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Utah Senate approves notice requirement for long-term service contracts
Summary
The Utah Senate approved First Substitute House Bill 194 on Feb. 25, 2011, extending automatic-renewal notice requirements to certain long-term service contracts related to real property, supporters said the measure preserves contracting freedom while adding a simple disclosure to protect small businesses and associations.
The Utah Senate voted on Feb. 25 to advance First Substitute House Bill 194, the Service Contracts Act amendments, requiring sellers of qualifying long-term service contracts to provide written, prominent notice when an automatic renewal window opens. Sponsors and supporters said the change would not prohibit long-term contracts but would give the contracting party a clear opportunity to opt out.
Supporters said the bill closes a gap in existing statute by offering businesses the same notification protections already afforded to private citizens and many nonprofits. "All it does is it offers…
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