Limitation on power of parties to consumer lease to choose applicable law and judicial forum

• Library: Nebraska Revised Statutes
• Edition: 2021
• Currency: Current through the 2021 Special Legislative Session
• Year: 2021
• Citation: Neb. U.C.C. §2A-106

(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 days thereafter or on 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.

Cite as Neb. U.C.C. §2A-106

Source: Laws 1991, LB 159, § 8.

COMMENT

Uniform Statutory Source: Unif. Consumer Credit Code section 1.201(8), 7A U.L.A. 36 (1974).

Changes: Substantially revised.

Purposes:

There is a real danger that a lessor may induce a consumer lessee to agree that the applicable law will be a jurisdiction that has little effective consumer protection, or to agree that the applicable forum will be a forum that is inconvenient for the lessee in the event of litigation. As a result, this section invalidates these choice of law or forum clauses, except where the law chosen is that of the state of the consumer's residence or where the goods will be kept, or the forum chosen is one that otherwise would have jurisdiction over the lessee.