§ 500. Definitions. For the purposes of this article:

1. "Advertisement" means a commercial message in any medium that
directly or indirectly promotes or assists a rental-purchase agreement.

2. "Cash price" means the price of the merchandise described in the
rental-purchase agreement that the consumer may pay in cash to the
merchant at the inception of the rental-purchase agreement to acquire
ownership of such merchandise.

3. "Consumer" means an individual who leases personal property under a
rental-purchase agreement.

4. "Merchandise" means the personal property that is the subject of a
rental-purchase agreement.

5. "Merchant" means a person who, in the ordinary course of business,
regularly leases, offers to lease, or acts as an agent for the leasing
of merchandise under a rental-purchase agreement.

6. "Rental-purchase agreement" means an agreement for the use of
merchandise by a consumer for primarily personal, family, or household
purposes, for an initial period of four months or less, that is
renewable with each payment after the initial period and that permits
the consumer to become the owner of the property. An agreement that
complies with this article is not a retail installment sales contract,
agreement, or obligation as defined in this chapter nor a security
interest as defined in paragraph thirty-five of subsection (b) of
section 1--201 of the uniform commercial code.

7. "Cost of rental" means the difference between the total of payments
necessary to acquire ownership under the rental-purchase agreement and
the cash price of the rental merchandise that is subject to the
rental-purchase agreement.

8. "Fee" means any payment, charge, fee, cost, or expense, however
denominated, other than a rental payment.

9. "Appliance" means and includes any refrigerator, freezer, range
including any cook top or oven, microwave oven, washer, dryer,
dishwasher, or room air conditioner or air purifier or other machine for
routine household tasks.

10. "Electronic set" means and includes any television, radio, camera,
video game, computer system or any type of device for the recording,
storage, copying, printing, transmission, display, or playback of any
sound or image.

11. "Merchant's cost" means the documented actual cost, including
actual freight charges, of the rental merchandise to the merchant from a
wholesaler, distributor, supplier, or manufacturer and net of any
discounts, rebates, and incentives that are vested and calculable as to
a specific item of merchandise at the time the merchant accepts delivery
of the merchandise.

12. "Total of payments" means the total amount of periodic payments
necessary to acquire ownership of the merchandise that is the subject of
the rental-purchase agreement if the consumer makes all regularly
scheduled payments.

13. "Periodic payment" means a payment to be made by a consumer for
the right of the possession and use of merchandise for a specific rental
period, but does not include taxes imposed on such payment.