A consumer contract is a legally binding agreement that is made between a merchant and a consumer. The Uniform Commercial Code, or the UCC, is the law that governs consumer contracts in the United States. The law under this code states that a merchant is one who sells goods or services, while a consumer is one who purchases the goods or services for personal use. If a consumer is purchasing goods or services for business purposes, the transaction is governed by a separate law (commercial contract law).
If you have questions concerning your consumer contract, please contact an M&A attorney in Miami.
There are typically three subjects that can be guaranteed within these contracts:
The law has enacted consumer protection in many forms. Aside from consumer protection laws, consumer contracts may include the Consumer Review Fairness Act (CRFA), the Formation of consumer contacts, specific contract terms, anti-price gouging measures, and acceleration clauses. Typically, consumer contracts are governed by stricter regulations than those involved with standard contracts between merchants.
The main purpose of consumer contracts laws is to make it easier for the consumer to understand their contracts and prevent merchants from potentially abusing the consumer-merchant relationship.
Common issues that arise from a violation of consumer contracts include monetary damages, civil fines, criminal fines, and sometimes an injunction to do/refrain from an action that is promised within the contract. Due to consumer laws being governed both federally and per state, violators may have two sets of penalties, depending on their charges.
For more information about consumer contract law and how it may impact your business, please seek the legal advice of a corporate law firm in Miami.
This information is for educational purposes only and does not substitute legal advice.