KRS 372.160: Mailing that contains item that appears to be check -- Disclosure of

consequences of signing -- Offer for contract formation not valid without

disclosure -- Notice relating to time limit -- Delivery of goods or services does

not form contract -- Remedies -- Jurisdiction.

(1) Any term which is defined in the Uniform Commercial Code, KRS Chapter 355,

shall have that same meaning in this section, unless the context otherwise requires.

(2) Any person soliciting business in this Commonwealth who intends to make an offer

for contract formation by sending through the mail, as part of the solicitation, what

appears to be a check or other item payable to the recipient where the indorsement

and subsequent negotiation of the item by the recipient is intended by an y party to

the item, or agent or assignee thereof, to form an acceptance of the contract shall

make the following disclosure in upper case twelve (12) point bold face type

immediately adjacent to the designated place of indorsement: "BY SIGNING AND

DELIVERING THIS DOCUMENT YOU AGREE TO PAY FOR FUTURE

SERVICES ARISING OUT OF THIS CONTRACT.".

(3) A purported offer described in subsection (2) of this section that does not contain

the required disclosure, to the extent a subsequent indorsement and negotiation o f

the item would otherwise constitute an acceptance, shall not be a valid offer for

contract formation in this Commonwealth.

(4) If a purported offer which meets the requirements in subsection (2) of this section

relates to a free membership period, trial period, or some other similar acceptance

incentive that is prescribed by a time limit and which purports to form a contract

without a cancellation, rescission, revocation, or other form of termination by the

recipient prior to the end of such a period, the n the offeror shall send notice to the

recipient at least two (2) weeks prior to the end of that time period of the recipient's

purported obligation to cancel, rescind, revoke, or otherwise terminate the

recipient's purported acceptance before a purported contract is formed. The notice

shall be readily apparent on any communication from the offeror and it shall be in

upper case twelve (12) point bold face type and in the following form: "YOU

MUST ACT NOW TO AVOID FUTURE CHARGES." Any time period described

under this subsection that is part of a purported offer described in subsection (2) of

this section and that is less than two (2) weeks shall not be a valid offer for contract

formation in this Commonwealth.

(5) If a purported offer described in subsection (2) of this section does not contain the

required disclosure, or is not followed by the required notice, then any goods or

services delivered to the recipient pursuant to the purported offer shall not operate

to form a contract by or between the offeror an d the recipient. Any such offer or

purported contract as a result thereof is void as against the public policy of the

Commonwealth.

(6) An attempt by an offeror, or an agent or assignee thereof, to enforce a purported

contract or to bind a recipient to a p urported acceptance arising out of a purported

offer that does not comply with this section shall be a violation of the Consumer

Protection Act, KRS 367.170 to 367.300. Remedies available for a violation of

KRS 367.170 to 367.300 shall be in addition to an y remedies available at common

law or under this section.

(7) The Attorney General, Commonwealth's attorneys, and county attorneys shall have

concurrent jurisdiction to enforce the provisions of this section in a court of the

county where the purported offer was received.

(8) Any waiver by the recipient of jurisdiction for actions arising out of a purported

offer under this section shall be void. Any depository bank or holder in due course

of an item which does not meet the requirements of subsection (2) of this section or,

as the case may be subsection (4) of this section, shall be held harmless by the

offeror of the item, or an agent or assignee thereof.

(9) Nothing contained in this section shall apply to licensed lenders that are regulated

by the Commonw ealth of Kentucky, or to a bank regulated by the federal

government or any agency thereof.