*** CURRENT THROUGH THE 2007 REGULAR SESSION ***
*** ANNOTATIONS CURRENT THROUGH MAY 3, 2007 ***

Title 4 Business and Commercial Law
Subtitle 7. Consumer Protection
Chapter 86 General Provisions

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A.C.A. § 4-86-106 (2007)

4-86-106. Automatic renewal of professional home security contracts
prohibited.

(a) Except as provided in subsection (c) of this section, no professional
home security services contract that is entered into after August 1, 2003,
shall state that the term of the professional home security services contract will
automatically be renewed for any additional period beyond the initial term of
the professional home security services contract.
(b) Except as provided in subsection (c) of this section, no professional
home security services contract under subsection (a) of this section shall be
renewed for any additional period beyond the initial term of the professional
home security services contract unless the person receiving the professional home
security services affirmatively notifies the person offering the professional
home security services that he or she wishes to renew the professional home
security services contract.
(c) (1) A provider of professional home security services and a person may
enter into a professional home security services contract that has a fixed
initial term and successive, automatic monthly renewal terms.
(2) If the professional home security services contract contains a renewal
clause as described in subdivision (c)(1) of this section, then:
(A) The professional home security services contract shall conspicuously
state that the person receiving the professional home security services has the
right without additional cost or penalty to terminate the professional home
security services contract at the end of the initial term or the then current
renewal; and
(B) The person shall provide the provider of the professional home security
services with notice of his or her intent to terminate by written notice at
least thirty (30) days before the expiration of the initial term or the then
current renewal term.
(d) This section does not affect the initial term of a professional home
security services contract under subsection (a) of this section and does not
prohibit any person from offering to renew a professional home security services
contract under subsection (a) of this section.
(e) If a professional home security services contract under this section is
renewed in violation of this section, the person receiving the professional
home security services may without additional cost or penalty immediately
terminate the professional home security services contract by giving a written
termination notice to the provider and shall not be obligated to perform under the
professional home security services contract as renewed.

HISTORY: Acts 2003, No. 1344, § 1; 2007, No. 439, § 1.

NOTES:
Amendments.
The 2007 amendment inserted "professional home security services" throughout
the section; in (a), substituted "Except as provided in subsection (c) of this
section, no" for "No contract for" and inserted "contract" following the
first occurrence of "services"; substituted "professional home security services"
for "service" in (b); added (c) and redesignated the remaining subsections
accordingly; in (e), inserted "without additional cost or penalty immediately",
substituted "terminate" for "void", and inserted "by giving a written
termination notice to the provider"; and made minor stylistic changes.


HIERARCHY NOTES:
Tit. 4, Subtit. 7, Ch. 86 Note