§ 503. Total cost. 1. A merchant shall maintain records that establish
the merchant's cost for each item of merchandise that is the subject of
the rental-purchase agreement. A copy of each rental-purchase agreement
and of the records required by this subdivision shall be maintained for
at least two years following the termination of the agreement.

2. The maximum cash price for the merchant's first rental of the
merchandise that is the subject of the rental-purchase agreement may not
exceed 1.75 times the merchant's cost for appliances, 1.75 times the
merchant's cost for electronic sets having merchant cost less than one
hundred fifty dollars, 2.0 times the merchant's costs for electronic
sets having merchant cost greater than or equal to one hundred fifty
dollars, 2.15 times the merchant's cost for furniture, 2.0 times the
merchant's cost for automotive accessories, jewelry, and musical
instruments, and 1.75 times the merchant's cost for all other items.

3. The maximum total of payments may not exceed 2.25 times the maximum
cash price that could have been charged for the first rental of the
merchandise under subdivision two of this section.

4. The maximum total of payments for the merchant's second and
subsequent rental of the merchandise that is the subject of the
rental-purchase agreement may not exceed the maximum total of payments
permitted under the terming matrix contained in subdivision five of this
section.

5. (a) The terming matrix provided for in paragraph (b) of this
subdivision shall be used to lower the number of periodic payments,
which shall result in a lower total of payments and a lower maximum cash
price for the used merchandise based on its age and condition, or, in
the event that the merchant chooses to maintain the number of periodic
payments of the original term when new, the merchant shall lower the
total of payments and maximum cash price on a pro-rata basis. The
merchant shall keep in electronic or hard copy form, the matrix used,
together with a record of the number of periodic payments provided in
the first agreement for the item when it was offered as new, as well as
a record of the item's condition as determined by the merchant pursuant
to such matrix each time it is priced as used. This requirement shall
be satisfied by a record of the number of periodic payments and cash
price from each rental-purchase agreement under which merchandise was
rented. These records shall be maintained as long as the item is owned
by the merchant. No merchant shall price used goods in excess of the
prices dictated by the matrix.

(b) The attorney general shall make available in printed form to
merchants and publish on the website of the department of law a terming
matrix in chart form to be used by merchants as required pursuant to
paragraph (a) of this subdivision. The chart shall have as its title
"Terming Matrix for Used Merchandise". The matrix chart shall conform to
the example set forth in this paragraph and shall consist of five rows
and five columns and shall be printed in at least ten point type.

TERMING MATRIX FOR USED MERCHANDISE
Original Term 91 weeks

in Weeks 34 weeks 35 - 38 weeks 39 - 90 weeks or more

when New or less
EXCELLENT subtract a subtract a subtract a subtract a
CONDITION minimum of 1 minimum of 2 minimum of 3 minimum of

week from weeks from weeks from 4 weeks

original original original from ori-

term term term ginal term
GOOD subtract a subtract a subtract a subtract a
CONDITION minimum of 3 minimum of 5 minimum of 7 minimum of

weeks from weeks from weeks from 9 weeks

original original original from ori-

term term term ginal term
FAIR subtract a subtract a subtract a subtract a
CONDITION minimum of 4 minimum of 7 minimum of 10 minimum of

weeks from weeks from weeks from 13 weeks

original original original from ori-

term term term ginal term
POOR subtract a subtract a subtract a subtract a
CONDITION minimum of 6 minimum of 10 minimum of 15 minimum of

weeks from weeks from weeks from 20 weeks

original original original from ori-

term or cash term or cash term or cash ginal term

sale sale sale or cash

sale

(c) Immediately below the terming matrix, the following language shall
be printed in ten point type.

New = Full Term

Excellent = In great shape. Refurbished to look like new.

Good = In good working order. Refurbished, but imperfections still
exist.

Fair = Completely operational, but refurbishment has not concealed
obvious wear and tear.

Poor = Ripped, faded, cracked or broken and refurbishment did not
change it.

6. The maximum cash price for merchandise on its second or subsequent
rental may not exceed the maximum total of payments for that merchandise
as permitted under subdivision five of this section divided by 2.25.

7. Upon the written request of the attorney general a merchant shall
provide copies of the records described in this section.

8. If a merchant intentionally discloses a cash price or a total of
payments that exceeds the amount permitted by this section, the
rental-purchase agreement is void, the consumer shall retain the
merchandise without any obligation, and the merchant shall refund to the
consumer all amounts paid.