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Arkansas Automatic Contract Renewal Law

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

4-86-106  Automatic Renewal of Professional Home Security Contracts Prohibited

(a)  Except as provided in sub-section (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 sub-section (c) of this section, NO PROFESSIONAL HOME SECURITY SERVICE 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 sub-division (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 sub-section (a) of this section and does not
prohibit any person from offering to renew a professional  home security service contract under sub-section (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 e obligated to perform under the professional home  security services contract as renewed.



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