Okla. Stat. tit. 12A § 2A-106

Current through Laws 2024, c. 279.

Section 2A-106 - Limitation on power of parties to consumer lease to choose applicable law and judicial forum

(1) If the law chosen by the parties to a consumer lease is that of a jurisdiction other than a jurisdiction in which the lessee resides at the time the lease agreement becomes enforceable or within thirty (30) days thereafter or in which the goods are to be used, the choice is not enforceable.

(2) If the judicial forum chosen by the parties to a consumer lease is a forum that would not otherwise have jurisdiction over the lessee, the choice is not enforceable.

Okla. Stat. tit. 12A, § 2A-106

Added by Laws 1988, HB 1683, c. 86, § 6, eff. 11/1/1988.

Oklahoma Code Comment

This provision is the first the handful of minimal consumer protections built into Article 2A. See Official Comment to § 2A-103(1)(e). Subsection (1) of this section and U3C § 1-201(1)(b), (7) and (9)(a) and (b) should produce the same applicable law in 9996 of the cases involving consumer leases and thus no conflict should exist to invoke the application of § 2A-104(2). But the relationship is more subtle. The application of the U3C to a consumer lease transaction deliberately can be manipulated. See U3C § 1-201(1)(b). In that event, U3C § 1-201(4) and (5) are designed to afford residual protection to Oklahoma residents. However, the application of the Article 2A rule cannot be contracted away. Thus for consumer leases covered by Article 2A, § 2A-106(1) may prove more protective if it is construed to apply all of Oklahoma law, including the U3C without regard to the choice of law provision in U3C §1-201. The difference would be essentially the difference in approach between U3C § 1-201(4) and (5) and U3C § 1-201A, plus the fact Oklahoma disclosure rules would apply (which should be of little consequence, however, since they are similar enough to the federal rules that Oklahoma has an exemption from the federal Consumer Leasing Act).

For consumer leases not covered by the U3C, such as a weekend car rental, the rule of § 2A-106(1) may be the only applicable rule. However, if the transaction fits the definition of a "rental-purchase agreement" in 59 Oklahoma Statutes § 1951(6) and is a lease as defined in Article 2A, a relational problem similar to that described will exist between § 2A-106(1) and 59 Oklahoma Statutes § 1957.

Subsection (2) and WC § 1-201(9)(c) also should produce the same result in most cases.

The 1991 amendments make no change here.