{"data":{"id":"us-ky/krs-372.160","jurisdiction":"us-ky","citation":"KRS 372.160","heading":"Mailing that contains item that appears to be check -- Disclosure of","body":"consequences of signing -- Offer for contract formation not valid without\ndisclosure -- Notice relating to time limit -- Delivery of goods or services does\nnot form contract -- Remedies -- Jurisdiction.\n(1) Any term which is defined in the Uniform Commercial Code, KRS Chapter 355,\nshall have that same meaning in this section, unless the context otherwise requires.\n(2) Any person soliciting business in this Commonwealth who intends to make an offer\nfor contract formation by sending through the mail, as part of the solicitation, what\nappears to be a check or other item payable to the recipient where the indorsement\nand subsequent negotiation of the item by the recipient is intended by an y party to\nthe item, or agent or assignee thereof, to form an acceptance of the contract shall\nmake the following disclosure in upper case twelve (12) point bold face type\nimmediately adjacent to the designated place of indorsement: \"BY SIGNING AND\nDELIVERING THIS DOCUMENT YOU AGREE TO PAY FOR FUTURE\nSERVICES ARISING OUT OF THIS CONTRACT.\".\n(3) A purported offer described in subsection (2) of this section that does not contain\nthe required disclosure, to the extent a subsequent indorsement and negotiation o f\nthe item would otherwise constitute an acceptance, shall not be a valid offer for\ncontract formation in this Commonwealth.\n(4) If a purported offer which meets the requirements in subsection (2) of this section\nrelates to a free membership period, trial period, or some other similar acceptance\nincentive that is prescribed by a time limit and which purports to form a contract\nwithout a cancellation, rescission, revocation, or other form of termination by the\nrecipient prior to the end of such a period, the n the offeror shall send notice to the\nrecipient at least two (2) weeks prior to the end of that time period of the recipient's\npurported obligation to cancel, rescind, revoke, or otherwise terminate the\nrecipient's purported acceptance before a purported contract is formed. The notice\nshall be readily apparent on any communication from the offeror and it shall be in\nupper case twelve (12) point bold face type and in the following form: \"YOU\nMUST ACT NOW TO AVOID FUTURE CHARGES.\" Any time period described\nunder this subsection that is part of a purported offer described in subsection (2) of\nthis section and that is less than two (2) weeks shall not be a valid offer for contract\nformation in this Commonwealth.\n(5) If a purported offer described in subsection (2) of this section does not contain the\nrequired disclosure, or is not followed by the required notice, then any goods or\nservices delivered to the recipient pursuant to the purported offer shall not operate\nto form a contract by or between the offeror an d the recipient. Any such offer or\npurported contract as a result thereof is void as against the public policy of the\nCommonwealth.\n(6) An attempt by an offeror, or an agent or assignee thereof, to enforce a purported\ncontract or to bind a recipient to a p urported acceptance arising out of a purported\noffer that does not comply with this section shall be a violation of the Consumer\nProtection Act, KRS 367.170 to 367.300. Remedies available for a violation of\nKRS 367.170 to 367.300 shall be in addition to an y remedies available at common\nlaw or under this section.\n(7) The Attorney General, Commonwealth's attorneys, and county attorneys shall have\nconcurrent jurisdiction to enforce the provisions of this section in a court of the\ncounty where the purported offer was received.\n(8) Any waiver by the recipient of jurisdiction for actions arising out of a purported\noffer under this section shall be void. Any depository bank or holder in due course\nof an item which does not meet the requirements of subsection (2) of this section or,\nas the case may be subsection (4) of this section, shall be held harmless by the\nofferor of the item, or an agent or assignee thereof.\n(9) Nothing contained in this section shall apply to licensed lenders that are regulated\nby the Commonw ealth of Kentucky, or to a bank regulated by the federal\ngovernment or any agency thereof.","path":["KRS Chapter 372"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35279","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:08Z","sha256":"61a2b6220a86e4c4332b7884e820b4cf473be952de8b135836831cf3f0488058","source_id":"us-ky","stale":false,"prev":"us-ky/krs-372.140","next":"us-ky/krs-372.990"},"notice":"GroundRules: Original legal text. Not legal advice."}