TO RENT THE ABOVE MERCHANDISE:
Renter (including all “co-renters”) agrees to make an Initial Rental Payment in the amount listed in Box 1 which pays for the use of the Merchandise until expiration of the Initial Rental Period listed in Box 2 and shall continue to make Monthly Rental Payments as listed in Box 3 on or before the date due beginning with the expiration of the Initial Rental Period.
MINIMUM RENTAL PERIOD:
The Renter is required to make the Minimum Number of Rental Payments in Box 4 for the total amount shown in Box 5 which includes the Initial Rental Payment. If the Renter returns the merchandise before the expiration of the Minimum Rental Period, the Renter must still pay the Minimum Number of Rental Payments.
OPTIONS AFTER EXPIRATION OF MINIMUM RENTAL PAYMENT PERIOD:
OPTION 1: Cancel this Agreement by returning the Merchandise to a Summerhays Music location listed above in accordance with the terms in the paragraph below entitled “Termination by the Renter.” Schools, Music teachers and other third parties shall not be responsible for the return of the Merchandise. Failure to return the merchandise automatically initiates the monthly rental option. (see Option #2).
OPTION 2: Continue Monthly Rental Payments, each of which entitles the Renter to the use of the Merchandise for one month and renews automatically until the return of the Merchandise. Monthly Rental Payments are due on or before the date in Box 6.
TERMINATION BY THE RENTER: Renter may terminate this Agreement at any time after paying the rent due for the Minimum Rental Payment Period by returning the Merchandise in the same condition as at the time of rental, fair wear and tear excepted, to the Summerhays Music location listed above, and by payment of all additional (beyond the Minimum Rental Payments) Monthly Rental Payments and other charges due through the date of return. Minimum Rental Payments are due at the time of return. Rent due beyond the Minimum Rental Payments will accumulate until the Merchandise is received at Summerhays Music. Schools, Music teachers and other third parties shall not be responsible for the return of the Merchandise. Unpaid balances accrue interest at 18% APR.
TERMINATION BY THE OWNER: The Owner (Summerhays Music) can terminate this Agreement at its option and without notice to the Renter should the Renter fail to make any rental payment on the date due, or should the Renter breach any agreement, condition or representation of this Agreement and/or if the Owner deems itself insecure as to the safety, condition or location of the Merchandise. Upon termination, Renter agrees to deliver the Merchandise to Owner in the same condition as when rented, fair wear and tear excepted, and Renter shall remain liable for all payments and charges due at the time the Merchandise is returned and for the full performance of this Agreement.
REINSTATEMENT: If you fail to make a timely rental payment under this Agreement, you may reinstate this Agreement without losing any rights or options, by paying within five days of the renewal date: (1) all missed rental payments; (2) reasonable costs of pickup and re-delivery; (3) applicable late fees; and (4) reinstatement costs of $25.00. If you return the Merchandise to us within the five-day reinstate- ment period, and if you have paid less than 2/3 of the total purchase price, you may reinstate this Agreement within 45 days of the return of the merchandise by paying the payments, costs and fees listed above. If you return the Merchandise to us within the five-day reinstatement period, and if you have paid more than 2/3 of the total purchase price, you may reinstate this Agreement within 90 days of the return of the Merchandise by paying the payments, costs and fees listed above. Upon reinstatement, we will provide you with the Merchandise if available, or substitute merchandise of comparable quality and condition. Your right to reinstatement does not prevent us from attempting to repossess the Merchandise during the reinstatement period, but such a repossession does not affect your right to reinstate.
TO BUY THE ABOVE MERCHANDISE:
You have the right to exercise an early purchase option. There is no penalty for early payoff.
OPTION 1: Pay the cash price plus sales tax less any rental payments made, on or before the expiration of the Initial Rental Period.
OPTION 2: Make the number of payments listed in Box 7 beginning with the expiration of the Initial Rental Period. The Total Sales Price listed in Box 8 is the Cash Price plus sales tax and interest at the annual percentage rate in Box 9. In addition late fees, charges for pickup, collection or reinstatement must be paid. If your payments are late, you will pay more interest resulting in a greater number of payments; if your payments are early, you will pay less interest, resulting in a fewer number of payments.
SALES TAX: Should State or Local governments change the sales tax rate, your monthly payment and total sales price will change in accordance.
TOTAL SALES PRICE: The Total Sales Price listed in box 8 does not include late fees or other charges.
ESTIMATE: Payments made earlier than the scheduled due date will reduce, and payments made later will increase, the actual number of payments necessary to buy the Merchandise. These adjustments will be made at the end of the payment schedule to reduce or increase your total number of payments. There is no penalty for early payoff. The balance will be calculated using simple interest calculations. The parties acknowledge that if there is a clerical error in disclosing the payment schedule, the number and sum of payments may be adjusted to reflect the correct Cash Price, tax and interest.
TITLE: You will not own the Merchandise until all payments and other charges such as late fees, charges for pickup, collection or reinstatement listed in Option 2 are paid in full.
LOST OR STOLEN: If the Merchandise is lost, stolen or destroyed, you are liable to Owner for the fair market value of the Merchandise as of the time it is lost, stolen or destroyed, plus all rent, taxes and other fees due until paid.
SERVICE: While the Merchandise is in your possession you are responsible for servicing it and for maintaining it in good condition.
WARRANTY: You acquire at the time of purchase any warranty rights which exist on the Merchandise, if the transfer is allowed by the terms of the warranty.
LOCATION OF THE MERCHANDISE: Renter warrants and agrees to maintain as the primary location of the Merchandise the Renter’s address listed below and will not change the primary location from the Renter’s address without written permission by the Owner. Renter understands that PERMISSION WILL NOT BE GIVEN TO REMOVE THE MERCHANDISE FROM THE STATE WHERE RENTED. If the Merchandise is removed from the state where rented, Renter is in default, and is liable to Owner for the total value of the Merchandise, as shown under “Cash Price” plus all outstanding rent and charges due under this agreement.
LATE PAYMENT CHARGE: Any rental payment received more than 10 days after the due date is subject to a late charge of $10.00 or 5% of the rental payment, whichever is greater.
APPROVAL AND ACCEPTANCE: Acceptance of this Agreement is subject to credit verification and final approval by a corporate officer at the Owner’s corporate headquarters as listed above.
DEFAULT: If the renter should default in the terms of this agreement the entire value of the merchandise, defined as the contract cash price, plus all outstanding rent and charges shall immediately become due and payable and will bear interest at the rate of 18% APR. If your account is placed with a collection agency for collection you agree to pay a collection fee of 50% of the balance then due on your account.
NOTICE TO THE CONSUMER
Do not sign this agreement before you read it or if it contains blank spaces. You are entitled to a copy of the agreement you sign. By completing this credit application, you certify under penalty of perjury that the statements made above are true to the best of your knowledge. Any false statements made are grounds for immediate repossession of the instrument described above. You authorize us to verify your employment and credit standing as deemed necessary. We report payment records to credit bureaus.
SEE OTHER SIDE FOR ADDITIONAL PROVISIONS OF THIS AGREEMENT
By signing below, the Renter agrees to all of the terms listed on the front and back of this agreement and acknowledges receipt of a completed copy. This contract is subject to final approval by corporate officers.
(a) We retain title and unrestricted right to repossess the Merchandise.
(b) You, the Renter, have no right to sell, mortgage, pawn, or otherwise affect our interest in the rented (leased) Merchandise.
(c) You cannot assign any right under this Agreement. Any assignment or attempt to assign this lease or your rights under this Agreement is void.
2. STATEMENTS AND REPRESENTATIONS
(a) You represent that the Merchandise is rented for personal, family, and household use, and not for professional use.
(b) You understand that we report payment histories to credit bureaus and other credit lenders.
(c) This Agreement contains our entire agreement. There is no other agreement or representation that is not in this Agreement.
(d) You understand and agree that third-party vendors provide you with payment coupons or periodic statements, and those coupons or statements will not change this Agreement.
(a) The Merchandise warranty is limited to the express warranty, if any, provided by the manufacturer.
(b) We must perform all warranty work. You agree to pay the shipping costs to and from Summerhays Music.
4. RENTAL PAYMENTS AND RETURNS
(a) We charge rent on the first day of every month. You may return the Merchandise at any time by returning it to us, but you must pay any unpaid minimum rent. We may prorate rent.
(b) We apply payments to the most delinquent balances first, in this order: return check fees, late fees, other fees, sales tax, then rental payments.
(c) Rent and fees accrue until the Merchandise is received by us. Schools, teachers, or other third parties are not responsible for returning it.
(a) You are liable for any damage to the merchandise beyond reasonable wear and tear.
(b) Repairs must be performed by an authorized Summerhays Music repair technician. You must pay our minimum hourly repair-shop rates to repair damage that is beyond reasonable wear and tear.
(c) The following examples of damage are not reasonable wear and tear:
(i) A sticker on the Merchandise or case that is not easily removed;
(ii) Marks or scratches caused;
(iii) A dent or scratch more than 6 mm long or 1 mm deep;
(iv) A bent or misaligned instrument body or part.
(a) Any of the following circumstances will constitute material default:
(i) You move out of state or remove the Merchandise out of state without our express written permission;
(ii) Your account is more than 30 days past due;
(iii) You change your physical (residence) or mailing address or phone number without updating your contact information with us;
(iv) We have a good-faith reason to feel insecure about our title to the Merchandise or any of our rights under this Agreement; or
(v) You violate any term in this Agreement.
(b) If you default, you agree to all of the following:
(i) You authorize us to charge all amounts due to any debit or credit card that you have provided to us at any time;
(ii) You will immediately cooperate to return the Merchandise to us;
(iii) You direct third parties who control or possess the Merchandise, including schools and teachers, to allow us to repossess the Merchandise. And you will hold such third parties harmless for allowing us to repossess the Merchandise;
(iv) You direct third parties, including schools and teachers, to disclose your updated contact information. And you will hold such third parties harmless for disclosing such info;
(v) If you fail to return the Merchandise, the Cash Price (plus sales tax) plus all outstanding charges and default interest will immediately become due without notice;
(vi) The default rate of interest is 18% APR;
(vii) We may call you at any phone number, including cell phones, that you provide to us or that we obtain from another source;
(viii) We may contact you at any email address that you provide; and
(ix) We may contact you with automated telephone dialing equipment, artificial or pre-recorded voice messages, texts, or emails. We are not responsible for any cell-phone, text, or data charges.
7. LEGAL REMEDIES AND COLLECTION COSTS
(a) You must pay all fees and expenses incurred in collection, including but not limited to the following:
(i) $20 fee per returned check or chargeback;
(ii) $35 minimum fee for each attempt to pickup the Merchandise or collect payment. This fee is calculated as $35 per hour for employee time, plus $.50 per mile, plus any additional cost;
(iii) $50 skip trace fee if you do not update your contact info with us;
(iv) collection agency fees up to 50% of the amount due; and
(v) all pre-judgment and post-judgment collection costs, including court filing and service fees, attorney’s fees, and pre-judgment and post-judgment interest at 18% APR.
(b) Forum Selection. Suit to enforce this Agreement must be brought in a court of competent jurisdiction in Salt Lake or Utah County, UT. Though this Agreement may have been initiated or finalized at Summerhays Music or via internet, email, phone, fax, or out-of-store contact at a home or school, all parties agree that this Agreement is deemed to take place at our corporate office at 1006 S. State St., Orem, UT 84097, which is the place for payments and performance of this Agreement.
(c) Applicable Law. The laws of Utah govern this Agreement.
(d) Severability. If any part of this Agreement is deemed unenforceable by a court of law, all other terms of this Agreement are enforceable.
(e) No Waiver. Any delay in exercising a right under this Agreement is not a waiver of that or any other right under this Agreement.
(f) Under Utah Criminal Code § 76-6-410, you may be criminally liable for theft of rental property if we terminate the Agreement or you are in default and you do not immediately return the Merchandise to us.
8. ACCOUNT BALANCE AND AGREEMENT DISPUTES
(a) You must discuss any dispute about your account balance or this Agreement directly with a corporate officer or our credit manager.
(b) Any check containing “payment in full” or a similar endorsement is not binding on us unless you include with the check a written agreement signed by a corporate officer or our credit manager, and you
(i) hand deliver the check to a corporate officer; or
(ii) deliver the check in a sealed envelope, via common carrier, addressed to the attention of a corporate officer.
9. TRADE-UP OPTIONS
(a) The following provisions apply to all instruments:
(i) Your account must be current (not past due) at the time of trade;
(ii) You may not combine trade credit from more than one instrument to buy one instrument;
(iii) You may use your trade credit to buy the brands and types of instruments that we normally keep in stock;
(iv) We will reduce your trade credit by the cost of any repairs or replacement parts to return the trade-in Merchandise to a similar condition as it was on the date of this Agreement; and
(v) You must use your trade credit when you return the Merchandise.
(b) For band instruments (excluding drums):
(i) Option 1. We apply 100% of the principal paid (less sales tax) on a student-level band instrument toward the current retail price of a select new or better band instrument; or
(ii) Option 2. We apply 50% of rent paid for a student-level alto saxophone, trumpet, flute, clarinet, or trombone towards our everyday discounted price of a selected performance-grade or professional-grade instrument of the same type (e.g., clarinet for clarinet).
(c) For string instruments (excluding guitars and harps):
(i) We apply one-half of all rental payments made (less sales tax) in a continuous rental program (for an individual student) of less- than-full-size string instruments toward the everyday discount price of a full-sized string instrument of at least 30% greater value and of the same type (i.e. violin for violin, viola for viola, etc.).
MAINTENANCE AND THEFT PROTECTION AGREEMENT (“MTP”)
This Maintenance and Theft Protection Agreement (“MTP”) provides extended maintenance and theft protection for your instrument, subject to the following terms and conditions. We must inspect your instrument before MTP takes effect. This MTP Agreement replaces any prior MTP agreement made on this account.
THEFT PROTECTION: We will replace your instrument with one of similar quality and condition if (1) you immediately report the theft to the local police (within 24 hours of the theft); (2) give us a copy of the police report showing the instrument serial number; (3) your rental and MTP payments are current; and (4) you pay the required deductible. You must then complete your remaining contractual obligation.
ACCIDENTAL DAMAGE: We will repair accidental damage if (1) your rental and MTP payments are current; and (2) you pay the required deductible. However, damage caused by the following are excluded from coverage: (1) horseplay; (2) overt neglect; (3) intentional damage; (4) damage occurring on an aircraft or water vessel; and (5) flooding, tornado, earthquake, or other acts of God.
CONDITIONS: Where theft or damage is covered by your homeowners or auto insurance, you must bill your insurance first, then MTP will cover the unpaid balance. You must make your regular MTP payments during the time between loss and replacement or while the instrument is being serviced. You will void your MTP and forfeit all MTP payments if you service or repair the instrument using anyone other than a Summerhays Music Authorized Repair Technician. At our sole discretion, we may choose to repair the instrument or replace it with one of similar age and value. This MTP Agreement will expire when you terminate your rental agreement. You may cancel this MTP Agreement anytime by sending written notice of termination to Summerhays Music, 1006 S. State St., Orem, UT 84097. MTP fees are due on the first day of each month in addition to the rental payments. MTP is available on an annual basis if you buy the instrument.
LATE PAYMENTS: MTP lapses if your payment is more than 30 days late, during which time you are not entitled to any benefit under this MTP Agreement.
COST: Your monthly MTP payments are based on the instrument’s value: $899 or less, $5.00 plus tax; $900 to $1,799, $8.00 plus tax; or $1,800 to $2,500, $12.00 plus tax. Instruments over $2,500 do not qualify for MTP.
DEDUCTIBLE: For cellos, you must pay (1) the first $200 of covered replacement charges; or (2) the first $50 of repairs over $250. For all other instruments, you must pay (1) the first $50 of covered replacement costs; or (2) the first $50 of repairs over $250.