 - 1805.9] ( Heading of Article 5 amended by Stats. 1970, Ch. 546. )
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The contract holder must not charge or collect finance charges above the stated limit, and may not make any annual fee or charge in a retail installment contract.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 5. Finance Charge Limitation [1805.1 - 1805.9] ( Heading of Article 5 amended by Stats. 1970, Ch. 546. ) ## 1805.1. The holder of the contract shall not charge, collect, or receive a finance charge which exceeds the dollar amount shown pursuant to subdivision (b) of Section 1803.3, except to the extent (a) caused by the holder’s receipt of one or more payments under a contract which provides for determination of the finance charge or a portion thereof on the 365-day basis at a time or times other than as originally scheduled, whether or not the parties enter into an agreement pursuant to Section 1807.1, (b) permitted by paragraph (2), (3), or (4) of subdivision (c) of Section 226.17 of Regulation Z, or (3) permitted by Section 1805.8. No annual fee or charge shall be made in any retail installment contract. (Amended (as amended by Stats. 1988, Ch. 479, Sec. 1) by Stats. 1991, Ch. 819, Sec. 2.)
1805.2.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 5. Finance Charge Limitation [1805.1 - 1805.9] ( Heading of Article 5 amended by Stats. 1970, Ch. 546. )
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Contracts may be paid in successive monthly, semimonthly, or weekly installments.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 5. Finance Charge Limitation [1805.1 - 1805.9] ( Heading of Article 5 amended by Stats. 1970, Ch. 546. ) ## 1805.2. Contracts may be payable in successive monthly, semimonthly or weekly installments. (Added by Stats. 1959, Ch. 201.)
1805.4.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 5. Finance Charge Limitation [1805.1 - 1805.9] ( Heading of Article 5 amended by Stats. 1970, Ch. 546. )
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The finance charge must include certain contract and credit-extension costs, and most other fees or charges are barred unless this chapter allows them. The seller or holder of a retail installment contract may also charge up to $15 for the return of a dishonored check or similar payment instrument tied to the contract.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 5. Finance Charge Limitation [1805.1 - 1805.9] ( Heading of Article 5 amended by Stats. 1970, Ch. 546. ) ## 1805.4. The finance charge shall be inclusive of all charges incident to investigating and making the contract and for the extension of the credit provided for in the contract, and no fee, expense or other charge whatsoever shall be taken, received, reserved or contracted for except as otherwise provided in this chapter. The seller or holder of a retail installment contract may charge and collect a fee not to exceed fifteen dollars ($15) for the return by a depository institution of a dishonored check, negotiable order of withdrawal, or share draft issued in connection with the retail installment contract. The fee is not included in charges as defined in this chapter or in determining the applicable charges which may be made under this chapter. (Amended by Stats. 1993, Ch. 101, Sec. 1. Effective January 1, 1994.)
1805.6.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 5. Finance Charge Limitation [1805.1 - 1805.9] ( Heading of Article 5 amended by Stats. 1970, Ch. 546. )
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A retail seller generally cannot charge finance charges on retail installment sale goods until the buyer has possession, with specific exceptions for pickup/notice, delivery within 10 days, and certain home improvement contracts.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 5. Finance Charge Limitation [1805.1 - 1805.9] ( Heading of Article 5 amended by Stats. 1970, Ch. 546. ) ## 1805.6. (a) Notwithstanding the provisions of any contract to the contrary, except as provided in subdivision (b) or (c), no retail seller shall assess any finance charge for goods purchased under a retail installment contract until the goods are in the buyer’s possession. (b) A finance charge may be assessed for such undelivered goods, as follows: (1) From the date when such goods are available for pickup by the buyer and the buyer is notified of their availability, or (2) From the date of purchase, when such goods are delivered or available for pickup by the buyer within 10 days of the date of purchase. (c) In the case of a home improvement contract as defined in Section 7151.2 of the Business and Professions Code, a finance charge may be assessed from the approximate date of commencement of the work as set forth in the home improvement contract. (Amended by Stats. 1981, Ch. 1075, Sec. 8. Operative October 1, 1982, or sooner, by Sec. 25 of Ch. 1075, as amended by Stats. 1982, Ch. 129, Sec. 12.)
1805.7.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 5. Finance Charge Limitation [1805.1 - 1805.9] ( Heading of Article 5 amended by Stats. 1970, Ch. 546. )
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Certain buyer-seller contracts must calculate the finance charge on a simple-interest basis when the final installment is due more than 62 months after the contract date.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 5. Finance Charge Limitation [1805.1 - 1805.9] ( Heading of Article 5 amended by Stats. 1970, Ch. 546. ) ## 1805.7. All contracts entered into between a buyer and a seller on or after January 1, 1983, shall provide for the calculation of the finance charge contemplated by item (1) of subdivision (a) of Section 1805.1 on the simple-interest basis if the date on which the final installment is due, according to the original terms of the contract, is more than 62 months after the date of the contract. (Added by Stats. 1979, Ch. 805.)
1805.8.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 5. Finance Charge Limitation [1805.1 - 1805.9] ( Heading of Article 5 amended by Stats. 1970, Ch. 546. )
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A holder may not charge a finance rate above the APR disclosed under Section 1803.3(b) for certain post-contract advances.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 5. Finance Charge Limitation [1805.1 - 1805.9] ( Heading of Article 5 amended by Stats. 1970, Ch. 546. ) ## 1805.8. The maximum rate of finance charge which may be imposed on amounts advanced by the holder subsequent to the execution of the contract for insurance, repairs to or preservation of the goods, or preservation of the holder’s security interest therein, shall not exceed the annual percentage rate disclosed pursuant to item (b) of Section 1803.3. (Amended by Stats. 1981, Ch. 1075, Sec. 9. Operative October 1, 1982, or sooner, by Sec. 25 of Ch. 1075, as amended by Stats. 1982, Ch. 129, Sec. 12.)
1805.9.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 5. Finance Charge Limitation [1805.1 - 1805.9] ( Heading of Article 5 amended by Stats. 1970, Ch. 546. )
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A contract may not set a finance charge using both precomputed and simple-interest bases, unless the charge is permitted by Section 1805.8.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 5. Finance Charge Limitation [1805.1 - 1805.9] ( Heading of Article 5 amended by Stats. 1970, Ch. 546. ) ## 1805.9. No contract shall provide for a finance charge which is determined in part by the precomputed basis and in part by the simple-interest basis, except for any finance charge permitted by Section 1805.8. (Added by Stats. 1979, Ch. 805.)
1806.1.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 6. Payments [1806.1 - 1806.4] ( Article 6 added by Stats. 1959, Ch. 201. )
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A buyer’s payment to the last known holder of a contract or installment account can discharge the buyer’s obligation, unless the buyer knows the contract has been assigned or is intended to be assigned.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 6. Payments [1806.1 - 1806.4] ( Article 6 added by Stats. 1959, Ch. 201. ) ## 1806.1. Unless the buyer has notice of actual or intended assignment of a contract or installment account, payment thereunder made by the buyer to the last known holder of such contract or installment account, shall to the extent of the payment, discharge the buyer’s obligation. (Added by Stats. 1959, Ch. 201.)
1806.2.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 6. Payments [1806.1 - 1806.4] ( Article 6 added by Stats. 1959, Ch. 201. )
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The contract holder must give the buyer a detailed written statement of the unpaid balance when the buyer makes a good-faith written request, and must provide one statement each year without charge.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 6. Payments [1806.1 - 1806.4] ( Article 6 added by Stats. 1959, Ch. 201. ) ## 1806.2. At any time after its execution, but not later than one year after the last payment thereunder, the holder of a contract shall, upon written request of the buyer made in good faith, promptly give or forward to the buyer a detailed written statement which will state with accuracy the total amount, if any, unpaid thereunder. Such a statement shall be supplied by the holder once each year without charge; if any additional statement is requested by the buyer, the holder shall supply such statement to the buyer at a charge not exceeding one dollar ($1) for each additional statement supplied to the buyer. The provisions of this section shall apply only to those transactions wherein, instead of periodic statements of account, the buyer is provided with a passbook or payment book in which all payments, credits, charges and the unpaid balance is entered. (Amended by Stats. 1969, Ch. 625.)
1806.3.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 6. Payments [1806.1 - 1806.4] ( Article 6 added by Stats. 1959, Ch. 201. )
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A buyer may pay off a retail installment contract early without penalty, and may be entitled to a refund credit for unearned finance charges in precomputed contracts.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 6. Payments [1806.1 - 1806.4] ( Article 6 added by Stats. 1959, Ch. 201. ) ## 1806.3. (a) Notwithstanding any provision of a contract to the contrary, the buyer may pay at any time before maturity the entire indebtedness evidenced by the contract without penalty. In the event of prepayment in full: (1) If the finance charge was determined on the precomputed basis, the amount required to repay the contract shall be the outstanding contract balance as of that date, provided, however, that the buyer shall be entitled to a refund credit in the amount of the unearned portion of the finance charge. The amount of the unearned portion of the finance charge shall be at least as great a proportion of the finance charge, or if the contract has been extended, deferred, or refinanced, of the additional charge therefor, as the sum of the periodic monthly time balances payable more than 15 days after the date of prepayment bears to the sum of all the periodic monthly time balances under the schedule of installments in the contract or, if the contract has been extended, deferred or refinanced, as so extended, deferred or refinanced. Where the amount of the refund credit is less than one dollar ($1), no refund credit need be made by the holder. Any refund credit in the amount of one dollar ($1) or more may be made in cash or credited to the outstanding obligations of the buyer under the contract. (2) If the finance charge or a portion thereof was determined on the simple-interest basis, the amount required to prepay the contract shall be the outstanding contract balance as of that date, including any earned finance charges which are unpaid as of that date, and provided further that in cases where the finance charge or a portion thereof is determined on the 360-day basis, the payments theretofore received will be assumed to have been received on their respective due dates regardless of the actual dates on which those payments were received. (b) Notwithstanding any provision of a contract to the contrary, whenever the indebtedness created by any retail installment contract is satisfied prior to its maturity through surrender of the collateral, repossession of the collateral, redemption of the collateral after repossession, or any judgment, the outstanding obligation of the buyer shall be determined as provided in subdivision (a); provided further that the buyer’s outstanding obligation shall be computed by the holder as of the date the holder recovers the value of the collateral through disposition thereof or judgment is entered or, if the holder elects to keep the collateral in satisfaction of the buyer’s indebtedness, as of the date the holder takes possession of the collateral. (c) This section does not preclude the collection or retention by the holder of any delinquency charge made pursuant to Section 1803.6. (Amended (as amended by Stats. 1988, Ch. 479, Sec. 5) by Stats. 1991, Ch. 819, Sec. 7.)
1806.4.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 6. Payments [1806.1 - 1806.4] ( Article 6 added by Stats. 1959, Ch. 201. )
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After the buyer has paid all amounts due and makes a demand, the holder must send or deliver the buyer the papers needed to confirm full payment and release the goods from security.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 6. Payments [1806.1 - 1806.4] ( Article 6 added by Stats. 1959, Ch. 201. ) ## 1806.4. After the payment of all sums for which the buyer is obligated under a contract and upon demand made by the buyer, the holder shall deliver, or mail to the buyer at his last known address, such one or more good and sufficient instruments as may be necessary to acknowledge payment in full and to release all security in the goods under such contract. (Added by Stats. 1959, Ch. 201.)
1807.1.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 7. Refinancing and Consolidation [1807.1 - 1807.3] ( Article 7 added by Stats. 1959, Ch. 201. )
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A contract holder may extend or defer retail installment payments if the buyer agrees, but extra charges are limited and some charges require a written, signed agreement.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 7. Refinancing and Consolidation [1807.1 - 1807.3] ( Article 7 added by Stats. 1959, Ch. 201. ) ## 1807.1. (a) The holder of a retail installment contract may, upon agreement with the buyer, extend the scheduled due date or defer the scheduled payment of all or of any part of any installment or installments payable thereunder. No charge shall be made for any such extension or deferment unless the agreement for such extension or deferment is in writing and signed by the parties thereto. (b) Where the contract includes a finance charge determined on the precomputed basis, the holder may charge and contract for the payment of an extension or deferral agreement charge by the buyer and collect and receive the same, but such charge may not exceed an amount equal to 1 percent per month simple interest on the amount of the installment or installments, or part thereof, extended or deferred for the period of extension or deferral. Such period shall not exceed the period from the date when such extended or deferred installment or installments, or part thereof, would have been payable in the absence of such extension or deferral, to the date when such installment or installments, or part thereof, are made payable under the agreement of extension or deferment; except that a minimum charge of one dollar ($1) for the period of extension or deferral may be made in any case where the extension or deferral agreement charge, when computed at such rate, amounts to less than one dollar ($1). (c) Where the contract includes a finance charge determined on the simple-interest basis, the holder may charge and contract for the payment of an extension or deferral agreement charge by the buyer and collect and receive the same, but the charge for the extension or deferral agreement may not exceed the lesser of twenty-five dollars ($25) or 10 percent of the then unpaid balance of the contract. Such charge shall be in addition to any finance charges which accrue because such extended or deferred payments are received at a time other than as originally scheduled. (d) An extension or deferral agreement may also provide for the payment by the buyer of the additional cost to the holder of the contract of premiums for continuing in force, until the end of such period of extension or deferral, any insurance coverages provided for in the contract, subject to the provisions of Section 1803.5. (Amended by Stats. 1980, Ch. 1380, Sec. 17. Effective October 1, 1980.)
1807.2.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 7. Refinancing and Consolidation [1807.1 - 1807.3] ( Article 7 added by Stats. 1959, Ch. 201. )
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A holder of a retail installment contract may refinance the remaining balance if the buyer agrees in writing, and may charge a refinance charge based on the refinanced amount and related costs.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 7. Refinancing and Consolidation [1807.1 - 1807.3] ( Article 7 added by Stats. 1959, Ch. 201. ) ## 1807.2. The holder of a retail installment contract or contracts may, upon agreement in writing with the buyer, refinance the remaining amount owing on the contract or contracts by providing for a new schedule of installment payments. The holder may charge and contract for the payment of a refinance charge by the buyer and collect and receive the same, but such refinance charge shall be based upon the amount refinanced, plus any additional cost of insurance and of official fees incident to the refinancing, after the deduction of a refund credit in an amount equal to that to which the buyer would have been entitled under Section 1806.3 if he or she had prepaid in full his or her obligations under the contract or contracts. The agreement for refinancing may also provide for the payment by the buyer of the additional cost to the holder of the contract or contracts of premiums for continuing in force, until the maturity of the contract or contracts as refinanced, any insurance coverages provided for therein, subject to Section 1803.5. The refinancing agreement shall set forth: (a) The amount of the existing outstanding balance to be refinanced, which consists of the remaining amount owing to be refinanced. (b) The amount of any refund credit. (c) The difference between subdivisions (a) and (b), which is the net outstanding balance to be refinanced. (d) Any additional cost of insurance and of official fees to the buyer. (e) The sum of subdivisions (c) and (d), which is the amount financed. (f) The finance charge (1) as expressed as the annual percentage rate as defined in Regulation Z and (2) expressed in dollars. (g) The number amount, and due dates or periods of payments scheduled to repay the indebtedness and the sum of those payments. The items need not be stated in the sequence or order set forth above; additional items may be included to explain the computations made in determining the amount to be paid by the buyer. Where there is a consolidation of two or more contracts then Sections 1808.1 and 1808.2 shall apply. If the finance charge or any portion thereof is calculated on the 365-day basis, the amount of the finance charge shown pursuant to subdivision (f) shall be that amount which will be incurred by the buyer if all payments are received by the seller on their respective due dates. (Amended (as amended by Stats. 1988, Ch. 479, Sec. 6) by Stats. 1991, Ch. 819, Sec. 9.)
1807.3.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 7. Refinancing and Consolidation [1807.1 - 1807.3] ( Article 7 added by Stats. 1959, Ch. 201. )
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If a contract or refinancing agreement includes a balloon-payment arrangement above the stated threshold, it must include a notice provision. If the buyer defaults on a balloon payment, the buyer has an absolute right to a new payment schedule, subject to the buyer’s agreement on higher periodic payments.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 7. Refinancing and Consolidation [1807.1 - 1807.3] ( Article 7 added by Stats. 1959, Ch. 201. ) ## 1807.3. (a) If any payment, other than a deferred downpayment, under a contract or refinancing agreement is more than twice the amount of an otherwise regularly scheduled equal payment, the contract or refinancing agreement shall contain the following provision: “The payment schedule contained in this contract requires that you make a balloon payment of $(Amount of balloon payment) which is a payment of more than double the amount of the regular payments. You have an absolute right to obtain a new payment schedule if you default in the payment of any balloon payment.” (b) If the buyer defaults in the payment of any balloon payment, he or she shall be given an absolute right to obtain a new payment schedule. Unless agreed to by the buyer, the periodic payments under the new schedule shall not be substantially greater than the average of the preceding installments. (Amended by Stats. 1981, Ch. 1075, Sec. 11. Operative October 1, 1982, or sooner, by Sec. 25 of Ch. 1075, as amended by Stats. 1982, Ch. 129, Sec. 12.)
1808.1.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 8. Add-on Sales [1808.1 - 1808.5] ( Article 8 added by Stats. 1959, Ch. 201. )
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A retail installment contract may let the seller add later purchases, raise the total price, and increase finance charges and installment payments proportionately.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 8. Add-on Sales [1808.1 - 1808.5] ( Article 8 added by Stats. 1959, Ch. 201. ) ## 1808.1. A retail installment contract, which otherwise conforms to the requirements of this chapter, may contain the provision that the seller may at his option add subsequent purchases made by the buyer to the contract, and that the total price of the goods or services covered by the contract shall be increased by the price of such additional goods or services, and that all finance charges and installment payments may at the seller’s option be increased proportionately, and that all terms and conditions of the contract shall apply equally to such additional goods or services. The contract may also provide that the goods purchased under the previous contract or contracts shall be security for the goods purchased under the subsequent contract but only until such time as the total of payments under the previous contract or contracts is fully paid. (Amended by Stats. 1970, Ch. 546.)
1808.2.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 8. Add-on Sales [1808.1 - 1808.5] ( Article 8 added by Stats. 1959, Ch. 201. )
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For a later purchase under this section, the seller must give the buyer a memorandum before the first installment is due.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 8. Add-on Sales [1808.1 - 1808.5] ( Article 8 added by Stats. 1959, Ch. 201. ) ## 1808.2. When a subsequent purchase is made, the entire amount of all payments made previous thereto shall be deemed to have been applied toward the payment of the previous deferred payment price or deferred payment prices. Each payment thereafter received shall be deemed to be allocated to all of the various deferred payment prices in the same proportion or ratio as the original cash sale prices of the various purchases bear to one another; where the amount of each installment payment is increased in connection with the subsequent purchase, the subsequent payments (at the seller’s election) may be deemed to be allocated as follows: an amount equal to the original payment to the previous deferred payment price, and an amount equal to the increase, to the subsequent deferred payment price. However, the amount of any initial or downpayment on the subsequent purchase shall be deemed to be allocated in its entirety to such purchase. When a subsequent purchase under this section is made the seller shall deliver to the buyer, prior to the due date of the first installment, a memorandum which shall set forth the following: (a) The names of the seller and the buyer, the place of business of the seller, the residence or place of business of the buyer as specified by the buyer and a description of the goods and services sufficient to identify them. Services or multiple items of goods may be described in general terms and may be described in detail in a separate writing. (b) The cash price of the goods, services and accessories which are the subject matter of the new retail installment sale. (c) The amount of the buyer’s downpayment, itemizing the amounts paid in money and in goods and containing a brief description of the goods, if any, traded in. (d) The difference between item (b) and item (c) which is the unpaid balance of cash price. (e) The amount of the existing outstanding balance to be consolidated, which consists of the unpaid time balance or balances of the prior contract or contracts to be consolidated. (f) The amount of any unearned finance charge, determined by deducting from the amount of item (e) any then unearned finance charge in an amount not less than the refund credit provided for in Article 6 (commencing with Section 1806.1) of this chapter (computed, however, without the allowance of any minimum earned finance charge). (g) The difference between items (e) and (f), which is the net outstanding balance to be consolidated. (h) The amount, if any, included for insurance, specifying the coverages. (i) The amount, if any, of official fees. (j) The unpaid balance, which is the sum of items (d), (g), (h) and (i). (k) The finance charge (1) expressed as the annual percentage rate as defined in Regulation Z and (2) expressed in dollars, and computed in conformity with Section 1808.5. (l) The number, amount, and due dates or periods of payment scheduled to repay the indebtedness and the sum of such payments. (m) Any “balloon payments” as described in Section 1807.3. The items need not be stated in the sequence or order set forth above; additional items may be included to explain the computations made in determining the amount to be paid by the buyer. If the finance charge or any portion thereof is calculated on the 365-day basis, the amount of the finance charge shown pursuant to item (k) shall be that amount which will be incurred by the buyer if all payments are received by the seller on their respective due dates. (Amended by Stats. 1979, Ch. 805.)
1808.3.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 8. Add-on Sales [1808.1 - 1808.5] ( Article 8 added by Stats. 1959, Ch. 201. )
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For certain credit sales, the seller must give the buyer a memorandum before the first installment is due.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 8. Add-on Sales [1808.1 - 1808.5] ( Article 8 added by Stats. 1959, Ch. 201. ) ## 1808.3. If a credit sale is one of a series of transactions made pursuant to an agreement providing for the addition of the amount financed plus the finance charge for the current sale to an existing outstanding balance, and the disclosures required under this article for the initial sale and each subsequent sale are delayed until some date prior to the date the first payment for that particular sale is due; and (1) The customer has approved in writing both the annual percentage rate or rates and the method of treating any unearned finance charge on an existing outstanding balance in computing the finance charge or charges; and (2) The seller retains no security interest in any property as to which he has received payments aggregating the amount of the sale price including any finance charges attributable thereto; then, for the purposes of this section, in the case of items purchased on different dates, the first purchased shall be deemed first paid for, and in the case of items purchased on the same date the lowest priced shall be deemed first paid for. When a credit sale under this section is made, the seller shall deliver to the buyer, prior to the due date of the first installment, a memorandum which shall set forth the following: (a) The names of the seller and the buyer, the place of business of the seller, the residence or place of business of the buyer as specified by the buyer and a description of the goods and services sufficient to identify them. Services or multiple items of goods may be described in general terms and may be described in detail in a separate writing. (b) The cash price of the goods, services and accessories which are the subject matter of the new retail installment sale. (c) The amount of the buyer’s downpayment, itemizing the amounts paid in money and in goods and containing a brief description of the goods, if any, traded in. (d) The difference between item (b) and item (c), which is the unpaid balance of cash price. (e) The amount, if any, included for insurance, specifying the coverages. (f) The amount, if any, of official fees. (g) The amount financed, which is the sum of items (d), (e) and (f). (h) The amount of the finance charge (1) expressed as the annual percentage rate as defined in Regulation Z and (2) expressed in dollars, which is to be computed in accordance with this chapter. (i) The deferred payment price, which is the sum of the amounts determined under items (b), (e), (f) and (h). (j) The previous balance, which is the amount owing on prior purchases. (k) The number, amount, and due dates or periods of payments scheduled to repay the indebtedness and the sum of such payments. (l) Any “balloon payments,” as described in Section 1807.3. The items need not be stated in the sequence or order set forth above; additional items may be included to explain the computations made in determining the amount to be paid by the buyer. If the finance charge or any portion thereof is calculated on the 365-day basis, the amount of the finance charge shown pursuant to item (h) shall be that amount which will be incurred by the buyer if all payments are received by the seller on their respective due dates. (Amended by Stats. 1979, Ch. 805.)
1808.4.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 8. Add-on Sales [1808.1 - 1808.5] ( Article 8 added by Stats. 1959, Ch. 201. )
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Until the seller gives the buyer the required memorandum, the buyer must pay only the cash price for the later purchase.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 8. Add-on Sales [1808.1 - 1808.5] ( Article 8 added by Stats. 1959, Ch. 201. ) ## 1808.4. Until the seller delivers to the buyer the memorandum as provided in Sections 1808.2 and 1808.3, the buyer shall be obligated to pay only the cash price of the subsequent purchase. (Amended by Stats. 1970, Ch. 546.)
1808.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 8. Add-on Sales [1808.1 - 1808.5] ( Article 8 added by Stats. 1959, Ch. 201. )
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The finance charge for a consolidated total of payments must be calculated by applying the applicable finance charge rate to the unpaid balance for the period from consolidation through the due date of the final installment.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 8. Add-on Sales [1808.1 - 1808.5] ( Article 8 added by Stats. 1959, Ch. 201. ) ## 1808.5. Subject to the other provisions of Article 5 (commencing with Section 1805.1), the finance charge to be included in a consolidated total of payments under subdivision ( l) of Section 1808.2 shall be determined by applying the finance charge at the applicable rate to the unpaid balance under subdivision (j) of Section 1808.2, for the period from the date of the consolidation to and including the date when the final installment of the consolidated total is payable.(Amended (as amended by Stats. 1988, Ch. 479, Sec. 7) by Stats. 1991, Ch. 819, Sec. 11.)
1809.1.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 9. Terms of Purchase by Financing Agency [1809.1- 1809.1.] ( Article 9 added by Stats. 1959, Ch. 201. )
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A financing agency may buy a retail installment contract or installment account from a seller on mutually agreed terms and price.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 9. Terms of Purchase by Financing Agency [1809.1- 1809.1.] ( Article 9 added by Stats. 1959, Ch. 201. ) ## 1809.1. Notwithstanding any contrary provision of this title a financing agency may purchase a retail installment contract or installment account from a seller on such terms and conditions and for such price as may be mutually agreed upon. No filing of notice or of the assignment, no notice to the buyer of the assignment, and no requirement that the seller be deprived of dominion over payments upon the contract or installment account or over the goods if repossessed by the seller, shall be necessary to the validity of a written assignment of a contract or installment account as against creditors, subsequent purchasers, pledgees, mortgagees or encumbrancers of the seller, except as may otherwise be required by law. (Added by Stats. 1959, Ch. 201.)
1810.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. )
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A retail installment account agreement counts as accepted when the buyer signs it or uses the account after written notice; the agreement is not effective until required disclosures are provided and the buyer accepts it.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. ) ## 1810. For the purposes of this article, a retail installment account agreement shall be deemed to be accepted by the buyer if (1) the buyer signs the agreement, including signing an application containing the terms of the agreement, or (2) the account is used by the buyer or a person who has been authorized by the buyer to use the account, and the buyer has been notified in writing that the use of the credit card will mean that the agreement has been accepted by the buyer. The agreement shall not become effective unless and until the buyer has been given or provided with the disclosures required pursuant to Section 1810.1, and has accepted the agreement as provided in this section. A subsequent change in any term of the agreement shall not become effective until the seller has given notice of the change and complies with the provisions of subdivision (d) of Section 1810.3. (Added by Stats. 1995, Ch. 566, Sec. 1. Effective January 1, 1996.)
1810.1.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. )
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Before the first transaction on a retail installment account, the seller must give the buyer a single written disclosure listing the applicable required items.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. ) ## 1810.1. Notwithstanding any other provisions of this article to the contrary, before the first transaction is made on any retail installment account, the seller shall disclose to the buyer in a single written statement, which the buyer may retain, in terminology consistent with the requirements of Section 1810.3, each of the following items, to the extent applicable: (a) The conditions under which a finance charge may be imposed, including an explanation of the time period, if any, within which any credit extended may be paid without incurring a finance charge. (b) The method of determining the balance upon which a finance charge may be imposed. (c) The method of determining the amount of the finance charge, including the method of determining any minimum, charge which may be imposed as a finance charge. (d) Where one or more periodic rates may be used to compute the finance charge, each such rate, the range of balances to which it is applicable, and the corresponding annual percentage rate determined by multiplying the periodic rate by the number of periods in a year. (e) The conditions under which any other charges may be imposed, and the method by which they will be determined. (f) The conditions under which the creditor may retain or acquire any security interest in any property to secure the payment of any credit extended on the account, and a description or identification of the type of the interest or interests which may be so retained, or acquired. (g) The minimum periodic payment required. In addition to the penalties provided under Article 12.2 (commencing with Section 1812.6) of this chapter, until the seller delivers the written statement required by this section, the buyer shall be obligated to pay only the cash price of the goods or services. (Amended by Stats. 1970, Ch. 546, Sec. 29.5.)
1810.10.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. )
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A retail seller generally may not charge finance charges on goods bought under a retail installment account until the buyer has possession, with stated exceptions for certain undelivered goods and home improvement contracts.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. ) ## 1810.10. (a) Notwithstanding the provision of any contract to the contrary, except as provided in subdivision (b) or (c), no retail seller shall assess any finance charge against the outstanding balance for goods purchased under a retail installment account until the goods are in the buyer’s possession. (b) A finance charge may be assessed against the outstanding balance for such undelivered goods, as follows: (1) From the date when such goods are available for pickup by the buyer and the buyer is notified of their availability, or (2) From the date of purchase, when such goods are delivered or available for pickup by the buyer within 10 days of the date of purchase. (c) In the case of a home improvement contract as defined in Section 7151.2 of the Business and Professions Code, a finance charge may be assessed against the amount financed from the approximate date of commencement of the work as set forth in the home improvement contract. (Amended by Stats. 1979, Ch. 1000.)
1810.11.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. )
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A buyer may ask once a year for the prior year’s finance charges, and the seller must provide the information within 30 days without charging for it.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. ) ## 1810.11. The buyer may request, not more frequently than once a year, that the seller inform the buyer of the total amount of finance charges assessed on the account during the preceding calendar year and the seller shall provide that information to the buyer within 30 days of receiving the request, without charge. If the buyer’s request for the information is made in writing, the seller shall provide the information in writing, provided, however, that if the seller is required to furnish the buyer with a periodic billing or periodic statement of account or furnishes the billing or statement of account, the requested statement of finance charges may be furnished along with the periodic billing or periodic statement of account. “Seller,” for the purposes of this section, means a person engaged in the business of selling goods or furnishing services to retail buyers whose annual sales pursuant to retail installment accounts in California have exceeded one hundred fifty million dollars ($150,000,000) in the seller’s last two consecutive years. (Repealed and added by Stats. 1995, Ch. 693, Sec. 2. Effective January 1, 1996.)
1810.12.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. )
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A seller or holder of a retail installment account may charge a delinquency fee on a defaulted installment, but only within the stated dollar caps and only once per installment.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. ) ## 1810.12. (a) Notwithstanding Section 1810.4, a seller or holder of a retail installment account may, subject to subdivision (d) of Section 1810.3, provide that for each installment in default the buyer shall pay a delinquency charge not in excess of one of the following amounts: (1) For a period in default of not less than 10 days, an amount not in excess of ten dollars ($10). (2) For a period in default of not less than 15 days, an amount not in excess of fifteen dollars ($15). (b) Only one delinquency charge may be collected on any installment regardless of the period during which it remains in default. No delinquency charge shall be imposed for any default of payment on any payment due prior to the mailing or delivery to the buyer of the written disclosure concerning the delinquency charge provided by the seller or holder of a retail installment account pursuant to subdivision (d) of Section 1810.3. Payments timely received by the seller under a written extension or deferral agreement shall not be subject to any delinquency charge. The agreement may also provide for payment of any actual and reasonable costs of collection occasioned by removal of the goods from the state without written permission of the holder, or by the failure of the buyer to notify the holder of any change of residence, or by the failure of the buyer to communicate with the holder for a period of 45 days after any default in making payments due under the agreement. (c) Notwithstanding subdivision (b) of Section 1810.3, the seller or holder of a retail installment account shall provide a minimum of 20 days between the monthly billing date and the date upon which the minimum payment is due, exclusive of the applicable grace period provided in subdivision (a). (Amended by Stats. 1996, Ch. 301, Sec. 2. Effective January 1, 1997.)
1810.2.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. )
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A seller or holder of a retail installment account may charge, receive, and collect a finance charge if it is disclosed to the buyer under Section 1810.3 and the article’s other provisions are followed.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. ) ## 1810.2. Subject to the other provisions of this article, the seller or holder of a retail installment account may charge, receive and collect a finance charge as disclosed to the buyer pursuant to Section 1810.3. (Amended (as amended by Stats. 1988, Ch. 479, Sec. 9) by Stats. 1991, Ch. 819, Sec. 14.)
1810.20.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10.5. Retail Installment Account Credit Card Periodic Rate Disclosures [1810.20 - 1810.21] ( Article 10.5 added by Stats. 1986, Ch. 1397, Sec. 4. )
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This section names the article and says it may be cited as the “Areias Retail Installment Account Full Disclosure Act of 1986.”

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10.5. Retail Installment Account Credit Card Periodic Rate Disclosures [1810.20 - 1810.21] ( Article 10.5 added by Stats. 1986, Ch. 1397, Sec. 4. ) ## 1810.20. This article shall be known and may be cited as the “Areias Retail Installment Account Full Disclosure Act of 1986.” (Amended by Stats. 2000, Ch. 375, Sec. 6. Effective January 1, 2001.)
1810.21.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10.5. Retail Installment Account Credit Card Periodic Rate Disclosures [1810.20 - 1810.21] ( Article 10.5 added by Stats. 1986, Ch. 1397, Sec. 4. )
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Retail sellers must give specified credit-card disclosure information with certain application forms or solicitations, unless an exception applies.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10.5. Retail Installment Account Credit Card Periodic Rate Disclosures [1810.20 - 1810.21] ( Article 10.5 added by Stats. 1986, Ch. 1397, Sec. 4. ) ## 1810.21. (a) Any application form or preapproved written solicitation for a credit card issued in connection with a retail installment account that is mailed on or after October 1, 1987, to a retail buyer residing in this state by or on behalf of a retail seller, whether or not the retail seller is located in this state, other than an application form or solicitation included in a magazine, newspaper, or other publication distributed by someone other than the retail seller, shall contain or be accompanied by either of the following disclosures: (1) A disclosure of each of the following, if applicable: (A) Any periodic rate or rates that will be used to determine the finance charge imposed on the balance due under the terms of a retail installment account, expressed as an annual percentage rate or rates. (B) Any membership or participation fee that will be imposed for availability of a retail installment account in connection with which a credit card is issued expressed as an annualized amount. (C) If the retail seller provides a period during which the retail buyer may repay the full balance reflected on a billing statement that is attributable to purchases of goods or services from the retail seller without the imposition of additional finance charges, the retail seller shall either disclose the minimum number of days of that period, calculated from the closing date of the prior billing cycle to the date designated in the billing statement sent to the retail buyer as the date by which that payment must be received to avoid additional finance charges, or describe the manner in which the period is calculated. For purposes of this section, the period shall be referred to as the “free period” or “free-ride period.” If the retail seller does not provide this period for purchases, the disclosure shall so indicate. (2) A disclosure that satisfies the initial disclosure statement requirements of Regulation Z (12 C.F.R. 226.6). (b) In the event that an unsolicited application form is mailed or otherwise delivered to retail buyers in more than one state, the requirements of subdivision (a) shall be satisfied if on the application form or the soliciting material there is a notice that credit terms may vary from state to state and that provides either the disclosures required by subdivision (a) or an address or phone number for the customer to use to obtain the disclosure. The notice shall be in boldface type no smaller than the largest type used in the narrative portion, excluding headlines, of the material soliciting the application. Any person responding to the notice shall be given the disclosures required by subdivision (a). (c) A retail seller need not present the disclosures required by paragraph (1) of subdivision (a) in chart form or use any specific terminology, except as expressly provided in this section. The following chart shall not be construed in any way as a standard by which to determine whether a retail seller who elects not to use the chart has provided the required disclosures in a manner which satisfies paragraph (1) of subdivision (a). However, disclosures shall be conclusively presumed to satisfy the requirements of paragraph (1) of subdivision (a) if a chart with captions substantially as follows is completed with the applicable terms offered by the retail seller, or if the retail seller presents the applicable terms in tabular, list, or narrative format using terminology substantially similar to the captions included in the following chart: THE FOLLOWING INFORMATION IS PROVIDED PURSUANT TO THE AREIAS RETAIL INSTALLMENT ACCOUNT FULL DISCLOSURE ACT OF 1986: CREDIT CARD TERMS VARY AMONG RETAIL SELLERS—SELECTED TERMS FOR PURCHASES UNDER THIS RETAIL INSTALLMENT ACCOUNT ARE SET OUT BELOW PERIODIC RATES _____ (as APRs) _____ ANNUAL _____ FEES _____ FREE–RIDE _____ PERIOD _____ _____ (d) For purposes of this section, “Regulation Z” has the meaning attributed to it under Section 1802.18, and all of the terms used in this section have the same meaning as attributed to them in federal Regulation Z (12 C.F.R. 226.1 et seq.). (e) Nothing in this section shall be deemed or construed to prohibit a retail seller from disclosing additional terms, conditions, or information, whether or not relating to the disclosures required under this section, in conjunction with the disclosures required by this section. Notwithstanding subdivision (g) of Section 1748.11, a retail seller that complies with the requirements of Section 1748.11 shall be deemed to have complied with the requirements of this section. (f) If a retail seller is required under federal law to make any disclosure of the terms applicable to a retail installment account in connection with application forms or solicitations, the retail seller shall be deemed to have complied with the requirements of paragraph (1) of subdivision (a) with respect to those application forms or solicitations if the retail seller complies with the federal disclosure requirement. (g) If the disclosure required by this section does not otherwise appear on an application form or an accompanying retail installment agreement distributed in this state on or after October 1, 1987, other than by mail, the application form shall include a statement in substantially the following form: “If you wish to receive disclosure of the terms of this retail installment account, pursuant to the Areias Retail Installment Account Full Disclosure Act of 1986, check here and return to the address on this form.” A box shall be printed in or next to this statement for placing such a checkmark. (h) This article does not apply to (1) any application form or preapproved written solicitation for a retail installment account credit card where the credit to be extended will be secured by a lien on real or personal property, or both real and personal property, (2) any application form or written solicitation that invites a person or persons to apply for a retail installment account credit card and which is included as part of a catalog which is sent to one or more persons by a creditor in order to facilitate a credit sale of goods offered in the catalog, (3) any advertisement which does not invite, directly or indirectly, an application for a retail installment account credit card, and (4) any application form or written advertisement included in a magazine, newspaper, or other publication distributed in more than one state by someone other than the creditor. (Amended by Stats. 2001, Ch. 159, Sec. 34. Effective January 1, 2002.)
1810.3.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. )
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Sellers of retail installment accounts must send periodic billing statements and handle credit balances, notices, and refunds as required, with some exceptions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. ) ## 1810.3. (a) Except in the case of an account which the seller deems to be uncollectible or with respect to which delinquency collection procedures have been instituted, the seller of any retail installment account shall mail or deliver to the buyer for each billing cycle at the end of which there is an outstanding debit balance in excess of one dollar ($1) in that account or with respect to which a finance charge is imposed, a statement or statements which the buyer may retain, setting forth in accordance with subdivision (c) each of the following items to the extent applicable: (1) The outstanding balance in the account at the beginning of the billing cycle, using the term “previous balance.” (2) The amount and date of each extension of credit or the date the extension of credit is debited to the account during the billing cycle and, unless previously furnished, a brief identification of any goods or services purchased or other extension of credit. (3) The total amounts credited to the account during the billing cycle for payments, using the term “payment,” and for other credits, including returns, rebates of finance charges, and adjustments, using the term “credits,” and unless previously furnished, a brief identification of each of the items included in the other credits. (4) The amount of any finance charge, using the term “finance charge,” debited to the account during the billing cycle, itemized and identified to show the amounts, if any, due to the application of periodic rates and the amount of any other charge included in the finance charge, such as a minimum charge, using appropriate descriptive terminology. (5) Each periodic rate, using the term “periodic rate” (or “rates”), that may be used to compute the finance charge (whether or not applied during the billing cycle), and the range of balances to which it is applicable. (6) The balance on which the finance charge was computed, and a statement of how that balance was determined. If any balance is determined without first deducting all credits during the billing cycle, that fact and the amount of the credits shall also be disclosed. (7) The closing date of the billing cycle and the outstanding balance in the account on that date, using the term “new balance,” accompanied by the statement of the date by which, or the period, if any, within which, payment must be made to avoid additional finance charges. (b) The seller shall mail or deliver the statements required by subdivision (a) at least 14 days prior to any date or the end of any time period required to be disclosed under paragraph (7) of subdivision (a) in order for the consumer to avoid an additional finance or other charge. A seller that fails to meet this requirement shall not collect any finance or other charges imposed as a result of the failure. (c) The disclosures required by subdivision (a) may be made on the face of the periodic statement or on its reverse side. In addition, the disclosures required by subdivision (a) may be made on the periodic statement supplemented by separate statement forms if they are enclosed together and delivered to the customer at the same time and if all of the following conditions are met: (1) The disclosures required by paragraph (1) of subdivision (a) shall appear on the face of the periodic statement. If the amounts and dates of the charges and credits required to be disclosed under paragraphs (2) and (3) of subdivision (a) are not itemized on the face or reverse side of the periodic statement, they shall be disclosed on a separate statement or separate slips which shall accompany the periodic statement and identify each charge and credit and show the date and amount thereof. Identification of goods or services purchased may be made on an accompanying slip or by symbol relating to an identification list printed on the statement. If the disclosures required under paragraph (4) of subdivision (a) are not itemized on the face or reverse side of the periodic statement, they shall be disclosed on a separate statement which shall accompany the periodic statement. (2) The disclosures required by paragraph (5) of subdivision (a) and a reference to the amounts required to be disclosed under paragraphs (4) and (6) of subdivision (a), if not disclosed together on the face or the reverse side of the periodic statement, shall appear together on the face of a single supplemental statement which shall accompany the periodic statement. (3) The face of the periodic statement shall contain one of the following notices, as applicable: “NOTICE: See reverse side for important information” or “NOTICE: See accompanying statement(s) for important information” or “NOTICE: See reverse side and accompanying statement(s) for important information.” (4) The disclosures shall not be separated so as to confuse or mislead the customer, or to obscure or detract attention from the information required to be disclosed. (d) If any change is to be made in terms of a retail installment account previously disclosed to the buyer, the seller shall mail or deliver to the buyer written disclosure of the proposed change not less than 30 days prior to the effective date of the change or 30 days prior to the beginning of the billing cycle within which the change will become effective, whichever is the earlier date. When the change involves a reduction of any component of a finance charge or other charge, the notice shall be sufficient if it appears on or accompanies the periodic statements mailed or delivered to buyers receiving periodic statements in the ordinary course of business. When the change involves an increase in any component of a finance charge, as defined in Section 1802.10, or involves a change in a charge permitted by Section 1810.4 or a change in the attorney’s fee provision in the agreement pursuant to Section 1810.4, the change shall be effective only with respect to purchases made on or after the effective date of the change. (e) (1) If any outstanding credit balance in excess of one dollar ($1) exists in a retail installment account, the seller shall mail or deliver to the buyer at the end of the billing cycle in which the credit balance is created either of the following: (A) A cash refund in the amount of the outstanding credit. (B) A statement setting forth the credit balance, and thereafter shall mail or deliver to the buyer a statement setting forth the credit balance no fewer than two additional times during the six-month period following creation of the credit balance. (2) If the credit balance exists for a period of 90 days, the seller shall, at his or her option, do either of the following: (A) Notify the buyer of his or her right to request and receive a cash refund in the amount of the outstanding credit balance in two successive statements covering, respectively, each of the two successive billing cycles immediately following the 90-day period. The notice is to be accomplished by a clear and conspicuous disclosure on or enclosed with each of the two successive statements, each of which shall be accompanied by a self-addressed return envelope. The disclosure shall contain the following information and may be in the following form: “We owe you ____. Your credit balance will be refunded on request. If you don’t request a refund, six months from the first appearance of a “credit balance” on your bill, your credit balance will be refunded automatically. “If your credit balance is $1.00 or less, it will not be refunded unless requested, and after 6 months, it will not be credited against future purchases. “You may obtain a refund of your credit balance by mail by presenting your statement at our store or by returning the top half of your statement in the enclosed envelope.” If between the sending of the first notice and the sending of the second notice required by this subparagraph, the outstanding credit balance is refunded to the buyer or otherwise disposed of, the sending of the second notice shall not be required. (B) Refund to the buyer the outstanding credit balance at any time after the credit balance is created in the buyer’s account and prior to the date by which the first notice of the outstanding balance would have been sent had the seller elected to proceed under subparagraph (A). (f) (1) If a retail installment account with an outstanding credit balance in excess of one dollar ($1) which has been determined to be correct by the seller is dormant for a period of 180 days after the credit balance is created in the buyer’s account, the seller shall mail or deliver a refund in the amount of the outstanding credit balance to the buyer at the buyer’s last known address. (2) If any refund is returned to the seller with a notification to the effect that the addressee is not located at the address to which it was sent, the seller shall make one remailing of the refund with an address correction request, and shall mail the refund to the corrected address, if it is obtained. (3) If the refund reflecting an outstanding credit balance in excess of twenty-five dollars ($25) is again returned, the seller shall reinstate the full amount of the outstanding credit balance on the buyer’s account to be retained and credited against future purchases for one year from the date on which the remailed refund was returned. The seller may continue to attempt to obtain a current mailing address for the buyer by whatever means the seller deems appropriate. Except as provided in subdivision (g), the seller shall not be required to take any further action with respect to sending any statement of the credit balance or otherwise with respect to the credit balance, unless the buyer of the account thereafter requests a refund of the credit balance, in which event the seller shall either make the refund or provide a written explanation as provided in paragraph (5) of this subdivision. (4) If a remailed refund reflecting an outstanding credit balance of twenty-five dollars ($25) or less is again returned, the seller, except as provided in subdivision (g), shall not be required to take any further action with respect to sending any statement of the credit balance to the buyer or otherwise with respect to the credit balance, unless the buyer of the account thereafter requests a refund of the credit balance, in which event the seller shall either make the refund or provide a written explanation as provided in paragraph (5) of this subdivision. (5) If a buyer requests, in person or by mail, a refund of a credit balance in any amount which has been reflected at any time on the buyer’s account, the seller shall, within 30 days of receipt of the request, either refund the amount requested, or furnish the customer with a written explanation, with supporting documentation when available, of the reasons for refusing to refund the amount requested. (6) If a buyer, in writing, requests a seller to retain an outstanding credit balance on his or her account, the seller shall not be required to give notification as otherwise required by subdivisions (e) and (f). (g) If an outstanding credit balance remains unrefundable for three years from the date it was created in the buyer’s account, then the amount of the buyer’s outstanding credit balance shall escheat to the state as property included within Section 1520 of the Code of Civil Procedure. Those funds shall be paid or delivered to the Controller, and may thereafter be claimed, as specified in Chapter 7 (commencing with Section 1500) of Title 10 of Part 4 of the Code of Civil Procedure. (h) For the purposes of this section, an outstanding credit balance is created at the end of the billing cycle in which the credit balance is first recorded on a buyer’s account and is created anew at the end of the billing cycle in which the recorded amount of an existing credit balance is changed because of the buyer’s use of his or her account. (Amended by Stats. 1996, Ch. 762, Sec. 1. Effective January 1, 1997.)
1810.4.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. )
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This section limits charges on retail installment accounts, with a few specific exceptions and capped fees.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. ) ## 1810.4. The finance charge shall include all charges incident to investigating and making the retail installment account. No fee, expense, delinquency, collection, or other charge whatsoever shall be taken, received, reserved, or contracted by the seller or holder of a retail installment account except as provided in this section. A seller may, however, in an agreement which is accepted by the buyer and of which a copy is given or furnished to the buyer provide for the payment of attorney’s fees and costs in conformity with Article 11 (commencing with Section 1811.1). Any subsequent change in any term of the agreement shall not become effective until the seller has given notice of the change and complies with the provisions of subdivision (d) of Section 1810.3. When credit cards are issued in connection with a retail installment account, the seller, either in the agreement or after giving the notice required by subdivision (d) of Section 1810.3, may require the payment of an annual fee of not more than fifteen dollars ($15) for membership in the credit card plan, which fee shall not be deemed a finance charge or interest for any purpose of the law. The seller or holder of a retail installment account may charge and collect a fee not to exceed fifteen dollars ($15) for the return by a depository institution of a dishonored check, negotiable order of withdrawal, or share draft issued in connection with the retail installment account. The fee is not included in charges as defined in this chapter or in determining the applicable charges which may be made under this chapter. (Amended by Stats. 1995, Ch. 566, Sec. 3. Effective January 1, 1996.)
1810.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. )
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If insurance costs are separately charged to the buyer, there must be a signed agreement, a copy must be given to the buyer, and the agreement must say who will procure the insurance.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. ) ## 1810.5. If the cost of any insurance is to be separately charged to the buyer, there shall be an agreement to this effect, signed by both the buyer and the seller, a copy of which shall be given or furnished to the buyer. Such agreement shall state whether the insurance is to be procured by the buyer or the seller or holder. If the insurance is to be procured by the seller or holder, the seller or holder shall comply with the provisions of Section 1803.5. (Added by renumbering Section 1810.7 by Stats. 1969, Ch. 625.)
1810.6.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. )
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The article allows a buyer and seller to agree that the seller keeps a security interest in the goods until the buyer pays in full.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. ) ## 1810.6. Nothing in this article prohibits the execution of an agreement between a buyer and seller whereby the seller retains a security interest in goods sold to the buyer until full payment therefor has been made. For purposes of release of the security interests, in the case of goods or services purchased on different dates, the first purchased shall be deemed first paid for, and in the case of goods or services purchased on the same date, the lowest priced shall be deemed first paid for, and all amounts allocated to payment of these goods or services shall be applied to accomplish that result. However, any downpayment on a specific purchase shall be deemed to be allocated in its entirety to such purchase. (Amended by Stats. 1981, Ch. 26, Sec. 3. Effective April 30, 1981.)
1810.7.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. )
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A retail installment account may not require the buyer to sign notes that, if separately negotiated, would cut off the buyer’s claims or defenses against the seller.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. ) ## 1810.7. No retail installment account shall require or entail the execution of any note or series of notes by the buyer which when separately negotiated will cut off as to third parties any right of action or defense which the buyer may have against the seller. (Added by renumbering Section 1810.9 by Stats. 1969, Ch. 625.)
1810.8.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. )
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Sections 1806.1 and 1806.4 apply to retail installment accounts.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 10. Retail Installment Accounts [1810 - 1810.12] ( Article 10 added by Stats. 1959, Ch. 201. ) ## 1810.8. The provisions of Sections 1806.1 and 1806.4 shall be applicable to retail installment accounts. (Added by renumbering Section 1810.10 by Stats. 1969, Ch. 625.)
1811.1.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 11. Attorney’s Fees and Court Costs [1811.1- 1811.1.] ( Article 11 added by Stats. 1959, Ch. 201. )
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In covered contract or installment-account actions, the prevailing party is entitled to reasonable attorney’s fees and costs.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 11. Attorney’s Fees and Court Costs [1811.1- 1811.1.] ( Article 11 added by Stats. 1959, Ch. 201. ) ## 1811.1. Reasonable attorney’s fees and costs shall be awarded to the prevailing party in any action on a contract or installment account subject to the provisions of this chapter regardless of whether such action is instituted by the seller, holder or buyer. Where the defendant alleges in his answer that he tendered to the plaintiff the full amount to which he was entitled, and thereupon deposits in court, for the plaintiff, the amount so tendered, and the allegation is found to be true, then the defendant is deemed to be a prevailing party within the meaning of this article. (Amended by Stats. 1961, Ch. 1214.)
1812.10.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 12.3. Actions [1812.10- 1812.10.] ( Article 12.3 added by Stats. 1965, Ch. 792. )
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This section requires certain actions in retail installment sale cases to be filed in a proper superior court venue, and it requires the plaintiff to file and serve an affidavit showing the case was filed in the right place.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 12.3. Actions [1812.10- 1812.10.] ( Article 12.3 added by Stats. 1965, Ch. 792. ) ## 1812.10. (a) An action on a contract or installment account under this chapter shall be tried in the superior court in the county where the contract was in fact signed by the buyer, where the buyer resided at the time the contract was entered into, where the buyer resides at the commencement of the action, or where the goods purchased pursuant to the contract have been so affixed to real property as to become a part of that real property. (b) In the superior court designated as the proper court in subdivision (a), the proper court location for trial of an action under this chapter is the location where the court tries that type of action that is nearest or most accessible to where the contract was in fact signed by the buyer, where the buyer resided at the time the contract was entered into, where the buyer resides at the commencement of the action, or where the goods purchased pursuant to the contract have been so affixed to real property as to become a part of that real property. Otherwise, any location of the superior court designated as the proper court in subdivision (a) is the proper court location for the trial of the action. The court may specify by local rule the nearest or most accessible court location where the court tries that type of case. (c) In any action subject to this section, concurrently with the filing of the complaint, the plaintiff shall file an affidavit stating facts showing that the action has been commenced in a superior court and court location described in this section as a proper place for the trial of the action. Those facts may be stated in a verified complaint and shall not be stated on information or belief. When that affidavit is filed with the complaint, a copy thereof shall be served with the summons. If a plaintiff fails to file the affidavit or state facts in a verified complaint required by this section, no further proceedings may occur, but the court shall, upon its own motion or upon motion of any party, dismiss the action without prejudice. The court may, on terms that are just, permit the affidavit to be filed subsequent to the filing of the complaint and a copy of the affidavit shall be served on the defendant. The time to answer or otherwise plead shall date from that service. (Amended by Stats. 2002, Ch. 806, Sec. 1. Effective January 1, 2003.)
1812.2.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 12.1. Repossession and Resale [1812.2 - 1812.5] ( Article 12.1 added by Stats. 1959, Ch. 201. )
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After a buyer’s default, the holder may recover judgment or retake the goods, but if the goods are retaken the holder must give the buyer notice within 10 days. The buyer has a right to redeem the goods within the stated periods by paying the amount due, and the holder may owe $10 plus damages for failing to provide the required written statement.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 12.1. Repossession and Resale [1812.2 - 1812.5] ( Article 12.1 added by Stats. 1959, Ch. 201. ) ## 1812.2. In the event of any default by the buyer in the performance of his obligations under a contract or installment account, the holder, pursuant to any rights granted therein, may proceed to recover judgment for the balance due without retaking the goods, or he may retake the goods and proceed as hereinafter provided. If he retakes the goods, he shall, within 10 days, give notice to the buyer of his intention to sell the goods at public sale or give notice to the buyer of his intention to retain the goods in satisfaction of the balance due. The notice must state the amount of the overdue payments, that the buyer must pay, if he pays within 10 days of the notice, in order to redeem the goods. In either case the buyer shall have an absolute right to redeem the goods within 10 days after the notice is given by paying or tendering the amount owing under the contract. If the holder gives notice of election to sell the goods the buyer shall also have the absolute right to redeem the goods at any time before sale by paying or tendering the amounts specified above and also any expense reasonably incurred by the seller or holder in good faith in repairing, reconditioning the goods or preparing them for sale. If the holder gives notice of his intention to retain the goods in satisfaction of the indebtedness he shall be deemed to have done so at the end of the 10-day period if the goods are not redeemed; at the time the notice is given, the holder shall furnish the buyer a written statement of the sum due under the contract and the expenses provided for in this section. For failure to render such a statement the holder shall forfeit to the buyer ten dollars ($10) and also be liable to him for all damages suffered because of such failure. (Amended by Stats. 1963, Ch. 1952.)
1812.20.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 12.4. Financing Retail Purchases [1812.20- 1812.20.] ( Article 12.4 added by Stats. 1979, Ch. 1151. )
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A person must not require a buyer of goods or services to get financing from a particular source.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 12.4. Financing Retail Purchases [1812.20- 1812.20.] ( Article 12.4 added by Stats. 1979, Ch. 1151. ) ## 1812.20. Notwithstanding Section 1801.6, no person shall require a purchaser of goods or services to obtain financing from any particular source. Any person who violates this section shall be subject to the penalty provided in Section 1812.6. (Added by Stats. 1979, Ch. 1151.)
1812.200.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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This section says seller assisted marketing plans have caused problems, and the title is meant to protect prospective purchasers by requiring disclosure and limiting misleading or unfair practices.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.200. (a) The Legislature finds and declares that the widespread sale of seller assisted marketing plans, often connected with the sale of vending machines, racks or work-at-home paraphernalia, has created numerous problems in California for purchasers which are inimical to good business practice. Often purchasers of seller assisted marketing plans are individuals inexperienced in business matters who use their life savings to purchase the seller assisted marketing plan in the hope that they will earn enough money in addition to retirement income or salary to become or remain self-sufficient. Many purchasers are the elderly who are seeking a way to supplement their fixed incomes. The initial payment is usually in the form of a purchase of overpriced equipment or products. California purchasers have suffered substantial losses when they have failed to receive full and complete information regarding the seller assisted marketing plan, the amount of money they can reasonably expect to earn, and the previous experience of the seller assisted marketing plan seller. Seller assisted marketing plan sellers have a significant impact upon the economy and well-being of this state and its local communities. The provisions of this title relating to seller assisted marketing plans are necessary for the public welfare. (b) It is the intent of this title to provide each prospective seller assisted marketing plan purchaser with the information necessary to make an intelligent decision regarding seller assisted marketing plans being offered; to safeguard the public against deceit and financial hardship; to insure, foster and encourage competition and fair dealing in the sale of seller assisted marketing plans by requiring adequate disclosure; to prohibit representations that tend to mislead; and to prohibit or restrict unfair contract terms. This title shall be construed liberally in order to achieve the foregoing purposes. (Added by Stats. 1978, Ch. 876.)
1812.201.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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This section defines terms used for seller assisted marketing plans and lists transactions that are not included.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.201. For the purposes of this title, the following definitions shall apply: (a) “Seller assisted marketing plan” means any sale or lease or offer to sell or lease any product, equipment, supplies, or services that requires a total initial payment exceeding five hundred dollars ($500), but requires an initial cash payment of less than fifty thousand dollars ($50,000), that will aid a purchaser or will be used by or on behalf of the purchaser in connection with or incidental to beginning, maintaining, or operating a business when the seller assisted marketing plan seller has advertised or in any other manner solicited the purchase or lease of the seller assisted marketing plan and done any of the following acts: (1) Represented that the purchaser will earn, is likely to earn, or can earn an amount in excess of the initial payment paid by the purchaser for participation in the seller assisted marketing plan. (2) Represented that there is a market for the product, equipment, supplies, or services, or any product marketed by the user of the product, equipment, supplies, or services sold or leased or offered for sale or lease to the purchaser by the seller, or anything, be it tangible or intangible, made, produced, fabricated, grown, bred, modified, or developed by the purchaser using, in whole or in part, the product, supplies, equipment, or services that were sold or leased or offered for sale or lease to the purchaser by the seller assisted marketing plan seller. (3) Represented that the seller will buy back or is likely to buy back any product made, produced, fabricated, grown, or bred by the purchaser using, in whole or in part, the product, supplies, equipment, or services that were initially sold or leased or offered for sale or lease to the purchaser by the seller assisted marketing plan seller. (b) A “seller assisted marketing plan” shall not include: (1) A security, as defined in the Corporate Securities Law of 1968 (Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code), that has been qualified for sale by the Department of Financial Protection and Innovation, or is exempt under Chapter 1 (commencing with Section 25100) of Part 2 of Division 1 of Title 4 of the Corporations Code from the necessity to qualify. (2) A franchise defined by the Franchise Investment Law (Division 5 (commencing with Section 31000) of Title 4 of the Corporations Code) that is registered with the Department of Financial Protection and Innovation or is exempt under Chapter 1 (commencing with Section 31100) of Part 2 of Division 5 of Title 4 of the Corporations Code from the necessity of registering. (3) Any transaction in which either the seller or purchaser or the lessor or lessee is licensed pursuant to and the transaction is governed by the Real Estate Law, Division 4 (commencing with Section 10000) of the Business and Professions Code. (4) A license granted by a general merchandise retailer that allows the licensee to sell goods, equipment, supplies, products, or services to the general public under the retailer’s trademark, trade name, or service mark if all of the following criteria are satisfied: (A) The general merchandise retailer has been doing business in this state continually for five years prior to the granting of the license. (B) The general merchandise retailer sells diverse kinds of goods, equipment, supplies, products, or services. (C) The general merchandise retailer also sells the same goods, equipment, supplies, products, or services directly to the general public. (D) During the previous 12 months the general merchandise retailer’s direct sales of the same goods, equipment, supplies, products, or services to the public account for at least 50 percent of its yearly sales of these goods, equipment, supplies, products, or services made under the retailer’s trademark, trade name, or service mark. (5) A newspaper distribution system distributing newspapers as defined in Section 6362 of the Revenue and Taxation Code. (6) A sale or lease to an existing or beginning business enterprise that also sells or leases equipment, products, supplies, or performs services that are not supplied by the seller and that the purchaser does not utilize with the equipment, products, supplies, or services of the seller, if the equipment, products, supplies, or services not supplied by the seller account for more than 25 percent of the purchaser’s gross sales. (7) The sale in the entirety of an “ongoing business.” For purposes of this paragraph, an “ongoing business” means a business that for at least six months previous to the sale has been operated from a particular specific location, has been open for business to the general public, and has had all equipment and supplies necessary for operating the business located at that location. The sale shall be of the entire “ongoing business” and not merely a portion of the ongoing business. (8) A sale or lease or offer to sell or lease to a purchaser (A) who has for a period of at least six months previously bought products, supplies, services, or equipment that were sold under the same trademark or trade name or that were produced by the seller and, (B) who has received on resale of the product, supplies, services, or equipment an amount that is at least equal to the amount of the initial payment. (9) The renewal or extension of an existing seller assisted marketing plan contract. (10) A product distributorship that meets each of the following requirements: (A) The seller sells products to the purchaser for resale by the purchaser, and it is reasonably contemplated that substantially all of the purchaser’s sales of the product will be at wholesale. (B) The agreement between the parties does not require that the purchaser pay the seller, or any person associated with the seller, a fee or any other payment for the right to enter into the agreement, and does not require the purchaser to buy a minimum or specified quantity of the products, or to buy products for a minimum or specified period of time. For purposes of this paragraph, a “person associated with the seller” means a person, including an individual or a business entity, controlling, controlled by, or under the same control as the seller. (C) The seller is a corporation, partnership, limited liability company, joint venture, or any other business entity. (D) The seller has a net worth of at least ten million dollars ($10,000,000) according to audited financial statements of the seller done during the 18 months preceding the date of the initial sale of products to the purchaser. Net worth may be determined on a consolidated basis if the seller is a subsidiary of another business entity that is permitted by generally accepted accounting standards to prepare financial statements on a consolidated basis and that business entity absolutely and irrevocably agrees in writing to guarantee the seller’s obligations to the purchaser. The seller’s net worth shall be verified by a certification to the Attorney General from an independent certified public accountant that the audited financial statement reflects a net worth of at least ten million dollars ($10,000,000). This certification shall be provided within 30 days following receipt of a written request from the Attorney General. (E) The seller grants the purchaser a license to use a trademark that is registered under federal law. (F) It is not an agreement or arrangement encouraging a distributor to recruit others to participate in the program and compensating the distributor for recruiting others into the program or for sales made by others recruited into the program. (c) “Person” includes an individual, corporation, partnership, limited liability company, joint venture, or any business entity. (d) “Seller” means a person who sells or leases or offers to sell or lease a seller assisted marketing plan and who meets either of the following conditions: (1) Has sold or leased or represents or implies that the seller has sold or leased, whether in California or elsewhere, at least five seller assisted marketing plans within 24 months prior to a solicitation. (2) Intends or represents or implies that the seller intends to sell or lease, whether in California or elsewhere, at least five seller assisted marketing plans within 12 months following a solicitation. For purposes of this title, the seller is the person to whom the purchaser becomes contractually obligated. A “seller” does not include a licensed real estate broker or salesman who engages in the sale or lease of a “business opportunity” as that term is used in Sections 10000 to 10030, inclusive, of the Business and Professions Code, or elsewhere in Chapter 1 (commencing with Section 10000), Chapter 2 (commencing with Section 10050), or Chapter 6 (commencing with Section 10450) of Part 1 of Division 4 of the Business and Professions Code. (e) “Purchaser” means a person who is solicited to become obligated or does become obligated on a seller assisted marketing plan contract. (f) “Equipment” includes machines, all electrical devices, video or audio devices, molds, display racks, vending machines, coin operated game machines, machines that dispense products, and display units of all kinds. (g) “Supplies” includes any and all materials used to produce, grow, breed, fabricate, modify, develop, or make any product or item. (h) “Product” includes any tangible chattel, including food or living animals, that the purchaser intends to: (1) Sell or lease. (2) Use to perform a service. (3) Resell or attempt to resell to the seller assisted marketing plan seller. (4) Provide or attempt to provide to the seller assisted marketing plan seller or to any other person whom the seller suggests the purchaser contact so that the seller assisted marketing plan seller or that other person may assist, either directly or indirectly, the purchaser in distributing, selling, leasing, or otherwise disposing of the product. (i) “Services” includes any assistance, guidance, direction, work, labor, or services provided by the seller to initiate or maintain or assist in the initiation or maintenance of a business. (j) “Seller assisted marketing plan contract” or “contract” means any contract or agreement that obligates a purchaser to a seller. (k) “Initial payment” means the total amount a purchaser is obligated to pay to the seller under the terms of the seller assisted marketing plan contract prior to or at the time of delivery of the equipment, supplies, products, or services or within six months of the purchaser commencing operation of the seller assisted marketing plan. If the contract sets forth a specific total sale price for purchase of the seller assisted marketing plan which total price is to be paid partially as a downpayment and then in specific monthly payments, the “initial payment” means the entire total sale price. (l) “Initial cash payment” or “downpayment” means that portion of the initial payment that the purchaser is obligated to pay to the seller prior to or at the time of delivery of equipment, supplies, products, or services. It does not include any amount financed by or for which financing is to be obtained by the seller, or financing that the seller assists in obtaining. (m) “Buy-back” or “secured investment” means any representation that implies in any manner that the purchaser’s initial payment is protected from loss. These terms include a representation or implication of any of the following: (1) That the seller may repurchase either all or part of what it sold to the purchaser. (2) That the seller may at some future time pay the purchaser the difference between what has been earned and the initial payment. (3) That the seller may in the ordinary course buy from the purchaser items made, produced, fabricated, grown, bred, modified, or developed by the purchaser using, in whole or in part, the product, supplies, equipment, or services that were initially sold or leased to the purchaser by the seller. (4) That the seller or a person to whom the seller will refer the purchaser may in the ordinary course sell, lease, or distribute the items the purchaser has for sale or lease. (Amended by Stats. 2022, Ch. 452, Sec. 26. (SB 1498) Effective January 1, 2023.)
1812.202.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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This section says when an offer, sale, or lease of a seller assisted marketing plan counts as occurring in this state.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.202. (a) An offer to sell or offer to lease a seller assisted marketing plan shall occur in this state whenever: (1) The offer to sell or offer to lease is made in this state; (2) The purchaser resides in this state at the time of the offer; or (3) The offer to sell or offer to lease either originates from this state or is directed by the seller or lessor to this state and received at the place to which it is directed. (b) A sale or lease of a seller assisted marketing plan shall occur in this state whenever: (1) The offer to sell or offer to lease is accepted in this state; (2) The purchaser resides in this state at the time of the sale; or (3) The acceptance is communicated to a seller situated in this state. (Added by Stats. 1978, Ch. 876.)
1812.203.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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Sellers of seller assisted marketing plans must pay fees, file disclosure materials with the Attorney General, and wait for a notice of filing before advertising or making representations to prospective purchasers.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.203. (a) The seller of any seller assisted marketing plan shall pay an annual fee in the amount of one hundred dollars ($100) and annually file with the Attorney General a copy of the disclosure statements required under Sections 1812.205 and 1812.206, as well as a list of the names and resident addresses of those individuals who sell the seller assisted marketing plan on behalf of the seller. The first filing shall be made at least 30 days prior to placing any advertisement or making any other representations to prospective purchasers. The first filing shall not be deemed to be effective until a notice of filing has been issued by the Attorney General. The seller may not make any advertisement or other representation to prospective purchasers until a notice of filing has been issued by the Attorney General. The disclosure statements on file shall be updated through a new filing and payment of a fee in the amount of thirty dollars ($30), whenever material changes occur during the year following the annual filing and the updated filing shall include all disclosure statements required by Sections 1812.205 and 1812.206 and a list of the names and resident addresses of all current salespersons and all salespersons who have acted on behalf of the seller since the previous filing, whether the annual filing or an updated filing, indicating which salespersons are still active and which no longer act on behalf of the seller. Each seller of a seller assisted marketing plan shall file the annual renewal filing, whether or not any update filings have been made, at least 10 days before one year has elapsed from the date of the notice of filing issued by the Attorney General, and at least 10 days before the same date every year thereafter. The annual renewal filing shall include all disclosure statements required by Sections 1812.205 and 1812.206 and a list of the names and addresses of the residences of all current salespersons and all salespersons who have acted on behalf of the seller since the previous filing (whether the annual filing or an updated filing), indicating which salespersons are still active and which no longer act on behalf of the seller. The annual renewal filing fee shall be one hundred dollars ($100). If an annual renewal filing is not filed as required, the previous filing shall be deemed to have lapsed and the seller shall be prohibited from placing any seller assisted marketing plan advertisements or making any other representations to prospective purchasers of seller assisted marketing plan until a new annual filing is made and a new notice of filing has been issued by the Attorney General. (b) The Attorney General may send by certified mail to the address set forth in the seller assisted marketing plan filing an intent to issue a stop order denying the effectiveness of or suspending or revoking the effectiveness of any filing if he or she finds the following: (1) That there has been a failure to comply with any of the provisions of this title. (2) That the offer or sale of the seller assisted marketing plan would constitute a misrepresentation to, or deceit of, or fraud on, the purchaser. (3) That any person identified in the filing has been convicted of an offense under paragraph (1) of subdivision (b) of Section 1812.206, or is subject to an order or has had a civil judgment entered against him or her as described in paragraphs (2) and (3) of subdivision (b) of Section 1812.206, and the involvement of that person in the sale or management of the seller assisted marketing plan creates an unreasonable risk to prospective purchasers. (c) The notice referred to shall include facts supporting a suspension or revocation. If the seller assisted marketing plan does not submit to the Attorney General, under penalties of perjury signed by an owner or officer of the seller assisted marketing plan, within 10 days of receipt of the intent to issue a stop order, a refutation of each and every supporting fact set forth in the notice, and each fact not refuted shall be deemed, for purposes of issuance of the order, an admission that the fact is true. If, in the opinion of the Attorney General, and based upon supporting facts not refuted by the seller assisted marketing plan, the plan is offered to the public without compliance with this title, the Attorney General may order the seller to desist and refrain from the further sale or attempted sale of the seller assisted marketing plan unless and until a notice of filing has been issued pursuant to this section. Until that time, the registration shall be void. The order shall be in effect until and unless the seller assisted marketing plan files a proceeding in superior court pursuant to Section 1085 or 1094.5 of the Code of Civil Procedure or seeks other judicial relief and serves a copy of the proceeding upon the Attorney General. (Amended by Stats. 1998, Ch. 595, Sec. 1. Effective January 1, 1999.)
1812.204.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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Sellers of seller assisted marketing plans must not make certain “buy-back,” “secured investment,” or income claims unless specified conditions are met, and ads must include required seller identification.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.204. In selling, leasing, or offering to sell or lease a seller assisted marketing plan in this state, sellers shall not: (a) Use the phrase “buy-back” or “secured investment” or similar phrase orally or in writing when soliciting, offering, leasing, or selling a seller assisted marketing plan if the “security” is the value of the equipment, supplies, products or services supplied by the seller to the purchaser. (b) Use the phrase “buy-back” or “secured investment” or similar phrase orally or in writing when soliciting, offering, leasing, or selling a seller assisted marketing plan unless there are no restrictions or qualifications whatsoever preventing or limiting a purchaser from being able to invoke the “buy-back” or “secured” portion of the seller assisted marketing plan contract at any time the purchaser desires during the one-year period following the contract date. Upon invocation of the “buy-back” or “security” provision, the minimum amount a purchaser shall be entitled to have returned to him is the full amount of his initial payment, less the amount actually received by him from the operation of the seller assisted marketing plan. The “amount actually received” means either the amount the purchaser actually obtained from the seller for any product resold to the seller or the amount of money the purchaser received for use of the purchaser’s product, equipment, supplies or services, less any amount: (1) the purchaser has paid the owner or manager of the location at which the purchaser’s products, equipment, supplies or services are placed; and (2) the purchaser has paid to obtain other items needed in order to sell, make, produce, fabricate, grow, breed, modify, or develop the item which the seller assisted marketing plan purchaser intends to sell, lease, distribute, or otherwise dispose of. (c) Represent that a purchaser’s initial payment is “secured” in any manner or to any degree or that the seller provides a “buy-back” arrangement unless the seller has, in conformity with subdivision (b) of Section 1812.214, either obtained a surety bond issued by a surety company admitted to do business in this state or established a trust account at a federally insured bank or savings and loan association located in this state. (d) Represent that the seller assisted marketing plan provides income or earning potential of any kind unless the seller has data to substantiate the claims of income or earning potential and discloses this data to the purchaser at the time the claim is made, if made in person, or if made through written or telephonic communication, at the first in-person communication thereafter and, when disclosed, the data is left with the purchaser. A mathematical computation of the number of sales multiplied by the amount of profit per sale to reach a projected income figure is not sufficient data to substantiate an income or earning potential claim. Income or earning potential claims cannot be made or implied at all unless they are based on the experience of at least 10 purchasers from the seller assisted marketing plan being offered. The data left by the seller must, at a minimum, disclose: (1) The length of time the seller has been selling the particular seller assisted marketing plan being offered; (2) The number of purchasers from the seller known to the seller to have made at least the same sales, income or profits as those represented; and (3) The percentage the number represents of the total number of purchasers from the seller. (e) Use the trademark, service mark, trade name, logotype, advertising or other commercial symbol of any business which does not either control the ownership interest in the seller or accept responsibility for all representations made by the seller in regard to the seller assisted marketing plan, unless the nature of the seller’s relationship to such other business entity is set forth immediately adjacent to and in type size equal to or larger than that used to depict the commercial symbol of such other business. If a member of a trade association, the seller may use the logo or registration mark of the trade association in advertisements and materials without regard to this subdivision. (f) Place or cause to be placed any advertisement for a seller assisted marketing plan which does not include the actual business name of the seller, and if it differs, the name under which the seller assisted marketing plan is operated and the street address of the principal place of business of the seller. (Amended by Stats. 1981, Ch. 258, Sec. 2.)
1812.205.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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A seller or the seller’s representative must give a prospective purchaser a written disclosure document at the first in-person communication or first written response, whichever comes first.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.205. At the first in-person communication with a potential purchaser or in the first written response to an inquiry by a potential purchaser, whichever occurs first, wherein the seller assisted marketing plan is described, the seller or his or her representative shall provide the prospective purchaser a written document, the cover sheet of which is entitled in at least 16-point boldface capital letters “DISCLOSURE REQUIRED BY CALIFORNIA LAW.” Under the title shall appear in boldface of at least 10-point type, the statement: “The State of California has not reviewed and does not approve, recommend, endorse or sponsor any seller assisted marketing plan. The information contained in this disclosure has not been checked by the state. If you have any questions about this purchase, see an attorney or other financial adviser before you sign a contract or agreement.” Nothing shall appear on the cover sheet except the title and the statement required above. The disclosure document shall contain the following information: (a) The name of the seller, the name under which the seller is doing or intends to do business and the name of any parent or affiliated company that will engage in business transactions with purchasers or accept responsibility for statements made by the seller. (b) A statement of the initial payment to be paid by the purchaser to the seller, or when not known, a statement of the approximate initial payment charged, the amount of the initial payment to be paid to a person inducing, directly or indirectly, a purchaser to contract for the seller assisted marketing plan. (c) A full and detailed description of the actual services the seller will undertake to perform for the purchaser. (d) When the seller makes any statement concerning earnings or range of earnings that may be made through the seller assisted marketing plan, he must comply with subdivision (d) of Section 1812.204 and set forth in complete form in this disclosure statement the following: “No guarantee of earnings or ranges of earnings can be made. The number of purchasers who have earned through this business an amount in excess of the amount of their initial payment is at least ______, which represents ___ percent of the total number of purchasers of this seller assisted marketing plan.” (e) If training of any type is promised by the seller, a complete description of the training and the length of the training. (f) If the seller promises services to be performed in connection with the placement of the equipment, product or supplies at a location from which they will be sold or used, the full nature of those services as well as the nature of the agreements to be made with the owner or manager of the location at which the purchaser’s equipment, product or supplies will be placed, must be set forth. (g) If the seller represents orally or in writing when soliciting or offering for sale or lease or selling or leasing a seller assisted marketing plan that there is a “buy-back” arrangement or that the initial payment is in some manner protected from loss or “secured,” the entire and precise nature of the “buy-back”, “protection” or “security” arrangement shall be completely and clearly disclosed. (Amended by Stats. 1981, Ch. 258, Sec. 3.)
1812.206.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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Before a seller assisted marketing plan contract is signed or money is received, the seller or the seller’s representative must give the prospective purchaser a written information sheet. The section also lets the seller combine this disclosure with Section 1812.205 if the timing and title requirements are met.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.206. At least 48 hours prior to the execution of a seller assisted marketing plan contract or agreement or at least 48 hours prior to the receipt of any consideration, whichever occurs first, the seller or his or her representative shall provide to the prospective purchaser in writing a document entitled “SELLER ASSISTED MARKETING PLAN INFORMATION SHEET.” The seller may combine the information required under this section with the information required under Section 1812.205 and, if done, shall utilize the single title “DISCLOSURES REQUIRED BY CALIFORNIA LAW,” and the title page required by Section 1812.205. If a combined document is used, it shall be given at the time required by Section 1812.205, provided that this time meets the 48-hour test of this section. The information sheet required by this section shall contain the following: (a) The name of and the office held by the seller’s owners, officers, directors, trustees and general or limited partners, as the case may be, and the names of those individuals who have management responsibilities in connection with the seller’s business activities. (b) A statement whether the seller, any person identified in subdivision (a), and any other company managed by a person identified in subdivision (a): (1) Has been convicted of a felony or misdemeanor or pleaded nolo contendere to a felony or misdemeanor charge if the felony or misdemeanor involved an alleged violation of this title, fraud, embezzlement, fraudulent conversion or misappropriation of property. (2) Has been held liable in a civil action by final judgment or consented to the entry of a stipulated judgment if the civil action alleged a violation of this title, fraud, embezzlement, fraudulent conversion or misappropriation of property or the use of untrue or misleading representations in an attempt to sell or dispose of real or personal property or the use of unfair, unlawful or deceptive business practices. (3) Is subject to any currently effective agreement, injunction, or restrictive order, including, but not limited to, a “cease and desist” order, an “assurance of discontinuance,” or other comparable agreement or order, relating to business activity as the result of an action or investigation brought by a public agency or department, including, but not limited to, an action affecting any vocational license. The statements required by paragraphs (1), (2) and (3) of this subdivision shall set forth the terms of the agreement, or the court, the docket number of the matter, the date of the conviction or of the judgment and, when involved, the name of the governmental agency that initiated the investigation or brought the action resulting in the conviction or judgment. (4) Has at any time during the previous seven fiscal years been the subject of an order for relief in bankruptcy, been reorganized due to insolvency, or been a principal, director, officer, trustee, general or limited partner, or had management responsibilities of any other person, as defined in subdivision (b) of Section 1812.201, that has so filed or was so reorganized, during or within one year after the period that the individual held that position. If so, the name and location of the person having so filed, or having been so reorganized, the date thereof, the court which exercised jurisdiction, and the docket number of the matter shall be set forth. (c) The length of time the seller: (1) Has sold seller assisted marketing plans. (2) Has sold the specific seller assisted marketing plan being offered to the purchaser. (d) If the seller is required to secure a bond or establish a trust account pursuant to the requirements of Section 1812.204, the information sheet shall state either: (1) “Seller has secured a bond issued by , (name and address of surety company) a surety company admitted to do business in this state. Before signing a contract to purchase this seller assisted marketing plan, you should check with the surety company to determine the bond’s current status,” or (2) “Seller has deposited with the office of the Attorney General information regarding its trust account. Before signing a contract to purchase this seller assisted marketing plan, you should check with the Attorney General to determine the current status of the trust account.” (e) A copy of a recent, not more than 12 months old, financial statement of the seller, together with a statement of any material changes in the financial condition of the seller from the date thereof. That financial statement shall either be audited or be under penalty of perjury signed by one of the seller’s officers, directors, trustees or general or limited partners. The declaration under penalty of perjury shall indicate that to the best of the signatory’s knowledge and belief the information in the financial statement is true and accurate; the date of signature and the location where signed shall also be indicated. Provided, however, that where a seller is a subsidiary of another corporation which is permitted by generally accepted accounting standards to prepare financial statements on a consolidated basis, the above information may be submitted in the same manner for the parent if the corresponding financial statement of the seller is also provided and the parent absolutely and irrevocably has agreed to guarantee all obligations of the seller. (f) An unexecuted copy of the entire seller assisted marketing plan contract. (g) For purposes of this section, “seller’s owners” means any individual who holds an equity interest of at least 10 percent in the seller. (Amended by Stats. 2009, Ch. 500, Sec. 13. (AB 1059) Effective January 1, 2010.)
1812.207.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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Contracts for the sale or lease of a seller assisted marketing plan in this state must be in writing.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.207. Every contract for sale or lease of a seller assisted marketing plan in this state shall be in writing and shall be subject to the provisions of this title. A copy of the fully completed contract and all other documents the seller requires the purchaser to sign shall be given to the purchaser at the time they are signed. (Added by Stats. 1978, Ch. 876.)
1812.208.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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A purchaser may cancel a seller assisted marketing plan contract for any reason within three business days after the purchaser and seller sign it.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.208. The purchaser shall have the right to cancel a seller assisted marketing plan contract for any reason at any time within three business days of the date the purchaser and the seller sign the contract. The notice of the right to cancel and the procedures to be followed when a contract is canceled shall comply with Section 1812.209. (Added by Stats. 1978, Ch. 876.)
1812.209.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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Seller assisted marketing plan contracts must include specified disclosures and a bold cancellation notice, and the seller must refund amounts after cancellation.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.209. Every seller assisted marketing plan contract shall set forth in at least 10-point type or equivalent size if handwritten, all of the following: (a) The terms and conditions of payment including the initial payment, additional payments, and downpayment required. If the contract provides for the seller to receive more than 20 percent of the initial payment before delivery to the purchaser of the equipment, supplies or products or services to be furnished under the terms of the contract, the contract shall clearly set forth for the escrow account established pursuant to subdivision (b) of Section 1812.210 and the name and address of the escrow account holder, as well as the institution, branch, and account number of the escrow account. If the contract provides for payment of any amount in excess of 20 percent of the initial payment prior to delivery of the equipment, supplies or products or services to be furnished under the terms of the contract, the contract shall set forth that payment of the amount in excess of 20 percent shall be by separate instrument made payable to the escrow account. (b) Immediately above the place at which the purchaser signs the contract the following notification, in boldface type, of the purchaser’s right to cancel the contract: “You have three business days in which you may cancel this contract for any reason by mailing or delivering written notice to the seller assisted marketing plan seller. The three business days shall expire on (last date to mail or deliver notice) and notice of cancellation should be mailed or delivered to . (seller assisted marketing plan seller’s name and business street address) If you choose to mail your notice, it must be placed in the United States mail properly addressed, first-class postage prepaid, and postmarked before midnight of the above date. If you choose to deliver your notice to the seller directly, it must be delivered to him by the end of his normal business day on the above date. Within five business days of receipt of the notice of cancellation, the seller shall return to the purchaser all sums paid by the purchaser to the seller pursuant to this contract. Within five business days after receipt of all such sums, the purchaser shall make available at his address or at the place at which they were caused to be located, all equipment, products and supplies provided to the purchaser pursuant to this contract. Upon demand of the seller, such equipment, products and supplies shall be made available at the time the purchaser receives full repayment by cash, money order or certified check.” (c) A full and detailed description of the acts or services the seller will undertake to perform for the purchaser. (d) The seller’s principal business address and the name and the address of its agent, other than the Secretary of State, in the State of California authorized to receive service of process. (e) The business form of the seller, whether corporate, partnership or otherwise. (f) The delivery date or, when the contract provides for a staggered delivery of items to the purchaser, the approximate delivery date of those products, equipment or supplies the seller is to deliver to the purchaser to enable the purchaser to begin or maintain his business and whether the products, equipment or supplies are to be delivered to the purchaser’s home or business address or are to be placed or caused to be placed by the seller at locations owned or managed by persons other than the purchaser. (g) A complete description of the nature of the “buy-back”, “protection”, or “security” arrangement, if the seller has represented orally or in writing when selling or leasing, soliciting or offering a seller assisted marketing plan that there is a “buy-back” or that the initial payment or any part of it is “protected” or “secured.” (h) A statement which accurately sets forth a purchaser’s right to void the contract under the circumstances and in the manner set forth in subdivisions (a) and (b) of Section 1812.215. (i) The name of the supplier and the address of such supplier of the products, equipment, or supplies the seller is to deliver to the purchaser to enable the purchaser to begin or maintain his business. (Amended by Stats. 1989, Ch. 1021, Sec. 4.)
1812.210.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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Seller assisted marketing plan contracts cannot require the purchaser to sign negotiable notes that cut off defenses, and payment terms are capped at 20% before delivery unless excess funds go into escrow.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.210. (a) No seller assisted marketing plan contract shall require or entail the execution of any note or series of notes by the purchaser which, when separately negotiated, will cut off as to third parties any right of action or defense which the purchaser may have against the seller. (b) If the contract referred to in Section 1812.209 provides for a downpayment to be paid to the seller, the downpayment shall not exceed 20 percent of the initial payment amount. In no event shall the contract payment schedule provide for the seller to receive more than 20 percent of the initial payment before delivery to the purchaser, or to the place at which they are to be located, the equipment, supplies or products, unless all sums in excess of 20 percent are placed in an escrow account as provided for in subdivision (c) of Section 1812.214. Funds placed in an escrow account shall not be released until the purchaser notifies the escrow holder in writing of the delivery of such equipment, supplies or products within the time limits set forth in the seller assisted marketing plan contract. Notification of delivery by the purchaser to the escrow holder shall not be unreasonably withheld. (Amended by Stats. 1989, Ch. 1021, Sec. 5.)
1812.211.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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An assignee of a seller assisted marketing plan contract or the seller’s rights is bound by the purchaser’s equities, rights, and defenses against the seller.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.211. Any assignee of the seller assisted marketing plan contract or the seller’s rights is subject to all equities, rights and defenses of the purchaser against the seller. (Added by Stats. 1978, Ch. 876.)
1812.212.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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A seller must not make or authorize any reference to its compliance with this title.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.212. No seller shall make or authorize the making of any reference to its compliance with this title. (Added by Stats. 1978, Ch. 876.)
1812.213.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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Sellers must keep complete books, records, and accounts for seller assisted marketing plan sales, and keep related documents for four years after the contract date.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.213. Every seller shall at all times keep and maintain a complete set of books, records and accounts of seller assisted marketing plan sales made by the seller. All documents relating to each specific seller assisted marketing plan sold or leased shall be maintained for four years after the date of the seller assisted marketing plan contract. (Added by Stats. 1978, Ch. 876.)
1812.214.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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Seller-assisted marketing plan sellers must file service-of-process consent with the Attorney General, and when bond, trust, or escrow arrangements are used, they must file related information and meet listed amount and notice rules.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.214. (a) Every seller of seller-assisted marketing plans other than a California corporation shall file with the Attorney General an irrevocable consent appointing the Secretary of State or successor in office to act as the seller’s attorney to receive service or any lawful process in any noncriminal suit, action or proceeding against the seller or the seller’s successor, executor or administrator, which may arise under this title. When service is made upon the Secretary of State, it shall have the same force and validity as if served personally on the seller. Service may be made by leaving a copy of the process in the office of the Secretary of State, but it shall not be effective unless: (1) The plaintiff forthwith sends by first-class mail a notice of the service upon the Secretary of State and a copy of the process to the defendant or respondent at the last address on file with the Attorney General; and (2) The plaintiff’s affidavit of compliance with this section is filed in the case on or before the return date of the process, if any, or within such further time as the court allows. (b) If, pursuant to subdivision (c) of Section 1812.204, a seller must obtain a surety bond or establish a trust account, the following procedures apply: (1) If a bond is obtained, a copy of it shall be filed with the Attorney General; if a trust account is established, notification of the depository, the trustee and the account number shall be filed with the Attorney General. (2) The bond or trust account required shall be in favor of the State of California for the benefit of any person who is damaged by any violation of this title or by the seller’s breach of a contract subject to this title or of any obligation arising therefrom. The trust account shall also be in favor of any person damaged by these practices. (3) Any person claiming against the trust account for a violation of this title may maintain an action at law against the seller and the trustee. The surety or trustee shall be liable only for actual damages and not the punitive damages permitted under Section 1812.218. The aggregate liability of the trustee to all persons damaged by a seller’s violation of this title shall in no event exceed the amount of the trust account. (4) The bond or the trust account shall be in an amount equal to the total amount of the “initial payment” section of all seller-assisted marketing plan contracts the seller has entered into during the previous year or three hundred thousand dollars ($300,000), whichever is less, but in no case shall the amount be less than fifty thousand dollars ($50,000). The amount required shall be adjusted twice a year, no later than the tenth day of the first month of the seller’s fiscal year and no later than the tenth day of the seventh month of the seller’s fiscal year. A seller need only establish a bond or trust account in the amount of fifty thousand dollars ($50,000) at the commencement of business and during the first six months the seller is in business. By the tenth day of the seller’s seventh month in business, the amount of the bond or trust account shall be established as provided for herein as if the seller had been in business for a year. (c) If, pursuant to subdivision (b) of Section 1812.210, a seller utilizes an escrow account to receive those portions of the downpayment in excess of 20 percent of the initial payment before delivery to the purchaser of the equipment, supplies or products or services to be furnished under the terms of the contract, the following procedures shall apply: (1) The holder of the escrow account shall be independent of the seller, and the seller shall not have any authority to direct disbursements from the escrow account by the holder except upon written notification by the purchaser to the holder of the escrow account of the delivery of the equipment, supplies, or products as required by and within the time limits set forth in the seller assisted marketing plan contract. (2) The name and address of the escrow account holder, the name of the institution, the branch and account number of the escrow account shall be reported to the Attorney General by the seller. (3) Any person claiming against the escrow account for a violation of this title may maintain an action at law against the seller and the escrow account holder. The escrow account holder shall be liable only for actual damages and not the punitive damages permitted under Section 1812.218. The aggregate liability of the escrow account holder to all persons damaged by a seller’s violation of this title shall in no event exceed the amount of the escrow account. (Amended by Stats. 1990, Ch. 1491, Sec. 3.)
1812.215.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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This section lets a purchaser void a seller assisted marketing plan contract for specified seller noncompliance, and it also gives a cancellation right for late delivery.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.215. (a) If a seller uses any untrue or misleading statements to sell or lease a seller assisted marketing plan, or fails to comply with Section 1812.203, or fails to give the disclosure documents or disclose any of the information required by Sections 1812.205 and 1812.206, or the contract does not comply with the requirements of this title, then within one year of the date of the contract at the election of the purchaser upon written notice to the seller, the contract shall be voidable by the purchaser and unenforceable by the seller or his assignee as contrary to public policy and the purchaser shall be entitled to receive from the seller all sums paid to the seller when the purchaser is able to return all equipment, supplies or products delivered by the seller; when such complete return cannot be made, the purchaser shall be entitled to receive from the seller all sums paid to the seller less the fair market value at the time of delivery of the equipment, supplies or products not returned by the purchaser, but delivered by the seller. Upon the receipt of such sums, the purchaser shall make available to the seller at the purchaser’s address or at the places at which they are located at the time the purchaser gives notice pursuant to this section, the products, equipment or supplies received by the purchaser from the seller. Provided, however, if the seller inadvertently has failed to make any of the disclosures required by Section 1812.205 or 1812.206 or the contract inadvertently fails to comply with the requirements of this title, the seller may cure such inadvertent defect by providing the purchaser with the correct disclosure statements or contract if at the time of providing such correct disclosures or contract the seller also informs the purchaser in writing that because of the seller’s error, the purchaser has an additional 15-day period after receipt of the correct disclosures or contract within which to cancel the contract and receive a full return of all moneys paid in exchange for return of whatever equipment, supplies or products the purchaser has. If the purchaser does not cancel the contract within 15 days after receipt of the correct disclosures or contract, he may not in the future exercise his right to void the contract under this section due to such noncompliance with the disclosure or contract requirements of this title. (b) If a seller fails to deliver the equipment, supplies or product within 30 days of the delivery date stated in the contract, unless such delivery delay is beyond the control of the seller, then at any time prior to delivery or within 30 days after delivery, at the election of the purchaser upon written notice to the seller, the contract shall be voidable by the purchaser and unenforceable by the seller or his assignee as contrary to public policy. The rights of the purchaser set forth in this section shall be cumulative to all other rights under this title or otherwise. (Amended by Stats. 1981, Ch. 258, Sec. 8.)
1812.216.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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A purchaser cannot waive the title’s protections, and a seller cannot try to make a purchaser do so. In any case about this title, the person claiming an exemption or exception must prove it.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.216. (a) Any waiver by a purchaser of the provisions of this title shall be deemed contrary to public policy and shall be void and unenforceable. Any attempt by a seller to have a purchaser waive rights given by this title shall be a violation of this title. (b) In any proceeding involving this title, the burden of proving an exemption or an exception from a definition is upon the person claiming it. (Amended by Stats. 1981, Ch. 258, Sec. 9.)
1812.217.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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People involved in selling or leasing seller assisted marketing plans can be fined or jailed if they willfully violate the title, use deceptive schemes, or commit fraud in connection with those plans.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.217. Any person, including, but not limited to, the seller, a salesman, agent or representative of the seller or an independent contractor who attempts to sell or lease or sells or leases a seller assisted marketing plan, who willfully violates any provision of this title or employs, directly or indirectly, any device, scheme or artifice to deceive in connection with the offer or sale of any seller assisted marketing plan, or willfully engages, directly or indirectly, in any act, practice or course of business which operates or would operate as a fraud or deceit upon any person in connection with the offer, purchase, lease or sale of any seller assisted marketing plan shall, upon conviction, be fined not more than ten thousand dollars ($10,000) for each unlawful transaction, or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or imprisoned in a county jail for not more than one year, or be punished by both that fine and imprisonment. (Amended by Stats. 2011, Ch. 15, Sec. 34. (AB 109) Effective April 4, 2011. Operative October 1, 2011, by Sec. 636 of Ch. 15, as amended by Stats. 2011, Ch. 39, Sec. 68.)
1812.218.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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An injured purchaser may sue for damages if the seller violates this title or breaches a related contract or obligation.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.218. Any purchaser injured by a violation of this title or by the seller’s breach of a contract subject to this title or of any obligation arising from the sale or lease of the seller assisted marketing plan may bring any action for recovery of damages. Judgment shall be entered for actual damages, plus reasonable attorney’s fees and costs, but in no case shall the award of damages be less than the amount of the initial payment provided the purchaser is able to return all the equipment, supplies or products delivered by the seller; when such complete return cannot be made, the minimum award shall be no less than the amount of the initial payment less the fair market value at the time of delivery of the equipment, supplies or products that cannot be returned but were actually delivered by the seller. An award, if the trial court deems it proper, may be entered for punitive damages. (Added by Stats. 1978, Ch. 876.)
1812.219.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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This section says the title’s remedies are additional, not exclusive, and do not limit other legal rights or remedies.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.219. The provisions of this title are not exclusive. The remedies provided herein for violation of any section of this title or for conduct proscribed by any section of this title shall be in addition to any other procedures or remedies for any violation or conduct provided for in any other law. Nothing in this title shall limit any other statutory or any common law rights of the Attorney General, any district attorney or city attorney, or any other person. If any act or practice proscribed under this title also constitutes a cause of action in common law or a violation of another statute, the purchaser may assert such common law or statutory cause of action under the procedures and with the remedies provided for in such other law. (Added by Stats. 1978, Ch. 876.)
1812.220.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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If part of the act or its application is held unconstitutional, the rest of the title still remains in effect.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.220. If any provision of this act or if any application thereof to any person or circumstance is held unconstitutional, the remainder of the title and the application of such provision to other persons and circumstances shall not be affected thereby. (Added by Stats. 1978, Ch. 876.)
1812.221.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. )
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A claimant must prove the claim to the Attorney General with specified evidence, after which the Attorney General must review and approve it. Approved claims are paid after a 240-day hold, with proportional payment if funds are short, and no further claims are paid once the deposit account is exhausted.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.7. CONTRACTS FOR SELLER ASSISTED MARKETING PLANS [1812.200 - 1812.221] ( Title 2.7 added by Stats. 1978, Ch. 876. ) ## 1812.221. (a) When a deposit has been made in lieu of bond pursuant to paragraph (1) of subdivision (b) of Section 1812.214 and Section 995.710 of the Code of Civil Procedure, the person asserting a claim against the deposit shall, in lieu of the provisions of Section 996.430 of the Code of Civil Procedure, establish the claim by furnishing evidence to the Attorney General of a money judgment entered by a court together with evidence that the claimant is a person described in paragraph (2) of subdivision (b) of Section 1812.214. (b) When a person has completely established the claim with the Attorney General, the Attorney General shall forthwith review and approve the claim and enter the date of approval thereon. The claim shall be designated an “approved claim. ” (c) When the first claim against a particular deposit account has been approved, it shall not be paid until the expiration of a period of 240 days after the date of its approval by the Attorney General. Subsequent claims which are approved by the Attorney General within the same 240-day period shall similarly not be paid until the expiration of the 240-day period. Forthwith upon the expiration of the 240-day period, the Attorney General shall pay all approved claims from that 240-day period in full unless there are insufficient funds in the deposit account in which case each approved claim shall be paid a proportionate amount to exhaust the deposit account. (d) When the Attorney General approves the first claim against a particular deposit account after the expiration of a 240-day period, the date of approval of that claim shall begin a new 240-day period to which subdivision (c) shall apply with respect to the amount remaining in the deposit account. (e) After a deposit account is exhausted, no further claims shall be paid by the Attorney General. Claimants who have had their claims paid in full or in part pursuant to subdivisions (c) and (d) shall not be required to make a contribution back to the deposit account for the benefit of other claimants. (f) When a deposit has been made in lieu of bond, the amount of the deposit shall not be subject to attachment, garnishment, or execution with respect to an action or judgment against the seller, other than as to an amount as no longer needed or required for the purpose of this title which would otherwise be returned to the seller by the Attorney General. (Amended by Stats. 1989, Ch. 1021, Sec. 7.)
1812.3.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 12.1. Repossession and Resale [1812.2 - 1812.5] ( Article 12.1 added by Stats. 1959, Ch. 201. )
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If the holder sells the goods at public sale, the holder must give sale notice at least 10 days before the sale and tell the buyer or other liable person about the right to redeem.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 12.1. Repossession and Resale [1812.2 - 1812.5] ( Article 12.1 added by Stats. 1959, Ch. 201. ) ## 1812.3. The notice provided for in Section 1812.2 shall be given to the buyer and any other person liable by causing it to be delivered personally or to be deposited in the United States mail addressed to the buyer or to such other person at his last known address and shall advise the buyer or such other person of his right to redeem as provided for in Section 1812.2. If the holder determines to sell the goods at public sale he shall give notice of the time and place of sale at least 10 days before the date of sale by delivering a copy of the notice personally to the buyer or other person liable or depositing the same in the United States mail addressed to the buyer or such other person at his last known address. (Amended by Stats. 1961, Ch. 1214.)
1812.30.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 2. Credit Transactions Regarding Women [1812.30 - 1812.35] ( Chapter 2 added by Stats. 1973, Ch. 999. )
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This section bars credit discrimination based on sex or marital status and requires credit reporting agencies to handle certain joint-account information and requests in specified ways.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 2. Credit Transactions Regarding Women [1812.30 - 1812.35] ( Chapter 2 added by Stats. 1973, Ch. 999. ) ## 1812.30. (a) No person, regardless of marital status, shall be denied credit in his or her own name if the earnings and other property over which he or she has management and control are such that a person of the opposite sex managing and controlling the same amount of earnings and other property would receive credit. (b) No person, regardless of marital status, managing and controlling earnings and other property shall be offered credit on terms less favorable than those offered to a person of the opposite sex seeking the same type of credit and managing and controlling the same amount of earnings and other property. (c) No unmarried person shall be denied credit if his or her earnings and other property are such that a married person managing and controlling the same amount of earnings and other property would receive credit. (d) No unmarried person shall be offered credit on terms less favorable than those offered to a married person managing and controlling the same amount of earnings and other property. (e) For accounts established after January 1, 1977 or for accounts in existence on January 1, 1977 where information on that account is received after January 1, 1977, a credit reporting agency which in its normal course of business receives information on joint credit accounts identifying the persons responsible for such accounts, or receives information which reflects the participation of both spouses, shall: (1) at the time such information is received file such information separately under the names of each person or spouse, or file such information in another manner which would enable either person or spouse to automatically gain access to the credit history without having in any way to list or refer to the name of the other person, and (2) provide access to all information about the account in the name of each person or spouse. (f) For all accounts established prior to January 1, 1977, a credit reporting agency shall at any time upon the written or personal request of a person who is or has been married, verify the contractual liability, liability by operation of law, or authorized use by such person, of joint credit accounts appearing in the file of the person’s spouse or former spouse, and, if applicable, shall file such information separately and thereafter continue to do so under the names of each person responsible for the joint account or in another manner which would enable either person responsible for the joint account to automatically gain access to the credit history without having in any way to list or refer to the name of the other person. (g) For the purposes of this chapter “credit” means obtainment of money, property, labor, or services on a deferred-payment basis. (h) For the purposes of this chapter, earnings shall include, but not be limited to, spousal, family, and child support payments, pensions, social security, disability or survivorship benefits. Spousal, family, and child support payments shall be considered in the same manner as earnings from salary, wages, or other sources where the payments are received pursuant to a written agreement or court decree to the extent that the reliability of such payments is established. The factors which a creditor may consider in evaluating the reliability of such payments are the length of time payments have been received; the regularity of receipt; and whether full or partial payments have been made. (i) Nothing in this chapter shall be construed to prohibit a person from: (1) utilizing an evaluation of the reliability of earnings provided that such an evaluation is applied to persons without regard to their sex or marital status; or (2) inquiring into and utilizing an evaluation of the obligations for which community property is liable pursuant to the Family Code for the sole purpose of determining the creditor’s rights and remedies with respect to the particular extension of credit, provided that such is done with respect to all applicants without regard to their sex; or (3) utilizing any other relevant factors or methods in determining whether to extend credit to an applicant provided that such factors or methods are applicable to all applicants without regard to their sex or marital status. For the purpose of this subdivision, the fact that an applicant is of childbearing age is not a relevant factor. (j) Credit applications for the obtainment of money, goods, labor, or services shall clearly specify that the applicant, if married, may apply for a separate account. (Amended by Stats. 1992, Ch. 163, Sec. 11. Effective January 1, 1993. Operative January 1, 1994, by Sec. 161 of Ch. 163.)
1812.300.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. )
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This section defines terms used in the membership camping contracts title, including operator, contract, campground, sale, purchaser, blanket encumbrance, nondisturbance agreement, and broker.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. ) ## 1812.300. For the purposes of this title: (a) “Membership camping operator” means any enterprise, other than one that is tax exempt under Section 501(c)(3) of the Internal Revenue Code of 1954, as amended, that has as one of its purposes the ownership or operation of campgrounds which include or may include use of camping sites, that solicits membership paid for by a fee or periodic payments, such as annual dues, and the contractual members are the primary intended users. “Membership camping operator” does not include camping or recreational trailer parks, as defined in Section 18215 of the Health and Safety Code, which are open to the general public and which contain camping sites rented for a per use fee, or a “mobilehome park,” as defined in either Section 798.4 of the Civil Code or Section 18214 of the Health and Safety Code. As used in this title, “seller” means membership camping operator. (b) “Membership camping contract” means an agreement offered or sold within the State of California by a membership camping operator or membership camping broker evidencing a purchaser’s right or license to use for more than 14 days in a year, the campgrounds of a membership camping operator and includes a membership which provides for this use. (c) “Camping site” means a space designed and promoted for the purpose of locating a trailer, tent, tent trailer, pickup camper, or other similar device used for camping. (d) “Offer” means any solicitation reasonably designed to result in entering into a membership camping contract. (e) “Person” means any individual, corporation, partnership, limited liability company, trust, association, or other organization other than a government or a subdivision thereof. (f) “Purchaser” means a person who enters into a membership camping contract and thereby obtains the right to use the campgrounds of a membership camping operator. (g) “Sale” or “sell” means entering into, or other disposition, of a membership camping contract for value. The term “value” does not include a reasonable fee to offset the administrative costs of transfer of a membership camping contract. (h) “Campground” means real property within this state owned or operated by a membership camping operator and designated in whole or in part by the membership camping operator as available for camping or outdoor recreation by purchasers of membership camping contracts. (i) “Blanket encumbrance” means any mortgage, deed of trust, option to purchase, vendor’s lien or interest under a contract or agreement of sale, or other financing lien or encumbrance granted by the membership camping operator or affiliate which secures or evidences the obligation to pay money or to sell or convey any campgrounds made available to purchasers by the membership camping operator or any portion thereof, and which authorizes, permits, or requires the foreclosure or other disposition of the campground. (j) “Nondisturbance agreement” means an instrument in recordable form by which the holder of a blanket encumbrance agrees to all of the following: (1) The holder’s rights in any campground made available to purchasers, prior or subsequent to the agreement, by the membership camping operator shall be subordinate to the rights of purchasers from and after the recordation of the nondisturbance agreement. (2) The holder and all successors and assignees of the holder, and any person who acquires the campground through foreclosure or by deed in lieu of foreclosure of the blanket encumbrance shall take the campground subject to the rights of purchasers. (3) The holder or any successor acquiring the campground through the blanket encumbrance shall not use or cause the campground to be used in a manner which would materially prevent purchasers from using or occupying the campground in a manner contemplated by the purchasers’ membership camping contracts. However, the holder shall have no obligation to, and no liability for failure to assume the responsibilities or obligations of, the membership camping operator under the membership camping contracts. (k) “Membership camping contract broker” means a person who, for compensation, resells or offers to resell a membership camping contract to a new purchaser on behalf of a prior purchaser. Membership camping contract broker does not include a membership camping operator or its employees or agents. (Amended by Stats. 1994, Ch. 1010, Sec. 45. Effective January 1, 1995.)
1812.301.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. )
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Membership camping contracts and persons covered by this title are subject to specified Business and Professions Code provisions and the Unruh Act.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. ) ## 1812.301. The membership camping contracts and persons covered by this title shall be subject to Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 and Article 1 (commencing with Section 17500) of Chapter 1 of Part 3 of Division 7 of the Business and Professions Code and the Unruh Act (Chapter 1 (commencing with Section 1801) of Title 2 of Part 4 of Division 3). (Amended by Stats. 1990, Ch. 1529, Sec. 5.)
1812.302.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. )
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A membership camping operator must give a purchaser specified written disclosures before the purchaser signs the contract or pays anything for it, include or attach the disclosures to the contract, and update the information once a year.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. ) ## 1812.302. A membership camping operator shall provide to a purchaser the following written disclosures in any format which clearly communicates the following reasonably current information before the purchaser signs a membership camping contract, or gives any money or thing of value for the purchase of a membership camping contract. The written disclosures shall be included in or attached to the contract before the time the contract is signed. The following information shall be updated once a year. (a) The name and address of the membership camping operator and any material affiliate membership camping operator. (b) A brief description of the membership camping operator’s experience in the membership camping business, including the number of years the operator has been in the membership camping business; a brief description of the past five years’ business experience of the chairman, the president and chief executive officer, and if other than the foregoing, the person in charge of marketing of the membership camping operator, or persons in comparable positions in noncorporate operators, including the number of other membership camping operators with which the executive has been associated and the length of time with each. (c) A brief description of the nature of the purchaser’s right or license to use the membership camping operator’s property or facilities. (d) The location of each of the membership camping operator’s campgrounds and a brief description for each campground of the significant facilities then available for use by purchasers and those which are represented to purchasers as being planned, together with a brief description of any significant facilities that are or will be available to nonpurchasers or nonmembers. “Significant facilities” shall include, but are not limited to, each of the following: the number of campsites, in each campground; the number of campsites in each campground with full or partial hookups; swimming pools; tennis courts; recreation buildings; restrooms and showers; laundry rooms; trading posts; or grocery stores. “Partial hookups” mean those hookups with at least one of the following connections: electricity, water, or sewer connections. Following such description there shall appear in 10-point bold type the following disclosure: NOTICE: PURCHASE A MEMBERSHIP CAMPING CONTRACT ONLY ON THE BASIS OF EXISTING FACILITIES. CONSTRUCTION OF PLANNED FACILITIES IS SOMETIMES DEFERRED OR REVISED FOR A VARIETY OF REASONS. SHOULD THE SALESPERSON DESCRIBE A SIGNIFICANT FACILITY WHICH IS NEITHER LISTED AS EXISTING NOR PLANNED, TELEPHONE COLLECT OR TOLL FREE DURING WEEKDAY BUSINESS HOURS TO [insert headquarter’s telephone number] TO VERIFY THE OPERATOR’S PLAN FOR SUCH A FACILITY. (e) A brief description of the membership camping operator’s ownership of, or other right to use, the campgrounds represented to be available for use by purchasers, together with the duration and expiration date of any lease, license, franchise, or reciprocal agreement entitling the membership camping operator to use the campgrounds, and any material provisions of any agreements, land use permits, or operating licenses which could materially restrict a purchaser’s use of the campgrounds under the terms of the purchaser’s camping contract. (f) A summary or copy of the rules, restrictions, or covenants regulating the purchaser’s use of the membership camping operator’s properties, including a statement of whether and how the rules, restrictions, or covenants may be changed. (g) A brief description of all payments of a purchaser under a membership camping contract, including initial fees and any further fees, charges, or assessments, together with any provisions for changing the payments. (h) A description of any restraints on the transfer of the membership camping contract. (i) A brief description of the policies relating to the availability of camping sites and whether reservations are required. (j) A brief description of any grounds for forfeiture of a purchaser’s membership camping contract. (k) A copy of the membership camping contract form. (Amended by Stats. 1990, Ch. 1529, Sec. 6.)
1812.303.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. )
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Membership camping contracts must be written and presented with cancellation information, and the purchaser has a short cancellation right.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. ) ## 1812.303. (a) A membership camping contract shall be written in the same language as that principally used in any oral sales presentation (e.g., Spanish). A membership camping contract shall be dated, signed by the purchaser, and contain, in immediate proximity to the space reserved for the signature of the purchaser, a conspicuous statement in a size equal to at least 10-point bold type, as follows: “You, the purchaser, may cancel this contract at any time prior to midnight of the third business day after the date of the transaction. See an explanation of this right as set forth in this contract or on the attached notice of cancellation form.” In the alternative the notice of cancellation as set forth in subdivision (b) may be placed in immediate proximity to the signature line of the contract in lieu of the foregoing statement. (b) The contract shall be accompanied by a completed form in duplicate, captioned “Notice of Cancellation”, which shall be attached to the contract and easily detachable. In the alternative, the seller may include all of the cancellation information on the contract and provide the consumer with a carbon copy which may be retained after cancellation. Both shall contain, in type of at least 10-point, the following statement written in the same language as used in the contract: “Notice of Cancellation” “You may cancel this contract, without any penalty or obligation, within three business days from the date the contract is executed. “To cancel this contract, mail or deliver a signed and dated copy of this cancellation notice or a copy of this contract if it contains the cancellation instructions, or any other written notice, or send a telegram to _____ (Name of seller) _____ , at _____ (Address of seller’s place of business) _____ not later than midnight of (Date) . I hereby cancel this transaction (Date) . (Purchaser’s signature) “With the notice of cancellation, or separately if a telegram is sent, you must return the original membership camping contract, membership card and all other evidence of membership to the seller. You should promptly return these documents with the notice of cancellation, or separately if a telegram is sent. Failure to send the documents promptly could delay your refund. You should retain for your records one copy of the cancellation notice, or a carbon of the contract when it provides the cancellation information, or other writing showing intent to cancel. Mailing by ordinary mail is adequate but certified mail return receipt requested is recommended.” (c) On the date of purchase the membership camping operator shall provide the purchaser with a copy of the contract and duplicate of the notice of cancellation. The membership camping operator shall inform the purchaser orally of the right to cancel at the time the contract is executed. (d) Within 20 days after the membership camping operator receives a notice of cancellation, the membership camping contract, the membership card and all other evidence of purchase or membership, the membership camping operator shall refund to the purchaser any sums paid as a deposit, downpayment or other payment therefor. If the purchaser does not promptly return the evidence of membership, the 20-day period shall be extended until such evidence of membership is returned. (e) Until the membership camping operator has complied with this section, the purchaser shall have the right to cancel the contract. (f) “Business day” means any calendar day except Sunday, or the following business holidays: New Year’s Day, Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veteran’s Day, Thanksgiving Day, and Christmas Day. (Amended by Stats. 1990, Ch. 1529, Sec. 7.)
1812.304.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. )
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If the buyer did not inspect a campground before buying a membership camping contract, the buyer can cancel by midnight of the 10th business day after purchase, and the seller must refund the buyer and return any signed negotiable instrument after cancellation.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. ) ## 1812.304. (a) If the purchaser has not inspected at least one of the membership camping operator’s campgrounds prior to purchase of a membership camping contract, the notice shall contain the following additional language: “If you sign this contract without having first inspected one of the membership camping operator’s campgrounds, you may also cancel this contract at any time prior to midnight of the 10th business day after date of purchase by mailing or delivering the signed and dated attached written notice of cancellation or a copy of the contract when that contains the cancellation instructions together with the original camping club contract, membership card and any other evidence of membership.” (b) The seller shall return any payment made by the purchaser under the contract or offer to purchase, and any negotiable instrument executed by the purchaser, within 10 days of the return of evidence of membership and cancellation of the contract by the purchaser. If the purchaser does not promptly return the evidence of membership, the 10-day period shall be extended until the evidence of membership is returned. (Amended by Stats. 1990, Ch. 1529, Sec. 8.)
1812.305.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. )
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Certain membership camping contract transactions are exempt from this title.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. ) ## 1812.305. The following transactions are exempt from the provisions of this title. (a) An offer, sale or transfer by any one person of not more than one membership camping contract for any given membership camping operator in any 12-month period. (b) An offer or sale by a government or governmental agency. (c) A bona fide pledge of a membership camping contract. (Added by Stats. 1983, Ch. 847, Sec. 1.)
1812.306.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. )
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A purchaser’s remedy for certain disclosure or contract errors is limited to rescission and refund, with a correction window for non-willful, non-material failures.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. ) ## 1812.306. (a) A purchaser’s remedy for errors in or omissions from the membership camping contract of any of the disclosures or requirements of Sections 1812.302 to 1812.304, inclusive, shall be limited to a right of rescission and refund. Reasonable attorney’s fees shall be awarded to the prevailing party in any action under this title. This limitation does not apply to errors or omissions from the contract, or disclosures or other requirements of this title, which are a part of a scheme to willfully misstate or omit the information required, or other requirements imposed by this title. (b) Any failure, except a willful or material failure, to comply with any provision of Sections 1812.302 to 1812.304, inclusive, may be corrected within 30 days after receipt of written notice to the membership camping operator from the purchaser, and, if so corrected, there shall be no right of rescission. The membership camping operator or the holder shall not be subject to any penalty under this title. However, there can be no correction that increases any monthly payment, the number of payments, or the total amount due, unless concurred to, in writing, by the purchaser. “Holder” includes the seller who acquires the contract, or if the contract is purchased, a financing agency or other assignee who purchases the contract. (Amended by Stats. 2006, Ch. 538, Sec. 51. Effective January 1, 2007.)
1812.307.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. )
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A membership camping operator may not withdraw a campground from purchasers’ use unless one of the stated exceptions applies.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. ) ## 1812.307. No membership camping operator shall withdraw from the use by purchasers of membership camping contracts any campground unless one of the following conditions is satisfied: (a) Adequate provision is made to provide within a reasonable time, a substitute campground in the same general area that is as desirable for the purpose of camping and outdoor recreation. (b) The campground is withdrawn from use because, despite good faith efforts by the membership camping operator, a person not affiliated with the membership camping operator has exercised a superior right to possession (such as the right of a lessor to take possession following expiration of a lease of the property) and the terms and date of the withdrawal were disclosed in writing to all purchasers at or prior to the time of any sale of a membership camping contract after the membership camping operator represented to purchasers that the campground would be available for camping or recreation purposes. (c) The rights of all purchasers of membership camping contracts who are entitled to use the campground have expired or have been lawfully terminated. (Added by Stats. 1990, Ch. 1529, Sec. 10.)
1812.308.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. )
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A campground transfer by a membership camping operator or the owner of the underlying fee must be done through a recorded instrument, unless the operator is substituting a campground under Section 1812.307.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. ) ## 1812.308. (a) Except in the case of a membership camping operator substituting a campground in accordance with Section 1812.307, no membership camping operator or owner of the underlying fee shall sell, lease, assign, or otherwise transfer his or her interest in a campground except by an instrument evidencing the transfer recorded in the office of the county recorder for the county in which the campground is located. The instrument shall be in recordable form and be executed by both the transferor and transferee and shall state each of the following: (1) That the instrument is intended to protect the rights of all purchasers of membership camping contracts. (2) That its terms may be enforced by any prior or subsequent purchaser so long as that purchaser is not in default on his or her obligations under the membership camping contract. (3) That the transferee shall fully honor the rights of the purchasers to occupy and use the campground as provided in the purchaser’s original membership camping contracts. (4) That the transferee shall fully honor all rights of purchasers to cancel their contracts and receive appropriate refunds. (5) That the obligations of the transferee under the instrument will continue to exist despite any cancellation or rejection of the contracts between the membership camping operator and purchaser arising out of bankruptcy proceedings. (b) If any transfer of the interest of the membership camping operator or owner of the underlying fee occurs in a manner which is not in compliance with this section, the terms set forth in this section shall be presumed to be a part of the transfer and shall be deemed to be included in the instrument of transfer. Notice of the transfer shall be mailed to each purchaser within 30 days of the transfer. Persons who hold blanket encumbrances on a campground shall not be considered transferees for the purposes of this section. (Added by Stats. 1990, Ch. 1529, Sec. 12.)
1812.309.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. )
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Membership camping operators cannot market a campground as available unless one of the listed protection arrangements is in place, and noncompliance bars contract sales.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. ) ## 1812.309. (a) Campgrounds subject to this section include any campground which is offered or made available by an operator for the first time after January 1, 1991, or any campground which becomes subject to a new or refinanced blanket encumbrance after January 1, 1991. A membership camping operator shall not offer or represent that any campground subject to this section is available for use by the purchasers of its camping contracts unless one of the following conditions has been satisfied: (1) The membership camping operator obtains and records a nondisturbance agreement from each holder of a blanket encumbrance. The nondisturbance agreement is executed by the membership camping operator and each holder of the blanket encumbrance and includes the provisions set forth in subdivision (j) of Section 1812. 300 and each of the following: (A) The instrument may be enforced by purchasers of membership camping contracts. If the membership camping operator is not in default under its obligations to the holder of the blanket encumbrance, the agreement may be enforced by both the membership camping operator and the purchasers. (B) The nondisturbance agreement is effective as between each purchaser and the holder of the blanket encumbrance despite any rejection or cancellation of the purchaser’s contract during any bankruptcy proceedings of the membership camping operator. (C) The agreement is binding upon the successors in the interest of both the membership camping operator and the holder of the blanket encumbrance. (D) A holder of the blanket encumbrance who obtains title or possession, or who causes a change in title or possession in a campground by foreclosure or otherwise, and who does not continue to operate the campground upon conditions no less favorable to members than existed prior to the change of title or possession shall either: (i) Offer the title or possession of the campground to an association of members to operate the campground. (ii) Obtain a commitment from another entity which obtains title or possession to undertake the responsibility of operating the campground. (2) The membership camping operator posts a surety bond or irrevocable letter of credit with a trustee in favor of purchasers and which guarantees that the payments on the blanket encumbrance are made as they become due. A trustee shall be either a corporate trustee or an attorney licensed to practice law in this state. (3) The membership camping operator delivers to a trustee an encumbrance trust agreement which contains each of the following provisions: (A) The membership camping operator shall collaterally assign to the trustee all of its membership camping contracts receivable or other receivables of the membership camping operator in an amount calculated in accordance with subparagraph (B). The membership camping operator shall provide the trustee with a security interest in the receivables and all proceeds therefrom. For purposes of this section, the membership camping operator shall be credited with 100 percent of the outstanding principal balance of each receivable assigned to the trustee. All proceeds of the receivables shall be held in a trust account by the trustee subject to this section for the use and benefit of the purchasers to make the payments of principal and interest due under the blanket encumbrance. However, if the proceeds of the receivables during any calendar year exceed the amount due under the blanket encumbrance in the following calendar quarter, these excess funds shall be returned by the trustee to the membership camping operator. (B) The amount of membership camping contracts receivable or other receivables to be collaterally assigned as described in subparagraph (A) shall be calculated based upon the maximum number of contracts per camping site to be offered on or after January 1, 1991, in connection with the campground in question, which number of contracts per camping site shall not exceed 15 multiplied by the total number of camping sites available at the campground thereby yielding the anticipated total number of contracts to be sold in connection with the campground. The outstanding balance due under the blanket encumbrance shall then be divided by the anticipated total number of contracts to arrive at the amount per contract sold to be paid over to the trustee in the form of collaterally assigned receivables as described in subparagraph (A). The membership camping operator shall make the required collateral assignments to the trustee on a quarterly basis based upon the actual sales of contracts at the campground in question during the previous calendar quarter. However, the membership camping operator’s obligation to collaterally assign receivables to the trustee shall cease when the membership camping operator has collaterally assigned to the trustee an aggregate principal amount of receivables equal to 100 percent of the aggregate principal indebtedness remaining due under the blanket encumbrance. (C) If the outstanding balance due under the blanket encumbrance at the time of execution of the encumbrance trust agreement exceeds the anticipated gross revenue based upon the membership camping operator’s price list to be generated by the sale of the anticipated total number of contracts as calculated in subparagraph (B), the membership camping operator shall meet the conditions specified in paragraph (1), (2), or (4) of this subdivision as to the full amount of the excess. (D) It may be terminated by the membership camping operator if the membership camping operator has satisfied the obligation secured by the blanket encumbrance in full or has complied with paragraph (1), (2), or (4) of this subdivision. Upon termination of the agreement, all receivables and proceeds thereof held by the trustee shall be immediately assigned and delivered to the membership camping operator. All costs of administering this trust, filing, and perfecting the security interest, and foreclosing the lien shall be borne by the membership camping operator. (4) Any financial institution which has made a hypothecation loan to the membership camping operator (a “hypothecation lender”) shall have a lien on, or security interest in, the membership camping operator’s interest in the campground, and the hypothecation lender shall have executed and recorded a nondisturbance agreement at the county recorder’s office for the county in which the campground is located. Each person holding an interest in a blanket encumbrance superior to the interest held by the hypothecation lender shall execute and record at the county recorder’s office, an instrument stating that the person shall give the hypothecation lender notice of, and at least 30 days to cure, any default under the blanket encumbrance before the person commences any foreclosure action affecting the campground. For the purposes of this paragraph, a “hypothecation loan to a membership camping operator” means a loan or line of credit secured by membership camping contracts receivable arising from the sale of membership camping contracts by the membership camping operator, which exceeds in the aggregate all outstanding indebtedness secured by blanket encumbrances superior to the interest held by the hypothecation lender. A hypothecation lender who obtains title or possession, or who causes a change in title or possession, in a campground, by foreclosure or otherwise, and who does not continue to operate the campground upon conditions no less favorable to purchasers than existed prior to the change of title or possession shall either: (A) Offer the title or possession to an association of members to operate the campground. (B) Obtain a commitment from another entity which obtains title to, or possession of, the campground to undertake the responsibility of operating the campground. (b) Any membership camping operator which does not comply at all times with subdivision (a) with regard to any blanket encumbrance in connection with any campground subject to that subdivision is prohibited from offering any membership camping contracts for sale during the period of noncompliance. (Added by Stats. 1990, Ch. 1529, Sec. 13.)
1812.31.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 2. Credit Transactions Regarding Women [1812.30 - 1812.35] ( Chapter 2 added by Stats. 1973, Ch. 999. )
Verify source ↗

A person who violates Section 1812.30 may owe actual damages and, in some cases, punitive damages.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 2. Credit Transactions Regarding Women [1812.30 - 1812.35] ( Chapter 2 added by Stats. 1973, Ch. 999. ) ## 1812.31. (a) Whoever violates Section 1812.30 shall be liable to the aggrieved person in an amount equal to the sum of any actual damages sustained by such person acting either in an individual capacity or as a representative of a class. (b) Whoever violates Section 1812.30 shall be liable to the aggrieved person for punitive damages in an amount not greater than ten thousand dollars ($10,000), as determined by the court, in addition to any actual damages provided in subdivision (a); provided, however, that in pursuing the recovery allowed under this subdivision, the aggrieved person may proceed only in an individual capacity and not as a representative of a class. (c) Notwithstanding subdivision (b), whoever violates Section 1812.30 may be liable for punitive damages in the case of a class action in such amount as the court may allow, except that as to each member of the class no minimum recovery shall be applicable, and the total recovery in such action shall not exceed the lesser of one hundred thousand dollars ($100,000) or one percent (1%) of the net worth of the creditor. In determining the amount of the award in any class action, the court shall consider, among other relevant factors, the amount of any actual damages awarded, the frequency and persistence of violations, the resources of the creditor, the number of persons adversely affected, and the extent to which the creditor’s violation was intentional. (Amended by Stats. 1975, Ch. 332.)
1812.314.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. )
Verify source ↗

A membership camping contract broker must put advance resale money into escrow, give the new purchaser written warnings and a cancellation notice, and an escrow company must notify the operator and refund payments after cancellation.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. ) ## 1812.314. (a) All money received from the owner of a membership camping contract or the prospective purchaser thereof, by a membership camping contract broker in advance of the completion of any membership camping contract resale, including, but not limited to, listing fees, and fees for services, shall be deposited into an escrow account. The money shall not be disbursed until the transaction is complete, or until the escrow agent has received written instructions to disburse the funds signed by the owner of the membership camping contract or the prospective purchaser and the broker. For purposes of this section, a transaction is complete when ownership of the membership camping contract has been transferred from the prior purchaser to the new purchaser in the manner required by the terms of the membership camping contract, all documents necessary to complete the transfer have been fully executed, and the new purchaser has not exercised the right to cancel provided in paragraph (2) of subdivision (c). (b) The broker shall inform the new purchaser in writing of the following: (1) The risks of purchasing a membership camping contract without visiting at least one of the membership camping operator’s campgrounds. (2) That the membership camping operator may have a valid reason for not transferring the contract to the new purchaser such as a default in payment on contract or annual dues, or that the new purchaser does not meet the same credit standards applied to other new purchasers. (3) That there may have been changes in the rules or regulations concerning the rights and obligations of the membership camping operator or its members including changes with respect to annual dues, fees, assessments, use restrictions or that some campgrounds may have been withdrawn. (4) Any material changes or risks to the purchaser known to the broker. (c) (1) Every broker shall provide in writing the following notice of cancellation to the new purchaser: “You may cancel your contract of purchase, without any penalty or obligation, within 10 business days from the above date of purchase by mailing notice of cancellation together with the membership camping contract, if any, any contract for transfer, membership card or other evidence of membership to _____ (Name and address of broker) _____ , the membership camping operator _____ (Name and address of membership camping operator) _____ and the escrow company _____ (Name and address of escrow company) _____ , if any, not later than midnight of (Date). I hereby cancel this transaction _____ (Purchaser’s signature) _____ (Date) . Notice by ordinary mail is adequate but certified mail return receipt requested is recommended.” (2) Any escrow company which receives a notice of cancellation from a purchaser shall, within 72 hours of receipt of the notice, notify the membership camping operator of the cancellation and shall refund any sums paid by the purchaser of the contract within 10 days of receipt of the notice of the cancellation and other documents. The escrow company shall incur no liability to the seller, purchaser, or broker as a result of its compliance with this section. (Added by renumbering Section 1812.307 by Stats. 1990, Ch. 1529, Sec. 9.)
1812.315.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. )
Verify source ↗

If part of this title is invalid, the rest still applies.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. ) ## 1812.315. If any provision of this title or the application thereof to any person or circumstances is held invalid, the invalidity shall not affect other provisions or applications of this title which can be given effect without the invalid provision or application, and to this end the provisions of this title are severable. (Added by renumbering Section 1812.308 by Stats. 1990, Ch. 1529, Sec. 11.)
1812.316.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. )
Verify source ↗

A waiver of the title’s provisions is against public policy and has no legal effect.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.8. MEMBERSHIP CAMPING CONTRACTS [1812.300 - 1812.316] ( Title 2.8 added by Stats. 1983, Ch. 847, Sec. 1. ) ## 1812.316. Any waiver of the provisions of this title is contrary to public policy, and is void and unenforceable. (Added by Stats. 2002, Ch. 815, Sec. 21. Effective January 1, 2003.)
1812.32.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 2. Credit Transactions Regarding Women [1812.30 - 1812.35] ( Chapter 2 added by Stats. 1973, Ch. 999. )
Verify source ↗

Courts can enjoin people or organizations that violate or propose to violate this chapter, and certain public officials or affected credit applicants may bring injunction actions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 2. Credit Transactions Regarding Women [1812.30 - 1812.35] ( Chapter 2 added by Stats. 1973, Ch. 999. ) ## 1812.32. Any person, corporation, firm, partnership, joint stock company, or any other association or organization which violates or proposes to violate this chapter may be enjoined by any court of competent jurisdiction. Actions for injunction under this section may be prosecuted by the Attorney General or any district attorney, county counsel, city attorney, or city prosecutor in this state in the name of the people of the State of California or by any person denied credit or offered credit in violation of Section 1812.30. (Added by Stats. 1975, Ch. 332.)
1812.33.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 2. Credit Transactions Regarding Women [1812.30 - 1812.35] ( Chapter 2 added by Stats. 1973, Ch. 999. )
Verify source ↗

A person who intentionally violates an injunction issued under this chapter can be fined up to $2,500 per day.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 2. Credit Transactions Regarding Women [1812.30 - 1812.35] ( Chapter 2 added by Stats. 1973, Ch. 999. ) ## 1812.33. (a) Any person who intentionally violates any injunction issued pursuant to this chapter shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each day that such person violates the injunction. (b) The civil penalty prescribed by this section shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General or by any district attorney, county counsel, or city attorney in any court of competent jurisdiction. An action brought pursuant to this section to recover such civil penalties shall take special precedence over all civil matters on the calendar of the court except those matters to which equal precedence on the calendar is granted by law. (c) If such an action is brought by the Attorney General, one-half of the penalty collected pursuant to this section shall be paid to the treasurer of the county in which the judgment was entered, and one-half to the State Treasurer. If brought by a district attorney or county counsel, the entire amount of the penalty collected shall be paid to the treasurer of the county in which the judgment was entered. If brought by a city attorney or city prosecutor, one-half of the penalty shall be paid to the treasurer of the county in which the judgment was entered and one-half to the city. (Added by Stats. 1975, Ch. 332.)
1812.34.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 2. Credit Transactions Regarding Women [1812.30 - 1812.35] ( Chapter 2 added by Stats. 1973, Ch. 999. )
Verify source ↗

A person denied or offered credit in violation of Section 1812.30 may ask the court for costs and reasonable attorney’s fees, and the court must award them if the action succeeds.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 2. Credit Transactions Regarding Women [1812.30 - 1812.35] ( Chapter 2 added by Stats. 1973, Ch. 999. ) ## 1812.34. Any person denied credit or offered credit in violation of Section 1812.30 who brings an action pursuant to Section 1812.31 or 1812.32 of this code may petition the court for award of costs and reasonable attorney’s fees which the court shall award if the action is successful. (Added by Stats. 1975, Ch. 332.)
1812.35.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 2. Credit Transactions Regarding Women [1812.30 - 1812.35] ( Chapter 2 added by Stats. 1973, Ch. 999. )
Verify source ↗

A lawsuit under Section 1812.31 must be filed within two years after the person is denied credit or is offered credit in violation of Section 1812.30.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 2. Credit Transactions Regarding Women [1812.30 - 1812.35] ( Chapter 2 added by Stats. 1973, Ch. 999. ) ## 1812.35. Any action commenced pursuant to Section 1812.31 shall be commenced within two years from the date on which the person is denied credit or is offered credit in violation of Section 1812.30. (Added by Stats. 1975, Ch. 332.)
1812.4.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 12.1. Repossession and Resale [1812.2 - 1812.5] ( Article 12.1 added by Stats. 1959, Ch. 201. )
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Resale proceeds must be used first to cover specified resale and retaking-related expenses, then the remaining contract balance, and any leftover money must be paid to the buyer.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 12.1. Repossession and Resale [1812.2 - 1812.5] ( Article 12.1 added by Stats. 1959, Ch. 201. ) ## 1812.4. The proceeds of a resale shall be applied (1) to the payment of the expenses thereof, (2) to the payment of any expenses of retaking, including reasonable attorney’s fees actually incurred, and of any expenses of keeping, storing, repairing, reconditioning or preparing the goods for sale to which the holder may be entitled, (3) to the satisfaction of the balance due under the contract. Any sum remaining after the satisfaction of such claims shall be paid to the buyer. (Added by Stats. 1959, Ch. 201.)
1812.400.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. )
Verify source ↗

A creditor who sold or helped sell credit disability insurance to the debtor, or that creditor’s successor, should not use creditor remedies for nonpayment during disability until a reasonable time has passed for the insurance claim to be filed, verified, and processed.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. ) ## 1812.400. The Legislature finds and declares that it is unfair for a creditor who has directly participated in, arranged, or received a commission or other compensation for the sale of credit disability insurance to the debtor, or that creditor’s successor in interest, to invoke a creditor’s remedy because of a debtor’s nonpayment of any sum which has become due during a period of disability until a reasonable time has passed for the disability insurance claim to be filed, verified and processed. (Added by Stats. 1983, Ch. 973, Sec. 1.)
1812.401.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. )
Verify source ↗

This section defines key terms for credit disability insurance, creditors, debtors, creditor’s remedies, the disability claim period, and notice.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. ) ## 1812.401. For the purposes of this title: (a) “Credit disability insurance” means insurance of a debtor to provide indemnity for payments becoming due on a specific loan or other credit transaction while the debtor is disabled as defined in the policy. (b) “Creditor” means the lender of money or vendor or lessor of goods, services, property, rights, or privileges, for which payment is arranged through a credit transaction, who has directly participated in, arranged, or received a commission or other compensation for the sale of credit disability insurance to the debtor, or any successor to the right, title, or interest of any such lender, vendor, or lessor, and an affiliate, associate, or subsidiary of any of them or any director, officer, or employee of any of them, or any other person in any way associated with any of them. (c) “Debtor” means a borrower of money or a purchaser or lessee of goods, services, property, rights, or privileges for which payment is arranged through a credit transaction. (d) “Creditor’s remedy” means and includes the imposition of any late charge or penalty, the acceleration of the maturity of all or any part of the indebtedness, the collection or assignment for the collection of all or any part of the indebtedness, the commencement of any action or special proceeding, or the enforcement of any security interest in any manner, including, but not limited to, repossession, foreclosure, or the exercise of a power of sale contained in a deed of trust or mortgage. (e) “Disability claim period” or “claim period” means the period beginning on the due date of the first payment not paid by the debtor for which the debtor claims disability coverage arising from a then current disability and continuing until three calendar months thereafter or until the insurer pays or rejects the claim, whichever occurs sooner. (f) “Notice” to a creditor means written notice deposited in the United States mail, postage prepaid, addressed to the creditor at the location where payments on the loan or credit transaction are normally required to be sent by the debtor. A creditor may elect to require that written notice, otherwise complying with the requirements of this subdivision, be sent to a different location or may elect to accept telephonic notice to a telephone number specified by the creditor, in either case in lieu of notice being sent to the location where payments are regularly required to be sent, if that location or telephone number is clearly and conspicuously disclosed as the proper place to direct any notice to the creditor relating to any claim of disability on each monthly billing, or on or in each payment coupon book (by adhesive attachment, republication, or otherwise), as the case may be, or (if payments are automatically deducted from an account of the debtor) on the annual statement of loan activity. In any particular instance a creditor may waive the requirement that notice be in writing and accept oral notice. (Amended by Stats. 1984, Ch. 1200, Sec. 1. Effective September 17, 1984.)
1812.402.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. )
Verify source ↗

Creditors generally may not use collection remedies against a debtor for missed payments that come due during a disability claim period if covered by credit disability insurance.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. ) ## 1812.402. (a) No creditor, as defined in Section 1812.401, shall invoke any creditor’s remedy against a debtor because of the debtor’s nonpayment of any sum which becomes due during any disability claim period and for which credit disability insurance coverage, subject to this title, is provided. (b) Upon initially receiving notice, as defined in subdivision (f) of Section 1812.401, of the debtor’s claim of disability, the creditor shall inform the debtor in writing of the name, address, and telephone number of the insurer or its designated representative from whom the debtor may obtain claim forms. Upon receiving notice of the disability claim, the insurer or its designated representative shall send necessary claim forms to the debtor. The debtor shall submit the claim to the insurer or its designated representative and shall notify the creditor, as specified in subdivision (f) of Section 1812.401, that a claim has been submitted. This subdivision shall apply to the original creditor who sold the disability insurance and shall not apply to that creditor’s successor in interest if the successor in interest (1) is not related by common ownership or control to that creditor and (2) has no information regarding the name, address, and telephone number of the insurer or its designated representative. (c) Nothing in this section prohibits a creditor from invoking any creditor’s remedy during or after the claim period for the debtor’s nonpayment of any sum due prior to the claim period, whether or not the nonpayment is related to the claimed disability, or for the debtor’s nonpayment of any interest, finance charge, or late charge accruing during the claim period of any sum due prior to the period. (d) Nothing in this section prohibits a creditor from foreclosing a lien on any property to protect that creditor’s security interest if a senior lienholder on that property (1) has initiated the foreclosure of its lien, (2) is not prohibited from continuing the foreclosure by any law or order of court, or (3) will not otherwise suspend or delay its foreclosure proceeding until after the disability claim period. (e) If the insurer pays the claim within the disability claim period, the creditor shall treat each payment made by the insurer as though it were timely made by the debtor. If the insurer rejects the claim within the disability claim period or accepts the claim within the claim period as a partial disability which results in a payment of less than the full benefit which would be paid for the total disability, the debtor shall have the opportunity to pay the entire amount which became due during the claim period or the difference between the amount which became due during the claim period and the amount paid by the insurer for the partial disability without being subject to any creditor’s remedy, except the imposition of late charges, for 35 days following the date on which the insurer sends notice of the rejection of the claim or acceptance of the claim as a partial disability. In the event the debtor does not pay the entire amount which became due during the claim period plus any accrued late charges within 35 days from that date, the creditor may then invoke any creditor’s remedy. (f) The obligations of the creditor and debtor pursuant to this section shall be disclosed in writing in at least 10-point type by the creditor to the debtor at the time the creditor sells the insurance, in the manner provided in paragraph (1), and by the insurer to the debtor at the time the insurer sends claim forms pursuant to subdivision (b), in the manner provided in paragraph (2). (1) The disclosure required by the creditor shall be substantially in the following form: CLAIM PROCEDURE If you become disabled, tell us (your creditor) right away. (We advise you to send this information to the same address to which you are normally required to send your payments, unless a different address or telephone number is given to you in writing by us as the location where we would like to be notified.) We will tell you where to get claim forms. Send in the completed form to the insurance company as soon as possible and tell us as soon as you do. If your disability insurance covers all of your missed payment, WE CANNOT TRY TO COLLECT WHAT YOU OWE OR FORECLOSE UPON OR REPOSSESS ANY COLLATERAL UNTIL THREE CALENDAR MONTHS AFTER your first missed payment is due or until the insurance company pays or rejects your claim, whichever comes first. We can, however, try to collect, foreclose, or repossess if you have money due and owing us or are otherwise in default when your disability claim is made or if a senior mortgage or lien holder is foreclosing. If the insurance company pays the claim within the three calendar months, we must accept the money as though you paid on time. If the insurance company rejects the claim within the three calendar months or accepts the claim within the three calendar months as a partial disability and pays less than for a total disability, you will have 35 days from the date that the rejection or the acceptance of the partial disability claim is sent to pay past due payments, or the difference between past due payments and what the insurance company pays for the partial disability, plus late charges. You can contact us, and we will tell you how much you owe. After that time, we can take action to collect or foreclose or repossess any collateral you may have given. If the insurance company accepts your claim but requires that you send in additional forms to remain eligible for continued payments, you should send in these completed additional forms no later than required. If you do not send in these forms on time, the insurance company may stop paying, and we will then be able to take action to collect or foreclose or repossess any collateral you may have given. (2) The disclosure required by the insurer shall be substantially in the following form: CLAIM PROCEDURE Send in the completed form to the insurance company as soon as possible and tell your creditor as soon as you do. (Your creditor has already advised you of the address or telephone number to use to confirm that you have submitted your completed form to the insurance company.) If your disability insurance covers all of your missed payments, YOUR CREDITOR CANNOT TRY TO COLLECT WHAT YOU OWE OR FORECLOSE UPON OR REPOSSESS ANY COLLATERAL UNTIL THREE CALENDAR MONTHS AFTER your first missed payment is due or until the insurance company pays or rejects your claim, whichever comes first. Your creditor can, however, try to collect, foreclose, or repossess if you have money due and owing or are otherwise in default when your disability claim is made or if a senior mortgage or lienholder is foreclosing. If the insurance company pays the claim within the three calendar months, your creditor must accept the money as though you paid on time. If the insurance company rejects the claim within the three calendar months or accepts the claim within the three calendar months as a partial disability and pays less than for a total disability, you will have 35 days from the date that the rejection or the acceptance of the partial disability claim was sent to pay past due payments, or the difference between past due payments and what the insurance company pays for the partial disability, plus late charges. You can contact your creditor who will tell you how much you owe. After that time, your creditor can take action to collect or foreclose or repossess any collateral you may have given. If the insurance company accepts your claim, but requires that you send in additional forms to remain eligible for continued payments, you should send in these completed additional forms no later than required. If you do not send in these forms on time, the insurance company may stop paying, and your creditor will then be able to take action to collect or foreclose or repossess any collateral you have given. (g) If a debtor does not make a payment for which the debtor claims disability coverage arising from a then current disability and if the creditor, after sending the debtor notice of the debtor’s delinquency, invokes any creditor’s remedy because of the nonpayment without knowledge of the debtor’s claim of disability coverage, subject to this title, the following provisions apply: (1) Upon receiving notice of the debtor’s claim, the creditor shall not invoke any further creditor’s remedy during the remainder of the claim period and the period provided in subdivision (e). (2) Upon receiving notice, as specified in subdivision (f) of Section 1812.401, of the debtor’s claim, the creditor shall rescind every creditor’s remedy that has been invoked relating to the delinquency for which coverage is claimed, except that the creditor shall not be obligated to restore property which has been sold in a bona fide lawful sale to any person not related by common ownership or control to the creditor. (3) The debtor shall be liable for costs and expenses actually incurred in connection with the invocation or rescission of any creditor’s remedy. (4) The creditor shall not be in violation of this title and shall not be liable under subdivision (i) provided the creditor complies with paragraphs (1) and (2) of this subdivision. (h) The rights and remedies afforded debtors by this title shall be cumulative to each other and to all other rights and remedies which the debtors may have under other laws. (i) The debtor may bring an action for damages, equitable relief, or other relief for any violation of this title. (Amended by Stats. 1984, Ch. 1200, Sec. 2. Effective September 17, 1984.)
1812.403.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. )
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A creditor may use any creditor’s remedy 15 days after getting notice that the insurer stopped paying a credit disability insurance claim for failure to submit recertification forms.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. ) ## 1812.403. A creditor may invoke any creditor’s remedy 15 days after receiving notice that the insurer has ceased making payments on a credit disability insurance claim because of the debtor’s failure to timely submit any forms required by the insurer for recertification of a temporary disability. (Added by Stats. 1983, Ch. 973, Sec. 1.)
1812.404.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. )
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This title applies to a creditor only when the creditor or related persons directly arrange or մասնակցate in the sale of credit disability insurance to the debtor, or receive a commission or other compensation for that sale.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. ) ## 1812.404. This title shall apply to a creditor only if the creditor, the predecessor to the right, title, or interest of the creditor, or the representative of either of them directly arranges or participates in the sale or receives a commission or other compensation for the sale of credit disability insurance to the debtor. (Added by Stats. 1983, Ch. 973, Sec. 1.)
1812.405.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. )
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A creditor may still use creditor remedies for missed payments on an open-end credit plan after a disability claim is noticed, unless the missed payment is tied to a different covered disability affecting the debtor.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. ) ## 1812.405. This title shall not prohibit a creditor from invoking any creditor’s remedy as a result of a debtor’s nonpayment when due of any amount obtained under an open-end credit plan, as hereafter defined, after the debtor has given notice of a disability claim unless the nonpayment is related to a covered disability then affecting the debtor other than the disability previously claimed. The creditor’s termination of the open-end credit plan because the debtor does not meet the creditor’s customary credit standards at the time the debtor notifies the creditor of the disability claim is not a creditor’s remedy. An “open-end credit plan” means credit extended by a creditor under a plan in which the creditor reasonably contemplates repeated transactions, the creditor may impose a finance charge from time to time on an outstanding unpaid balance, and the amount of credit that may be extended to the debtor during the term of the plan (up to any limit set by the creditor) is generally made available to the extent that any outstanding balance is repaid. (Added by Stats. 1983, Ch. 973, Sec. 1.)
1812.406.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. )
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This section excludes certain credit disability insurance and some long-term mortgage-secured loans from the title, with conditions and carve-outs.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. ) ## 1812.406. (a) This title does not apply to credit disability insurance covering a key person, as hereinafter defined, which a creditor requires as a condition to making a loan of at least twenty-five thousand dollars ($25,000) to be used in the operation of a business in which the key person is employed or has an ownership interest. For the purposes of this subdivision, a “key person” is a person who the creditor and the debtor or debtors mutually agree must be involved in the operation of the business to assure its success. (b) This title does not apply to a loan or other credit transaction (including an open line of credit) of more than 10 years’ duration which is secured by a mortgage or deed of trust unless (1) the principal purpose of the loan or credit transaction is for the construction (other than initial construction), rehabilitation, or improvement (including “home improvement” as defined in Section 7151 of the Business and Professions Code) of real property consisting of four or fewer residential units, and (2) any document incident to the loan or credit transaction at the time the loan or extension of credit is made, or any course of dealing between the creditor and a contractor or material supplier assisting the borrower in obtaining the loan or extension of credit, would indicate that purpose. (c) Subdivision (b) shall not apply to debtors who were entitled to receive notice from the creditor pursuant to subdivision (f) of Section 1812.402 on or after January 1, 1984, and prior to the effective date of the act which added this subdivision, unless the debtor receives written notice that the remedies provided in this title are revoked, the debtor is given an opportunity to cancel the coverage, and no claim has been made or notice provided as specified in Section 1812.401. If the debtor fails to cancel the insurance following receipt of the notice required under this subdivision, subdivision (b) shall apply to that policy upon payment by the debtor of the next installment of premium, whether to the insurer or to a creditor pursuant to a premium finance agreement. (Amended by Stats. 1984, Ch. 1200, Sec. 3. Effective September 17, 1984.)
1812.407.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. )
Verify source ↗

This title applies to nonpayment of sums due on or after April 1, 1984, when the debtor claims disability coverage.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. ) ## 1812.407. The provisions of this title shall apply to the nonpayment of any sum which becomes due on or after April 1, 1984, and for which the debtor claims disability coverage. (Added by Stats. 1983, Ch. 973, Sec. 1.)
1812.408.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. )
Verify source ↗

A debtor cannot effectively waive the provisions of this title.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. ) ## 1812.408. Any waiver by the debtor of the provisions of this title shall be void and unenforceable. (Added by Stats. 1983, Ch. 973, Sec. 1.)
1812.409.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. )
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This section says the title does not undo or harm certain later-acquired property interests held by a bona fide purchaser or encumbrancer for value without notice, even if the creditor used a remedy in violation of the title.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. ) ## 1812.409. This title shall not affect or defeat an interest in the debtor’s property, acquired after the creditor invokes a creditor’s remedy in violation of this title, by a bona fide purchaser or encumbrancer for value and without notice of facts that constitute a violation of this title. (Added by Stats. 1984, Ch. 1200, Sec. 4. Effective September 17, 1984.)
1812.410.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. )
Verify source ↗

If part of this title is held unconstitutional, the rest of the title still applies.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.9. CREDITOR REMEDIES: DISABILITY INSURANCE [1812.400 - 1812.410] ( Title 2.9 added by Stats. 1983, Ch. 973, Sec. 1. ) ## 1812.410. If any provision of this title or the application thereof to any person or circumstance is held to be unconstitutional, the remainder of the title and the application of the provision to other persons and circumstances shall not be affected thereby. (Added by renumbering Section 1812.409 by Stats. 1984, Ch. 1200, Sec. 5. Effective September 17, 1984.)
1812.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 12.1. Repossession and Resale [1812.2 - 1812.5] ( Article 12.1 added by Stats. 1959, Ch. 201. )
Verify source ↗

If sale proceeds are too low, the holder cannot recover the deficiency from the buyer or a person who took over the buyer’s obligations.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 12.1. Repossession and Resale [1812.2 - 1812.5] ( Article 12.1 added by Stats. 1959, Ch. 201. ) ## 1812.5. If the proceeds of the sale are not sufficient to cover items (1), (2) and (3) of Section 1812.4, the holder may not recover the deficiency from the buyer or from anyone who has succeeded to the obligations of the buyer. (Amended by Stats. 1963, Ch. 1952.)
1812.50.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. )
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The Legislature says this title is meant to protect the public in dance studio lesson and other services contracts by restricting false, misleading, unfair, dishonest, deceptive, and fraudulent practices.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. ) ## 1812.50. (a) The Legislature finds that there exists in connection with a substantial number of contracts for dance studio lessons and other services, sales practices, and business and financing methods which have worked a fraud, deceit, imposition, and financial hardship upon the people of this state; that existing legal remedies are inadequate to correct these abuses; that the dance studio industry has a significant impact upon the economy and well-being of this state and its local communities; and that the provisions of this title relating to these contracts are necessary for the public welfare. (b) The Legislature declares that the purpose of this title is to safeguard the public against fraud, deceit, imposition, and financial hardship, and to foster and encourage competition, fair dealing, and prosperity in the field of dance studio lessons and other services by prohibiting or restricting false or misleading advertising, onerous contract terms, harmful financial practices, and other unfair, dishonest, deceptive, destructive, unscrupulous, fraudulent, and discriminatory practices by which the public has been injured in connection with contracts for dance studio lessons and other services. (Amended by Stats. 1988, Ch. 1043, Sec. 2.)
1812.500.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 1. General Provisions [1812.500 - 1812.502] ( Chapter 1 added by Stats. 1989, Ch. 704, Sec. 2. )
Verify source ↗

This section names the Employment Agency, Employment Counseling, and Job Listing Services Act.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 1. General Provisions [1812.500 - 1812.502] ( Chapter 1 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.500. This title shall be known and cited as the Employment Agency, Employment Counseling, and Job Listing Services Act. (Added by Stats. 1989, Ch. 704, Sec. 2.)
1812.501.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 1. General Provisions [1812.500 - 1812.502] ( Chapter 1 added by Stats. 1989, Ch. 704, Sec. 2. )
Verify source ↗

This section defines key terms for employment agency, employment counseling service, job listing service, jobseeker, employer, and related fees and exclusions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 1. General Provisions [1812.500 - 1812.502] ( Chapter 1 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.501. (a) (1) “Employment agency” or “agency” means: (A) Any person who, for a fee or other valuable consideration to be paid, directly or indirectly by a jobseeker, performs, offers to perform, or represents it can or will perform any of the following services: (i) Procures, offers, promises, or attempts to procure employment or engagements for others or employees for employers. (ii) Registers persons seeking to procure or retain employment or engagement. (iii) Gives information as to where and from whom this help, employment, or engagement may be procured. (iv) Provides employment or engagements. (B) Any person who offers, as one of its main objects or purposes, to procure employment for any person who will pay for its services, or that collects dues, tuition, or membership or registration fees of any sort, if the main object of the person paying those fees is to secure employment. (C) Any person who, for a fee or other valuable consideration, procures, offers, promises, provides, or attempts to procure babysitting or domestic employment for others or domestics or babysitters for others. (2) “Employment agency” or “agency” shall not include any employment counseling service or any job listing service. (b) (1) “Employment counseling service” means any person who offers, advertises, or represents it can or will provide any of the following services for a fee: career counseling, vocational guidance, aptitude testing, executive consulting, personnel consulting, career management, evaluation, or planning, or the development of résumés and other promotional materials relating to the preparation for employment. “Employment counseling service” shall not include persons who provide services strictly on an hourly basis with no financial obligation required of the consumer beyond the hourly fee for services rendered. An “employment counseling service” does not include the functions of an “employment agency” as defined in subdivision (a). (2) “Employment counseling service” does not include: (A) Businesses that are retained by, act solely on behalf of, and are compensated solely by prior or current employers that do not require any “customer” to sign a contract and do not in any way hold any “customer” liable for fees. (B) (i) Any provider of vocational rehabilitation in which the counseling services are paid for by insurance benefits, if the counseling is provided as a result of marital dissolution or separation proceedings to prepare one of the spouses for reentry into the job market and if the fees are paid by some party other than the person receiving the counseling services. (ii) The exemption provided in this subparagraph does not apply to any vocational rehabilitation counselor who receives any payments directly from the individual customer receiving the counseling. (C) Any person who engages solely in the preparation of résumés and cover letters, provided that the résumé writing service does not advertise or hold itself out as offering other job seeking or placement services and does not charge more than three hundred dollars ($300) for any résumé, cover letter, or combination of both to any single customer in any individual transaction. (D) Any public educational institution. (E) Any private educational institution established solely for educational purposes that, as a part of its curriculum, offers employment counseling to its student body and conforms to the requirements of Article 3.5 (commencing with Section 94760) of Chapter 7 of Part 59 of the Education Code. (F) A psychologist or psychological corporation licensed pursuant to Chapter 6.6 (commencing with Section 2900) of Division 2 of the Business and Professions Code, providing psychological assessment, career or occupational counseling, or consultation and related professional services within his, her, or its scope of practice. (G) An educational psychologist licensed pursuant to Article 5 (commencing with Section 4986) of Chapter 13 of Division 2 of the Business and Professions Code, providing counseling services within his or her scope of practice. (c) “Job listing service” means any person who provides, offers, or represents it can or will provide any of the following services, for a fee or other valuable consideration to be paid, directly or indirectly, by the jobseeker in advance of, or contemporaneously with, performance of these services: matches jobseekers with employment opportunities, providing or offering to provide jobseekers lists of employers or lists of job openings or like publications, or preparing résumés or lists of jobseekers for distribution to potential employers. (d) A “nurses’ registry” as defined in subdivision (b) of Section 1812.524 is an employment agency. However, unless otherwise provided for in this title, a nurses’ registry shall not be required to comply with Chapter 2 (commencing with Section 1812.503) regulating employment agencies but, instead, shall be required to comply with Chapter 7 (commencing with Section 1812.524). (e) “Jobseeker” means a person seeking employment. (f) “Employer” means any individual, company, partnership, association, corporation, agent, employee, or representative for whom or for which an employment agency or job listing service attempts to obtain an employee or to place a jobseeker. (g) “Job order” means any written or oral instruction, direction, or permission granted by an employer or its agent to an employment agency or job listing service to refer jobseekers for a specified job. (h) “Domestic agency” means any agency that provides, or attempts to provide, employment by placement of domestic help in private homes. (i) “Deposit” means any money or valuable consideration received by an employment agency or job listing service from a jobseeker for referring the jobseeker to a position of employment prior to the jobseeker’s acceptance of a position. (j) “Fee” means: (1) Any money or other valuable consideration paid, or promised to be paid, for services rendered or to be rendered by any person conducting an employment agency, employment counseling service, or job listing service under this title. (2) Any money received by any person in excess of that which has been paid out by him or her for transportation, transfer of baggage, or board and lodging for any applicant for employment. (k) “Registration fee” means any charge made, or attempted to be made, by an employment agency for registering or listing an applicant for employment, for letter writing, or any charge of a like nature made, or attempted to be made without having a bona fide order for the placement of the applicant in a position. (l) “Person” means any individual, corporation, partnership, limited liability company, trust, association, or other organization. (m) This section shall become operative on January 1, 1997. (Amended by Stats. 2006, Ch. 538, Sec. 52. Effective January 1, 2007.)
1812.502.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 1. General Provisions [1812.500 - 1812.502] ( Chapter 1 added by Stats. 1989, Ch. 704, Sec. 2. )
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This section says the Employment Agency, Employment Counseling, and Job Listing Services Act does not apply to several listed persons and organizations if they meet stated conditions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 1. General Provisions [1812.500 - 1812.502] ( Chapter 1 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.502. (a) This title does not apply to any person who provides any of the services described in subdivision (a) of Section 1812.501 and who charges fees exclusively to employers for those services. The exemption from regulation provided by this subdivision does not apply to any person who provides babysitting or domestic employment for others. This subdivision does not apply to an employment counseling service as defined in subdivision (b) of Section 1812.501. (b) This title shall not apply to any nonprofit corporation, organized for the purpose of economic adjustment, civic betterment, and the giving of vocational guidance and placement to its members, or others, including employment counseling services, when all of the following conditions exist: (1) None of the directors, officers, or employees thereof receive any profit other than a nominal salary for services performed for the organization or corporation. (2) No fee is charged for those services, though a voluntary contribution may be requested. (3) Membership dues or fees charged are used solely for maintenance of the organization or corporation. (c) Nothing in this title shall apply to a nonprofit corporation which has been formed in good faith for the promotion and advancement of the general professional interests of its members and which maintains a placement service principally engaged in securing employment for such members with the state or any county, city, district or other public agency under contracts providing employment for one year or longer, or any nonprofit corporation exempted by subdivision (b). (d) This title shall not apply to a labor organization as defined in Section 1117 of the Labor Code, a newspaper of general circulation, bona fide newsletter, magazine, trade or professional journal, or other publication of general circulation, the main purpose of which is dissemination of news, reports, trade or professional information, or information not intended to assist in locating, securing, or procuring employment or assignments for others. (e) As used in this title, “employment agency” or “agency” does not include a nursing school, business school, or vocational school, except that if such a school charges a fee for placement, the school shall be an employment agency within the meaning of this title. (f) (1) A job listing service which meets the requirements specified in paragraph (2) or (3) shall not be subject to any of the following: Sections 1812.515, 1812.516, 1812.517, and 1812.518; subdivisions (a) and (b), and paragraph (3) of subdivision (c), and subdivision (d) of Section 1812.519; paragraph (2) of subdivision (b), and subdivisions (c), (d), (e), and (f) of Section 1812.520; and Section 1812.521. (2) A job listing service shall be exempt pursuant to paragraph (1) if it complies with all of the following: (A) Does not provide, offer, or imply the offer of, services related to employment. (B) Does not offer or sell lists of employers or job openings to jobseekers on an in-person basis. (C) Maintains records of all its advertisements, identified by date and publication, and the sources of information used for the preparation of lists of employers and job openings, from which can be determined the accuracy of any statistics regarding success rate or similar statistics used in its advertising, promotional materials, or oral or written statements to jobseekers. (D) Identifies, on each list of employers and job openings, its general source of information for jobs included on that list when the source of information is a publication or other public record. (E) Provides, at or before the time of delivery of the list, a prominent written statement to the jobseeker granting the jobseeker a right to return the list for an immediate refund of the purchase price during a stated period of time which expires not less than 10 days from the date of delivery of the list. The list shall be deemed returned upon delivery to the address from which it was obtained or upon deposit in the mail properly addressed to that address, with postage prepaid. (3) A job listing service shall be exempt pursuant to paragraph (1) if it complies with all of the following: (A) A majority interest in the job listing service is owned by one or more colleges or universities, or alumni associations affiliated therewith, and each college or university is accredited by both (i) an accrediting agency recognized as such by the United States Department of Education and (ii) a member organization of the Council of Postsecondary Accreditation. (B) The job listing service provides services related to employment exclusively for jobseekers who are the alumni of colleges or universities specified in subparagraph (A). (C) The job listing service does not require, as a condition to receiving employment services, that the applicant have completed courses or examinations beyond the requirements for graduation from the college or university specified in subparagraph (A). (D) More than 50 percent of the annual revenues received by the job listing service are derived from paid subscriptions of prospective employers. (Amended by Stats. 1990, Ch. 1256, Sec. 4.)
1812.503.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 2. Employment Agencies [1812.503 - 1812.5095] ( Chapter 2 added by Stats. 1989, Ch. 704, Sec. 2. )
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Employment agencies covered by this title must keep a $3,000 surety bond on file and file a copy with the Secretary of State; they cannot operate without a current bond and filing, and claims against a deposit follow specific approval and payout rules.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 2. Employment Agencies [1812.503 - 1812.5095] ( Chapter 2 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.503. (a) Every employment agency subject to this title shall maintain a bond issued by a surety company admitted to do business in this state. The principal sum of the bond shall be three thousand dollars ($3,000). A copy of the bond shall be filed with the Secretary of State. (b) The bond required by this section shall be in favor of, and payable to, the people of the State of California and shall be conditioned that the person obtaining the bond will comply with this title and will pay all sums due any individual or group of individuals when the person or his or her representative, agent, or employee has received those sums. The bond shall be for the benefit of any person or persons damaged by any violation of this title or by fraud, dishonesty, misstatement, misrepresentation, deceit, unlawful acts or omissions, or failure to provide the services of the employment agency in performance of the contract with the jobseeker, by the employment agency or its agents, representatives, or employees while acting within the scope of their employment. (c) (1) No employment agency shall conduct any business without having a current surety bond in the amount prescribed by this title and filing a copy of the bond with the Secretary of State. (2) Thirty days prior to the cancellation or termination of any surety bond required by this section, the surety shall send a written notice of that cancellation or termination to both the employment agency and the Secretary of State, identifying the bond and the date of cancellation or termination. (3) If any employment agency fails to obtain a new bond and file a copy of that bond with the Secretary of State by the effective date of the cancellation or termination of the former bond, the employment agency shall cease to conduct any business unless and until a new surety bond is obtained and a copy of that bond is filed with the Secretary of State. (d) When a deposit has been made in lieu of the bond pursuant to Section 995.710 of the Code of Civil Procedure, the person asserting a claim against the deposit shall, in lieu of Section 996.430 of the Code of Civil Procedure, establish the claim by furnishing evidence to the Secretary of State of a money judgment entered by a court together with evidence that the claimant is a person described in subdivision (b). (e) When a claimant has established the claim with the Secretary of State, the Secretary of State shall review and approve the claim and enter the date of approval thereon. The claim shall be designated an “approved claim.” (f) When the first claim against a particular deposit has been approved, it shall not be paid until the expiration of a period of 240 days after the date of its approval by the Secretary of State. Subsequent claims that are approved by the Secretary of State within the same 240-day period shall similarly not be paid until the expiration of the 240-day period. Upon the expiration of the 240-day period, the Secretary of State shall pay all approved claims from that 240-day period in full unless the deposit is insufficient, in which case each approved claim shall be paid a pro rata share of the deposit. (g) When the Secretary of State approves the first claim against a particular deposit after the expiration of a 240-day period, the date of approval of that claim shall begin a new 240-day period to which subdivision (f) shall apply with respect to any amount remaining in the deposit. (h) After a deposit is exhausted, no further claims shall be paid by the Secretary of State. Claimants who have had their claims paid in full or in part pursuant to subdivision (f) or (g) shall not be required to return funds received from the deposit for the benefit of other claimants. (i) When a deposit has been made in lieu of a bond, the amount of the deposit shall not be subject to attachment, garnishment, or execution with respect to an action or judgment against the employment agency, other than as to an amount as no longer needed or required for the purpose of this title that would otherwise be returned to the employment agency by the Secretary of State. (j) The Secretary of State shall retain a cash deposit for two years from the date the Secretary of State receives written notification from the assignor of the deposit that the assignor has ceased to engage in the business of an employment agency or has filed a bond pursuant to subdivision (a), provided that there are no outstanding claims against the deposit. This written notice shall include all of the following: (1) name, address, and telephone number of the assignor; (2) name, address, and telephone number of the bank at which the deposit is located; (3) account number of the deposit; and (4) a statement whether the assignor is ceasing to engage in the business of an employment agency or has filed a bond with the Secretary of State. The Secretary of State shall forward an acknowledgment of receipt of the written notice to the assignor at the address indicated therein, specifying the date of receipt of the written notice and anticipated date of release of the deposit, provided there are no outstanding claims against the deposit. (k) A judge of a superior court may order the return of the deposit prior to the expiration of two years upon evidence satisfactory to the judge that there are no outstanding claims against the deposit or order the Secretary of State to retain the deposit for a sufficient period beyond the two years pursuant to subdivision (j) to resolve outstanding claims against the deposit account. (l) The Secretary of State shall charge a filing fee not to exceed the cost of filing the bond or deposit filed in lieu of a bond as set forth in Section 995.710 of the Code of Civil Procedure. (m) The Secretary of State shall enforce the provisions of this chapter that govern the filing and maintenance of bonds and deposits in lieu of bonds. (Amended by Stats. 2002, Ch. 784, Sec. 15. Effective January 1, 2003.)
1812.504.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 2. Employment Agencies [1812.503 - 1812.5095] ( Chapter 2 added by Stats. 1989, Ch. 704, Sec. 2. )
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Employment agencies must give jobseekers a written contract before taking a fee or deposit, include specified terms, and follow refund and timing rules.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 2. Employment Agencies [1812.503 - 1812.5095] ( Chapter 2 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.504. (a) Every employment agency shall give a written contract to every jobseeker from whom a fee or deposit is to be received, whether directly or indirectly. The original of the contract shall be given to the jobseeker at the time the jobseeker signs the contract and before the employment agency accepts any fee or deposit or the jobseeker becomes obligated to pay any such fee or deposit. The contract shall contain all of the following: (1) The name, address, and telephone number of the employment agency, and, if the employment agency has more than one office or location, the address and telephone number of the principal office or location providing services to the jobseeker. (2) The name and address of the person giving the order for help, the date and consecutive number of the receipt of the order by the agency, and its manner of transmission. (3) The name of the jobseeker, the name and address of the person to whom the jobseeker is sent for employment, and the address where the jobseeker is to report for employment. (4) The date and consecutive number of the contract. (5) The amount of the fee to be charged and to be collected from the jobseeker, including a statement that if the employment is terminated, the fee may not exceed gross earnings of the jobseeker in that employment, and the amount of the fee paid or advanced by the prospective employer and by whom paid or advanced. (6) The kind of work or employment. (7) The daily hours of work; the wages or salary, including any consideration or privilege; the benefits; and any other conditions of employment. (8) If any labor trouble exists at the place of employment, that fact shall be stated in the contract. (9) A contract expiration date which shall not be later than 180 days from the date of the referral or signing of the contract, whichever occurs first; however, a domestic agency operating as a registry may enter into a continuing contract subject to termination by written notice by either the domestic worker or the agency. (10) Any other term, condition, or understanding agreed upon between the agency and the jobseeker. (11) The following statement, with the caption in type no smaller than 10-point boldfaced type and the remainder in a size no smaller than that generally used throughout the contract, and in full capitals, boldface, or italics: RIGHT TO REFUND “If you pay all or any portion of a fee and fail to accept employment, the employment agency shall, upon your request, return the amount paid to you within 48 hours after your request for a refund. “If you leave employment for just cause or are discharged for reasons other than misconduct connected with your work within 90 days from the starting date of employment, the agency shall reduce your fee to that payable for temporary employment and shall refund any excess paid within 10 days of your request for a refund. “No fee larger than that for temporary employment may be charged to you for employment lasting 90 days or less unless the agency’s fee schedules, contracts, and agreements provide for a further charge if you leave employment without just cause or are discharged for misconduct in connection with your work. “If any refund due is not made within the time limits set forth above, the employment agency shall pay you an additional sum equal to the amount of the refund.” (b) All contracts shall be dated and shall be made and numbered consecutively, both copies to be signed by the jobseeker and the person acting for the employment agency. The original shall be given to the jobseeker and one copy shall be kept on file at the employment agency. (c) The full agreement between the parties shall be contained in a single document containing those elements set forth in this section. (d) When a referral is made by telephone the agency shall execute the contract or receipt in triplicate and shall mail the original and duplicate to the jobseeker on the day the referral is made, with instructions that they be signed by the jobseeker and the duplicate returned to the agency. The date of mailing the contract or receipt to the jobseeker shall be entered thereon by the agency. The same contract or receipt shall not be used for more than one referral. (e) For purposes of this section, a “domestic agency operating as a registry” means a domestic agency that engages in the business of obtaining and filling commitments for domestic help. (Amended by Stats. 1996, Ch. 102, Sec. 1. Effective January 1, 1997.)
1812.505.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 2. Employment Agencies [1812.503 - 1812.5095] ( Chapter 2 added by Stats. 1989, Ch. 704, Sec. 2. )
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Employment agencies must disclose fee schedules, limit and document charges, and cannot impose several jobseeker fees or fee-related documents.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 2. Employment Agencies [1812.503 - 1812.5095] ( Chapter 2 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.505. (a) (1) An employment agency shall provide a copy of the agency’s jobseeker fee schedule and payment terms to any jobseeker from whom a fee or deposit is to be received, prior to the jobseeker being interviewed by a counselor. The jobseeker fee schedule shall indicate the percentage of both the projected annual and first month’s total gross earnings represented by those fees. (2) In the schedule, the various employments or salary ranges by which the fee is to be computed or determined shall be classified, and in each class the maximum fee shall be fixed and shall include the charges of every kind rendered by the agency in each case or transaction on behalf of the prospective employee. Changes in the schedule may be made, but no change shall become effective until posted for not less than seven days in a conspicuous place in the agency. (3) A copy of the schedule in effect shall be kept posted in the employment agency in a conspicuous place, and the posted schedule and the changes therein shall be in lettering or printing of not less than standard pica capitals. The date of the taking effect of the schedule and of each change therein shall appear on the posted copies. (4) A copy of all fee schedules, and of all changes therein, shall be kept on file at the employment agency, retrospectively, for a period of one year. (b) No fee charged or collected shall be in excess of the fee as scheduled. (c) No employment agency shall accept, directly or indirectly, a registration fee of any kind. (d) No employment agency may take from a jobseeker a confession of judgment, a promissory note or notes, or an assignment of wages to cover its fees. (e) The employment agency shall give a receipt to every jobseeker from whom a deposit is received. No other deposit or prepayment of any kind may be required by an agency. If the jobseeker accepts employment, the deposit shall be applied to the fee to be paid by the jobseeker. (f) (1) If a jobseeker leaves employment for just cause or is discharged for reasons other than misconduct connected with the jobseeker’s work within 90 days from the starting date of employment, the agency shall reduce the fee payable by the jobseeker to that payable for temporary employment under subdivision (g) and shall refund any fee paid in excess of that amount. (2) No charge may be made to or obligation to pay incurred by any jobseeker beyond that authorized by subdivision (g) for employment lasting 90 days or less, unless the agency’s fee schedules, contracts, and agreements specifically provide for a further charge if the jobseeker leaves employment without just cause or is discharged for misconduct in connection with his or her work, and then only if lack of just cause or misconduct exists. Otherwise, the agency shall retain or charge only the fee for temporary employment for any employment lasting 90 days or less from the starting date of employment. (3) Notwithstanding subdivision (a) and this subdivision, in no instance in which the employment accepted is subsequently terminated shall the fee charged or obligation to pay incurred by a jobseeker be greater than the total gross earnings of the jobseeker in that employment. This provision shall be stated in all agency contracts issued pursuant to Section 1812.504. (g) The fee payable by the jobseeker for temporary employment shall not exceed 1/90 of the fee for permanent employment for each consecutive calendar day during the period that the jobseeker is employed or compensated as though employed. (h) (1) If a jobseeker accepts employment in which the jobseeker is to be paid on the basis of straight commissions, or a drawing account against commissions, or either a drawing account or salary plus commissions, the fee payable by the jobseeker may be predicated upon the projected total gross earnings during the first year of employment as estimated by the employer. (2) Upon the conclusion of a jobseeker’s first 12 months of employment, a computation of his or her actual total gross earnings may be provided by the jobseeker to the agency, and, predicated upon appropriate proof of earnings, an adjustment in the fee shall be made in which either the agency shall refund to the jobseeker any excess fee paid by him or her or the jobseeker shall pay to the agency any deficiency thereon. (3) If the jobseeker’s employment is terminated prior to the conclusion of the first 12 months of employment, the actual total gross earnings of the jobseeker for the period of employment shall be projected to 12 months on a pro rata basis as though the jobseeker had been employed for the entire period of 12 months, and a computation shall be made thereon. The fee paid or payable by the jobseeker shall be predicated upon that computation as though the jobseeker had been so employed. (i) If an employment agency sends a jobseeker for employment and the jobseeker accepts employment other than that position specified in the bona fide order for employment to which the jobseeker was sent, but with the same employer, then the agency shall be entitled to a fee for the employment of the jobseeker, payable by the jobseeker, computed under the terms of the fee schedule in effect in the agency at the time of referral, provided that the jobseeker accepts employment within 180 days of the date of referral. The expiration date of the referral shall be stated in the contract. In interagency disputes concerning the earning of a fee for placement of a jobseeker, the fee shall be earned by the agency responsible for the jobseeker being placed. A reasonable effort shall be made by the billing agency that it is entitled to the fee. The jobseeker shall be responsible for only one full fee for any single placement, and that fact shall be so stated in the contract. (j) (1) No employment agency shall divide fees with an employer, an agent, or other employee of an employer or person to whom help is furnished. (2) No employment agency shall charge any jobseeker a fee for accepting employment with such employment agency or any subsidiary of that agency. (3) No employment agency shall charge any jobseeker a fee when help is furnished to an employer, an agent, any employee of an employer, a member, or person who has a financial interest in the employment agency. (Added by Stats. 1989, Ch. 704, Sec. 2.)
1812.506.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 2. Employment Agencies [1812.503 - 1812.5095] ( Chapter 2 added by Stats. 1989, Ch. 704, Sec. 2. )
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Employment agencies must refund certain fees or deposits on request, and may owe an extra amount if they do not return the deposit within 48 hours.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 2. Employment Agencies [1812.503 - 1812.5095] ( Chapter 2 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.506. (a) If a jobseeker paying or becoming obligated to pay a fee, or making a deposit on a fee for placement fails to accept employment, the employment agency shall, upon request by the jobseeker, repay the amount of the deposit or fee to the jobseeker. Unless the deposit is returned within 48 hours after request, the employment agency shall pay to the jobseeker an additional sum equal to the amount of the deposit. A notice to this effect shall be inserted in all contracts between the agency and the jobseeker, and in all receipts given to the jobseeker for cash payment in advance of employment, and in the schedule of fees posted in the office of the agency. (b) (1) All employment provided by any employment agency to any jobseeker from whom a fee is to be received shall be considered permanent only if it lasts longer than 90 days. If a jobseeker leaves the job or is discharged within the first 90 days of employment, the agency shall make a refund or reduction of the fee to the temporary fee amount unless the agency’s fee schedules, contracts, and agreements specifically provide for a further charge if the jobseeker leaves employment without just cause or is discharged for misconduct in connection with his or her work. (2) “Just cause” or “discharge for reasons other than misconduct” includes, but is not limited to, the following: (A) Wages or salary less than that agreed upon between the jobseeker and the employer. (B) Receiving a payroll check which is not honored by the bank upon which it was drawn. (C) Working hours, working days, or working shifts significantly different than those agreed upon between the jobseeker and the employer. (D) Receiving a work assignment, subsequent to accepting the job, which is substantially different from that agreed upon between the jobseeker and the employer. (E) Being assigned to a job location different from that which was agreed upon between the jobseeker and the employer. (F) The jobseeker’s lack of physical ability to perform duties connected with the position agreed upon between the jobseeker and the employer unless the provisions of subparagraph (E) of paragraph (3) apply. (G) A lockout or strike causing loss of pay. (H) The jobseeker’s lack of physical ability to perform duties connected with the position unless the provisions of subparagraph (E) of paragraph (3) apply. (J) The jobseeker’s entry into active service in the armed forces. (K) Physical or economic destruction of the business. (L) The death of the jobseeker (any refund in that case shall be paid to the estate of the jobseeker). (3) “Lack of just cause” or a discharge for “misconduct” includes, but is not limited, to: (A) Abandonment of the job by the jobseeker. (B) Conviction of the jobseeker, subsequent to employment, of a crime when conviction temporarily or permanently prevents the jobseeker from fulfilling the terms of employment. (C) Willful violation of lawful company policies or rules by the jobseeker. (D) Willful failure to perform lawful duties appropriate to employment by the jobseeker. (E) Acts of the jobseeker constituting misrepresentation or withholding of information directly related to education, work experience, responsibility, physical ability, or training, that would have caused the employer to refuse employment. (c) (1) Except as otherwise provided in subdivision (a), a refund when due shall be made within 10 working days after request therefor from the jobseeker. (2) Alternatively, if the decision of the agency is not to make a refund, the agency shall notify the jobseeker in writing, within the 10-day working period specified in paragraph (1), as to the specific reasons why the refund is not being made. (3) If the agency fails to properly notify the jobseeker pursuant to paragraph (2) or fails to tender a refund within the time allowed, the agency shall be liable to the jobseeker in the amount of an additional sum equal to the amount of the refund. (Added by Stats. 1989, Ch. 704, Sec. 2.)
1812.507.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 2. Employment Agencies [1812.503 - 1812.5095] ( Chapter 2 added by Stats. 1989, Ch. 704, Sec. 2. )
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Employment agencies must have a bona fide job order before taking a fee from a jobseeker or referring the jobseeker for work, and they must keep job orders in writing.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 2. Employment Agencies [1812.503 - 1812.5095] ( Chapter 2 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.507. (a) No employment agency shall accept a fee from any jobseeker, or send any jobseeker for employment, without having obtained, orally or in writing, a bona fide job order for employment. (b) An agency shall identify itself as an employment agency to the employer in all instances in which it contacts an employer for the purpose of soliciting a job order. All job orders shall be recorded in writing. A job order for employment shall be considered to have been given by an employer to an employment agency under the following conditions: (1) The employer, or his or her agent, orally or in writing, registers a request or gives permission that the agency recruit or refer jobseekers who meet the employer’s stated job specifications and the employer furnishes such information as required by subdivision (a) of Section 1812.504. A job order is valid for the referral of any qualified jobseeker until it is filled or canceled by the employer, and may serve as the basis for agency advertising. The agency is required to recontact the employer within 30 days to ensure that the position is still vacant prior to any additional advertising or referral of jobseekers. (2) When an agency has brought the qualifications of a specific jobseeker to the attention of an employer and the employer has expressed interest in that jobseeker either by agreeing to interview the jobseeker, or by requesting that the agency furnish him or her with the jobseeker’s resumé or other written history or data, or by initiating direct contact with the jobseeker as a result of information furnished by the agency, that action by the employer shall constitute a job order only for the jobseeker discussed and is not valid for advertisement, unless the contact by the agency resulted in a job order for a specific position sufficient under paragraph (1). If the employer has no position open but merely wishes to explore the possible employment of the jobseeker and the jobseeker is to be responsible for the placement fee, that fact shall be indicated on the jobseeker’s referral contract. (c) No employment agency shall refer a jobseeker to a job knowing or having reason to know that: (1) The job does not exist or the jobseeker is not qualified for the job. (2) The job has been described or advertised by or on behalf of the agency in a false, misleading, or deceptive manner. (3) The agency has not obtained written or oral permission to list the job from the employer or an authorized agent of the employer. (Added by Stats. 1989, Ch. 704, Sec. 2.)
1812.508.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 2. Employment Agencies [1812.503 - 1812.5095] ( Chapter 2 added by Stats. 1989, Ch. 704, Sec. 2. )
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Employment agencies must not make false or misleading job-related claims or ads, and their ads must include required contact and fee information.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 2. Employment Agencies [1812.503 - 1812.5095] ( Chapter 2 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.508. (a) No employment agency shall make, or cause to be made, any false, misleading, or deceptive advertisements or representations concerning the services that the agency will provide to jobseekers. (b) (1) No employment agency shall publish or cause to be published any false, fraudulent, or misleading information, representation, notice, or advertisements. (2) All advertisements of an employment agency shall contain the correct name of the employment agency and one of the following: (A) The street address of the agency’s place of business. (B) The correct telephone number of the agency at its place of business. (3) Every employment agency, except a nurses’ registry shall use, as part of its name, either the designation “agency” or “personnel service.” (4) No employment agency shall give any false information or make any false promises or representations concerning an engagement or employment to any jobseeker who registers or applies for an engagement or employment or help. (5) No employment agency shall, by its name, advertisement, or any other representation, represent itself to be a home health agency, as defined by subdivision (a) of Section 1727 of the Health and Safety Code, or to perform the services of a home health agency. An employment agency shall provide a written disclosure to each individual receiving nursing services in his or her place of residence stating that it does not perform the services of a home health agency and clearly describing that it is an employment agency only and that any complaints against personnel providing nursing services who are neither licensed nor certified shall be submitted to the local district attorney, complaints against certified nursing assistants and certified home health aides providing nursing services shall be submitted to the local district attorney and the State Department of Health Services, and complaints against licensed personnel providing nursing services shall be submitted to the local district attorney and the Department of Consumer Affairs. The address and telephone number of each agency and board to which complaints are required to be submitted shall be provided by the employment agency to all patients prior to the time they are under the care of any nursing services personnel. (6) Any person may refer complaints concerning employment agencies to the proper law enforcement agency for action. (c) (1) Where an employment agency job advertisement includes a description of the placement fee associated with the advertised job, the employment agency shall describe the placement fee in a manner which either clearly indicates whether or not a jobseeker shall be responsible for the placement fee or in accordance with the following terms and provisions: (A) “FEE” means the jobseeker pays the entire placement fee. (B) “NO FEE” means the jobseeker pays no portion of the placement fee. (2) Where “NO FEE” jobs are advertised and the agency also administers placement for “FEE” jobs, the advertisement shall state “ALSO FEE JOBS” in type of equal size, prominence, and boldness as “NO FEE” notations. (3) A group job advertisement which includes a description of the placement fee shall describe the placement fee either separately for each job, or by use of the proper term as a heading under which all applicable jobs shall be listed. All those headings shall be in type and of the same size, prominence, and boldness. (d) Special requirements not usually associated with a job shall be specified in any advertisement. When the location of the position advertised is more than 50 miles from the employment agency office responsible for the advertisement, it shall state either the location or that the job is “nonlocal.” Special benefits of the job, if advertised, shall be specifically described and substitute terms or symbols such as “extras” or “+” shall not be sufficient. (e) An advertised salary shall be based upon the starting salary contained in the job order. An advertised range of starting salaries shall be specified by preceding the minimum salary and maximum salary by the terms “from” and “to” respectively. When the job order contains only the maximum amount of a salary range, that advertised salary shall be preceded by the word “to.” If a maximum salary is dependent upon the jobseeker’s experience, the advertised salary may be described by listing the minimum salary and the term “up Depending on Experience” or “up D.O.E.” The words “open” and “negotiable” or words or symbols of like import shall not be used as a substitute for the salary. If an advertised salary is based in whole or in part on commissions, that fact shall be indicated in the advertisement. (f) All employment agencies shall maintain a record of all advertised jobs, correlated to show the date and the publication in which the advertisement appeared and the job order number of each job advertised, retrospectively for a period of one year. (Amended by Stats. 1990, Ch. 761, Sec. 1.)
1812.509.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 2. Employment Agencies [1812.503 - 1812.5095] ( Chapter 2 added by Stats. 1989, Ch. 704, Sec. 2. )
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Employment agencies must give jobseekers certain notices before referral and may not place minors or send jobseekers into places with labor trouble without required warnings. Some agencies must also interview and verify certain workers before referral.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 2. Employment Agencies [1812.503 - 1812.5095] ( Chapter 2 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.509. (a) No employment agency shall, when employment would be in violation of Chapter 1 (commencing with Section 1171) of Part 4 of Division 2 of the Labor Code or Part 27 (commencing with Section 48000) of the Education Code, accept any application for employment made by, or on behalf of, any minor, or place or assist in placing any minor in that employment. (b) Every employment agency shall notify each jobseeker before sending the jobseeker in response to a request for employment whether a labor contract is in existence at the establishment to which the jobseeker is being sent, and whether union membership is required. (c) No employment agency shall send a jobseeker to any place where a strike, lockout, or other labor trouble exists without notifying the jobseeker of that fact and shall in addition thereto enter a statement of those conditions upon the contract or receipt given to the jobseeker. (d) No babysitting, domestic, or other employment agency which procures babysitting or domestic employment for employers shall refer babysitters or domestics for any employment without first conducting a personal interview of the jobseeker and making a reasonable effort to verify the experience or training of the jobseeker. (e) No employment agency that procures temporary employment for long-term health care employers shall refer certified nurse assistants or licensed nursing staff as defined in Section 1812.540, for any employment without first conducting a personal interview of the individual, verifying the experience, training, and references of the individual, and verifying that the individual is in good standing with the appropriate licensing or certification board, including verification that the individual has successfully secured a criminal record clearance. (Amended by Stats. 2001, Ch. 326, Sec. 1. Effective January 1, 2002.)
1812.5093.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 2. Employment Agencies [1812.503 - 1812.5095] ( Chapter 2 added by Stats. 1989, Ch. 704, Sec. 2. )
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Employment agencies that refer child care providers must give the employer specific trustline registry information, and the employer must verify receipt in writing.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 2. Employment Agencies [1812.503 - 1812.5095] ( Chapter 2 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.5093. (a) Every employment agency that refers a child care provider to an employer who is not required to be a licensed child day care facility pursuant to Section 1596.792 of the Health and Safety Code shall provide the employer with all the following: (1) A description of the child care provider trustline registry established pursuant to Chapter 3.35 (commencing with Section 1596.60) of Division 2 of the Health and Safety Code that provides criminal history checks on child care providers. (2) An explanation of how an employer may obtain more information about the child care provider trustline registry. (3) A statement that an employment agency is prohibited by law from placing a child care provider unless the provider is a trustline applicant or a registered child care provider. (4) An explanation of how the employer may verify the prospective child care provider’s trustline registry registration. (b) Receipt of the information required to be provided pursuant to subdivision (a) shall be verified in writing by the employer. (Added by Stats. 1998, Ch. 287, Sec. 1. Effective January 1, 1999.)
1812.5095.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 2. Employment Agencies [1812.503 - 1812.5095] ( Chapter 2 added by Stats. 1989, Ch. 704, Sec. 2. )
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This section sets rules for employment agencies referring domestic workers, including required disclosures, limits on supervision, fee rules, and advertising restrictions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 2. Employment Agencies [1812.503 - 1812.5095] ( Chapter 2 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.5095. (a) For purposes of this section, the term “employment agency” means an employment agency, as defined in paragraph (3) of subdivision (a) of Section 1812.501, or a domestic agency, as defined in subdivision (h) of Section 1812.501. (b) An employment agency is not the employer of a domestic worker for whom it procures, offers, refers, provides, or attempts to provide work, if all of the following factors characterize the nature of the relationship between the employment agency and the domestic worker for whom the agency procures, offers, refers, provides, or attempts to provide domestic work: (1) There is a signed contract or agreement between the employment agency and the domestic worker that contains, at a minimum, provisions that specify all of the following: (A) That the employment agency shall assist the domestic worker in securing work. (B) How the employment agency’s referral fee shall be paid. (C) That the domestic worker is free to sign an agreement with other employment agencies and to perform domestic work for persons not referred by the employment agency. (2) The domestic worker informs the employment agency of any restrictions on hours, location, conditions, or type of work he or she will accept and the domestic worker is free to select or reject any work opportunity procured, offered, referred, or provided by the employment agency. (3) The domestic worker is free to renegotiate with the person hiring him or her the amount proposed to be paid for the work. (4) The domestic worker does not receive any training from the employment agency with respect to the performance of domestic work. However, an employment agency may provide a voluntary orientation session in which the relationship between the employment agency and the domestic worker, including the employment agency’s administrative and operating procedures, and the provisions of the contract or agreement between the employment agency and the domestic worker are explained. (5) The domestic worker performs domestic work without any direction, control, or supervision exercised by the employment agency with respect to the manner and means of performing the domestic work. An employment agency shall not be deemed to be exercising direction, control, or supervision when it takes any of the following actions: (A) Informs the domestic worker about the services to be provided and the conditions of work specified by the person seeking to hire a domestic worker. (B) Contacts the person who has hired the domestic worker to determine whether that person is satisfied with the agency’s referral service. (C) Informs the domestic worker of the time during which new referrals are available. (D) Requests the domestic worker to inform the employment agency if the domestic worker is unable to perform the work accepted. (6) The employment agency does not provide tools, supplies, or equipment necessary to perform the domestic work. (7) The domestic worker is not obligated to pay the employment agency’s referral fee, and the employment agency is not obligated to pay the domestic worker if the person for whom the services were performed fails or refuses to pay for the domestic work. (8) Payments for domestic services are made directly to either the domestic worker or to the employment agency. Payments made directly to the employment agency shall be deposited into a trust account until payment can be made to the domestic worker. (9) The relationship between a domestic worker and the person for whom the domestic worker performs services may only be terminated by either of those parties and not by the employment agency that referred the domestic worker. However, an employment agency may decline to make additional referrals to a particular domestic worker, and the domestic worker may decline to accept a particular referral. (c) The fee charged by an employment agency for its services shall be reasonable, negotiable, and based on a fixed percentage of the job cost. (d) An employment agency referring a domestic worker to a job shall inform that domestic worker, in writing, on or before the signing of the contract pursuant to paragraph (1) of subdivision (b), that the domestic worker may be obligated to obtain business permits or licenses, where required by any state or local law, ordinance, or regulation, and that he or she is not eligible for unemployment insurance, state disability insurance, social security, or workers’ compensation benefits through an employment agency complying with subdivision (b). The employment agency referring a domestic worker shall also inform that domestic worker, if the domestic worker is self-employed, that he or she is required to pay self-employment tax, state tax, and federal income taxes. (e) An employment agency referring a domestic worker to a job shall verify the worker’s legal status or authorization to work prior to providing referral services in accordance with procedures established under federal law. (f) An employment agency referring a domestic worker to a job shall orally communicate to the person seeking domestic services the disclosure set forth below prior to the referral of the domestic worker the following disclosure statement: “(Name of agency) is not the employer of the domestic worker it referred to you. Depending on your arrangement with the domestic worker, you may have employer responsibilities.” Within three business days after the employment agency refers a domestic worker to the person seeking domestic services, the following statement printed in not less than 10-point type shall be mailed to the person seeking domestic services: “(Name of agency) is not the employer of the domestic worker it referred to you. The domestic worker may be your employee or an independent contractor depending on the relationship you have with him or her. If you direct and control the manner and means by which the domestic worker performs his or her work you may have employer responsibilities, including employment taxes and workers’ compensation, under state and federal law. For additional information contact your local Employment Development Department and the Internal Revenue Service.” (g) An employment agency referring a domestic worker to a job shall not specify that a worker is self-employed or an independent contractor in any notice, advertisement, or brochure provided to either the worker or the customer. (h) Every employment agency referring a domestic worker to a job and who is not the employer of the domestic worker being referred, shall in any paid telephone directory advertisement or any other promotional literature or advertising distributed or placed by such an employment agency, on or after January 1, 1995, insert the following statement, in no less than 6-point type which shall be in print which contrasts with the background of the advertisement so as to be easily legible: “(Name of agency) is a referral agency.” (i) An employment agency may not refer, in its advertising, soliciting, or other presentments to the public, to any bond required to be filed pursuant to this chapter. (j) An employment agency may not refer, in its advertising, soliciting, or other presentments to the public, to any licensure acquired by the agency. (k) Any violation of this section with the intent to directly or indirectly mislead the public on the nature of services provided by an employment agency shall constitute unfair competition which includes any unlawful, unfair, or fraudulent business acts or practices and unfair, deceptive, untrue, or misleading advertising. Any person or entity that engages in unfair competition shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation. (Amended by Stats. 1994, Ch. 1081, Sec. 1. Effective January 1, 1995.)
1812.51.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. )
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This section defines “contract for dance studio lessons and other services” and excludes certain professional-service and school instruction contracts.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. ) ## 1812.51. As used in this title, “contract for dance studio lessons and other services” means a contract for instruction in ballroom or other types of dancing, and includes lessons and other services, whether given to students individually or in groups. This title does not include contracts for professional services rendered or furnished by a person licensed under Division 2 (commencing with Section 500) of the Business and Professions Code, or contracts for instruction at schools operating pursuant to the Education Code. (Amended by Stats. 1988, Ch. 1043, Sec. 3.)
1812.510.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 3. Employment Counseling Services [1812.510 - 1812.513] ( Chapter 3 added by Stats. 1989, Ch. 704, Sec. 2. )
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Employment counseling services covered by this title must maintain a $10,000 surety bond, file a copy with the Secretary of State, and stop doing business if they lose bond coverage until a new bond is filed.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 3. Employment Counseling Services [1812.510 - 1812.513] ( Chapter 3 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.510. (a) Every employment counseling service subject to this title shall maintain a bond issued by a surety company admitted to do business in this state. The principal sum of the bond shall be ten thousand dollars ($10,000). A copy of the bond shall be filed with the Secretary of State. (b) The bond required by this section shall be in favor of, and payable to, the people of the State of California, and shall be conditioned that the person obtaining the bond will comply with this title and will pay all sums due any individual or group of individuals when the person or his or her representative, agent, or employee has received those sums. The bond shall be for the benefit of any person or persons damaged by any violation of this title or by fraud, dishonesty, misstatement, misrepresentation, deceit, unlawful acts or omissions, or failure to provide the services of the employment counseling service in performance of the contract with the customer by the employment counseling service or its agents, representatives, or employees while acting within the scope of their employment. (c) (1) No employment counseling service shall conduct any business without having a current surety bond in the amount prescribed by this title and filing a copy of the bond with the Secretary of State. (2) Thirty days prior to the cancellation or termination of any surety bond required by this section, the surety shall send a written notice of that cancellation or termination to both the employment counseling service and the Secretary of State, identifying the bond and the date of cancellation or termination. (3) If any employment counseling service fails to obtain a new bond and file a copy of that bond with the Secretary of State by the effective date of the cancellation or termination of the former bond, the employment counseling service shall cease to conduct any business unless and until a new surety bond is obtained and a copy of that bond is filed with the Secretary of State. (d) When a deposit has been made in lieu of the bond pursuant to Section 995.710 of the Code of Civil Procedure, the person asserting a claim against the deposit shall, in lieu of Section 996.430 of the Code of Civil Procedure, establish the claim by furnishing evidence to the Secretary of State of a money judgment entered by a court together with evidence that the claimant is a person described in subdivision (b). (e) When a person has established the claim with the Secretary of State, the Secretary of State shall immediately review and approve the claim and enter the date of approval on the claim. The claim shall be designated an “approved claim.” (f) When the first claim against a particular deposit has been approved, it shall not be paid until the expiration of a period of 240 days after the date of its approval by the Secretary of State. Subsequent claims that are approved by the Secretary of State within the same 240-day period shall similarly not be paid until the expiration of the 240-day period. Upon the expiration of the 240-day period, the Secretary of State shall pay all approved claims from that 240-day period in full unless the deposit is insufficient, in which case each approved claim shall be paid a pro rata share of the deposit. (g) When the Secretary of State approves the first claim against a particular deposit account after the expiration of the 240-day period, the date of approval of that claim shall begin a new 240-day period to which subdivision (f) shall apply with respect to the amount remaining in the deposit account. (h) After a deposit account is exhausted, no further claims shall be paid by the Secretary of State. Claimants who have had their claims paid in full or in part pursuant to subdivisions (f) and (g) shall not be required to return funds received from the deposit for the benefit of other claimants. (i) When a deposit has been made in lieu of a bond, the amount of the deposit shall not be subject to attachment, garnishment, or execution with respect to an action or judgment against the employment counseling service, other than as to an amount as no longer needed or required for the purpose of this title that would otherwise be returned to the employment counseling service by the Secretary of State. (j) The Secretary of State shall retain a cash deposit for two years from the date the Secretary of State receives written notification from the assignor of the deposit that the assignor has ceased to engage in the business of a counseling service or has filed a bond pursuant to subdivision (a), provided that there are no outstanding claims against the deposit. Written notification to the Secretary of State shall include all of the following: (1) name, address, and telephone number of the assignor; (2) name, address, and telephone number of the bank at which the deposit is located; (3) account number of the deposit; and (4) a statement whether the assignor is ceasing to engage in the business of a counseling service or has filed a bond with the Secretary of State. The Secretary of State shall forward an acknowledgment of receipt of the written notice to the assignor at the address indicated in the notice, specifying the date of receipt of the written notice and anticipated date of release of the deposit, provided there are no outstanding claims against the deposit account. (k) A judge of a superior court may order the return of the deposit prior to the expiration of two years upon evidence satisfactory to the judge that there are no outstanding claims against the deposit or order the Secretary of State to retain the deposit for a sufficient period beyond the two years pursuant to subdivision (j) to resolve outstanding claims against the deposit account. (l) The Secretary of State shall charge a filing fee not to exceed the cost of filing the bond or the deposit filed in lieu of a bond pursuant to Section 995.710 of the Code of Civil Procedure. (m) The Secretary of State shall enforce the provisions of this chapter that govern the filing and maintenance of bonds and deposits in lieu of bonds. (Amended by Stats. 2002, Ch. 784, Sec. 16. Effective January 1, 2003.)
1812.511.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 3. Employment Counseling Services [1812.510 - 1812.513] ( Chapter 3 added by Stats. 1989, Ch. 704, Sec. 2. )
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Employment counseling service contracts must be written, given to the customer in copy form, include specified terms, and the customer gets cancellation rights.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 3. Employment Counseling Services [1812.510 - 1812.513] ( Chapter 3 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.511. (a) Every contract for employment counseling services shall be in writing. An original and one copy of the contract shall be given to the customer at the time the customer signs the contract and before the employment counseling service accepts any fee or deposit or the customer becomes obligated to pay any such fee or deposit. The contract shall contain all of the following: (1) The name, address, and telephone number of the employment counseling service. (2) The name and address of the person signing the contract and the person to whom the employment counseling services are to be provided. (3) A description of the services to be provided; a statement when those services are to be provided; the duration of the contract; and refund provisions as appropriate, to be applicable if the described services are not provided according to the contract. (4) The amount of the fee to be charged to or collected from the person receiving the services or any other person, and the date or dates when that fee is required to be paid. (5) The following statement, in type no smaller than 10-point boldfaced type: “No verbal or written promise or guarantee of any job or employment is made or implied under the terms of this contract.” (6) The following statement, in immediate proximity to the space reserved for the customer’s signature, in type no smaller than 10-point boldfaced type: YOUR RIGHT TO CANCEL /enter date of transaction/ “You may cancel this contract for employment counseling services, without any penalty or obligation, if notice of cancellation is given, in writing, within three business days from the above date “To cancel this contract, just mail or deliver a signed and dated copy of the following cancellation notice or any other written notice of cancellation, or send a telegram containing a notice of cancellation, to (name of employment counseling service) at (address of its place of business), NOT LATER THAN MIDNIGHT OF /date/.” CANCELLATION NOTICE I hereby cancel this contract. Dated: Customer’s Signature” Until the employment counseling service has complied with this section the customer may cancel the employment counseling services contract. (b) All contracts shall be dated and shall be made and numbered consecutively in triplicate, the original and each copy to be signed by the customer and the person acting for the employment counseling service. The original and one copy shall be given to the customer and the other copy shall be kept on file at the employment counseling service. (c) The full agreement between the parties shall be contained in a single document containing those elements set forth in this section. (Added by Stats. 1989, Ch. 704, Sec. 2.)
1812.512.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 3. Employment Counseling Services [1812.510 - 1812.513] ( Chapter 3 added by Stats. 1989, Ch. 704, Sec. 2. )
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Employment counseling services must disclose fee schedules and payment terms, post and file schedule changes properly, and may not charge more than the scheduled fee or accept registration fees or certain payment instruments.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 3. Employment Counseling Services [1812.510 - 1812.513] ( Chapter 3 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.512. (a) (1) An employment counseling service shall provide a copy of its fee schedule and payment terms to any customer from whom a fee or deposit is to be received, prior to the customer being interviewed by a counselor, agent, or employee. (2) In the schedule, the maximum fee shall be fixed and shall include the charges of every kind rendered by the employment counseling service in each case or transaction on behalf of the prospective employee. Changes in the fee schedule may be made, but no change shall become effective until posted for not less than seven days in a conspicuous place in the employment counseling service. (3) A copy of the schedule in effect shall be kept posted in the employment counseling service in a conspicuous place, and the posted schedule and the changes therein shall be in lettering or printing of not less than standard pica capitals. The date of the taking effect of the schedule and of each change therein shall appear on the posted copies. (4) A copy of all fee schedules, and of all changes therein, shall be kept on file at the employment counseling service, retrospectively for a period of one year. (b) No fee charged or collected shall be in excess of the fee as scheduled. (c) No employment counseling service shall accept, directly or indirectly, a registration fee of any kind. (d) No employment counseling service may take from a customer a confession of judgment, a promissory note or notes, or an assignment of wages to cover its fees. (Added by Stats. 1989, Ch. 704, Sec. 2.)
1812.513.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 3. Employment Counseling Services [1812.510 - 1812.513] ( Chapter 3 added by Stats. 1989, Ch. 704, Sec. 2. )
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Employment counseling services must not make false or misleading advertising or job-related promises, must identify themselves correctly in ads, and must keep advertisement records for one year.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 3. Employment Counseling Services [1812.510 - 1812.513] ( Chapter 3 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.513. (a) No employment counseling service shall make or cause to be made any false, misleading, or deceptive advertisements or representations concerning the services that the employment counseling service will provide to customers. (b) (1) No employment counseling service shall publish or cause to be published any false, fraudulent, or misleading information, representation, notice, or advertisements. (2) All advertisements of an employment counseling service shall contain the correct name of the employment counseling service and one of the following: (A) The street address of the employment counseling service’s place of business. (B) The correct telephone number of the employment counseling service at its place of business. (c) No employment counseling service shall give any false information or make any false promises or representations concerning engagement or employment to any customer, or make any verbal or written promise or guarantee of any job or employment. (d) An employment counseling service shall maintain a record of all advertisements for the service, correlated to show the date and the publication in which the advertisement appeared, retrospectively, for a period of one year. (e) No employment counseling service shall, by its choice of name or by advertisement or representation, represent itself to be an employment agency or to perform the job placement services of an employment agency. (Added by Stats. 1989, Ch. 704, Sec. 2.)
1812.515.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 4. Job Listing Services [1812.515 - 1812.521] ( Chapter 4 added by Stats. 1989, Ch. 704, Sec. 2. )
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Job listing services must keep a surety bond, file a copy with the Secretary of State, and follow deposit and claim rules tied to that bond.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 4. Job Listing Services [1812.515 - 1812.521] ( Chapter 4 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.515. (a) Every job listing service subject to this title shall maintain a bond issued by a surety company admitted to do business in this state. The principal sum of the bond shall be ten thousand dollars ($10,000) for each location. A copy of the bond shall be filed with the Secretary of State. (b) The bond required by this section shall be in favor of, and payable to, the people of the State of California, and shall be conditioned that the person obtaining the bond will comply with this title and will pay all sums due any individual or group of individuals when the person or his or her representative, agent, or employee has received those sums. The bond shall be for the benefit of any person or persons damaged by any violation of misrepresentation, deceit, unlawful acts of omissions, or failure to provide the services of the job listing service in performance of the contract with the jobseeker, by the job listing service or its agent, representatives, or employees while acting within the scope of their employment. (c) (1) No job listing service shall conduct any business without having a current surety bond in the amount prescribed by this chapter and filing a copy of the bond with the Secretary of State, identifying the bond and the date of cancellation or termination. (2) Thirty days prior to the cancellation or termination of any surety bond required by this section, the surety shall send a written notice of that cancellation or termination to both the job listing service and the Secretary of State, identifying the bond and the date of cancellation or termination. (3) If any job listing service fails to obtain a new bond and file a copy of that bond with the Secretary of State by the effective date of the cancellation or termination of the former bond, the job listing service shall cease to conduct any business unless and until a new surety bond is obtained and a copy of that bond is filed with the Secretary of State. (d) When a deposit has been made in lieu of a bond pursuant to Section 995.710 of the Code of Civil Procedure, the person asserting a claim against the deposit shall, in lieu of Section 996.430 of the Code of Civil Procedure, establish the claim by furnishing evidence to the Secretary of State of a money judgment entered by a court together with evidence that the claimant is a person described in subdivision (b). (e) When a person has established the claim with the Secretary of State, the Secretary of State shall review and approve the claim and enter the date of approval on the claim. The claim shall be designated an “approved claim.” (f) When the first claim against a particular deposit has been approved, it shall not be paid until the expiration of a period of 240 days after the date of its approval by the Secretary of State. Subsequent claims that are approved by the Secretary of State within the same 240-day period shall similarly not be paid until the expiration of the 240-day period. Upon the expiration of the 240-day period, the Secretary of State shall pay all approved claims from that 240-day period in full unless the deposit is insufficient, in which case each approved claim shall be paid in a pro rata share of the deposit. (g) When the Secretary of State approves the first claim against a particular deposit after the expiration of the 240-day period, the date of approval of that claim shall begin a new 240-day period to which subdivision (f) shall apply with respect to the amount remaining in the deposit. (h) After a deposit is exhausted, no further claims shall be paid by the Secretary of State. Claimants who have had their claims paid in full or in part pursuant to subdivisions (f) and (g) shall not be required to return funds received from the deposit for the benefit of other claimants. (i) When a deposit has been made in lieu of a bond, the amount of the deposit shall not be subject to attachment, garnishment, or execution with respect to an action or judgment against the job listing service, other than as to an amount as no longer needed or required for the purpose of this title that would otherwise be returned to the job listing service by the Secretary of State. (j) The Secretary of State shall retain a cash deposit for two years from the date the Secretary of State receives written notification from the assignor of the deposit that the assignor has ceased to engage in the business of a job listing service or has filed a bond pursuant to subdivision (a), provided that there are no outstanding claims against the deposit. Written notification to the Secretary of State shall include all of the following: (1) name, address, and telephone number of the assignor; (2) name, address, and telephone number of the bank at which the deposit is located; (3) account number of the deposit; and (4) a statement whether the assignor is ceasing to engage in the business of a job listing service or has filed a bond with the Secretary of State. The Secretary of State shall forward an acknowledgment of receipt of the written notice to the assignor at the address indicated therein, specifying the date of receipt of the written notice and anticipated date of release of the deposit, provided there are no outstanding claims against the deposit. (k) A judge of a superior court may order the return of the deposit prior to the expiration of two years upon evidence satisfactory to the judge that there are no outstanding claims against the deposit or order the Secretary of State to retain the deposit for a specified period beyond the two years pursuant to subdivision (j) to resolve outstanding claims against the deposit account. (l) The Secretary of State shall charge a filing fee not to exceed the cost of filing the bond or deposit filed in lieu of a bond pursuant to Section 995.710 of the Code of Civil Procedure. (m) The Secretary of State shall enforce the provisions of this chapter that govern the filing and maintenance of bonds and deposits in lieu of bonds. (Amended by Stats. 2002, Ch. 784, Sec. 17. Effective January 1, 2003.)
1812.516.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 4. Job Listing Services [1812.515 - 1812.521] ( Chapter 4 added by Stats. 1989, Ch. 704, Sec. 2. )
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Job listing services must give jobseekers a written contract before taking any fee or deposit and must include specified disclosures, refund terms, and cancellation language.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 4. Job Listing Services [1812.515 - 1812.521] ( Chapter 4 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.516. (a) Every job listing service shall give a written contract to every jobseeker from whom a fee or deposit is to be received, whether directly or indirectly. The original and one copy of the contract shall be given to the jobseeker at the time the jobseeker signs the contract and before the job listing service accepts any fee or deposit or the jobseeker becomes obligated to pay any such fee or deposit. The contract shall contain all of the following: (1) The name of the job listing service and the addresses and telephone numbers of the principal office of the job listing service and the location providing the listing services to the jobseeker. (2) The amount of the fee to be charged and to be collected from the jobseeker. (3) A description of the service to be performed by the job listing service, including significant conditions, restrictions, and limitations where applicable. (4) A description of the jobseeker’s specifications for the employment opportunity in clear language understandable to the jobseeker, including, but not limited to, the following: (A) Kind of work or employment. (B) Interests of jobseeker. (C) Qualifications of jobseeker. (D) Daily hours of work, the wages or salary, benefits, and other conditions of employment. (E) Location of job. (5) The contract expiration date, which shall not be later than 90 days from the date of execution of the contract. (6) The following statement, in immediate proximity to the space reserved for the jobseeker’s signature, in type no smaller than 10-point boldfaced type: YOUR RIGHT TO CANCEL /enter date of transaction/ “You may cancel this contract for job listing services without any penalty or obligation, if notice of cancellation is given, in writing, within three business days from the above date. “To cancel this contract, just mail or deliver a signed and dated copy of the following cancellation notice or any other written notice of cancellation, to (name of job listing service) at (address of its place of business), NOT LATER THAN MIDNIGHT OF /date/.” CANCELLATION NOTICE I hereby cancel this contract. Dated: Customer’s Signature” Until the job listing service has complied with this section the jobseeker may cancel the job listing service’s contract. (7) The following statement, with the caption in type no smaller than 10-point boldfaced type and the remainder in a size no smaller than that generally used throughout the contract, and in full capitals, boldface, or italics: “RIGHT TO REFUND” “If, within seven business days after payment of a fee or deposit, the job listing service has not supplied you with at least three available employment opportunities meeting the specifications of the contract as to type of job; interests of jobseeker; qualifications of jobseeker; hours, salary, benefits, and other conditions of employment; location of job; and any other specifications expressly set forth in the contract, the full amount of the fee or deposit paid shall be refunded to you upon your request. “If you do not obtain a job through the services of the job listing service, or if you obtain employment which lasts less than 90 days, any amount paid in fees or deposits in excess of a twenty-five dollar ($25) service charge shall be refunded to you, upon your request after expiration of the contract. “Any refund due must be made to you within 10 days of your request. If the refund is not made in that time, the job listing service must pay to you an additional sum equal to the amount of your fee or deposit.” (8) If any labor trouble exists at the place of employment, that fact shall be stated in the listing of that employment provided to the jobseeker. (b) All contracts shall be dated and shall be made and numbered consecutively in triplicate, the original and each copy to be signed by the jobseeker and the person acting for the job listing service. The original and one copy shall be given to the jobseeker and the other copy shall be kept on file at the job listing service. (c) The full agreement between the parties shall be contained in a single document containing those elements set forth in this section. (Amended by Stats. 1990, Ch. 1256, Sec. 6.)
1812.517.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 4. Job Listing Services [1812.515 - 1812.521] ( Chapter 4 added by Stats. 1989, Ch. 704, Sec. 2. )
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Job listing services must give jobseekers fee and payment information before an interview and follow limits on fees, posting, recordkeeping, and fee practices.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 4. Job Listing Services [1812.515 - 1812.521] ( Chapter 4 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.517. (a) (1) A job listing service shall provide a copy of the service’s fee schedule and payment terms to any jobseeker from whom a fee or deposit is to be received, prior to the jobseeker being interviewed by a counselor or other agent or employee. (2) In the schedule, the maximum fee shall be fixed and shall include the charges of every kind rendered by the job listing service in each case or transaction on behalf of the prospective employee. Changes in the fee schedule may be made, but no change shall become effective until posted for not less than seven days in a conspicuous place in the job listing service. (3) A copy of the schedule in effect shall be kept posted in the job listing service in a conspicuous place, and the posted schedule and the changes therein shall be in lettering or printing of not less than standard pica capitals. The date of the taking effect of the schedule and of each change therein shall appear on the posted copies. (4) A copy of all fee schedules, and of all changes therein, shall be kept on file at the job listing service, retrospectively, for a period of one year. (b) No fee charged or collected shall be in excess of the fee as scheduled. (c) No job listing service may take from a jobseeker a confession of judgment, a promissory note or notes, or an assignment of wages to cover its fees. (d) The fee charged shall not be based on a portion or percentage of the salary or wages earned or to be earned in the employment obtained through use of the job listing service. (e) (1) No job listing service shall divide fees with an employer, an agent, or other employee of any employer or person to whom help is furnished. (2) No job listing service shall charge any jobseeker a fee for accepting employment with that job listing service or any subsidiary of that service. (3) No job listing service shall charge any jobseeker a fee when help is furnished to an employer, an agent, any employee of any employer, a member, or person who has a financial interest in the job listing service. (Added by Stats. 1989, Ch. 704, Sec. 2.)
1812.518.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 4. Job Listing Services [1812.515 - 1812.521] ( Chapter 4 added by Stats. 1989, Ch. 704, Sec. 2. )
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Job listing services must refund fees and cancel related obligations if they fail to provide required job opportunities or if the jobseeker does not get a job or stays employed less than 90 days.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 4. Job Listing Services [1812.515 - 1812.521] ( Chapter 4 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.518. (a) (1) A job listing service shall refund in full any advance fee paid and cancel any other obligation incurred by the jobseeker if the job listing service does not, within seven business days after execution of the contract, supply at least three employment opportunities then available to the jobseeker and meeting the specifications of the contract. (2) A job listing service will be deemed to have supplied information meeting the specifications of the jobseeker if the information supplied meets the contract specifications with reference to: type of job; interests of jobseeker; qualifications of jobseeker; hours, salary, benefits, and other conditions of employment; location of job; and any other specifications expressly set forth in the contract. (b) A job listing service shall refund any amount over and above a twenty-five dollar ($25) service charge and cancel any other obligation incurred by the jobseeker if the jobseeker does not obtain a job, or if employment, once obtained, lasts less than 90 days. (c) A job listing service shall make all refunds required under this section within 10 days after the jobseeker requests such refund. Unless the refund is made within that time, the job listing service shall pay the jobseeker an additional sum equal to the amount of the deposit. (Added by Stats. 1989, Ch. 704, Sec. 2.)
1812.519.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 4. Job Listing Services [1812.515 - 1812.521] ( Chapter 4 added by Stats. 1989, Ch. 704, Sec. 2. )
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Job listing services must not take fees or refer jobseekers unless they have a written bona fide job order, must identify themselves to employers, must record job orders in writing, must recontact employers before redistributing listings, and must avoid certain referrals and exchanges.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 4. Job Listing Services [1812.515 - 1812.521] ( Chapter 4 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.519. (a) No job listing service shall accept a fee from any jobseeker, or send any jobseeker for employment, without having obtained, in writing, a bona fide job order for employment. (b) A job listing service shall identify itself as a job listing service to the employer in all instances in which it contacts an employer for the purposes of soliciting a job order. All job orders shall be recorded in writing. A job order for employment shall be considered to have been given by an employer to a job listing service under the following conditions: (1) The employer, or his or her agent, in writing, registers a request or gives permission that the job listing service recruit or refer jobseekers who meet the employer’s stated job specifications and the employer furnishes such information as required by subdivision (a) of Section 1812.516. (2) A job order is valid for the referral of any qualified jobseeker until it is filled or canceled by the employer, and may serve as the basis for job listing service advertising. The job listing service is required to recontact the employer within the four-day period immediately preceding dissemination of the job listing information to ensure that the position is still vacant prior to any additional advertising or referral of jobseekers. (c) No job listing service shall refer a jobseeker to a job knowing or having reason to know that: (1) The job does not exist or the jobseeker is not qualified for the job. (2) The job has been described or advertised by or on behalf of the job listing service in a false, misleading, or deceptive manner. (3) The job listing service has not obtained written permission to list the job from the employer or an authorized agent of the employer. (d) No job listing service shall exchange job orders with an employment agency which charges a placement fee. (Amended by Stats. 1991, Ch. 654, Sec. 51.)
1812.52.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. )
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Contracts for dance studio lessons and other services must be in writing, and the customer must receive a copy when signing.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. ) ## 1812.52. Every contract for dance studio lessons and other services shall be in writing and shall be subject to this title. A copy of the written contract shall be given to the customer at the time he or she signs the contract. (Amended by Stats. 1988, Ch. 1043, Sec. 5.)
1812.520.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 4. Job Listing Services [1812.515 - 1812.521] ( Chapter 4 added by Stats. 1989, Ch. 704, Sec. 2. )
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Job listing services must avoid false or misleading ads, disclose required job and salary details in ads, and keep a one-year record of advertised jobs.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 4. Job Listing Services [1812.515 - 1812.521] ( Chapter 4 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.520. (a) No job listing service shall make or cause to be made any false, misleading or deceptive advertisements or representations concerning the services that the job listing service will provide to jobseekers. (b) (1) No job listing service shall publish or cause to be published any false, fraudulent, or misleading information, representation, notice, or advertisements. (2) All advertisements of a job listing service shall contain the correct name of the job listing service and one of the following: (A) The street address of the job listing service’s place of business. (B) The correct telephone number of the job listing service at its place of business. (3) No job listing service shall give any false information or make any false promises or representations concerning an engagement or employment to any jobseeker. (4) No job listing service shall, by its choice of name or by advertisement or representation, represent itself to be an employment agency or to perform the services of an employment agency. (c) Special requirements not usually associated with a job shall be specified in any advertisement. When the location of the position advertised is more than 50 miles from the job listing service office responsible for the advertisement, it shall state either the location or that the job is “nonlocal.” Special benefits of the job, if advertised, shall be specifically described and substitute terms or symbols such as “extras” or “+” shall not be sufficient. (d) An advertised salary shall be based upon the starting salary contained in the job order. An advertised range of starting salaries shall be specified by preceding the minimum salary and maximum salary by terms “from” and “to” respectively. When the job order contains only the maximum amount of a salary range, that advertised salary shall be preceded by the word “to.” If a maximum salary is dependent upon the jobseeker’s experience, the advertised salary may be described by listing the minimum salary and the term “up Depending on Experience” or “up D.O.E.” The words “open” and “negotiable” or words or symbols of like import shall not be used as a substitute for the salary. If an advertised salary is based in whole or in part on commissions, that fact shall be indicated in the advertisement. (e) All job listing services shall maintain a record of all advertised jobs, correlated to show the date and the publication in which the advertisement appeared and the job order number of each job advertised, retrospectively for a period of one year. (Amended by Stats. 1990, Ch. 1256, Sec. 7.)
1812.521.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 4. Job Listing Services [1812.515 - 1812.521] ( Chapter 4 added by Stats. 1989, Ch. 704, Sec. 2. )
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Job listing services must not place minors in unlawful employment, and must tell jobseekers about labor contracts, union membership requirements, and strikes or other labor trouble before sending them to a job.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 4. Job Listing Services [1812.515 - 1812.521] ( Chapter 4 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.521. (a) No job listing service shall, when employment would be in violation of Chapter 1 (commencing with Section 1171) of Part 4 of Division 2 of the Labor Code or Part 27 (commencing with Section 48000) of the Education Code, accept any application for employment made by, or on behalf of, any minor, or place or assist in placing any minor in that employment. (b) Every job listing service shall notify each jobseeker before sending the jobseeker in response to a request for employment whether a labor contract is in existence at the establishment to which the jobseeker is being sent, and whether union membership is required. (c) No job listing service shall send a jobseeker to any place where a strike, lockout, or other labor trouble exists without notifying the jobseeker of that fact and shall in addition thereto enter a statement of those conditions upon the contract or receipt given to the jobseeker. (Amended by Stats. 1990, Ch. 1256, Sec. 8.)
1812.522.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 5. Records [1812.522- 1812.522.] ( Chapter 5 added by Stats. 1989, Ch. 704, Sec. 2. )
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Certain employment agencies, counseling services, and job listing services must keep required records open for inspection, provide copies on request, make reports the Attorney General prescribes, and keep covered records separate from unrelated business records.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 5. Records [1812.522- 1812.522.] ( Chapter 5 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.522. (a) All books, records, files, the schedules, and other papers required by this title to be kept by any employment agency, employment counseling service, or job listing service shall be open at all reasonable hours to the inspection of the representative of the Attorney General, any district attorney, or any city attorney. Every employment agency, employment counseling service, and job listing service shall furnish to the representative of the Attorney General, any district attorney, or any city attorney upon request a true copy of those books, records, files, the schedules, and papers or any portion thereof, and shall make such reports as the Attorney General prescribes. (b) If any employment agency, employment counseling service, or job listing service also engages in any other business which is not subject to this title, the records of the agency or service pertaining to matters under the jurisdictions of this title shall be kept separate and apart from the records of that other business. (Added by Stats. 1989, Ch. 704, Sec. 2.)
1812.523.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 6. Remedies and Enforcement [1812.523- 1812.523.] ( Chapter 6 added by Stats. 1989, Ch. 704, Sec. 2. )
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This section lets public prosecutors enforce the title, lets injured people sue, makes violations misdemeanors, and voids certain noncompliant contracts and waivers.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 6. Remedies and Enforcement [1812.523- 1812.523.] ( Chapter 6 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.523. (a) Any person who violates any provision of this title is guilty of a misdemeanor. The Attorney General, any district attorney, or any city attorney may prosecute misdemeanor actions. (b) Actions for violation of this title, including, but not limited to, equity proceedings to restrain and enjoin such a violation, may be instituted by the Attorney General, any district attorney, or any city attorney. This section shall not be deemed to prohibit the enforcement by any person of any right provided by this or any other law. (c) If any person uses any untrue or misleading statement, information, or advertisement to sell its services or fails to comply with the applicable provisions of this title, or the contract does not comply with the applicable provisions of this title, then the contract shall be void and unenforceable as contrary to public policy and the jobseeker, customer, or nurse shall be entitled to the return of all sums paid. (d) Any person who is injured by any violation of this title or by the breach of a contract subject to this title may bring an action for the recovery of damages, an equity proceeding to restrain and enjoin those violations, or both. The amount awarded may be up to three times the damages actually incurred, but in no event less than the amount paid by the jobseeker, customer, or nurse to the person subject to this title. If the person subject to this title refuses or is unwilling to pay the damages awarded, the amount awarded may be satisfied out of the security required by this title. If the plaintiff prevails, the plaintiff shall be awarded a reasonable attorney’s fee and costs. If the court determines that the breach or violation was willful, by clear and convincing evidence, the court, in its discretion, may award punitive damages in addition to the amounts set forth above. (e) The provisions of this title are not exclusive and do not relieve the parties subject to this title from the duty to comply with all other applicable laws. (f) The remedies provided in this title are not exclusive and shall be in addition to any other remedies or procedures provided in any other law. (g) Any waiver by the consumer, jobseeker, or nurse of the provisions of this title shall be deemed contrary to public policy and shall be void and unenforceable. Any attempt by a person subject to this title to have a jobseeker, customer, or nurse waive rights given by this title shall constitute a violation of this title. (h) If any provisions of this title or the application thereof to any person or circumstances is held unconstitutional, the remainder of the title and the application of that provision to other persons and circumstances shall not be affected thereby. (Added by Stats. 1989, Ch. 704, Sec. 2.)
1812.524.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 7. Nurses’ Registries [1812.524 - 1812.533] ( Chapter 7 added by Stats. 1989, Ch. 704, Sec. 2. )
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This section defines “nursing service,” “nurses’ registry,” and “private duty nurse,” and says a nurses’ registry making non-private-duty nursing referrals must comply with Chapters 1 and 2 of the title for those referrals.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 7. Nurses’ Registries [1812.524 - 1812.533] ( Chapter 7 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.524. (a) “Nursing service” means the assignment of a nurse, as a private duty, self-employed, licensed registered nurse, licensed vocational nurse, or practical nurse to render service to a patient under the direction or supervision of a physician or surgeon registered to practice in this state. (b) “Nurses’ registry” means a person who engages in the business of obtaining and filling commitments for nursing service. A nurses’ registry which makes or plans to make referrals for nurses’ employment other than private duty nursing shall comply with Chapters 1 (commencing with Section 1812.500) and 2 (commencing with Section 1812.503) of this title with respect to those referrals. (c) “Private duty nurse” means a self-employed nurse rendering service in the care of either a physically or mentally ill patient under the direction of a physician or surgeon, but who is paid by either the patient or the designated agent of the patient and who accepts the responsibilities of a self-employed private contractor. (Amended by Stats. 1990, Ch. 1256, Sec. 9.)
1812.525.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 7. Nurses’ Registries [1812.524 - 1812.533] ( Chapter 7 added by Stats. 1989, Ch. 704, Sec. 2. )
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Nurses’ registries must keep a $3,000 surety bond, file a copy with the Secretary of State, and stop operating if they do not maintain the required bond and filing.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 7. Nurses’ Registries [1812.524 - 1812.533] ( Chapter 7 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.525. (a) Every nurses’ registry subject to this title shall maintain a bond issued by a surety company admitted to do business in this state. The principal sum of the bond shall be three thousand dollars ($3,000). A copy of the bond shall be filed with the Secretary of State. (b) The bond required by this section shall be in favor of, and payable to, the people of the State of California, and shall be conditioned that the person obtaining the bond will comply with this title and will pay all sums due any individual or group of individuals when the person or his or her representative, agent, or employee has received those sums. The bond shall be for the benefit of any person or persons damaged by any violation of this title or by fraud, dishonesty, misstatement, misrepresentation, deceit, unlawful acts or omissions, or failure to provide the services of the nurses’ registry in performance of the contract with the nurse by the nurses’ registry or its agents, representatives, or employees while acting within the scope of their employment. (c) (1) No nurses’ registry shall conduct any business without having a current surety bond in the amount prescribed by this title and filing a copy of the bond with the Secretary of State. (2) Thirty days prior to the cancellation or termination of any surety bond required by this section, the surety shall send a written notice of that cancellation or termination to both the nurses’ registry and the Secretary of State, identifying the bond and the date of cancellation or termination. (3) If any nurses’ registry fails to obtain a new bond and file a copy of that bond with the Secretary of State by the effective date of the cancellation or termination of the former bond, the nurses’ registry shall cease to conduct any business unless and until a new surety bond is obtained and a copy of that bond is filed with the Secretary of State. (d) When a deposit has been made in lieu of a bond pursuant to Section 995.710 of the Code of Civil Procedure, the person asserting a claim against the deposit shall, in lieu of Section 996.430 of the Code of Civil Procedure, establish the claim by furnishing evidence to the Secretary of State of a money judgment entered by a court together with evidence that the claimant is a person described in subdivision (b). (e) When a person has established the claim with the Secretary of State, the Secretary of State shall review and approve the claim and enter the date of approval on the claim. The claim shall be designated an “approved claim.” (f) When the first claim against a particular deposit has been approved, it shall not be paid until the expiration of a period of 240 days after the date of its approval by the Secretary of State. Subsequent claims that are approved by the Secretary of State within the same 240-day period shall similarly not be paid until the expiration of the 240-day period. Upon the expiration of the 240-day period, the Secretary of State shall pay all approved claims from that 240-day period in full unless the deposit is insufficient, in which case each approved claim shall be paid a pro rata share of the deposit. (g) When the Secretary of State approves the first claim against a particular deposit after the expiration of a 240-day period, the date of approval of that claim shall begin a new 240-day period to which subdivision (f) shall apply with respect to the amount remaining in the deposit. (h) After a deposit is exhausted, no further claims shall be paid by the Secretary of State. Claimants who have had their claims paid in full or in part pursuant to subdivisions (f) and (g) shall not be required to return funds received from the deposit for the benefit of other claimants. (i) When a deposit has been made in lieu of a bond, the amount of the deposit shall not be subject to attachment, garnishment, or execution with respect to an action or judgment against the nurses’ registry, other than as to an amount as no longer needed or required for the purpose of this title that would otherwise be returned to the nurses’ registry by the Secretary of State. (j) The Secretary of State shall retain a cash deposit for two years from the date the Secretary of State receives written notification from the assignor of the deposit that the assignor has ceased to engage in the business of a nurses’ registry or has filed a bond pursuant to subdivision (a), provided that there are no outstanding claims against the deposit. The written notice to the Secretary of State shall include all of the following: (1) name, address, and telephone number of the assignor; (2) name, address, and telephone number of the bank at which the deposit is located; (3) account number of the deposit; and (4) a statement whether the assignor is ceasing to engage in the business of a nurses’ registry or has filed a bond with the Secretary of State. The Secretary of State shall forward an acknowledgment of receipt of the written notice to the assignor at the address indicated therein, specifying the date of receipt of the written notice and anticipated date of release of the deposit, provided there are no outstanding claims against the deposit. (k) A judge of a superior court may order the return of the deposit prior to the expiration of two years upon evidence satisfactory to the judge that there are no outstanding claims against the deposit or order the Secretary of State to retain the deposit for a specified period beyond the two years pursuant to subdivision (j) to resolve outstanding claims against the deposit. (l) The Secretary of State shall charge a filing fee not to exceed the cost of filing the bond or deposit filed in lieu of a bond pursuant to Section 995.710 of the Code of Civil Procedure. (m) The Secretary of State shall enforce the provisions of this chapter that govern the filing and maintenance of bonds and deposits in lieu of bonds. (Amended by Stats. 2002, Ch. 784, Sec. 18. Effective January 1, 2003.)
1812.526.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 7. Nurses’ Registries [1812.524 - 1812.533] ( Chapter 7 added by Stats. 1989, Ch. 704, Sec. 2. )
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Nurses’ registries may use continuing contracts with private duty nurses, but the contract must include specific information and ongoing recordkeeping, notice, and billing terms.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 7. Nurses’ Registries [1812.524 - 1812.533] ( Chapter 7 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.526. Nurses’ registries may enter into a continuing contract with private duty nurses covering the assignment of those nurses by the nurses’ registries. The continuing contract shall state: (a) The name, address, and telephone number of the nurses’ registry. (b) The name, address, and telephone number of the nurse. (c) The current fee schedule of the nurses’ registry. (d) The date of its execution by the nurses’ registry and the nurse. (e) The contract shall specify that the provisions thereof are to govern only the assignment of private duty nurses and shall do all of the following: (1) Designate the nurses’ registry as the continuous agent of the nurse for purposes of assignment. (2) Provide that the contract in effect may be terminated at any time by written notice given by one to the other for any future assignment. (3) Provide for delivery to the nurse at the time of the execution of the contract a written schedule of the rates of nurses’ charges currently agreed to between the nurses’ registry and the nurse for the nurse’s services to the patient. (4) State that the nurses’ registry will immediately notify the nurse in writing of all subsequent changes in the rates to be charged the patient for services, and that the nurse shall agree to abide by these rates. (5) Contain express undertakings by the nurses’ registry that it shall continuously maintain true and correct records of orders and assignments as provided in this title. (6) Provide that the nurses’ registry shall periodically and at least once each month render to the nurse a written statement of all fees claimed to be due the nurses’ registry, and further that the statement shall adequately identify each assignment as to the inception date and period of service covered by the claim, including the name of the patient and the amount of service fee claimed. (7) Contain appropriate wording advising the nurse of his or her right to dispute the correctness of any service fee claimed by the nurses’ registry in the written statement referred to above, and that in the absence of objections within a reasonable time, any such service fee may be presumed to be correctly charged. (8) Include any other term, condition, or understanding agreed upon between the nurses’ registry and the nurse. (f) Each contract shall be numbered consecutively in original and duplicate, both to be signed by the nurse and the nurses’ registry. The original shall be given to the nurse and the duplicate shall be kept on file at the nurses’ registry within the nurse’s records. (g) The full agreement between the parties shall be contained in a single document containing those elements set forth in this section. (Amended by Stats. 1990, Ch. 1256, Sec. 10.)
1812.527.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 7. Nurses’ Registries [1812.524 - 1812.533] ( Chapter 7 added by Stats. 1989, Ch. 704, Sec. 2. )
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A nurses’ registry must give nurses its fee schedule and payment terms before an interview if a fee or deposit will be taken, and it must post, label, and keep on file fee schedule copies and changes.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 7. Nurses’ Registries [1812.524 - 1812.533] ( Chapter 7 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.527. (a) (1) A nurses’ registry shall provide a copy of the registry’s fee schedule and payment terms to any nurse from whom a fee or deposit is to be received, prior to the nurse being interviewed by the registry. (2) In the schedule, the maximum fee shall be fixed and shall include the charges of every kind rendered by the nurses’ registry in each case or transaction on behalf of the nurse. Changes in the fee schedule may be made, but no change shall become effective until posted for not less than seven days in a conspicuous place in the nurses’ registry. (3) A copy of the schedule in effect shall be kept posted in the nurses’ registry in a conspicuous place, and the posted schedule and the changes therein shall be in lettering or printing of not less than standard pica capitals. The date of the taking effect of the schedule and of each change therein shall appear on the posted copies. (4) A copy of all fee schedules, and of all changes therein, shall be kept on file at the nurses’ registry, retrospectively for a period of one year. (Added by Stats. 1989, Ch. 704, Sec. 2.)
1812.528.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 7. Nurses’ Registries [1812.524 - 1812.533] ( Chapter 7 added by Stats. 1989, Ch. 704, Sec. 2. )
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A nurses’ registry must verify experience or training claims in writing and keep those records in the nurse’s folder. The person interviewing a jobseeker must require the jobseeker to show the relevant nursing license and note on the application that it was inspected and when it expires.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 7. Nurses’ Registries [1812.524 - 1812.533] ( Chapter 7 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.528. It shall be the duty of the nurses’ registry to verify in writing the claims as to the experience or training listed on the application and to keep a file of those records in the nurse’s folder within the nurses’ registry. It shall also be the duty of the person interviewing the jobseeker to require the jobseeker to exhibit his or her license as issued by the Board of Registered Nursing or the Board of Vocational Nurse and Psychiatric Technician Examiners, with a notation to be made on the application by the interviewer that the license has been inspected and the date of expiration of the license. (Added by Stats. 1989, Ch. 704, Sec. 2.)
1812.529.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 7. Nurses’ Registries [1812.524 - 1812.533] ( Chapter 7 added by Stats. 1989, Ch. 704, Sec. 2. )
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Nurses’ registries must keep permanent log sheets and records, avoid false entries, and retain the required records for one year.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 7. Nurses’ Registries [1812.524 - 1812.533] ( Chapter 7 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.529. Each nurses’ registry shall continuously maintain in its offices true and correct permanent log sheets and other records which shall disclose, in addition to the other information required, the date and hour of the receipt by the nurses’ registry of each order for a private duty nurse, and the date and hour of the making or giving of each assignment to the nurse by the nurses’ registry, the name of the nurse assigned, the name of the patient and the address where the nurse is assigned, the name of the attending physician, the date the assignment is to start, the period of actual service for each assignment, and the amount of the fee charged for each assignment. No nurses’ registry, his or her agent or employees, shall make any false entry in those records. The nurses’ registry shall maintain the log sheets and records required by this section respectively for a period of one year. (Added by Stats. 1989, Ch. 704, Sec. 2.)
1812.53.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. )
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Dance studio lesson contracts cannot require the buyer to pay or finance for more than one year, and the contract term cannot be measured by the buyer’s life. The services may still run for up to seven years. Overlapping contracts between the same seller and buyer are treated as one contract for this title.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. ) ## 1812.53. (a) No contract for dance studio lessons and other services shall require payments or financing by the buyer over a period in excess of one year from the date the contract is entered into, nor shall the term of any contract be measured by the life of the buyer. However, the lessons and other services to be rendered to the buyer under the contract may extend over a period not to exceed seven years from the date the contract is entered into. (b) All contracts for dance studio lessons and other services that may be in effect between the same seller and the same buyer, the terms of which overlap for any period, shall be considered as one contract for the purposes of this title. (Amended by Stats. 1999, Ch. 1024, Sec. 1. Effective January 1, 2000.)
1812.530.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 7. Nurses’ Registries [1812.524 - 1812.533] ( Chapter 7 added by Stats. 1989, Ch. 704, Sec. 2. )
Verify source ↗

A nurses’ registry must not collect any registration fee, and it must not take certain payment-related documents from a nurse to cover its fees.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 7. Nurses’ Registries [1812.524 - 1812.533] ( Chapter 7 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.530. (a) No nurses’ registry shall accept, directly or indirectly, a registration fee of any kind. (b) No nurses’ registry may take from a nurse a confession of judgment, or promissory note, or an assignment of wages to cover its fees. (Added by Stats. 1989, Ch. 704, Sec. 2.)
1812.531.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 7. Nurses’ Registries [1812.524 - 1812.533] ( Chapter 7 added by Stats. 1989, Ch. 704, Sec. 2. )
Verify source ↗

A nurses’ registry must not divide fees with specified health-care related persons or their agents or employees.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 7. Nurses’ Registries [1812.524 - 1812.533] ( Chapter 7 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.531. No nurses’ registry shall divide fees with any physician and surgeon, nurse, hospital, patient, or any agent or employee of any of these. (Added by Stats. 1989, Ch. 704, Sec. 2.)
1812.532.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 7. Nurses’ Registries [1812.524 - 1812.533] ( Chapter 7 added by Stats. 1989, Ch. 704, Sec. 2. )
Verify source ↗

If a nurses’ registry collects a fee or expenses from a nurse for an assignment and the nurse does not get the assignment or is not paid, the registry must repay the nurse on demand.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 7. Nurses’ Registries [1812.524 - 1812.533] ( Chapter 7 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.532. In the event that a nurses’ registry collects from a nurse a fee or expenses for an assignment, and the nurse fails to obtain the assignment, or the nurse fails to be paid for the assignment, the nurses’ registry shall upon demand therefor, repay to the nurse the fee and expenses so collected. Unless repayment is made within 48 hours after demand, the nurses’ registry shall pay to the nurse an additional sum equal to the amount of the fee. (Added by Stats. 1989, Ch. 704, Sec. 2.)
1812.533.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 7. Nurses’ Registries [1812.524 - 1812.533] ( Chapter 7 added by Stats. 1989, Ch. 704, Sec. 2. )
Verify source ↗

Nurses’ registries must not make false or misleading ads or statements, and they must give specified disclosures and keep ad records for one year.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 7. Nurses’ Registries [1812.524 - 1812.533] ( Chapter 7 added by Stats. 1989, Ch. 704, Sec. 2. ) ## 1812.533. (a) No nurses’ registry shall make, or cause to be made, any false, misleading, or deceptive advertisements or representations concerning the services that registry will provide to nurses. (b) (1) No nurses’ registry shall publish or cause to be published any false, fraudulent, or misleading information, representation, notice, or advertisements. (2) All advertisements of a nurses’ registry shall contain the correct name of the nurses’ registry and one of the following: (A) The street address of the registry’s place of business. (B) The correct telephone number of the registry at its place of business. (3) No nurses’ registry shall give any false information or make any false promises or representations concerning an assignment or employment to any nurse who registers or applies for an assignment or employment. (4) No nurses’ registry shall, by its name, advertisement, or any other representation, represent itself to be a home health agency, as defined by subdivision (a) of Section 1727 of the Health and Safety Code, or to perform the services of a home health agency. A nurses’ registry shall provide a written disclosure to each individual receiving nursing services, as defined in subdivision (a) of Section 1812.524, in his or her place of residence stating that it does not perform the services of a home health agency and clearly describing that it is a nurses’ registry only and that any complaints against licensed personnel providing a nursing service shall be brought to the local district attorney and the Department of Consumer Affairs. The address and telephone number of each agency and board to which complaints are required to be submitted shall be provided to all patients prior to the time they are under the care of any nursing services personnel. (5) Any person may refer complaints concerning nurses’ registries to the proper law enforcement agency for action. (c) Every nurses’ registry shall maintain a record of all advertisements, correlated to show the date and the publication in which the advertisement appeared, retrospectively for a period of one year. (Amended by Stats. 1990, Ch. 761, Sec. 2.)
1812.54.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. )
Verify source ↗

Dance studio contracts must start lessons within six months, include required pricing and bonding statements, and allow student cancellation with written notice.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. ) ## 1812.54. (a) Every contract for dance studio lessons and other services shall provide that performance of the agreed-upon lessons will begin within six months from the date the contract is entered into. (b) A contract for dance studio lessons and other services may be canceled by the student at any time provided he or she gives written notice to the dance studio at the address specified in the contract. When a contract for dance studio lessons and other services is canceled the dance studio shall calculate the refund on the contract, if any, on a pro rata basis. The dance studio shall refund any moneys owed to the student within 10 days of receiving the cancellation notice, unless the student owes the dance studio money for studio lessons or other services received prior to the cancellation, in which case any moneys owed the dance studio shall be deducted by the dance studio from the refund owed to the student and the balance, if any, shall be refunded as specified above. A dance studio shall not charge a cancellation fee, or other fee, for cancellation of the contract by the student. (c) Every contract for dance studio lessons and other services shall contain a written statement of the hourly rate charged for each type of lesson for which the student has contracted. If the contract includes dance studio lessons that are sold at different per-hour rates, the contract shall contain separate hourly rates for each different type of lesson sold. All other services for which the student has contracted that are not capable of a per-hour charge shall be set forth in writing in specific terms. The statement shall be contained in the dance studio contract before the contract is signed by the buyer. (d) Every dance studio subject to Sections 1812.64 and 1812.65 shall include in every contract for dance studio lessons or other services a statement that the studio is bonded and that information concerning the bond may be obtained by writing to the office of the Secretary of State. (Amended by Stats. 1999, Ch. 1024, Sec. 2. Effective January 1, 2000.)
1812.540.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 8. Long-Term Care Facilities [1812.540 - 1812.544] ( Chapter 8 added by Stats. 2001, Ch. 326, Sec. 2. )
Verify source ↗

This section defines terms used in this chapter, including direct care service, nursing service, licensed nursing staff, and long-term health care facility.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 8. Long-Term Care Facilities [1812.540 - 1812.544] ( Chapter 8 added by Stats. 2001, Ch. 326, Sec. 2. ) ## 1812.540. For purposes of this chapter, the following definitions shall apply: (a) “Direct care service” means the temporary assignment of certified nurse assistants to render basic care services directed at the safety, comfort, personal hygiene, or protection of a patient who is a resident of a long-term health care facility. (b) “Nursing service” means the temporary assignment of a licensed registered nurse, licensed vocational nurse, or psychiatric technician to render nursing and basic care services to a patient who is a resident of a long-term health care facility. (c) “Licensed nursing staff” means a licensed registered nurse, licensed vocational nurse, or psychiatric technician. (d) “Long-term health care facility” means a licensed facility, as defined in Section 1418 of the Health and Safety Code. (Added by Stats. 2001, Ch. 326, Sec. 2. Effective January 1, 2002.)
1812.541.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 8. Long-Term Care Facilities [1812.540 - 1812.544] ( Chapter 8 added by Stats. 2001, Ch. 326, Sec. 2. )
Verify source ↗

An employment agency that sends temporary certified nurse assistants to a long-term health care facility must give the employer specified verification and statements about each assistant.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 8. Long-Term Care Facilities [1812.540 - 1812.544] ( Chapter 8 added by Stats. 2001, Ch. 326, Sec. 2. ) ## 1812.541. Every employment agency that refers temporary certified nurse assistants to an employer that is a long-term health care facility shall provide the employer with all of the following: (a) Written verification that the employment agency has verified that any certified nurse assistant referred by the agency is registered on the state registry of certified nurse assistants and is in good standing. The employment agency shall provide to the employer the certified nurse assistant’s professional certification number and date of expiration. (b) A statement that the certified nurse assistant has at least six months of experience working in a long-term health care facility. (c) A statement that the certified nurse assistant has had a health examination within 90 days prior to employment with the employment agency or seven days after employment with the employment agency and at least annually thereafter by a person lawfully authorized to perform that procedure. Each examination shall include a medical history and physical evaluation. The employment agency shall also provide verification that the individual has had tuberculosis screening within 90 days prior to employment and annually thereafter. (d) A statement that the certified nurse assistant will participate in the facility’s orientation program and any in-service training programs at the request of the long-term health care employer. (e) A statement that a certified nurse assistant is in compliance with the in-service training requirements of paragraph (1) of subdivision (a) of Section 1337.6 of the Health and Safety Code. (Added by Stats. 2001, Ch. 326, Sec. 2. Effective January 1, 2002.)
1812.542.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 8. Long-Term Care Facilities [1812.540 - 1812.544] ( Chapter 8 added by Stats. 2001, Ch. 326, Sec. 2. )
Verify source ↗

An employment agency that sends temporary licensed nursing staff to a licensed long-term care facility must give the employer specified verification and screening information.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 8. Long-Term Care Facilities [1812.540 - 1812.544] ( Chapter 8 added by Stats. 2001, Ch. 326, Sec. 2. ) ## 1812.542. Every employment agency that refers temporary licensed nursing staff to an employer who is a licensed long-term health care facility shall provide the employer with all of the following: (a) Written verification that the individual is in good standing with the Board of Registered Nursing or the Board of Vocational Nursing and Psychiatric Technicians, as applicable, and has successfully secured a criminal record clearance. The employment agency shall provide to the employer the individual’s professional license and registration number and date of expiration. (b) A statement that the licensed nursing staff person has had a health examination within 90 days prior to employment with the employment agency or seven days after employment with the employment agency and at least annually thereafter by a person lawfully authorized to perform that procedure. Each examination shall include a medical history and physical evaluation. The employment agency shall also provide verification that the individual has had tuberculosis screening within 90 days prior to employment and annually thereafter. (Added by Stats. 2001, Ch. 326, Sec. 2. Effective January 1, 2002.)
1812.543.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 8. Long-Term Care Facilities [1812.540 - 1812.544] ( Chapter 8 added by Stats. 2001, Ch. 326, Sec. 2. )
Verify source ↗

Employment agencies making referrals to long-term care facilities must adopt abuse-prevention policies, give written verification about referred staff, identify temporary staff in staffing levels, and, during labor-action periods, provide a temporary-employee list on request; temporary staff may not be solely responsible for a unit unless fully oriented.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 8. Long-Term Care Facilities [1812.540 - 1812.544] ( Chapter 8 added by Stats. 2001, Ch. 326, Sec. 2. ) ## 1812.543. (a) An employment agency that makes referrals of licensed nursing staff or certified nurse assistants for temporary employment in a long-term health care facility shall adopt policies and procedures regarding prevention of resident or patient abuse by temporary staff. (b) The employment agency shall provide written verification to the long-term health care facility that any certified nurse assistants or licensed nursing staff referred by the agency do not have any unresolved allegations against them involving the mistreatment, neglect, or abuse of a patient, including injuries of unknown source and misappropriation of resident property. (c) No temporary staff person referred by an employment agency may be solely responsible for a unit unless that person has received a full orientation to the facility and the applicable unit for which he or she is assigned. (d) Upon the request of the State Department of Health Services, an employment agency shall provide a list of temporary employees who have been referred to a specified facility during the period in which the facility is involved in a labor action. (e) An employment agency shall require that any employee referred to a long-term care facility be identified as a temporary staff person in the facility’s daily staffing levels required to be posted in accordance with the standards set forth in Section 941 of Appendix F of Public Law 106-554 (42 U.S.C. Sec. 1395i-3(b)(8) and 42 U.S.C. Sec. 1395r(b)(8)). (Added by Stats. 2001, Ch. 326, Sec. 2. Effective January 1, 2002.)
1812.544.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 8. Long-Term Care Facilities [1812.540 - 1812.544] ( Chapter 8 added by Stats. 2001, Ch. 326, Sec. 2. )
Verify source ↗

Certain employment agencies must keep advertisement records, must not present themselves as home health agencies, and must give employers a written disclosure; facilities or individuals may refer complaints to specified agencies.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.91. EMPLOYMENT AGENCY, EMPLOYMENT COUNSELING, AND JOB LISTING SERVICES ACT [1812.500 - 1812.544] ( Title 2.91 added by Stats. 1989, Ch. 704, Sec. 2. ) ## CHAPTER 8. Long-Term Care Facilities [1812.540 - 1812.544] ( Chapter 8 added by Stats. 2001, Ch. 326, Sec. 2. ) ## 1812.544. (a) Every employment agency that makes referrals of licensed nursing staff or certified nurse assistants for temporary employment in a long-term health care facility shall maintain a record of all advertisements, showing the date of publication and the publication in which the advertisement appeared, for a period of one year from the date of the advertisement. (b) No employment agency that makes referrals for employment to a long-term health care facility shall, by its name, advertisement, or any other representation, represent itself to be a home health agency, as defined by subdivision (a) of Section 1727 of the Health and Safety Code, or to perform the services of a home health agency. The employment agency shall provide a written disclosure to each employer stating that it does not perform the services of a home health agency and clearly describing that it is an employment agency only. (c) Any facility or individual may refer complaints concerning employment agencies which place licensed nursing staff or certified nurse assistants in long-term health care facilities to the appropriate licensing, certification, ombudsman, adult protective services, or proper law enforcement agency for action. (Added by Stats. 2001, Ch. 326, Sec. 2. Effective January 1, 2002.)
1812.55.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. )
Verify source ↗

Contracts for dance studio lessons and other services cannot require the buyer to sign notes that would cut off the buyer’s claims or defenses against the seller if negotiated to third parties.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. ) ## 1812.55. No contract for dance studio lessons and other services shall require or entail the execution of any note or series of notes by the buyer which, when separately negotiated, will cut off as to third parties any right of action or defense which the buyer may have against the seller. (Amended by Stats. 1988, Ch. 1043, Sec. 8.)
1812.56.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. )
Verify source ↗

An assignee generally cannot cut off the buyer’s right of action or defense on a dance studio lessons/services contract unless the assignee gives the buyer the required written notice and the buyer does not send a written response within 30 days.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. ) ## 1812.56. No right of action or defense arising out of a contract for dance studio lessons and other services which the buyer has against the seller, and which would be cut off by assignment, shall be cut off by assignment of the contract to any third party whether or not he or she acquires the contract in good faith and for value unless the assignee gives notice of the assignment to the buyer as provided in this section and, within 30 days of the mailing of notice, receives no written notice of the facts giving rise to the claim or defense of the buyer. A notice of assignment shall be in writing addressed to the buyer at the address shown on the contract and shall identify the contract and inform the buyer that he or she shall, within 30 days of the date of mailing of the notice, notify the assignee in writing of any facts giving rise to a claim or defense which he or she may have. The notice of assignment shall state the name of the seller and buyer, a description of the lessons and other services, the contract balance, and the number and amount of the installments. (Amended by Stats. 1988, Ch. 1043, Sec. 9.)
1812.57.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. )
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Contracts for dance studio lessons and other services must include a clause that relieves payment obligations and provides refunds if the buyer dies or becomes disabled.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. ) ## 1812.57. (a) Every contract for dance studio lessons and other services shall contain a clause providing that if, by reason of death or disability, the person agreeing to receive lessons and other services is unable to receive all lessons and other services for which he or she has contracted, the person and his or her estate shall be relieved from the obligation of making payment for lessons and other services other than those received prior to death or the onset of disability, and that if the buyer has prepaid any sum for lessons and other services so much of that sum as is allocable to lessons and other services he or she has not taken shall be promptly refunded to the buyer or his or her representative. (b) Notwithstanding the provisions of any contract to the contrary, whenever the contract price is payable in installments and the buyer is relieved from making further payments or entitled to a refund under this section, the buyer shall be entitled to receive a refund or refund credit of so much of the cash price as is allocable to the lessons or other services not actually received by the buyer. The refund of the finance charge shall be computed according to the “sum of the balances method,” also known as the “Rule of 78”. (Amended by Stats. 1988, Ch. 1043, Sec. 10.)
1812.58.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. )
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This title does not replace other laws, and the parties or contracts covered by it still must comply with all other applicable legal provisions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. ) ## 1812.58. The provisions of this title are not exclusive and do not relieve the parties or the contracts subject thereto from compliance with all other applicable provisions of law. (Added by Stats. 1969, Ch. 1571.)
1812.59.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. )
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A contract for dance studio lessons or other services that does not comply with this title is void and unenforceable.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. ) ## 1812.59. Any contract for dance studio lessons and other services which does not comply with the applicable provisions of this title shall be void and unenforceable as contrary to public policy. (Amended by Stats. 1988, Ch. 1043, Sec. 11.)
1812.6.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 12.2. Penalties [1812.6 - 1812.9] ( Article 12.2 added by Stats. 1959, Ch. 201. )
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Anyone who willfully violates any provision of this chapter commits a misdemeanor.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 12.2. Penalties [1812.6 - 1812.9] ( Article 12.2 added by Stats. 1959, Ch. 201. ) ## 1812.6. Any person who shall willfully violate any provision of this chapter shall be guilty of a misdemeanor. (Added by Stats. 1959, Ch. 201.)
1812.60.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. )
Verify source ↗

A dance studio services contract made in reliance on the seller’s willful false, fraudulent, or misleading statements is void and unenforceable.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. ) ## 1812.60. Any contract for dance studio lessons and other services entered into in reliance upon any willful and false, fraudulent, or misleading information, representation, notice, or advertisement of the seller shall be void and unenforceable. (Amended by Stats. 1988, Ch. 1043, Sec. 12.)
1812.600.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. )
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Auctioneers and auction companies must keep a $20,000 surety bond on file with the Secretary of State, or use a permitted deposit instead, and follow claim-payment and notice rules.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. ) ## 1812.600. (a) Every auctioneer and auction company shall maintain a bond issued by a surety company admitted to do business in this state. The principal sum of the bond shall be twenty thousand dollars ($20,000). A copy of the bond shall be filed with the Secretary of State. (b) The bond required by this section shall be in favor of, and payable to, the people of the State of California and shall be for the benefit of any person or persons damaged by any fraud, dishonesty, misstatement, misrepresentation, deceit, unlawful acts or omissions, or failure to provide the services of the auctioneer or auction company in performance of the auction by the auctioneer or auction company or its agents, representatives, or employees while acting within the scope of their employment. (c) (1) No auctioneer or auction company shall conduct any business without having a current surety bond in the amount prescribed by this section and without filing a copy of the bond with the Secretary of State. (2) Thirty days prior to the cancellation or termination of any surety bond required by this section, the surety shall send a written notice of that cancellation or termination to both the auctioneer or auction company and the Secretary of State, identifying the bond and the date of cancellation or termination. (3) If any auctioneer or auction company fails to obtain a new bond and file a copy of that bond with the Secretary of State by the effective date of the cancellation or termination of the former bond, the auctioneer or auction company shall cease to conduct any business unless and until that time as a new surety bond is obtained and a copy of that bond is filed with the Secretary of State. (d) A deposit may be made in lieu of a bond as set forth in Section 995.710 of the Code of Civil Procedure. When a deposit is made in lieu of the bond, the person asserting the claim against the deposit shall establish the claim by furnishing evidence to the Secretary of State of a money judgment entered by a court together with evidence that the claimant is a person described in subdivision (b). (e) When a claimant has established the claim with the Secretary of State, the Secretary of State shall review and approve the claim and enter the date of approval on the claim. The claim shall be designated an “approved claim.” (f) When the first claim against a particular deposit has been approved, it shall not be paid until the expiration of a period of 240 days after the date of its approval by the Secretary of State. Subsequent claims that are approved by the Secretary of State within the same 240-day period shall similarly not be paid until the expiration of the 240-day period. Upon expiration of the 240-day period, the Secretary of State shall pay all approved claims from that 240-day period in full unless the deposit is insufficient, in which case each approved claim shall be paid a pro rata share of the deposit. (g) When the Secretary of State approves the first claim against a particular deposit after the expiration of a 240-day period, the date of approval of that claim shall begin a new 240-day period to which subdivision (f) shall apply with respect to any amount remaining in the deposit. (h) After a deposit is exhausted, no further claims shall be paid by the Secretary of State. Claimants who have had their claims paid in full or in part pursuant to subdivision (f) or (g) shall not be required to return funds received from the deposit for the benefit of other claimants. (i) When a deposit has been made in lieu of a bond, the amount of the deposit shall not be subject to attachment, garnishment, or execution with respect to an action or judgment against the auctioneer or auction company, other than as to that amount that is no longer needed or required for the purpose of this section that otherwise would be returned to the auctioneer or auction company by the Secretary of State. (j) The Secretary of State shall retain a cash deposit for two years from the date the Secretary of State receives written notification from the assignor of the deposit that the assignor has ceased to engage in the business of an auctioneer or auction company or has filed a bond pursuant to subdivision (a), provided that there are no outstanding claims against the deposit. Written notification to the Secretary of State shall include all of the following: (1) name, address, and telephone number of the assignor; (2) name, address, and telephone number of the bank at which the deposit is located; (3) account number of the deposit; and (4) a statement whether the assignor is ceasing to engage in the business of an auctioneer or auction company or has filed a bond with the Secretary of State. The Secretary of State shall forward an acknowledgment of receipt of the written notice to the assignor at the address indicated in the notice, specifying the date of receipt of the written notice and anticipated date of release of the deposit, provided there are no outstanding claims against the deposit. (k) A judge of a superior court may order the return of the deposit prior to the expiration of two years upon evidence satisfactory to the judge that there are no outstanding claims against the deposit or order the Secretary of State to retain the deposit for a specified period beyond the two years pursuant to subdivision (j) to resolve outstanding claims against the deposit. (l) If an auctioneer or auction company fails to perform any of the duties specifically imposed upon him or her pursuant to this title, any person may maintain an action for enforcement of those duties or to recover a civil penalty in the amount of one thousand dollars ($1,000), or for both enforcement and recovery. (m) In any action to enforce these duties or to recover civil penalties, or for both enforcement and recovery, the prevailing plaintiff shall be entitled to reasonable attorney’s fees and costs, in addition to the civil penalties provided under subdivision (l). (n) Notwithstanding the repeal of Chapter 3.7 (commencing with Section 5700) of Division 3 of the Business and Professions Code by the act adding this chapter, any cash security in lieu of the surety bond formerly required and authorized by former Chapter 3.7 (commencing with Section 5700) of Division 3 of the Business and Professions Code, shall be transferred to, and maintained by, the Secretary of State. (o) The Secretary of State shall charge and collect a filing fee not to exceed the cost of filing the bond or deposit filed in lieu of a bond as set forth in Section 995.710 of the Code of Civil Procedure. (p) The Secretary of State shall enforce the provisions of this chapter that govern the filing and maintenance of bonds and deposits in lieu of bonds. (Amended by Stats. 2002, Ch. 784, Sec. 19. Effective January 1, 2003.)
1812.601.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. )
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This section defines key terms used in the auctioneer and auction company title, including advertisement, auction, auction company, auctioneer, employee, employer, goods, and person.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. ) ## 1812.601. (a) “Advertisement” means any of the following: (1) Any written or printed communication for the purpose of soliciting, describing, or offering to act as an auctioneer or provide auction company services, including any brochure, pamphlet, newspaper, periodical, or publication. (2) A telephone or other directory listing caused or permitted by an auctioneer or auction company to be published that indicates the offer to practice auctioneering or auction company services. (3) A radio, television, or similar airwave transmission that solicits or offers the practice of auctioneering or auction company services. (b) “Auction” means a sale transaction conducted by means of oral or written exchanges, which include exchanges made in person or through electronic media, between an auctioneer and the members of his or her audience, which exchanges consist of a series of invitations for offers for the purchase of goods made by the auctioneer and offers to purchase made by members of the audience and culminate in the acceptance by the auctioneer of the highest or most favorable offer made by a member of the participating audience. However, auction does not include either of the following: (1) A wholesale motor vehicle auction subject to regulation by the Department of Motor Vehicles. (2) A sale of real estate or a sale in any sequence of real estate with personal property or fixtures or both in a unified sale pursuant to subparagraph (B) of paragraph (1) of subdivision (a) of Section 9604 of the Commercial Code. (c) “Auction company” means any person who arranges, manages, sponsors, advertises, accounts for the proceeds of, or carries out auction sales at locations, including, but not limited to, any fixed location, including an auction barn, gallery place of business, sale barn, sale yard, sale pavilion, and the contiguous surroundings of each. (d) “Auctioneer” means any individual who is engaged in, or who by advertising or otherwise holds himself or herself out as being available to engage in, the calling for, the recognition of, and the acceptance of, offers for the purchase of goods at an auction. (e) “Employee” means an individual who works for an employer, is listed on the employer’s payroll records, and is under the employer’s control. (f) “Employer” means a person who employs an individual for wages or salary, lists the individual on the person’s payroll records, and withholds legally required deductions and contributions. (g) “Goods” means any goods, wares, chattels, merchandise, or other personal property, including domestic animals and farm products. (h) “Person” means an individual, corporation, partnership, trust, including a business trust, firm, association, organization, or any other form of business enterprise. (Amended by Stats. 2004, Ch. 194, Sec. 1. Effective January 1, 2005.)
1812.602.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. )
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A superior court may issue an injunction or similar order to stop conduct that violates this title if any person files a petition.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. ) ## 1812.602. The superior court for the county in which any person has engaged or is about to engage in any act that constitutes a violation of this title may, upon a petition filed by any person, issue an injunction or other appropriate order restraining the violative conduct. Proceedings under this section shall be governed by Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that no undertaking shall be required. (Added by Stats. 1993, Ch. 1170, Sec. 2. Effective October 11, 1993.)
1812.603.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. )
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A county superior court may order restitution to injured persons and may require reimbursement of investigation expenses in related proceedings.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. ) ## 1812.603. (a) The superior court for the county in which any person has engaged in any act that constitutes a violation of this title may, upon a petition filed by any person, order the person who committed the violation to make restitution to any person injured as a result of the violation. (b) The court may order any person against whom an injunction or restraining order pursuant to subdivision (a), or an order requiring restitution pursuant to subdivision (b), is directed, to reimburse the petitioner for expenses incurred in the investigation related to its petition. (c) The remedies set forth in this section are in addition to, and not a limitation on, the authority provided for in any other section of this code. (Added by Stats. 1993, Ch. 1170, Sec. 2. Effective October 11, 1993.)
1812.604.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. )
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A person who violates this title commits a misdemeanor and may be fined up to $1,000, jailed up to one year, or both.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. ) ## 1812.604. Except as otherwise provided in this title, any person who violates any provision of this title is guilty of a misdemeanor, which offense is punishable by a fine not exceeding one thousand dollars ($1,000), or by imprisonment in a county jail for not more than one year, or by both that fine and imprisonment. In addition, upon a conviction of any violation of this chapter, or of any crime related to the conduct of an auctioneer, the court may issue an injunction and prohibit the convicted person from acting as an auctioneer or an auction company in this state, in which case the court shall inform the Secretary of State of that action. (Added by Stats. 1993, Ch. 1170, Sec. 2. Effective October 11, 1993.)
1812.605.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. )
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Auctioneers and auction companies must follow lawful requests from the owner or consignor, accept the highest or most favorable offer unless the sale is reserved or subject to confirmation, represent goods truthfully, and otherwise comply with state law.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. ) ## 1812.605. In conducting the business of auctioneering, each auctioneer and auction company, and the company’s owners, partners, officers, agents, and employees, shall do all of the following: (a) Follow all lawful requests of the owner or consignor of the goods being sold at auction with regard to the sale of those goods. (b) Perform his or her duties so that the highest or most favorable offer made by a member of his or her audience is accepted, except to the extent that any item or sale is offered with reserve or subject to confirmation. (c) Truthfully represent the goods to be auctioned. (d) Otherwise perform his or her duties in accordance with the laws of this state. (Added by Stats. 1993, Ch. 1170, Sec. 2. Effective October 11, 1993.)
1812.606.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. )
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Auctioneers and auction companies can be responsible for violations committed in their auction business, and they must not direct or knowingly permit violations by connected people.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. ) ## 1812.606. Every auctioneer who operates his or her own auction company as a sole proprietor, and every auction company, together with its owners, partners, and officers, that employs an auctioneer, shall be responsible for all violations committed by the auctioneer or by any company employee in the conduct of auction business. An auctioneer who is employed by an auctioneer or auction company shall be responsible for all violations committed by him or her in the conduct of auction business. It is a violation of this title for any auctioneer or auction company, or the company’s owners, partners, and officers, to direct or knowingly permit any violation of this title by any auctioneer employed by or under contract with that auctioneer or auction company, or by any owner, partner, officer, agent, or employee of the auction company. (Added by Stats. 1993, Ch. 1170, Sec. 2. Effective October 11, 1993.)
1812.607.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. )
Verify source ↗

Auction companies and auctioneers must make specified disclosures, notices, postings, recordkeeping, payment, and refund actions for auctions, and violations can lead to infraction or misdemeanor fines.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. ) ## 1812.607. Every auction company and auctioneer shall do all of the following: (a) Disclose his or her name, trade or business name, telephone number, and bond number in all advertising of auctions. A first violation of this subdivision is an infraction subject to a fine of fifty dollars ($50); a second violation is subject to a fine of seventy-five dollars ($75); and a third or subsequent violation is subject to a fine of one hundred dollars ($100). This section shall not apply to business cards, business stationery, or to any advertisement that does not specify an auction date. (b) Post a sign, the dimensions of which shall be at least 18 inches by 24 inches, at the main entrance to each auction, stating that the auction is being conducted in compliance with Section 2328 of the Commercial Code, Section 535 of the Penal Code, and the provisions of the California Civil Code. A first violation of this subdivision is an infraction subject to a fine of fifty dollars ($50); a second violation is subject to a fine of seventy-five dollars ($75); and a third or subsequent violation is subject to a fine of one hundred dollars ($100). (c) Post or distribute to the audience the terms, conditions, restrictions, and procedures whereby goods will be sold at the auction, and announce any changes to those terms, conditions, restrictions, and procedures prior to the beginning of the auction sale. A first violation of this subdivision is an infraction subject to a fine of fifty dollars ($50); a second violation is subject to a fine of one hundred dollars ($100); and a third or subsequent violation is subject to a fine of two hundred fifty dollars ($250). (d) Notify the Secretary of State of any change in address of record within 30 days of the change. A violation of this subdivision is an infraction subject to a fine of fifty dollars ($50). (e) Notify the Secretary of State of any change in the officers of a corporate license within 30 days of the change. A violation of this subdivision is an infraction subject to a fine of fifty dollars ($50). (f) Notify the Secretary of State of any change in the business or trade name of the auctioneer or auction company within 30 days of the change. A violation of this subdivision is an infraction subject to a fine of fifty dollars ($50). (g) Keep and maintain, at the auctioneer’s or auction company’s address of record, complete and correct records and accounts pertaining to the auctioneer’s or auction company’s activity for a period of not less than two years. The records shall include the name and address of the owner or consignor and of any buyer of goods at any auction sale engaged in or conducted by the auctioneer or auction company, a description of the goods, the terms and conditions of the acceptance and sale of the goods, all written contracts with owners and consignors, and accounts of all moneys received and paid out, whether on the auctioneer’s or auction company’s own behalf or as agent, as a result of those activities. A first violation of this subdivision is a misdemeanor subject to a fine of five hundred dollars ($500); and a second or subsequent violation is subject to a fine of one thousand dollars ($1,000). (h) Within 30 working days after the sale transaction, provide, or cause to be provided, an account to the owner or consignor of all goods that are the subject of an auction engaged in or conducted by the auctioneer or auction company. A first violation of this subdivision is a misdemeanor subject to a fine of five hundred dollars ($500); and a second or subsequent violation is subject to a fine of one thousand dollars ($1,000). (i) Within 30 working days after a sale transaction of goods, pay or cause to be paid all moneys and proceeds due to the owner or the consignor of all goods that were the subject of an auction engaged in or conducted by the auctioneer or auction company, unless delay is compelled by legal proceedings or the inability of the auctioneer or auction company, through no fault of his or her own, to transfer title to the goods or to comply with any provision of this chapter, the Commercial Code, or the Code of Civil Procedure, or with any other applicable provision of law. A first violation of this subdivision is a misdemeanor subject to a fine of one thousand dollars ($1,000); a second violation is subject to a fine of one thousand five hundred dollars ($1,500); and a third or subsequent violation is subject to a fine of two thousand dollars ($2,000). (j) Maintain the funds of all owners, consignors, buyers, and other clients and customers separate from his or her personal funds and accounts. A violation of this subdivision is an infraction subject to a fine of two hundred fifty dollars ($250). (k) Immediately prior to offering any item for sale, disclose to the audience the existence and amount of any liens or other encumbrances on the item, unless the item is sold as free and clear. For the purposes of this subdivision, an item is “free and clear” if all liens and encumbrances on the item are to be paid prior to the transfer of title. A violation of this subdivision is an infraction subject to a fine of two hundred fifty dollars ($250) in addition to the requirement that the buyer be refunded, upon demand, the amount paid for any item that is the subject of the violation. (l) Within two working days after an auction sale, return the blank check or deposit of each buyer who purchased no goods at the sale. A first violation of this subdivision is an infraction subject to a fine of one hundred dollars ($100); and a second or subsequent violation is subject to a fine of two hundred fifty dollars ($250). (m) Within 30 working days of any auction sale, refund that portion of the deposit of each buyer that exceeds the cost of the goods purchased, unless delay is compelled by legal proceedings or the inability of the auctioneer or auction company, through no fault of his or her own, to transfer title to the goods or to comply with any provision of this chapter, the Commercial Code, or the Code of Civil Procedure, or with other applicable provisions of law, or unless the buyer violated the terms of a written agreement that he or she take possession of purchased goods within a specified period of time. A first violation of this subdivision is an infraction subject to a fine of one hundred dollars ($100); and a second or subsequent violation is subject to a fine of two hundred fifty dollars ($250). (Added by renumbering Section 1861.607 by Stats. 1997, Ch. 17, Sec. 16. Effective January 1, 1998.)
1812.608.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. )
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This section makes several auctioneering acts violations and sets fines for them, including false advertising, failing required written contracts, bid manipulation, and selling certain taxable items without a valid seller’s permit.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. ) ## 1812.608. In addition to other requirements and prohibitions of this title, it is a violation of this title for any person to do any of the following: (a) Fail to comply with any provision of this code, or with any provision of the Vehicle Code, the Commercial Code, any regulation of the Secretary of State, the Code of Civil Procedure, the Penal Code, or any law administered by the State Board of Equalization, relating to the auctioneering business, including, but not limited to, sales and the transfer of title of goods. (b) Aid or abet the activity of any other person that violates any provision of this title. A violation of this subdivision is a misdemeanor subject to a fine of one thousand dollars ($1,000). (c) Place or use any misleading or untruthful advertising or statements or make any substantial misrepresentation in conducting auctioneering business. A first violation of this subdivision is a misdemeanor subject to a fine of five hundred dollars ($500); and a second or subsequent violation is subject to a fine of one thousand dollars ($1,000). (d) Sell goods at auction before the auctioneer or auction company involved has first entered into a written contract with the owner or consignor of the goods, which contract sets forth the terms and conditions upon which the auctioneer or auction company accepts the goods for sale. The written contract shall include all of the following: (1) The auctioneer’s or auction company’s name, trade or business name, business address, and business telephone number. (2) An inventory of the item or items to be sold at auction. (3) A description of the services to be provided and the agreed consideration for the services, which description shall explicitly state which party shall be responsible for advertising and other expenses. (4) The approximate date or dates when the item or items will be sold at auction. (5) A statement as to which party shall be responsible for insuring the item or items against loss by theft, fire, or other means. (6) A disclosure that the auctioneer or auction company has a bond on file with the Secretary of State. A first violation of this subdivision is an infraction subject to a fine of two hundred fifty dollars ($250); a second violation is subject to a fine of five hundred dollars ($500); and a third or subsequent violation is subject to a fine of one thousand dollars ($1,000). (e) Sell goods at auction before the auctioneer or auction company involved has first entered into a written contract with the auctioneer who is to conduct the auction. A first violation of this subdivision is an infraction subject to a fine of one hundred dollars ($100); and a second or subsequent violation is subject to a fine of two hundred fifty dollars ($250). (f) Fail to reduce to writing all amendments or addenda to any written contract with an owner or consignor or an auctioneer. A first violation of this subdivision is an infraction subject to a fine of one hundred dollars ($100); and a second or subsequent violation is subject to a fine of two hundred fifty dollars ($250). (g) Fail to abide by the terms of any written contract required by this section. A first violation of this subdivision is an infraction subject to a fine of one hundred dollars ($100); and a second or subsequent violation is subject to a fine of two hundred fifty dollars ($250). (h) Cause or allow any person to bid at a sale for the sole purpose of increasing the bid on any item or items being sold by the auctioneer, except as authorized by Section 2328 of the Commercial Code or by this title. A violation of this subdivision includes, but is not limited to, either of the following: (1) Stating any increased bid greater than that offered by the last highest bidder when, in fact, no person has made such a bid. (2) Allowing the owner, consignor, or agent thereof, of any item or items to bid on the item or items, without disclosing to the audience that the owner, consignor, or agent thereof has reserved the right to so bid. A violation of this subdivision is an infraction subject to a fine of one hundred dollars ($100). (i) Knowingly misrepresent the nature of any item or items to be sold at auction, including, but not limited to, age, authenticity, value, condition, or origin. A violation of this subdivision is an infraction subject to a fine of two hundred fifty dollars ($250). In addition, it shall be required that the buyer of the misrepresented item be refunded the purchase price of the item or items within 24 hours of return to the auctioneer or auction company of the item by the buyer, provided that the item is returned within five days after the date of the auction sale. (j) Misrepresent the terms, conditions, restrictions, or procedures under which goods will be sold at auction. A violation of this subdivision is an infraction subject to a fine of seventy-five dollars ($75). (k) Sell any item subject to sales tax without possessing a valid and unrevoked seller’s permit from the State Board of Equalization. A violation of this subdivision is an infraction subject to a fine of five hundred dollars ($500). (Added by renumbering Section 1861.608 by Stats. 1997, Ch. 17, Sec. 17. Effective January 1, 1998.)
1812.609.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. )
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A waiver of the title’s provisions is void and unenforceable.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. ) ## 1812.609. Any waiver of the provisions of this title is contrary to public policy, and is void and unenforceable. (Added by Stats. 2002, Ch. 815, Sec. 22. Effective January 1, 2003.)
1812.61.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. )
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A buyer cannot waive the provisions of this title; any such waiver is void and unenforceable.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. ) ## 1812.61. Any waiver of the buyer of the provisions of this title shall be deemed contrary to public policy and shall be void and unenforceable. (Added by Stats. 1969, Ch. 1571.)
1812.610.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. )
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An auctioneer must not falsely say a higher bid was made, but may place a seller’s bid in a real property auction if notice and disclosure requirements are met.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.95. AUCTIONEER AND AUCTION COMPANIES [1812.600 - 1812.610] ( Title 2.95 added by Stats. 1993, Ch. 1170, Sec. 2. ) ## 1812.610. (a) Notwithstanding Section 1812.601, for purposes of this section, an auction includes the sale of real property and an “auctioneer” means any individual who is engaged in, or who by advertising or otherwise holds himself or herself out as being available to engage in, the calling for, the recognition of, and the acceptance of, offers for the purchase of real property at an auction. (b) An auctioneer shall not state at an auction that an increased bid greater than that offered by the last highest bidder has been made when, in fact, no person has made an increased bid. Notwithstanding the foregoing, an auctioneer or another authorized person may place a bid on the seller’s behalf during an auction of real property that would not result in a sale of the real property, if both of the following are true: (1) Notice is given to all auction participants, including all other bidders, that liberty for that type of bidding is reserved and that type of bid will not result in the sale of the real property. (2) The person placing that type of bid contemporaneously discloses to all auction participants, including all other bidders, that the particular bid has been placed on behalf of the seller. (c) For the purpose of the conduct of online auctions of real property, “notice” means a statement of the information required to be given under paragraph (1) of subdivision (b) within the end user license agreement, terms of service, or equivalent policy posted on, or provided by, the operator of an Internet Web site, online service, online application, or mobile application, and by conspicuously posting the information required to be given under paragraph (1) of subdivision (b) in any of the following ways: (1) Upon the Internet Web page or its equivalent through which a user directly interacts with the site, service, or application during the online auction. (2) With an icon that hyperlinks to an Internet Web page or its equivalent upon which the required information is posted, if the icon is located on the Internet Web page or its equivalent through which a user directly interacts with the site, service, or application during the online auction. The icon shall use a color that contrasts with the background color of the Internet Web page or is otherwise readily distinguishable. (3) With a text link that hyperlinks to an Internet Web page or its equivalent upon which the required information is posted, if the text link is located on the Internet Web page or its equivalent through which a user directly interacts with the site, service, or application during the online auction. The text link shall be written in capital letters that are in larger type than the surrounding text, or shall be written in contrasting type, font, or color to the surrounding text of the same size, or shall be set off from the surrounding text of the same size by symbols or other marks that call attention to the language. (4) With any other functional hyperlink or its equivalent that is displayed on the site, service, or application through which a user directly interacts with the site, service, or application during the online auction so that a reasonable person would notice it and understand it to hyperlink to the required information. (Amended by Stats. 2015, Ch. 354, Sec. 1. (SB 474) Effective September 28, 2015.)
1812.62.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. )
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An injured buyer may sue for damages, and the court may award triple actual damages plus reasonable attorney fees. A violation may also be corrected within 30 days after the buyer signs the contract, which can avoid penalties if the correction does not increase payments or total amount due without the buyer’s written agreement.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. ) ## 1812.62. (a) Any buyer injured by a violation of this title may bring an action for the recovery of damages. Judgment may be entered for three times the amount at which the actual damages are assessed plus reasonable attorney fees. (b) Notwithstanding the provisions of this title, any failure to comply with any provision of this title may be corrected within 30 days after the execution of the contract by the buyer, and, if so corrected, neither the seller nor the holder shall be subject to any penalty under this title, provided that any correction which increases any monthly payment, the number of payments, or the total amount due, must be concurred in, in writing, by the buyer. “Holder” includes the seller who acquires the contract, or, if the contract is purchased by a financing agency or other assignee, the financing agency or other assignee. (Added by Stats. 1969, Ch. 1571.)
1812.620.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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This section says the title may be called the Karnette Rental-Purchase Act.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.620. This title shall be known and may be cited as the Karnette Rental-Purchase Act. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.621.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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The Legislature states that rental-purchase consumers should be protected by fuller disclosure of terms and by rules against unfair contract terms and unfair dealings.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.621. The Legislature hereby finds and declares that consumers enter into rental-purchase contracts that do not adequately disclose the actual terms and cost of the transaction or the consumer’s liability for certain breaches of the contract, and that contain unfair provisions, including unfair terms related to fees and charges, the exercise or the termination of purchase option rights, property loss and damage, and the repair or replacement of improperly functioning rental property. It is, therefore, the intent of the Legislature in enacting this title to ensure that consumers are protected from misrepresentations and unfair dealings by ensuring that consumers are adequately informed of all relevant terms, including the cash price, periodic payments, total purchase price, and other applicable charges or fees, before they enter into rental-purchase contracts. It is further the intent of the Legislature to (a) prohibit unfair or unconscionable conduct toward consumers in connection with rental-purchase transactions, (b) prohibit unfair contract terms, including unreasonable charges, (c) prevent the forfeiture of contract rights by consumers, (d) provide a right of reinstatement and a reasonable formula for the exercise of purchase option rights under a rental-purchase contract, (e) provide reasonable requirements for the servicing, repair, and replacement of improperly functioning rental property, and (f) cover rental-purchase transactions under existing laws, including laws governing debt collection, cosigners, home solicitation contracts, and warranties. This title shall be liberally construed to achieve its remedial objectives. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.622.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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This section defines key terms used in the California Rental-Purchase Act.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.622. As used in this title: (a) “Advertisement” means a commercial message in any medium that directly or indirectly solicits or promotes one or more specific rental-purchase transactions, excluding instore merchandising aids. This definition does not limit or alter the application of other laws, including Chapter 5 (commencing with Section 17200) of Part 2 and Chapter 1 (commencing with Section 17500) of Part 3, of Division 7 of the Business and Professions Code, to rental-purchase transactions. (b) “Consumer” means a natural person or persons who rent or lease personal property from a lessor pursuant to a rental-purchase agreement or to whom a lessor offers personal property for use pursuant to a rental-purchase agreement. (c) “Lessor” means any person or entity that provides or offers to provide personal property for use by consumers pursuant to a rental-purchase agreement. (d) “Rental-purchase agreement,” except as otherwise provided in this subdivision, means an agreement between a lessor and a consumer pursuant to which the lessor rents or leases, for valuable consideration, personal property for use by a consumer for personal, family, or household purposes for an initial term not exceeding four months that may be renewed or otherwise extended, if under the terms of the agreement the consumer acquires an option or other legally enforceable right to become owner of the property. A rental-purchase agreement is a lease subject to Title 1.5 (commencing with Section 1750) and Title 1.7 (commencing with Section 1790). “Rental-purchase agreement” shall not be construed to be, nor be governed by, and shall not apply to, any of the following: (1) A retail installment sale, as defined in Section 1802.5. (2) A retail installment contract, as defined in Section 1802.6. (3) A retail installment account, as defined in Section 1802.7. (4) A lease or agreement that constitutes a security interest, as defined in Section 1201 of the Commercial Code. (5) A consumer credit contract, as defined in Section 1799.90. (e) “Cash price” means the price of the personal property described in the rental-purchase agreement that the consumer may pay in cash to the lessor at the inception of the rental-purchase agreement to acquire ownership of that personal property. (f) “Cost of rental” means the difference between the total of all periodic payments necessary to acquire ownership under the rental-purchase agreement and the cash price of the rental property that is subject to the rental-purchase agreement. (g) “Fee” means any payment, charge, fee, cost, or expense, however denominated, other than a rental payment. (h) “Appliance” means and includes any refrigerator, freezer, range including any cooktop or oven, microwave oven, washer, dryer, dishwasher, or room air-conditioner or air purifier. (i) “Electronic set” means and includes any television, radio, camera, video game, or any type of device for the recording, storage, copying, printing, transmission, display, or playback of any sound or image, but does not include any item that is part of a computer system. (j) “Computer system” means a computer processor and a video monitor, printer, and peripheral items primarily designed for use with a computer. Audio and video devices, which are commonly used for entertainment and into which data may be downloaded from a computer, are not part of a computer system. (k) “Lessor’s cost” means the documented actual cost, including actual freight charges, of the rental property to the lessor from a wholesaler, distributor, supplier, or manufacturer and net of any discounts, rebates, and incentives. (l) “Total of payments” means the total amount of periodic payments necessary to acquire ownership of the property that is the subject of the rental-purchase agreement if the consumer makes all regularly scheduled payments. (m) “Electronic device” means a desktop or laptop computer, handheld device, tablet, smartphone, or other electronic product or device that has a platform on which to download, install, or run any software program, code, script, or other content. (n) “Geophysical location tracking technology” means hardware, software, or an application that collects and reports data or information that identifies the precise geophysical location of an item, including technologies that report the GPS coordinates of an electronic device, the WiFi signals available to or actually used by an electronic device to access the Internet, the telecommunication towers or connections available to or actually used by an electronic device, the processing of any reported data or information through geolocation lookup services, or any information derived from any combination of the foregoing. (o) “Monitoring technology” means any hardware, software, or application utilized in conjunction with an electronic device that can cause the electronic device to capture, monitor, record, or report information about user activities with or without the user’s knowledge. (p) “Remote technical assistance” means collaborative access by the user and technician to connect to an electronic device for the purpose of providing technical support to the user. (q) “Express consent” means the affirmative agreement to any use or installation of geophysical location tracking technology or remote technical assistance. Express consent does not include consent given when either option is highlighted or preselected as a default setting. (Amended by Stats. 2014, Ch. 426, Sec. 1. (AB 2667) Effective January 1, 2015.)
1812.623.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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Rental-purchase agreements must be in a single written document and include specified disclosures in a clear, conspicuous format.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.623. (a) Every rental-purchase agreement shall be contained in a single document which shall set forth all of the agreements of the lessor and the consumer with respect to the rights and obligations of each party. Every rental-purchase agreement shall be written in at least 10-point type in the same language as principally used in any oral sales presentation or negotiations leading to the execution of the agreement, and shall clearly and conspicuously disclose all of the following: (1) The names of the lessor and the consumer, the lessor’s business address and telephone number, the consumer’s address, the date on which the agreement is executed, and a description of the property sufficient to identify it. (2) Whether the property subject to the rental-purchase agreement is new or used. If the property is new, the lessor shall disclose the model year or, if the model year is not known by the lessor, the date of the lessor’s acquisition of the property. If the property is used, the age or the model year shall be disclosed if known by the lessor. (3) The minimum period for which the consumer is obligated under the rental-purchase agreement; the duration of the rental-purchase agreement if all regularly scheduled periodic payments are made, designated as the “rental period”; and the amount of each periodic payment. (4) The total of payments and the total number of periodic payments necessary to acquire ownership of the property if the renter makes all regularly scheduled periodic payments. (5) The cash price of the property subject to the rental purchase agreement. (6) The cost of rental. (7) The amount and purpose of any other payment or fee permitted by this title in addition to those specified pursuant to paragraphs (3) and (4), including any late payment fee. (8) A statement that the total number and dollar amount of payments necessary to acquire ownership of the rental property disclosed under paragraph (4) does not include other fees permitted by this title, such as late payment fees, and that the consumer should read the rental-purchase agreement for an explanation of any applicable additional fees. (9) Whether the consumer is liable for loss or damage to the rental property and, if so, the maximum amount for which the consumer may be liable as provided in subdivision (a) of Section 1812.627. (10) The following notice: ## NOTICE You are renting this property. You will not own it until you make all of the regularly scheduled payments or you use the early purchase option. You do not have the right to keep the property if you do not make required payments or do not use the early purchase option. If you miss a payment, the lessor can repossess the property, but, you may have the right to the return of the same or similar property. See the contract for an explanation of your rights. (11) A description of the consumer’s right to acquire ownership of the property before the end of the rental period as provided in subdivisions (a) and (b) of Section 1812.632. (12) A description of the consumer’s reinstatement rights as provided in Section 1812.631. (13) If warranty coverage is transferable to a consumer who acquires ownership of the property, a statement that the unexpired portion of all warranties provided by the manufacturer, distributor, or seller of the property that is the subject of the rental-purchase agreement will be transferred by the lessor to the consumer at the time the consumer acquires ownership of the property from the lessor. (14) A description of the lessor’s obligation to maintain the rental property and to repair or replace rental property that is not operating properly, as provided in Section 1812.633. (b) (1) The disclosures required by paragraphs (3), (4), (5), and (6) of subdivision (a) shall be printed in at least 10-point boldface type or capital letters if typed and shall be grouped together in a box formed by a heavy line in the following form: TOTAL OF PAYMENTS $ 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. COST OF RENTAL $ Amount over cash price you will pay if you make all regular payments. CASH PRICE $ Property available at this price for cash from the lessor. See about your early purchase option rights. AMOUNT OF EACH PAYMENT $per (insert period) NUMBER OF PAYMENTS RENTAL PERIOD (2) The box described in paragraph (1) shall appear immediately above the space reserved for the buyer’s signature. (c) The disclosures required by paragraphs (3), (4), (5), and (6) of subdivision (a) shall be grouped together in a box formed by a heavy line in the form prescribed in subdivision (b) and shall be clearly and conspicuously placed on a tag or sticker affixed to the property available for rental-purchase. If the property available for rental-purchase is not displayed at the lessor’s place of business but appears in a photograph or catalog shown to consumers, a tag or sticker shall be affixed to the photograph of the property or catalog shown to consumers or shall be given to consumers. The disclosure required by paragraph (2) of subdivision (a) also shall be clearly and conspicuously placed on the tag or sticker. (d) All disclosures required by this section shall be printed or typed in a color or shade that clearly contrasts with the background. (Amended by Stats. 2006, Ch. 410, Sec. 2. Effective January 1, 2007.)
1812.624.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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Rental-purchase agreements may not include listed prohibited terms, and prohibited terms are void and unenforceable.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.624. (a) No rental-purchase agreement or any document that the lessor requests the consumer to sign shall contain any provision by which: (1) A power of attorney is given to confess judgment in this state or to appoint the lessor, its agents, or its successors in interest as the consumer’s agent in the collection of payments or the repossession of the rental property. (2) The consumer authorizes the lessor or its agent to commit any breach of the peace in repossessing the rental property or to enter the consumer’s dwelling or other premises without obtaining the consumer’s consent at the time of entry. (3) The consumer agrees to purchase from the lessor insurance or a liability waiver against loss or damage to the rental property. (4) The consumer waives or agrees to waive any defense, counterclaim, or right the consumer may have against the lessor, its agent, or its successor in interest. (5) The consumer is required to pay any fee in connection with reinstatement except as provided in Section 1812.631. (6) The consumer is required to pay a fee in connection with the pickup of the property or the termination or rescission of the rental-purchase agreement. (7) The consumer is required to pay any fee permitted by the rental-purchase agreement and this title that is not reasonable and actually incurred by the lessor. The lessor has the burden of proof to establish that a fee was reasonable and was an actual cost incurred by the lessor. (8) The consumer is required to pay a downpayment, more than one advance periodic rental payment, or any other payment except a security deposit permitted under Section 1812.625. (9) Except to the extent permitted by subdivision (b) of Section 1812.627, the consumer waives any rights under Sections 1928 or 1929. (10) The consumer grants a security interest in any property. (11) The consumer’s liability for loss or damage to the property which is the subject of the rental-purchase agreement may exceed the maximum described in subdivision (a) of Section 1812.627. (12) Except under the circumstances authorized by subdivision (a) or (b) of Section 1812.632, the consumer is obligated to make any balloon payment. A “balloon payment” is any payment for the purchase or use of the rental property which is more than the regularly scheduled periodic payment amount. (13) The consumer is required to pay a late payment fee that is not permitted under Section 1812.626. (14) The consumer is required to pay both a late payment fee and a fee for the lessor’s collection of a past due payment at the consumer’s home or other location. (15) The consumer waives or offers to waive any right or remedy against the lessor, its agents, or its successors in interest for any violation of this title or any other illegal act. This subdivision does not apply to a document executed in connection with the bona fide settlement, compromise, or release of a specific disputed claim. (16) The lessor, its agents, or its successors in interest may commence any judicial action against the consumer in a county other than the county in which (A) the rental-purchase agreement was signed or (B) the consumer resides at the time the action is commenced. (17) The amount stated as the cash price for any item of personal property exceeds the cash price permitted under Section 1812.644. (18) The total of payments exceeds the amount permitted under Section 1812.644. (b) Any provision in a rental-purchase agreement that is prohibited by this title shall be void and unenforceable and a violation of this title. A rental-purchase agreement which contains any provision that is prohibited by this title is voidable by the consumer. (Amended by Stats. 2006, Ch. 410, Sec. 3. Effective January 1, 2007.)
1812.625.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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The lessor may require a security deposit up to one month’s rental, and must return the balance and provide an itemized statement within two weeks after taking the property back.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.625. (a) The lessor may require the consumer to pay a security deposit, however denominated, in an amount not to exceed the equivalent of one month’s rental only for the purpose of satisfying any lawful claim by the lessor, up to the maximum described in subdivision (a) of Section 1812.627, for those amounts reasonably necessary to pay for the loss of the property or the repair of damage, exclusive of reasonable wear and tear. (b) Within two weeks after the lessor has taken possession of the property from the consumer, the lessor shall deliver to the consumer the amount of the security deposit less the amount, if any, deducted for loss or repair as permitted by this title. If any amount is deducted, the lessor shall also deliver to the consumer at that time a copy of an itemized statement indicating the amount of the security deposit, the amount deducted for loss or repair, and a detailed statement of the basis for the deduction. Delivery may be made by personal delivery or by first-class mail, postage prepaid. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.626.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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A lessor may charge late fees only if the agreement and this section allow it, and the fee is capped.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.626. (a) The lessor may assess a late payment fee if the late payment fee is specified in the rental-purchase agreement and is permitted by this section. (b) No fee shall be assessed for a payment which is less than three days late if the rental-purchase agreement specifies weekly periodic payments. (c) No fee shall be assessed for a payment which is less than 7 days late if the rental-purchase agreement specifies longer than weekly periodic payments. (d) The lessor may assess more than one late fee for a particular late payment if the total of all fees assessed for that late payment does not exceed the maximum provided in subdivision (e). If the maximum total late payment fee has been imposed for a particular payment, no additional late payment fee may be imposed for that payment. (e) The total of all fees for a late payment shall not exceed the lesser of 5 percent of the payment or five dollars ($5), except that a minimum total fee of two dollars ($2) may be required. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.627.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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The consumer’s liability for loss or damage to rental-purchase property is capped at the lower of fair market value at the time of loss or the amount needed to exercise the purchase option.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.627. (a) The consumer’s liability for loss or damage to the property which is the subject of the rental-purchase agreement shall in no event exceed the lesser of (1) the fair market value at the time of the loss or damage or (2) the amount that would be necessary for the renter to exercise the purchase option provided in subdivision (a) of Section 1812.632. (b) A lessor and a consumer may agree that the consumer may be liable for loss only up to the maximum amount described in subdivision (a) and only for one of the following: (1) Loss caused by the consumer’s negligent, reckless, or intentional acts. (2) Loss caused by the theft of the property subject to the rental-purchase agreement unless one of the following is applicable: (A) There is evidence of a burglary of the premises in which the property is located, such as physical evidence or an official report filed by the consumer with the police or other law enforcement agency. (B) The consumer establishes by the preponderance of the evidence that the consumer has not committed or aided or abetted in the commission of the theft of the property. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.628.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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A rental-purchase agreement can be treated as a home solicitation contract if it lasts more than one week and was made away from appropriate trade premises. A consumer may cancel such an agreement without penalty or obligation if the consumer has not yet taken possession of the property.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.628. (a) In addition to the circumstances described in subdivision (a) of Section 1689.5, a rental-purchase agreement regardless of the amount involved shall be deemed a home solicitation contract or offer if the rental-purchase agreement has an initial term that exceeds one week and was made at other than appropriate trade premises, as defined in subdivision (b) of Section 1689.5. (b) In addition to any other right of cancellation, a consumer has the right to cancel a rental-purchase agreement, without penalty or obligation if the consumer has not taken possession of the property. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.629.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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A lessor must give the consumer specified copies and receipts for a rental-purchase agreement, and may not get the consumer’s signature on an agreement with blanks left to be filled in later.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.629. (a) Upon the request of the consumer, the lessor shall provide the information as required by subdivision (b) of Section 1812.623 in an exemplar of the rental-purchase agreement covering the property specified by the consumer and shall provide the consumer with a copy of the proposed rental-purchase agreement prior to its execution. The consumer may take this copy from the lessor’s premises. (b) The lessor shall not obtain the consumer’s signature to a rental-purchase agreement if it contains blank spaces to be filled in after it has been signed. (c) A copy of the fully completed rental-purchase agreement and all other documents which the lessor requests the consumer to sign shall be given to the consumer at the time they are signed. The rental-purchase agreement shall not be enforceable against the consumer until the consumer has received a signed copy. (d) The lessor shall deliver to the consumer a written receipt for each payment made by the consumer. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.63.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. )
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Violating a dance studio contract provision is a misdemeanor. Courts may restrain violations, and specified public prosecutors may bring misdemeanor or equity actions. Private enforcement of rights is still allowed.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. ) ## 1812.63. Any person who violates any provision of this title relating to dance studio contracts is guilty of a misdemeanor. Any superior court of this state has jurisdiction in equity to restrain and enjoin the violation of any of the provisions of this title relating to dance studio contracts. The duty to institute actions for violation of those provisions of this title, including equity proceedings to restrain and enjoin violations, is hereby vested in the Attorney General, district attorneys, and city attorneys. The Attorney General, any district attorney, or any city attorney may prosecute misdemeanor actions or institute equity proceedings, or both. This section shall not be deemed to prohibit the enforcement by any person of any right provided by this or any other law. (Amended by Stats. 1988, Ch. 1043, Sec. 13.)
1812.630.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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Rental-purchase ads that state a payment amount must clearly disclose required information, and lessors making “no credit check” claims may not seek credit-history or related reports.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.630. (a) (1) Any advertisement of a rental-purchase agreement that states the amount of any payment shall clearly and conspicuously disclose all of the following in the same language used in the advertisement: (A) That the agreement advertised is a rental-purchase agreement. (B) That the property is used if that is the case. (C) That ownership is not acquired until all of the payments necessary to acquire ownership have been made. (D) The total amount and number of periodic payments necessary to acquire ownership. (2) If more than one item is advertised in one print advertisement, the lessor may comply with paragraph (1) by clearly and conspicuously including in the advertisement a table or schedule sufficient in detail to permit determination of the total amount and number of periodic payments necessary to acquire ownership of the items advertised having the highest and lowest total amount of periodic payments necessary to acquire ownership. (b) A lessor who advertises “no credit check” or otherwise states or implies that no inquiry will be made of a consumer’s credit history or creditworthiness shall not (1) make any inquiry or request a consumer to complete any document concerning the consumer’s assets or credit history, (2) obtain a consumer credit report as defined in subdivision (c) of Section 1785.3, or (3) obtain an investigative consumer report as defined in subdivision (c) of Section 1786.2. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.631.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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This section lets a consumer reinstate a rental-purchase agreement after default by paying overdue amounts within set deadlines, and limits when a lessor may deny reinstatement.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.631. (a) A consumer may be deemed in default under the rental-purchase agreement if either of the following applies: (1) The rental-purchase agreement requires weekly periodic rental payments and the consumer has not made a payment by the end of the seventh day after its due date. (2) The rental-purchase agreement requires rental payments in periodic intervals longer than one week and the consumer has not made a payment by the end of the 10th day after its due date. (b) A consumer who is in default under a rental-purchase agreement requiring weekly periodic rental payments may reinstate the rental-purchase agreement, without losing any rights or options under that agreement, by paying all past due payments, including late payment fees, by the end of the seventh day after the due date of the payment in default if the consumer retains possession of the property and within one year after the due date of the payment in default if the consumer returns or tenders the property to the lessor, unless the lessor permits the consumer to retain the property during this period. (c) A consumer who is in default under a rental-purchase agreement requiring rental payments in periodic intervals longer than one week may reinstate the rental-purchase agreement, without losing any rights or options under that agreement, by paying all past due payments, including late payment fees, by the end of the 10th day after the due date of the payment in default if the consumer retains possession of the property and within one year after the due date of the payment in default if the consumer returns or tenders the property to the lessor, unless the lessor permits the consumer to retain the property during this period. (d) Upon reinstatement, the lessor shall provide the consumer with the same rental property, if available, or substitute property of the same brand, if available, and comparable quality, age, condition, and warranty coverage. If substitute property is provided, the lessor shall provide the lessee with the disclosures required in paragraph (2) of subdivision (a) of Section 1812.623. (e) (1) Except as provided in paragraph (2), a lessor shall not deny a consumer the right of reinstatement provided in this section. (2) This section does not apply to a consumer who has (A) stolen or unlawfully disposed of the property, (B) damaged the property as the result of the consumer’s intentional, willful, wanton, or reckless conduct, or (C) defaulted in making payments as described in subdivision (a) on three consecutive occasions. (3) If the lessor denies a consumer the right to reinstate pursuant to paragraph (2), the lessor has the burden of proof to establish that the denial was in good faith and was permitted under paragraph (2). (f) Nothing in this subdivision prohibits the lessor from contacting the consumer provided that the lessor does not violate Section 1812.638. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.632.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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The consumer may buy the rental property within three months, and later at any time after that period, by paying the amounts stated in the section. The lessor must send required notices, and must reduce rent in certain income-loss situations.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.632. (a) (1) The consumer has the right to acquire ownership of the property within three months of the date on which the consumer executed the rental-purchase agreement by tendering to the lessor an amount equal to the cash price and any past due fees less all periodic payments that the consumer has paid. (2) Within 10 days after the consumer executes the rental purchase agreement, the lessor shall personally deliver or send by first-class mail to the consumer a notice informing the consumer of the right described in paragraph (1), including the amount the consumer must pay to acquire ownership and the date by which payment must be made. The statement shall not be accompanied by any other written information including solicitations for other rental-purchase agreements. (b) After the expiration of the three-month period following the execution of the rental-purchase agreement, the consumer has the right to acquire ownership of the property at any time by tendering to the lessor all past due payments and fees and an amount equal to the cash price stated in the rental-purchase agreement multiplied by a fraction that has as its numerator the number of periodic payments remaining under the agreement and that has as its denominator the total number of periodic payments. (c) (1) The lessor shall, in connection with a consumer’s rights under subdivision (b), provide the consumer with a written statement in the manner set forth in paragraph (2) below that clearly states (A) the total amount the consumer would have to pay to acquire ownership of the rental property if the consumer makes all regularly scheduled payments remaining under the rental-purchase agreement and (B) the total amount the consumer would have to pay to acquire ownership of that property pursuant to subdivision (a). (2) The statement required by paragraph (1) shall be personally delivered or sent by first-class mail to the consumer within seven days after (A) the date the consumer requests information about the amount required to purchase the rental property and (B) the date the consumer has made one-half of the total number of periodic payments required to acquire ownership of the rental property. The statement shall not be accompanied by any other written information including solicitations for other rental-purchase agreements. (d) (1) Subject to paragraph (2), if any consumer who has signed the rental-purchase agreement has experienced an interruption or reduction of 25 percent or more of income due to involuntary job loss, involuntary reduced employment, illness, pregnancy, or disability after one-half or more of the total amount of the periodic payments necessary to acquire ownership under the agreement has been paid, the lessor shall reduce the amount of each periodic rental payment by (A) the percentage of the reduction in the consumer’s income or (B) 50 percent, whichever is less, for the period during which the consumer’s income is interrupted or reduced. If payments are reduced, the total dollar amount of payments necessary to acquire ownership shall not be increased, and the rights and duties of the lessor and the consumer shall not otherwise be affected. When the consumer’s income is restored, the lessor may increase the amount of rental payments, but in no event shall rental payments exceed the originally scheduled amount of rental payments. (2) Paragraph (1) applies only after the consumer provides to the lessor some evidence of the amount and cause of the interruption or reduction of income. (Amended by Stats. 2006, Ch. 410, Sec. 4. Effective January 1, 2007.)
1812.633.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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The lessor must keep rental-purchase property working, fix or replace it quickly after notice, and not charge extra fees; consumers generally cannot be charged rental fees while the property is not working.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.633. (a) The lessor shall maintain the property subject to the rental-purchase agreement in good working order while the agreement is in effect without charging any fee to the consumer in addition to the regularly scheduled rental payments set forth in the rental-purchase agreement. (b) By the end of the second business day following the day on which the lessor received notice from the consumer that the property is not operating properly, the lessor shall repair or replace the property without any fee to the consumer in addition to the regularly scheduled rental payments set forth in the rental-purchase agreement. (c) If a repair or replacement cannot be immediately effected, the lessor shall temporarily substitute property of comparable quality and condition while repairs are being effected. If repairs cannot be completed to the reasonable satisfaction of the consumer within 30 days after the lessor receives notice from the consumer or within a longer period voluntarily agreed to by the consumer, the lessor shall permanently replace the property. (d) All replacement property shall be the same brand, if available, and comparable in quality, age, condition, and warranty coverage to the replaced property. If the same brand is not available, the brand of the replacement property shall be agreeable to the consumer. (e) All of the consumer’s and lessor’s rights and obligations under the rental-purchase agreement and this title that applied to the property originally subject to the rental-purchase agreement shall apply to any replacement property. (f) The consumer shall not be charged, or held liable for, any rental fee for any period of time during which the property that is the subject of the rental-purchase agreement or any property substituted for it pursuant to this section is not in good working order. (g) This section does not apply to the repair of damage resulting from the consumer’s intentional, willful, wanton, reckless, or negligent conduct. If the lessor does not comply with this section because of this subdivision, the lessor has the burden of proof to establish that noncompliance was justified and in good faith. (h) A lessor shall not deliver to a consumer any property which the lessor knows or has reason to know is defective. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.634.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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If a lessor transfers ownership of rental property, the lessor must also transfer the remaining transferable manufacturer, distributor, or seller warranties to the consumer.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.634. When the lessor transfers ownership of the rental property, the lessor shall also transfer to the consumer the unexpired portion of any transferable warranties provided by the manufacturer, distributor, or seller of the rental property, and these warranties shall apply as if the consumer were the original purchaser of the goods. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.635.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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A lessor generally cannot sell a service contract for the rental property while the rental-purchase agreement is still in effect, but may do so after the consumer gets ownership if the stated conditions are met.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.635. (a) A lessor shall not sell, or offer for sale, a service contract for the rental property if that service contract provides any coverage while the rental-purchase agreement is in effect. (b) A lessor may sell, or offer for sale, a service contract providing coverage for the rental property after the consumer acquires ownership of that property, if both of the following conditions are satisfied: (1) The lessor does not sell, or offer to sell, the service contract before (A) the consumer pays at least one-half of the total number of periodic payments necessary to acquire ownership of the property or (B) the consumer acquires ownership of the property, as provided in Section 1812.632, whichever occurs first. (2) The lessor clearly and conspicuously indicates to the consumer in writing before the consumer’s purchase of the service contract that the purchase is optional. (c) If the consumer chooses to purchase a service contract before the expiration of the rental-purchase agreement and defaults or otherwise does not make all payments necessary to acquire ownership within the rental period specified in the agreement, the lessor shall refund all consideration paid for the service contract to the consumer within two weeks after the lessor has received the consumer’s last rental payment. This subdivision does not limit or alter any of the consumer’s cancellation or refund rights under the service contract or under other provisions of law. (d) “Service contract” has the meaning set forth in subdivision (o) of Section 1791. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.636.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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A consumer harmed by a lessor’s violation of this title may recover damages, fees, costs, and other relief under this section.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.636. (a) A consumer damaged by a violation of this title by a lessor is entitled to recover all of the following: (1) Actual damages. (2) Twenty-five percent of an amount equal to the total amount of payments required to obtain ownership if all payments were made under the rental-purchase agreement, but not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000). (3) The consumer’s reasonable attorney’s fees and court costs. (4) Exemplary damages, in the amount the court deems proper, for intentional or willful violations of this title. (5) Equitable relief as the court deems proper. (b) Where more than one consumer is a party to a rental-purchase agreement, the limitations of subdivision (a) shall apply to all those consumers in the aggregate, and no more than one recovery shall be permitted for each violation. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.637.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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A lessor can avoid liability for a bona fide error if it gives the consumer written notice on time, may not charge any resulting payment increase, and must refund any overpayment if the correction lowers a payment.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.637. (a) A lessor is not liable for a violation of this title if, before the 30th calendar day after the date the lessor discovers a bona fide error and before an action under this title is filed or written notice of the error is received by the lessor from the consumer, the lessor gives the consumer written notice of the error. “Bona fide error,” as used in this section, means a violation that was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid that error. Examples of a bona fide error include clerical errors, calculation errors, errors due to unintentionally improper computer programming or data entry, and printing errors, but does not include an error of legal judgment with respect to a lessor’s obligations under this title. (b) Notwithstanding subdivision (a), if the lessor notifies the consumer of a bona fide error the correction of which would increase the amount of any payment, the lessor may not collect the amount of the increase, and the consumer may enforce the rental-purchase agreement as initially written. (c) Notwithstanding subdivision (a), if the lessor notifies the consumer of a bona fide error the correction of which would lower the amount of any payment, the lessor shall immediately refund to the consumer the difference between what the consumer paid and what the consumer should have paid if the agreement were correct at the inception of the transaction. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.638.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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A lessor is restricted from abusive, deceptive, and overly intrusive collection or repossession communications, and must identify itself in certain location-information contacts.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.638. (a) A lessor shall not engage in any unfair, unlawful, or deceptive conduct, or make any untrue or misleading statement in connection with the collection of any payment owed by a consumer or the repossession of any property or attempt to collect or collect any payment in a manner that would be unlawful to collect a debt pursuant to Title 1.6C (commencing with Section 1788). (b) All of the following apply to any communication by a lessor with any person other than the consumer for the purpose of acquiring information about the location of a consumer or of any rental property: (1) The lessor shall identify itself and state that the lessor is confirming or correcting location information concerning the consumer. (2) The lessor shall not communicate with any person more than once unless requested to do so by the person or unless the lessor reasonably believes that the earlier response is erroneous or incomplete and that the person now has correct or complete location information. (3) The lessor shall not communicate by postcard. (4) The lessor shall not use any language or symbol on any envelope or in the contents of any communication that indicates that the communication relates to the collection of any payment or the recovery or repossession of rental property. (5) The lessor shall not communicate with any person other than the consumer’s attorney, after the lessor knows the consumer is represented by an attorney with regard to the rental-purchase agreement and has knowledge of, or can readily ascertain, the attorney’s name and address, unless the attorney fails to respond within a reasonable period of time to communication from the lessor or unless the attorney consents to direct communication with the consumer. (c) Without the prior consent of the consumer given directly to the lessor or the express permission of a court of competent jurisdiction, a lessor shall not communicate with a consumer in connection with the collection of any payment or the recovery or repossession of rental property at any of the following: (1) The consumer’s place of employment. (2) Any unusual time or place or a time or place known or that should be known to be inconvenient to the consumer. In the absence of knowledge of circumstances to the contrary, a lessor shall assume that the convenient time for communicating with a consumer is after 8 a.m. and before 9 p.m., local time at the consumer’s location. (d) A lessor shall not communicate, in connection with the rental-purchase agreement, with any person other than the consumer, the consumer’s attorney, or the lessor’s attorney, except to the extent the communication is any of the following: (1) Reasonably necessary to acquire location information concerning the consumer or the rental property, as provided in subdivision (b). (2) Upon the prior consent of the consumer given directly to the lessor. (3) Upon the express permission of a court of competent jurisdiction. (4) Reasonably necessary to effectuate a postjudgment judicial remedy. (e) If a consumer notifies the lessor in writing that the consumer wishes the lessor to cease further communication with the consumer, the lessor shall not communicate further with the consumer with respect to the rental-purchase agreement, except for any of the following: (1) To advise the consumer that the lessor’s further efforts are being terminated. (2) To notify the consumer that the lessor may invoke specified remedies allowable by law which are ordinarily invoked by the lessor. (3) Where necessary to effectuate any postjudgment remedy. (f) A lessor shall not harass, oppress, or abuse any person in connection with a rental-purchase agreement, including engaging in any of the following conduct: (1) Using or threatening the use of violence or any criminal means to harm the physical person, reputation, or property of any person. (2) Using obscene, profane, or abusive language. (3) Causing a telephone to ring, or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person. (4) Placing telephone calls without disclosure of the caller’s identity. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.639.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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A lessor must not use unfair, unlawful, deceptive, false, or misleading conduct or statements in connection with a rental-purchase agreement.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.639. A lessor shall not engage in any unfair, unlawful, or deceptive conduct or make any untrue or misleading statement in connection with a rental-purchase agreement, including any violation of this title. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.64.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. )
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Dance studios must keep a surety bond, file a copy with the Secretary of State, and notify the Secretary of State if the bonded owner changes.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. ) ## 1812.64. Every dance studio shall maintain a bond issued by a surety company admitted to do business in this state. The principal sum of the bond shall be 25 percent of the dance studio’s gross income from the studio business in this state during the studio’s last fiscal year, except that the principal sum of the bond shall not be less than twenty-five thousand dollars ($25,000) in the first or any subsequent year of operation. A copy of the bond shall be filed with the Secretary of State, together with a declaration under penalty of perjury signed by the owner of the studio stating the dance studio’s gross income from the dance studio business in this state during the last fiscal year. The information contained in the declaration shall not be subject to public inspection. If the person in whose name the bond is issued severs his or her relationship with the bonded dance studio, the new owner shall, as a condition of doing business, notify the Secretary of State of the change of ownership and of proof of compliance with Sections 1812.64 and 1812.65. (Amended by Stats. 1999, Ch. 1024, Sec. 3. Effective January 1, 2000.)
1812.640.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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A lessor must not report late payments, defaults, or repossessions to consumer reporting agencies if it has advertised “no credit check” or did not get a consumer credit report before the rental-purchase agreement.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.640. A lessor shall not report any late payment, default, or repossession to a consumer credit reporting agency, as defined in subdivision (d) of Section 1785.3, or to an investigative consumer reporting agency, as defined in subdivision (d) of Section 1786.2 if the lessor (a) advertises “no credit check” or otherwise states or implies that no inquiry will be made of a consumer’s credit history or creditworthiness or (b) does not obtain a consumer credit report or investigative consumer report on a consumer before entering into a rental-purchase agreement with that consumer. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.641.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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A lessor generally cannot send solicitations or promotional material to a consumer’s reference unless specified disclosures and consent steps are completed.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.641. (a) A lessor shall not send any solicitation or other promotional material to a person identified by the consumer as a reference to verify the consumer’s income, assets, credit history, or residence unless all of the following occur: (1) The lessor clearly discloses in the rental-purchase agreement or application that (A) the lessor may send solicitations or other promotional material to references provided by the consumer unless the consumer objects and (B) the consumer has the right to object without incurring any additional rental charge or fee or any loss of contractual rights. (2) A space on the rental-purchase agreement or application adjacent to the disclosure described in paragraph (1) is provided for the consumer to indicate the consumer’s approval or disapproval of the lessor’s sending solicitations or other promotional material. (3) The consumer affirmatively indicates approval. (4) The lessor does not vary any term required to be disclosed pursuant to Section 1812.623 depending on whether the consumer approves or disapproves of the lessor’s sending of solicitations or other promotional material to references. (b) The first solicitation or other promotional material directed to a person whom the consumer has identified as a reference shall clearly offer the reference the opportunity, without cost, to instruct the lessor to refrain from sending further solicitations or other promotional material to the reference. If so instructed, the lessor shall not send any further solicitations or other promotional material to the reference and shall remove the reference’s name and address from the lessor’s mailing list. (c) This section shall not apply to solicitations or other promotional material sent generally to people solely on the basis of demographic, geographic, or postal zip code criteria and without regard to whether the people have been identified as references by consumers. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.642.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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A lessor must not discriminate against a prospective consumer on a prohibited basis tied to credit discrimination rules.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.642. A lessor shall not discriminate against a prospective consumer on any ground that would be a prohibited basis for a creditor to discriminate against an applicant for credit as provided in the Equal Credit Opportunity Act (15 U.S.C. Sec. 1691 et seq.) and Regulation B (12 C.F.R. Part 202) as if they applied to a rental-purchase agreement. Nothing in this section shall be construed in any manner to mean that a rental-purchase agreement is a credit transaction. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.643.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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A lessor with multiple signers on a rental-purchase agreement must give each signer a notice before signing, unless the signers are married or actually receive the property.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.643. (a) Except as provided in subdivision (b), a lessor who obtains the signature of more than one person on a rental-purchase agreement shall deliver the notice set forth in subdivision (c) to each person before that person signs the agreement. (b) This section does not apply if the persons signing the agreement are married to each other or in fact receive possession of the property described in the agreement. (c) The notice required by this section is as follows: ## “NOTICE TO COSIGNER If you sign this contract, you will have the same responsibility for the property and the same obligation to make payments that every renter has. If any renter does not pay, you may have to pay the full amount owed, including late fees, and you may have to pay for certain loss or damage to the property. The lessor may collect from you without first trying to collect from any other renter. The lessor can use the same collection methods against you that can be used against any renter, such as suing you or garnishing your wages. This notice is not the contract that makes you responsible. Before you sign, be sure you can afford to pay if you have to, and that you want to accept this responsibility.” (d) The notice required by subdivision (c) shall be printed in at least 10-point boldface type in English and Spanish. If the rental-purchase agreement is required to be written in a language other than English or Spanish, the notice shall be written in English and, in addition or in lieu of Spanish, in that other language. (e) If the notice set forth in subdivision (c) is included with the text of the rental-purchase agreement, the notice shall appear immediately above or adjacent to the disclosures required by subdivision (b) of Section 1812.623. If the notice is not included with the text of the agreement, the notice shall be on a separate sheet which shall not contain any other text except as is necessary to identify the lessor and agreement to which the notice refers and to provide for the date and the person’s acknowledgment of receipt. (f) The lessor shall give each person entitled to notice under this section a copy of the completed rental-purchase agreement before obtaining that person’s signature. (g) If a person entitled to receive notice and a copy of the rental-purchase agreement under this section does not receive the notice or agreement in the manner required, that person has no liability in connection with the rental-purchase transaction. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.644.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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A lessor must keep specified records for rental-purchase agreements, provide copies to certain officials on written request, and follow caps on cash price and total payments.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.644. (a) A lessor shall maintain records that establish the lessor’s cost, as defined in subdivision (k) of Section 1812.622, for each item of personal property that is the subject of the rental-purchase agreement. A copy of each rental-purchase agreement and of the records required by this subdivision shall be maintained for two years following the termination of the agreement. (b) The maximum cash price for the lessor’s first rental of the property that is the subject of the rental-purchase agreement may not exceed 1.65 times the lessor’s cost for computer systems and appliances, 1.7 times the lessor’s cost for electronic sets, 1.9 times the lessor’s cost for automotive accessories, furniture, jewelry, and musical instruments, and 1.65 times the lessor’s cost for all other items. (c) The maximum total of payments may not exceed 2.25 times the maximum cash price that could have been charged for the first rental of the property under subdivision (b). (d) The maximum total of payments for the lessor’s second and subsequent rental of the property that is the subject of the rental-purchase agreement may not exceed the maximum total of payments permitted under subdivision (c) for the first rental of that property less (1) for appliances and electronic sets, one-third the amount of all rental payments paid to the lessor by consumers who previously rented that property or (2) for furniture, computer systems, and all other items, one-half the amount of all rental payments paid to the lessor by consumers who previously rented that property. (e) The maximum cash price for property on its second or subsequent rental may not exceed the maximum total of payments for that property as permitted under subdivision (d) divided by 2.25. (f) Upon the written request of the Attorney General, any district attorney or city attorney, or the Director of the Department of Consumer Affairs, a lessor shall provide copies of the records described in this section. (g) If a lessor willfully discloses a cash price or a total of payments that exceeds the amount permitted by this section, the rental-purchase agreement is void, the consumer shall retain the property without any obligation, and the lessor shall refund to the consumer all amounts paid. (Amended by Stats. 2006, Ch. 410, Sec. 5. Effective January 1, 2007.)
1812.645.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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An action on a rental-purchase agreement must be tried in the county where the agreement was signed or where the consumer lives when the action starts.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.645. An action on a rental-purchase agreement shall be tried in the county in which the rental-purchase agreement was signed or the consumer resides at the time the action is commenced. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.646.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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A consumer or lessor cannot waive or change this title’s provisions; any such waiver or modification is void and unenforceable.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.646. Any waiver or modification of the provisions of this title by the consumer or lessor shall be void and unenforceable as contrary to public policy. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.647.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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A person who willfully violates any provision of this title commits a misdemeanor.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.647. Any person who willfully violates any provision of this title is guilty of a misdemeanor. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.648.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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The rights, remedies, and penalties under this title are cumulative with those available under other laws.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.648. The rights, remedies, and penalties established by this title are cumulative to the rights, remedies, or penalties established under other laws. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.649.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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If part of this title is invalid, the rest still applies if it can work without the invalid part.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.649. If any provision of this title or the application thereof to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the title that can be given effect without the invalid provision or application, and to this end the provisions of this title are severable. (Added by Stats. 1994, Ch. 1026, Sec. 1. Effective January 1, 1995.)
1812.65.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. )
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A bond required by Section 1812.64 must be made in favor of the State of California for the benefit of certain customers harmed by fraud, dishonesty, or failure to provide contracted dance studio services.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. ) ## 1812.65. The bond required by Section 1812.64 shall be in favor of the State of California for the benefit of any person who, after entering into a contract for dance studio lessons and other services with the dance studio, is damaged by fraud or dishonesty or failure to provide the services of the studio in performance of the contract. (Amended by Stats. 1988, Ch. 1043, Sec. 15.)
1812.650.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. )
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A lessor must give clear notice and get express consumer consent for certain tracking and remote-assistance features on rented electronic devices, and must limit use and retention of related data.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.96. CALIFORNIA RENTAL-PURCHASE ACT [1812.620 - 1812.650] ( Title 2.96 added by Stats. 1994, Ch. 1026, Sec. 1. ) ## 1812.650. (a) A lessor shall provide clear and prominent notice to a consumer and obtain express consent from the consumer at the time the lessor and the consumer enter into a rental-purchase agreement for an electronic device if that device has geophysical location tracking technology installed by the lessor, and at any time the geophysical location tracking technology is activated or used by the lessor. (b) For purposes of this section, “clear and prominent notice” means notice presented in an understandable language and syntax, in the predominantly used language for that communication, and that: (1) In textual communications, the required disclosures are separate and apart from a privacy policy, data use policy, terms of service, end-user license agreement, lease agreement, or other similar document, and of a type, size, and location sufficiently noticeable for an ordinary consumer to read and comprehend in print that contrasts highly with the background on which they appear. (2) In communications disseminated orally or through audible means, the required disclosures are unavoidable and delivered in a volume and cadence sufficient for an ordinary consumer to hear and comprehend. (3) In communications disseminated through video means, the required disclosures are in writing in a form consistent with paragraph (1) and appear on the screen for a duration sufficient for an ordinary consumer to read and comprehend them. (4) In communications made through interactive media, including the Internet, online services, and software, the required disclosures are unavoidable and presented in a form consistent with paragraph (1), in addition to any audio or video presentation. (c) A lessor shall not use, sell, or share geophysical location tracking technology on an electronic device for any purpose other than the repossession of the electronic device when there is a violation of the rental-purchase agreement, pursuant to law, or when requested by the consumer. (d) Clear and prominent notification shall be displayed on an electronic device if geophysical location tracking technology is activated or used by the lessor. This notification requirement shall be suspended if the consumer or lessor reports that the electronic device has been stolen and has filed a police report stating that the electronic device has been stolen. For purposes of this subdivision, “filing a police report” means the filing of a consumer’s or lessor’s complaint with the police department in any form recognized by that jurisdiction. (e) A lessor shall provide that any geophysical location tracking technology that has been installed by the lessor on an electronic device, or can be activated by the lessor, expires upon the first instance the electronic device connects to the Internet after completion of the purchase of the electronic device. (f) A lessor shall not use or install monitoring technology on an electronic device for any purpose other than to provide remote technical assistance when requested by the consumer. (g) A lessor shall provide clear and prominent notice to a consumer and obtain express consent from the consumer for the installation or use of any software that allows the lessor to provide remote technical assistance and upon the activation and deactivation of any remote technical assistance when requested by the consumer. (h) A lessor shall not acquire any data when providing remote technical assistance beyond what is necessary to provide assistance to the user and beyond what the user has consented to. Any data acquired during the period of consumer consented technical assistance shall not be retained, used, or sold for any purpose. (i) This section shall not be interpreted to require a lessor to enter into a rental-purchase agreement with any consumer who does not provide express consent to the above-described provisions of the rental-purchase agreement. (Added by Stats. 2014, Ch. 426, Sec. 2. (AB 2667) Effective January 1, 2015.)
1812.67.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. )
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This section exempts certain dance studios and some arts organizations from specified contract rules when they meet listed payment, age, lesson-timing, cancellation, or funding conditions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. ) ## 1812.67. (a) Sections 1812.64 and 1812.65 do not apply to any dance studio which requires or receives less than fifty dollars ($50) in advance payments from or on behalf of each student for dance studio lessons or other services which are to be rendered by the studio in the future and such advance payments are not required or received by the studio from each student more frequently than once every 30 days. (b) Sections 1812.53, 1812.54, 1812.64, and 1812.65 do not apply to a dance studio which only offers instruction in ballet, modern, jazz, tap dance, or any combination thereof, to persons under 21 years of age pursuant to a contract for dance studio lessons that provides all of the following: (1) a total payment of less than five hundred dollars ($500), (2) that all agreed-upon lessons will be offered within four months from the date the contract is entered, and (3) that the contract may be canceled and all money paid for instruction not yet received will be refunded within 10 days of cancellation, if the dance student cancels within three days after receiving the first lesson, or if the dance student cancels at any time after moving his or her residence to a location more than 15 miles from the location of the dance studio. (c) Sections 1812.53, 1812.54, 1812.64, and 1812.65 do not apply to any organization that has qualified for a tax exemption under Section 501(c)(3) of the Internal Revenue Code and which receives a direct grant of funds from the California Arts Council. (Amended by Stats. 1988, Ch. 1043, Sec. 16.)
1812.68.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. )
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If part of this title is held unconstitutional, the rest of the title still applies.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. ) ## 1812.68. If any provision of this title or the application thereof to any person or circumstances is held unconstitutional, the remainder of the title and the application of such provision to other persons and circumstances shall not be affected thereby. (Added by Stats. 1969, Ch. 1571.)
1812.69.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. )
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The Secretary of State must enforce the bond-filing rules in this title and may charge a filing fee, but the fee cannot exceed the cost of filing the bond.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.4. CONTRACTS FOR DANCE STUDIO LESSONS AND OTHER SERVICES [1812.50 - 1812.69] ( Heading of Title 2.4 amended by Stats. 1988, Ch. 1043, Sec. 1. ) ## 1812.69. (a) The Secretary of State shall enforce the provisions of this title that govern the filing and maintenance of bonds. (b) The Secretary of State shall charge a filing fee not to exceed the cost of filing the bond. (Amended by Stats. 1999, Ch. 1024, Sec. 5. Effective January 1, 2000.)
1812.7.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 12.2. Penalties [1812.6 - 1812.9] ( Article 12.2 added by Stats. 1959, Ch. 201. )
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If someone fails to comply with this chapter, they cannot recover certain finance-related charges, and the buyer may recover those charges if paid.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 12.2. Penalties [1812.6 - 1812.9] ( Article 12.2 added by Stats. 1959, Ch. 201. ) ## 1812.7. In case of failure by any person to comply with the provisions of this chapter, such person or any person who acquires a contract or installment account with knowledge of such noncompliance is barred from recovery of any finance charge or of any delinquency, collection, extension, deferral or refinance charge imposed in connection with such contract or installment account and the buyer shall have the right to recover from such person an amount equal to any of such charges paid by the buyer. (Amended by Stats. 1970, Ch. 546.)
1812.700.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.97. CONSUMER COLLECTION NOTICE [1812.700 - 1812.702] ( Title 2.97 added by Stats. 2003, Ch. 259, Sec. 1. )
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Third-party debt collectors covered by the federal Fair Debt Collection Practices Act must give debtors a notice with specified rights information.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.97. CONSUMER COLLECTION NOTICE [1812.700 - 1812.702] ( Title 2.97 added by Stats. 2003, Ch. 259, Sec. 1. ) ## 1812.700. (a) In addition to the requirements imposed by Article 2 (commencing with Section 1788.10) of Title 1.6C, third-party debt collectors subject to the federal Fair Debt Collection Practices Act (15 U.S.C. Sec. 1692 et seq.) shall provide a notice to debtors that shall include the following description of debtor rights: “The state Rosenthal Fair Debt Collection Practices Act and the federal Fair Debt Collection Practices Act require that, except under unusual circumstances, collectors may not contact you before 8 a.m. or after 9 p.m. They may not harass you by using threats of violence or arrest or by using obscene language. Collectors may not use false or misleading statements or call you at work if they know or have reason to know that you may not receive personal calls at work. For the most part, collectors may not tell another person, other than your attorney or spouse, about your debt. Collectors may contact another person to confirm your location or enforce a judgment. For more information about debt collection activities, you may contact the Federal Trade Commission at 1-877-FTC-HELP or www.ftc.gov.” (b) The notice shall be included with the first written notice initially addressed to a California address of a debtor in connection with collecting the debt by the third-party debt collector. (c) If a language other than English is principally used by the third-party debt collector in the initial oral contact with the debtor, a notice shall be provided to the debtor in that language within five working days. (Added by Stats. 2003, Ch. 259, Sec. 1. Effective January 1, 2004. Operative July 1, 2004, by Sec. 2 of Ch. 259.)
1812.701.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.97. CONSUMER COLLECTION NOTICE [1812.700 - 1812.702] ( Title 2.97 added by Stats. 2003, Ch. 259, Sec. 1. )
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The required consumer collection notice may be changed only to keep it accurate under federal debt collection law, and the disclosure type must be at least as large as the type used to describe the debtor’s specific debt, but no larger than 12-point type.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.97. CONSUMER COLLECTION NOTICE [1812.700 - 1812.702] ( Title 2.97 added by Stats. 2003, Ch. 259, Sec. 1. ) ## 1812.701. (a) The notice required in this title may be changed only as necessary to reflect changes under the federal Fair Debt Collection Practices Act (15 U.S.C. Sec. 1692 et seq.) that would otherwise make the disclosure inaccurate. (b) The type-size used in the disclosure shall be at least the same type-size as that used to inform the debtor of his or her specific debt, but is not required to be larger than 12-point type. (Amended by Stats. 2004, Ch. 183, Sec. 37. Effective January 1, 2005.)
1812.702.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.97. CONSUMER COLLECTION NOTICE [1812.700 - 1812.702] ( Title 2.97 added by Stats. 2003, Ch. 259, Sec. 1. )
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A violation of this act is treated as a violation of the Rosenthal Fair Debt Collection Practices Act.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2.97. CONSUMER COLLECTION NOTICE [1812.700 - 1812.702] ( Title 2.97 added by Stats. 2003, Ch. 259, Sec. 1. ) ## 1812.702. Any violation of this act shall be considered a violation of the Rosenthal Fair Debt Collection Practices Act (Title 1.6C (commencing with Section 1788)). (Added by Stats. 2003, Ch. 259, Sec. 1. Effective January 1, 2004. Operative July 1, 2004, by Sec. 2 of Ch. 259.)
1812.8.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 12.2. Penalties [1812.6 - 1812.9] ( Article 12.2 added by Stats. 1959, Ch. 201. )
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A holder may correct certain non-willful compliance failures, but must give the buyer a corrected contract copy within 30 days and credit any improperly collected amount to the debt.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 2. CREDIT SALES [1801 - 1812.35] ( Title 2 added by Stats. 1959, Ch. 201. ) ## CHAPTER 1. Retail Installment Sales [1801 - 1812.20] ( Chapter 1 added by Stats. 1959, Ch. 201. ) ## ARTICLE 12.2. Penalties [1812.6 - 1812.9] ( Article 12.2 added by Stats. 1959, Ch. 201. ) ## 1812.8. Notwithstanding the provisions of this article, any failure to comply with any provision of this chapter may be corrected by the holder in accordance with the provisions of this section, provided that a willful violation may not be corrected, and a correction which will increase the amount owed by the buyer or the amount of any payment shall not be effective unless the buyer concurs in writing to the correction. If a violation is corrected by the holder in accordance with the provisions of this section, neither the seller nor the holder shall be subject to any penalty under this article. The correction shall be made by delivery to the buyer of a corrected copy of the contract within 30 days of the execution of the original contract by the buyer. Any amount improperly collected from the buyer shall be credited against the indebtedness evidenced by the contract. (Amended by Stats. 1961, Ch. 1214.)

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