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JBaxLaw
JBaxLaw, Attorney
Category: Business Law
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Experience:  Experienced in business formation and licensing issues
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Is the auto renewal portion of a contract for services signed

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Is the auto renewal portion of a contract for services signed in 2004, still legal in California the change in the law in 2010? The auto renewal portion in the 2004 contract is not in bold type as currently required.

BizAttorney :

Hello, I am a professional here to assist you. I appreciate your use of this service.

BizAttorney :

The law you are asking about is here:

BizAttorney :

http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=200920100SB340

BizAttorney :

That law only applies to new offers after the effective date of the law.

BizAttorney :

The effective date of the law was December 1, 2010. The law would only apply if the contract you are asking about was offered after that date. You indicate you were offered the contract before that date.

BizAttorney :

The requirements under the law cannot be applied retroactively so none of the requirements in the law would apply.

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JBaxLaw and 4 other Business Law Specialists are ready to help you
Customer: replied 3 years ago.

why does the new law not apply if my contract "renewed" twice since the law was enacted?


 


If it still does not apply, then is an 18month renewal arguably unconsciousable?

The unconscionable argument may be successful. The law you were asking about become effective after the initial offer and contracting. The law cannot be applied retroactively and you had already agreed to the renewal language before the law regulating automatic renewal went into effect. It is the initial offer and your acceptance which are important in relation to the effective date of the law.

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