95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB1270


 
Introduced 2/9/2007, by Sen. Michael Noland
 
SYNOPSIS AS INTRODUCED:
 		













New Act









    Creates the Consumer Contract Plain Language Act.  Requires that consumer
contracts involving $100,000 or less meet certain criteria to be clear and
readable.  Authorizes the Attorney General to bring an action to restrain the
use of a consumer contract that violates the Act.
















LRB095 04393 LCT 24438 b

















FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











SB1270

LRB095 04393 LCT 24438 b






1
    AN ACT concerning consumer contracts. 

 
2
    Be it enacted by the People of the State of Illinois, 
3
represented in the General Assembly: 


 
4
    Section 1. Short title.   This Act may be cited as the 
5
Consumer Contract
Plain Language Act.


 
6
    Section 5. Definitions.   As used in this Act, unless the 
7
context clearly
requires otherwise:


8
    "Consumer" means an individual who, primarily for 
9
personal, family, or
household purposes, either: (i) gives or 
10
promises to give money or other
consideration
in exchange for 
11
an interest in services or real or personal property, including

12
money, or (ii) leases residential premises for a term not 
13
exceeding 3 years.


14
    "Consumer contract" means a written contract with a 
15
consumer in which the
price, excluding interest or finance 
16
charges, is $100,000 or less.



 
17
    Section 10. Plain language required.   Except as provided in 
18
Section 15,
every consumer contract made after the effective 
19
date of this Act shall meet
all of the following criteria:


20
        (1) The contract shall adequately inform the consumer 
21
    of the rights and
duties fixed by the contract.


22
        (2) The contract shall be sufficiently clear and 
 


 






SB1270
- 2 -
LRB095 04393 LCT 24438 b




1
    readable for the ordinary
reader, using, so far as is 
2
    practical, words with common, everyday meanings.


3
        (3) The contract shall be appropriately divided into 
4
    sections and
paragraphs, and the sections shall contain 
5
    captions.


6
        (4) The contract shall be printed in 10-point or larger 
7
    type, with at
least one point of leading between lines, and 
8
    in ink that contrasts
sufficiently with the paper.



 
9
    Section 15. Exceptions.   This Act does not prohibit the use 
10
of the following
in consumer contracts:


11
        (1) Words or phrases, or forms of agreement, required 
12
    by State or federal
law or by rule or regulation of a State 
13
    or federal governmental
instrumentality.


14
        (2) Technical terms used to describe a service or 
15
    property that is the
subject of the contract if (i) those 
16
    terms are customarily used by consumers
in connection with 
17
    the service or property or (ii) there is no sufficiently

18
    clear and readable substitute for those terms.



 
19
    Section 20. Violation.


20
    (a) A violation of Section 10 does not render a consumer 
21
contract void or
voidable, nor does it constitute a defense to 
22
an action or proceeding for
breach of the contract or to 
23
enforce the contract.


24
    (b) If the Attorney General has reason to believe that a 
 


 






SB1270
- 3 -
LRB095 04393 LCT 24438 b




1
business entity is
using or has used a consumer contract that 
2
violates Section 10 and determines
that an action under this 
3
subsection would be in the public interest, the
Attorney 
4
General may bring an action, in the name of the People of the 
5
State of
Illinois, against that business entity to restrain the 
6
use of that consumer
contract.