AS Title 45, Chapter 45: Trade Practices

Article 1. Interest. Chapter 45. Trade Practices. Sec. 45.45.010. Legal rate of interest; prepayment of interest. (a) The rate of interest in the state is 10.5 percent a year and no more on money after it is due except as provided in (b) of this section. (b) Interest may not be charged by express agreement of the parties in a contract or loan commitment that is more than the greater of 10 percent or five percentage points above the annual rate charged member banks for advances by the 12th Federal Reserve District on the day on which the contract or loan commitment is made. A contract or loan commitment in which the principal amount exceeds $25,000 is exempt from the limitation of this subsection. (c) [Repealed, § 3 ch 84 SLA 1973.] (d) [Repealed, § 2 ch 94 SLA 1981.] (e) [Repealed, § 4 ch 146 SLA 1974.] (f) A bank, credit union, savings and loan institution, pension fund, insurance company, or mortgage company may not require or accept any percent of ownership or profits above its interest rate. This subsection does not apply to a loan if the principal amount of the loan is $1,000,000 or more and the term of the loan is five years or more, or to a negatively amortizing loan secured by owner-occupied real property originated under a program approved or sponsored by (1) the federal government, including congressionally chartered national corporations; or (2) the state if (A) the real property that secures the loan is not subject to forced sale provided the owner has not violated the terms of the loan agreement including terms regarding (i) payment of property taxes; (ii) payment of hazard or fire insurance premiums; (iii) keeping the property in reasonable repair; (iv) not vacating the property for a period longer than 12 months; (B) the owner may not be evicted from the real property that secures the loan unless a term of the loan agreement regarding a matter listed in (A)(i) — (iv) of this paragraph has been violated; (C) neither the estate nor any heir of the former owner may be compelled to pay a deficiency judgment related to the loan; and (D) the estate or an heir of the former owner has a right of first refusal and may either pay off the loan balance in full, if the former owner had equity in the property, or pay a sum not to exceed 95 percent of the value of the property at the time of exercise of the right of first refusal as determined by an independent real estate appraiser licensed under AS 08.87 . (g) Loan contracts and commitments covering one- to four-family dwellings may be prepaid without penalty, except federally insured loans that require a prepayment penalty. (h) If the limitations on interest rates provided for in this section are inconsistent with the provisions of any other statute covering maximum interest, service charges, or discount rates, then the provisions of the other statute prevail. Sec. 45.45.020. Higher rate of interest prohibited. A person may not, directly or indirectly, receive in money, goods, or things in action, or in any other manner, a greater sum or value for the loan or use of money, or upon contract founded upon a bargain, sale, or loan of wares, merchandise, goods, chattels, lands, and tenements, than is prescribed in AS 45.45.010 — 45.45.070. Sec. 45.45.030. Action for recovery of double amount of usurious interest paid. If interest greater than that prescribed in AS 45.45.010 and 45.45.020 is received or collected, the person paying it may, by action brought within two years after the payment, recover from the person receiving the payment double the amount of the interest received or collected. Sec. 45.45.040. Usurious rate as working forfeiture of entire interest. If, in an action brought on a contract, the court determines that a rate of interest has been contracted for greater than is authorized by AS 45.45.010 — 45.45.070, either directly or indirectly, in money, property, or other valuable thing, or that a gift or donation of money, property, or other valuable thing has been made or promised to be made to a lender or creditor, or to a person for the lender or creditor, directly or indirectly, by the borrower or debtor, or a person for the borrower or debtor, the design of which is to obtain for money so loaned, or for debts due or to become due, a rate of interest greater than that specified by AS 45.45.010 — 45.45.070, the rate of interest is usurious and works a forfeiture of the entire interest on the debt. The court shall give judgment for the amount due, without interest, on the sum loaned or the debt contracted, against the defendant and in favor of the plaintiff and against the plaintiff for costs of action, whether the action is contested or not. Sec. 45.45.050. Recovery by assignee of usurious contract of amount paid. AS 45.45.010 — 45.45.070 do not prevent the bona fide assignee of a usurious contract from recovering against the immediate assignor, or the original usurer, the full amount paid by the assignee for the contract if the assignee did not have notice of the usury affecting the contract. Sec. 45.45.060. Contract not usurious because of agreement to pay taxes. A contract made in the state between borrower and lender, debtor and creditor, or mortgagor and mortgagee, on which the rate of interest is the legal rate of interest specified in AS 45.45.010 or less, by which one party agrees to pay the taxes on the debt, credit, or mortgage existing or entered into between the parties, is legal and valid and is not usurious. Sec. 45.45.070. Enforcement of contracts entered into under AS 45.45.060 . A contract entered into under AS 45.45.060 may be enforced by the parties to it. However in making an assessment of a credit loan or mortgage, it shall be assessed to the holder of the contract. Article 2. Collection of Advance Interest. Sec. 45.45.080. Money lenders may collect interest in advance. (a) A lender of money may, either upon the security of personal property or otherwise, charge and receive interest in advance. (b) In the case of a secured or unsecured instrument loan not exceeding the principal amount of $10,000, not including interest, which is repayable in substantially equal installments over a period not exceeding seven years, a lender of money may contract for a charge at a rate not exceeding $6 a year for each $100 (true annual interest rate for “add-on method” of computation at a rate not to exceed 11.1 percent; or true annual interest rate for “discount method” of computation at a rate not to exceed 11.8 percent) upon the original face amount of the instrument evidencing the loan for the entire period of the loan. This charge may be collected in advance. However, if the unpaid balance outstanding on a loan is paid before maturity, the lender shall give a refund or credit of the unearned portion of the charge, which refund or credit represents at least as great a proportion of the original charge as the sum of the periodical time balances after the date of prepayment bears to the sum of all the periodical time balances under the schedule of payments in the original instrument. The lender is not required to refund or credit any portion of the unearned charge that would result in a net charge on a loan less than the minimum charge provided for in this section, or to make a refund or credit where the amount of the refund or credit computed as set out in this section would be less than $5 for each loan paid before the maturity date. (c) No additional amount may be charged or contracted for on or in connection with an installment loan provided for in (b) of this section except the following: (1) delinquency charges not to exceed five cents for each $1 of each installment more than 15 days in arrears, except that the total delinquency charges on an installment loan may not exceed $15, and only one delinquency charge may be made on each installment; (2) premiums paid by the lender for insurance required or obtained as security for or by reason of the installment loan; (3) the amounts necessary to reimburse the lender for fees paid to a public officer for filing, recording, or releasing any instrument or lien; and (4) the actual expenditures, including reasonable attorneys' fees for legal process or proceedings, to secure or collect the installment loan. (d) Advertising concerning such installment loans that contains a statement of an amount, or rate of charge, must also contain the percentage rate, either per month or per year, computed on declining balances of the face amount of the loan instrument to which the charge would be equivalent if the loan were repaid according to contract. This advertising requirement may be complied with by stating the equivalent percentage rate that would earn the charge for a loan repayable in 12 equal consecutive monthly installments, and the stated rate may be closely approximate, rather than exact, if the statement so indicates. This requirement does not apply to an advertisement in which an amount, or rate of charge, is indicated only by a table that contains and is confined to examples of the face amount of the loan instrument, the proceeds to the borrower exclusive of the charge, and the amount, number, and intervals of the required payments. Sec. 45.45.090. Applicability of other laws. No law of this state prescribing or limiting interest rates upon loans applies to loans made under AS 45.45.080 . Article 3. Merchandise. Sec. 45.45.100. Requiring individuals to keep merchandise in full view. A merchant may request an individual on the merchant's premises to place or keep in full view merchandise that the individual removes, or that the merchant believes the individual may have removed, from its place of display or elsewhere, whether for examination, purchase, or another purpose. A merchant is not criminally or civilly liable for making this request. Sec. 45.45.105. Unsolicited merchandise. (a) A person may not offer merchandise for sale, in any manner, when the offer includes the voluntary and unsolicited sending of merchandise not actually ordered or requested by the recipient, either orally or in writing. (b) Unsolicited merchandise received shall be considered an unconditional gift to the recipient who may use or dispose of it in any manner the recipient sees fit without obligation to the sender. Sec. 45.45.110. Definitions. In AS 45.45.100 and 45.45.105, (1) “merchandise” means personal property capable of manual delivery that is produced, displayed, held, or offered for sale by a manufacturer, distributor, or merchant; (2) “merchant” means an owner or operator of a place of business used for displaying, holding, or selling personal property capable of manual delivery, and the agent, consignee, employee, lessee, or officer of the owner or operator; (3) “premises” means an establishment or part of one in which merchandise is displayed, held, or offered for sale. Article 4. Funerals. Sec. 45.45.120. Disclosure of costs. Every person performing or arranging for services or providing merchandise relating to the disposition of a dead human body shall give to the person arranging for the disposition at the time the arrangements are completed and before the time of rendering the service or providing the merchandise a written statement showing, to the extent then reasonably ascertainable, (1) the price and what is included with specific prices for at least each of the following: (A) transfer of remains to funeral home; (B) embalming; (C) use of facilities for viewing; (D) use of facilities for funeral service; (E) caskets, with a notation that a separate casket price list will be provided before any sales presentation for caskets is made; (F) hearse; (G) limousine; (H) services of funeral director and staff; (I) outer interment receptacles; if outer interment receptacles are sold, a notation that a separate outer interment receptacle price list will be provided before any sales presentation for such items is made; (2) the price of each supplemental item of service or merchandise; (3) the amount involved for each of the items for which money will be advanced; an item for which money is advanced shall be charged in the same amount as the cost to the person making the advance; (4) the method of payment; (5) the fee for counseling, consulting, or arranging for future services relating to the disposition of a dead human body. Article 5. Regulation of Motor Vehicle Repairs. Sec. 45.45.130. Repair order. Upon request of the customer and before the commencement of repairs, the shop shall provide the customer with a copy of a dated repair order legibly describing the repairs to be performed. The shop shall record the odometer reading of the customer's motor vehicle on the repair order, and shall sign the customer's copy. Sec. 45.45.140. Repair price information. Upon request of the customer and before the commencement of repairs, the shop shall provide the customer with a price estimate for the repairs. The repair price estimate shall be made in good faith by the shop and may not be exceeded except for good cause and additional charges over the price estimate may not be incurred without approval of the customer. Nothing in this section may be construed as requiring a shop to provide a price estimate if the shop does not agree to perform the requested repairs. Sec. 45.45.150. Notice to customer. The shop shall post a conspicuously located and easily readable sign that states: “You are entitled to a price estimate for the repairs you authorize if you request the estimate before the repairs are begun. This price estimate will not be exceeded if the motor vehicle is delivered to the shop within five days. After the motor vehicle is delivered to the shop the repair price may be less than the estimate but will not exceed the estimate without your permission. Your signature on the repair order will indicate your authorization of repairs at the price estimated. You are entitled to the return of any or all replaced parts, except parts which must be returned to a manufacturer because of warranty and/or exchange agreement, if you request the parts at the time your order is taken. Those parts which must be returned to the manufacturer will be made available for inspection to you when you pick up your vehicle if you request the parts at the time your repair order is taken.” Sec. 45.45.160. Charges. A shop may not charge for making a repair price estimate unless, before making the estimate, the shop discloses to the customer the amount of the charge, or, if the amount cannot be determined, the basis on which the charge will be calculated. A shop may not impose, or threaten to impose, a charge that is clearly excessive in relation to the work involved in making the price estimate. Sec. 45.45.170. Authorization to proceed with repairs. (a) If the shop has given the customer an estimate and the price for the authorized repairs will exceed the estimate, the shop shall call the customer before continuing with the repairs and shall provide the customer with a new, good faith estimate of the repair price. The shop may not then continue with the repairs until it receives the customer's written or oral authorization to do so. (b) Before undertaking repairs other than those previously authorized by the customer, the shop shall call the customer and provide the customer with a description of the proposed additional repairs, together with a good faith estimate of the price for the repairs. The shop may not then undertake the additional repairs until it receives the customer's written or oral authorization to do so. (c) If the shop does not receive the customer's authorization to proceed with the repairs under (a) or (b) of this section, the shop shall either agree to perform the repairs at the original estimated price or provide for the customer to retake possession of the vehicle in at least as good condition as it was delivered to the shop and notify the customer accordingly. (d) A written authorization under (a) or (b) of this section shall be made on the repair order or on the invoice when a repair order is not requested and shall specify newly authorized repairs, as well as the newly authorized repair price estimate. If authorization under (a) or (b) of this section is received orally, the shop shall specify on the repair order or invoice newly authorized repairs, as well as the newly authorized repair price estimate. It shall also specify the date and time of authorization, and the person and telephone number called. Sec. 45.45.180. Return of parts. Parts from a customer's motor vehicle that are replaced by the shop shall be returned to the customer if they are requested by the customer at the time the repair order is taken. However, parts that must be returned to the manufacturer because of a warranty or exchange agreement need not be returned to the customer upon request but shall instead be made available for the customer's inspection when the customer retakes possession of the motor vehicle. Sec. 45.45.190. Invoice. The shop shall provide every customer, at the time the customer retakes possession of the motor vehicle, with a copy of a dated invoice detailing the costs of all parts and labor involved in the repair, and identifying all parts replacements as being either new, used, rebuilt, or reconditioned. Sec. 45.45.200. Prohibited practices. (a) A shop may not misrepresent, directly or by implication, (1) the cost of repairs authorized by the customer; (2) the terms or conditions of a warranty or service agreement; (3) that repairs are necessary; (4) that repairs have been made; or (5) that the motor vehicle is in a dangerous condition, or that the customer's continued use of the motor vehicle will be hazardous to persons or harmful to the motor vehicle. (b) A shop may not collect or attempt to collect for (1) repairs not authorized either orally or in writing by the customer; (2) repairs that the shop knew or reasonably ought to have known to be unnecessary; or (3) repairs that have not been made. (c) A shop that is also a warrantor or a party to a service agreement may not refuse to repair a motor vehicle in accordance with the terms and conditions of the warranty or service agreement. (d) A shop may not fail to return a customer's motor vehicle because the customer has refused to pay for unauthorized repairs, or because the customer has refused to pay repair charges in excess of the price authorized under AS 45.45.130 — 45.45.140, if the customer pays the authorized price for the authorized repairs. (e) A shop may not alter a customer's motor vehicle with intent to create a condition requiring repairs. Sec. 45.45.210. Disclosure of regulation. The following statement shall be conspicuously printed, either on the invoice or on another form given to every customer for whom the shop performs repairs: “Motor vehicle repair trade practices are regulated by Alaska Statutes 45.45.130 — 45.45.240, administered by the Alaska Department of Law.” Sec. 45.45.220. Records. A shop shall maintain repair records and invoices for parts purchased by the shop. The records shall be available for reasonable inspection by the attorney general or other persons acting at the request of the attorney general and shall be retained for at least two years. Sec. 45.45.240. Definitions. In AS 45.45.130 — 45.45.240 (1) “customer” includes a person authorized by the customer to act on the customer's behalf; (2) “motor vehicle” or “vehicle” means a motor vehicle as defined in AS 28.90.990 that is required to be registered under AS 28.10 , or with a governmental agency of another jurisdiction performing a similar function; (3) “repair” or “repairs” means the improvement, adjustment, replacement, examination, diagnosis, maintenance, servicing, removal, or installation of any component or part of a motor vehicle, but does not include towing or the supplying of motor fuel to a motor vehicle; (4) “shop” means an individual, corporation, partnership, or other form of business organization engaged in the motor vehicle repair business and includes owners, officers, directors, agents, employees, and representatives but excludes the following: (A) a shop engaged solely in the business of repairing the motor vehicles of a single commercial, industrial, or governmental establishment, or of two or more of these establishments that are related by common ownership or corporation affiliation; (B) a person repairing the person's own or a family member's motor vehicle. Article 6. Motor Vehicle Warranties. Sec. 45.45.300. Repairs required. If a new motor vehicle does not conform to an express warranty that is applicable to it and the owner of the vehicle reports the defect or condition to the manufacturer of the vehicle or to the manufacturer's or distributor's dealer during the term of the warranty, the manufacturer, distributor, dealer, or a repairing agent shall make the necessary repairs to conform the vehicle to the express warranty. Sec. 45.45.305. Replacement or refund. If during the term of the express warranty or within one year from the date of delivery of the motor vehicle to the original owner, whichever period terminates first, the manufacturer, distributor, dealer, or repairing agent is unable to conform the motor vehicle to an applicable express warranty after a reasonable number of attempts, the manufacturer or distributor shall accept the return of the nonconforming motor vehicle, and, at the owner's option, shall replace the nonconforming vehicle with a new, comparable vehicle or shall refund the full purchase price to the owner less a reasonable allowance for the use of the motor vehicle from the time it was delivered to the original owner. A refund under this section shall be made to a lienholder of record, if any, and the owner, as their interests may appear. Sec. 45.45.310. Notice by owner. In order to claim a refund or replacement under AS 45.45.305 , the owner shall give written notice by certified mail to the manufacturer and its dealer or repairing agent at any time before 60 days have elapsed after the expiration of the express warranty or the one-year period after the date of delivery of the motor vehicle to the original owner, whichever period terminates first, (1) stating that the vehicle has a nonconformity; (2) providing a reasonable description of the nonconformity; (3) stating that the manufacturer, distributor, dealer, or repairing agent has made a reasonable number of attempts to conform the vehicle; and (4) stating that the owner demands a refund or replacement vehicle to be delivered on the 60th day after the mailing of the written notice. Within 30 days after receiving the notice required by this section the manufacturer may make a final attempt to conform the vehicle before a refund or replacement is made under AS 45.45.305 . Sec. 45.45.315. Exceptions. An owner may not receive a refund or replacement under AS 45.45.300 — 45.45.360 if the manufacturer or distributor shows that the nonconformity complained of (1) does not substantially impair either the use or the market value of the motor vehicle; or (2) is the result of (A) alteration of the motor vehicle by the owner or a person other than a dealer or repairing agent that is not authorized by the manufacturer or distributor; or (B) abuse or neglect by the owner or a person other than the dealer or repairing agent. Sec. 45.45.320. Presumption. A presumption that a reasonable number of attempts have been made to conform a motor vehicle under an applicable express warranty is established if: (1) the same nonconformity has been subject to repair three or more times by the manufacturer, distributor, dealer, or repairing agent during the term of the express warranty or the one-year period after delivery of the motor vehicle to the original owner, whichever period terminates first, but the nonconformity continues to exist; or (2) the vehicle is out of service for repair for a total of 30 or more business days during the express warranty term or the one-year period referred to in (1) of this section, whichever period terminates first; any period of time that repairs are not performed for reasons that are beyond the control of the manufacturer, distributor, dealer, or repairing agent is excluded from the 30-day time period referred to in this paragraph. Sec. 45.45.325. Parts availability. A manufacturer whose vehicles are sold in the state through an authorized dealer shall provide its dealer or repairing agent with any part necessary to make a repair of a nonconformity covered under an express warranty, as soon as possible, without additional charge for freight or handling, if the part is not in the dealer's or agent's inventory when the nonconforming vehicle is brought to the dealer or repairing agent for repair. Sec. 45.45.330. Failure to replace or refund. A manufacturer or distributor who fails to refund the full purchase price of a motor vehicle or replace the motor vehicle when there is a requirement to do so under AS 45.45.300 — 45.45.360 is presumed to have committed an unfair trade practice under AS 45.50.471 . Sec. 45.45.335. Resale without disclosure prohibited. A motor vehicle returned under AS 45.45.305 may not be resold by the manufacturer or distributor in the state unless full disclosure of the reason for the return is made to the prospective buyer before the resale is concluded. Sec. 45.45.340. Other rights and remedies. The provisions of AS 45.45.300 — 45.45.360 do not limit other rights and remedies that may be available to the owner of a motor vehicle under other provisions of law. This section does not create a new cause of action against a dealer or repairing agent who sells or attempts to repair a motor vehicle found to be nonconforming under AS 45.45.300 — 45.45.360. Sec. 45.45.345. Repair facilities. A manufacturer or distributor of motor vehicles who authorizes the sale of the manufacturer's or distributor's motor vehicles in the state shall maintain authorized dealership facilities within the state that are able to perform the service and make the repairs required by the manufacturer's express warranty and by AS 45.45.300 — 45.45.360. Sec. 45.45.350. Reimbursement of shipping costs. A manufacturer or distributor who accepts the return of a nonconforming motor vehicle under AS 45.45.305 shall reimburse the owner for any reasonable cost incurred in shipping the vehicle to and from the nearest authorized facility for warranty service and repair of a nonconformity that causes the return of the vehicle. Sec. 45.45.355. Arbitration or mediation. If a manufacturer or distributor has established an informal dispute settlement procedure that substantially complies with the requirements of 16 C.F.R. Part 703, as that section may be amended, or if the manufacturer or distributor, after receipt of notice required by AS 45.45.310 , offers in writing to participate in an arbitration or mediation process with the owner and the arbitration or mediation decision is binding on the manufacturer or distributor but not on the owner, and if the informal dispute settlement or arbitration or mediation process is approved by the attorney general, the provisions of AS 45.45.305 concerning refund or replacement or AS 45.45.350 concerning shipping costs do not apply to an owner who has not first resorted to the informal dispute settlement procedure or arbitration or mediation process. Sec. 45.45.360. Definitions. In AS 45.45.300 — 45.45.360, (1) “dealer” means a person who has obtained a franchise from, or is authorized by, a motor vehicle manufacturer to engage in the retail sale and warranty repair of the manufacturer's new motor vehicles in the state; (2) “distributor” means a person who is authorized by a manufacturer to engage in the wholesale distribution of the manufacturer's new motor vehicles in the state; (3) “express warranty” or “warranty” means an express written warranty provided by the manufacturer of a new motor vehicle; (4) “full purchase price” means the total price paid for a motor vehicle by the original owner, including costs added to the retail price, such as original registration fees, transportation fees, dealer preparation, and dealer installed options; (5) “manufacturer” means a person who by labor transforms raw materials and component parts into motor vehicles for wholesale or retail sale; (6) “motor vehicle” or “vehicle” means a land vehicle having four or more wheels, that is self-propelled by a motor, is normally used for personal, family, or household purposes, and is required to be registered under AS 28.10 , but does not include a tractor, farm vehicle, or a vehicle designed primarily for off-road use; (7) “nonconformity” means a defect or condition in a motor vehicle caused by a manufacturer, distributor, dealer, or repairing agent that substantially impairs the use or market value of a vehicle; (8) “owner” means a purchaser, other than for resale, of a new motor vehicle, and a person to whom ownership of the motor vehicle is transferred in conformity with AS 28 ; (9) “reasonable allowance” means an amount attributable to an owner's use of a motor vehicle; a “reasonable allowance” may not exceed an amount equal to the depreciation in value of the vehicle for the period during which the vehicle is available for use by the owner, calculated by a straight line depreciation method over seven years, plus an amount equal to the depreciation in value of the vehicle that is caused by (A) any neglect or abuse by the owner; or (B) body damage not caused by a nonconformity; (10) “repairing agent” means a person who has been specifically authorized by a motor vehicle manufacturer or distributor to perform warranty repairs in the state on one or more of the manufacturer's or distributor's motor vehicles; (11) “substantially impairs the market value” means a nonconformity that substantially decreases the dollar value of a vehicle to the owner when compared to the dollar value of a similar vehicle that does not have the nonconformity; (12) “substantially impairs the use” means a nonconformity that prevents a motor vehicle from being operated or makes the vehicle unsafe to operate. Article 7. Used Vehicle Sales in Emission Inspection Areas. Sec. 45.45.400. Prohibited transfer of used motor vehicles. (a) A person engaged in the business of selling used motor vehicles may not transfer or assign the owner's title or interest in the used vehicle to a person who resides in an area subject to a state-approved emission inspection program established under AS 46.14.400 or 46.14.510 and who intends to use the vehicle in that area, unless the vehicle displays a valid emissions inspection decal, has a valid record of emissions inspection with the Department of Administration, or has a certificate of inspection, even though the certificate shows that the vehicle is not in compliance with program requirements as required under the air pollution control requirements applicable in that area. (b) This section does not apply to a motor vehicle that when manufactured did not have a pollution control system. Article 8. Rental Car Fees. Sec. 45.45.450. Identification of cost recovery fees. If a rental car business charges a cost recovery fee, the rental car business shall separately identify and charge for each cost recovery fee in writing in the rental car agreement. In this section, “cost recovery fee” means a vehicle licensing cost recovery fee, an airport-related cost, a government tax, or a government surcharge. Sec. 45.45.455. Vehicle licensing cost recovery fee. (a) A rental car business may not charge a renter a vehicle licensing cost recovery fee unless the vehicle licensing cost recovery fee represents a good faith estimate by the rental car business of the average daily cost to the rental car business of recovering its actual total annual licensing costs in the state during a calendar year. (b) If the total amount of the vehicle licensing cost recovery fees collected by a rental car business during a calendar year exceeds the actual amount of the rental car business's licensing costs during that calendar year, the rental car business shall (1) retain the excess amount; and (2) adjust the good faith estimate required by (a) of this section for the next calendar year so that the good faith estimate reflects the excess amount. (c) In addition to the adjustment required by (b) of this section, a rental car business may adjust its vehicle licensing cost recovery fee during the calendar year when the excess vehicle licensing cost recovery fees are collected if the vehicle licensing cost recovery fee otherwise complies with this section. Sec. 45.45.459. Definitions. In AS 45.45.450 — 45.45.459, (1) “car” means a motor vehicle; (2) “licensing cost” means the cost of titling, registering, obtaining license plates for, or inspection of the rental cars of a rental car business in the state; (3) “motor vehicle” has the meaning given in AS 28.90.990 ; (4) “rental car business” means a person who engages in the business of renting cars in the state; (5) “vehicle licensing cost recovery fee” means a fee to recover licensing costs. Article 9. Copyright Royalties and Licensing. Sec. 45.45.500. Notice required before contract. A copyright owner or a performing rights society may not enter into, or offer to enter into, a contract for the payment of royalties by a business proprietor unless at the time of the offer, or within 72 hours before entering into the contract, the copyright owner or performing rights society provides to the business proprietor a notice containing (1) the rates and terms of the royalties under the contract, including any sliding scale, discounts, or reductions in rates on any basis, for which the business proprietor may be eligible, and any scheduled increases or decreases in rates during the term of the contract; (2) in the case of a performing rights society, a toll free number from which the business proprietor may obtain answers to inquiries concerning musical works and copyright owners represented by the performing rights society; and (3) in the case of a performing rights society, notice that the most recent available list of the members or affiliates represented by the performing rights society and the most recent available list of the copyrighted musical works in the performing rights society's repertoire will be available on electronic media through the Cabaret Hotel and Restaurant Retail Association at the expense of the performing rights society. Sec. 45.45.510. Minimum contents of royalties contracts. (a) A royalties contract entered into, issued, or renewed in this state must be in writing and signed by the parties. The contract must include at least the (1) business proprietor's name and business address, and the name and location of each place of business of the business proprietor to which the contract applies; (2) duration of the contract; and (3) terms for the collection of the royalties and a rate schedule for the royalties, including any sliding scale, discount, or schedule for an increase or decrease of the rates during the term of the contract. (b) A contract for the payment of royalties entered into, issued, or renewed in this state may not exceed one year at a time, unless the contract is under the terms of a national agreement. When each year of the contract ends, the contract is automatically renewed on the same terms and conditions unless either party to the contract provides the other party with written notice of the party's desire to terminate the contract or to change the terms and conditions. The notice must be given at least 30 days before the termination of the current term. Sec. 45.45.520. Collection of royalties. A copyright owner, a performing rights society, or an agent or employee of a copyright owner or performing rights society may not collect or attempt to collect a payment or another fee under a royalties contract between the copyright owner or performing rights society and a business proprietor unless the contract complies with AS 45.45.500 — 45.45.590. Sec. 45.45.530. Prohibited practices. (a) A performing rights society, or an agent or employee of a performing rights society, may not collect or attempt to collect a royalty payment or another fee from a business proprietor licensed by the performing rights society, unless the collection or collection attempt is made under a contract entered into in accordance with AS 45.45.500 — 45.45.590. (b) An agent or employee of a performing rights society may not enter a business proprietor's premises to discuss a contract for the performance of copyrighted works or payment of royalties unless the agent or employee immediately discloses the purpose of the discussion and that the agent or employee is an agent or employee of a performing rights society. Sec. 45.45.550. Private action. A person who suffers a loss as a result of another person knowingly engaging in conduct that violates AS 45.45.500 — 45.45.590 may bring a civil action to recover actual damages and reasonable attorney fees, to enjoin the violation, and to seek any other remedy available at law or equity for the violation. In this section, “knowingly” has the meaning given in AS 11.81.900 . Sec. 45.45.560. Exemptions. The provisions of AS 45.45.500 — 45.45.590 do not apply to (1) a royalties contract between copyright owners, or performing rights societies, and (A) broadcasters licensed by the Federal Communications Commission; or (B) a cable television operator, a cable television programmer, or another transmission service; (2) an investigation by a law enforcement agency or other persons concerning a suspected violation of AS 45.50.900 (a)(2); (3) contracts between copyright owners, or performing rights societies, and software publishers. Sec. 45.45.570. Construction. AS 45.45.500 — 45.45.590 may not be construed to prevent a performing rights society from informing a business proprietor of the business proprietor's obligations under 17 U.S.C. (federal copyright law) or from exercising any exclusive rights preempted under 17 U.S.C. 301(a). Sec. 45.45.590. Definitions. In AS 45.45.500 — 45.45.590, (1) “business proprietor” means a person who owns a place of business in which the public may assemble and in which copyrighted musical works may be performed, broadcasted, or otherwise transmitted; in this paragraph, “place of business” includes a store, professional office, sports facility, entertainment facility, restaurant, hotel, or alcoholic beverage establishment licensed under AS 04.09 ; (2) “copyright owner” means the owner of a copyright of a musical work if the copyright is recognized and enforceable under 17 U.S.C.; “copyright owner” does not include the owner of a copyright in all or part of a motion picture or an audiovisual work; (3) “musical work” means a nondramatic musical or similar work; (4) “performing rights society” means an association or corporation that licenses the public performance of musical works on behalf of copyright owners, and includes Broadcast Music, Inc., SESAC, Inc., and The American Society of Composers, Authors, and Publishers; (5) “royalties” means the fees payable to a copyright owner or a performing rights society for the public performance of a musical work; (6) “royalties contract” means a contract for the payment of royalties. Article 10. Warranties For Assistive Technology Devices and Mobility Aids. Sec. 45.45.600. Express warranty required. A manufacturer who sells an assistive technology device or a mobility aid to a consumer, either directly or through a dealer, shall furnish the consumer with an express warranty stating that the assistive technology device or mobility aid is free from any nonconformity. The duration of the express warranty shall be not less than one year after first delivery of the assistive technology device or mobility aid to a consumer. If a manufacturer fails to furnish an express warranty as required by this section, the assistive technology device or mobility aid shall be covered by the express warranty as if the manufacturer had furnished an express warranty to the consumer as required by this section. Sec. 45.45.610. Repairs of nonconformities. If a new assistive technology device or mobility aid does not conform to an applicable express warranty and the consumer reports the nonconformity to the manufacturer, the lessor, or any of the manufacturer's authorized dealers and makes the assistive technology device or mobility aid available for repair before one year after first delivery of the assistive technology device or mobility aid to a consumer, the nonconformity shall be repaired and the manufacturer shall pay collateral costs incurred by the consumer. Sec. 45.45.620. Returns of nonrepairable goods; refunds. If, after a reasonable attempt to repair, the nonconformity reported under AS 45.45.610 is not repaired, the manufacturer shall (1) at the direction of a consumer who has not leased the assistive technology device or the mobility aid from a dealer, do one of the following: (A) accept return of the assistive technology device or mobility aid and replace the assistive technology device or mobility aid with a comparable new assistive technology device or mobility aid and, within 30 days, refund any collateral costs; (B) accept return of the assistive technology device or mobility aid and, within 30 days, refund to the consumer and to a holder of a perfected security interest in the consumer's assistive technology device or mobility aid, as their interest may appear, the full purchase price plus any finance charge, amount paid by the consumer at the point of sale, and collateral costs, less a reasonable allowance for use; a reasonable allowance for use may not exceed the amount obtained by multiplying the full purchase price of the assistive technology device or mobility aid by a fraction, the denominator of which is 1,825 and the numerator of which is the number of days that the assistive technology device or mobility aid was used before the consumer first reported the nonconformity to the dealer; (2) with respect to a consumer who has leased the assistive technology device or mobility aid from a dealer, accept return of the assistive technology device or mobility aid, refund to the lessor and to a holder of a perfected security interest in the assistive technology device or mobility aid, as their interest may appear, the current value of the written lease, and refund to the consumer the amount that the consumer paid under the written lease plus any collateral costs, less a reasonable allowance for use; in this paragraph, (A) the current value of the written lease equals the total amount for which that lease obligates the consumer during the period of the lease remaining after its early termination, plus the dealer's early termination costs and the value of the assistive technology device or mobility aid at the lease expiration date if the lease sets out that value, less the lessor's early termination savings; (B) a reasonable allowance for use may not exceed the amount obtained by multiplying the total amount for which the written lease obligates the consumer by a fraction, the denominator of which is 1,825 and the numerator of which is the number of days that the consumer used the assistive technology device or mobility aid before first reporting the nonconformity to the manufacturer, lessor, or dealer. Sec. 45.45.630. Procedures for returns and refunds. (a) To receive a comparable new assistive technology device or mobility aid or a refund under AS 45.45.620 (1), a consumer shall offer to transfer possession of the assistive technology device or mobility aid having the nonconformity to its manufacturer. No later than 30 days after that offer, the manufacturer shall provide the consumer with the comparable new assistive technology device or mobility aid or with a refund. When the manufacturer provides the new assistive technology device or mobility aid or refund, the consumer shall return the assistive technology device or mobility aid having the nonconformity to the manufacturer, along with any endorsements necessary to transfer real possession to the manufacturer. (b) To receive a refund under AS 45.45.620 (2), a consumer shall offer to return the assistive technology device or mobility aid having the nonconformity to its manufacturer. No later than 30 days after that offer, the manufacturer shall provide the refund to the consumer. When the manufacturer provides the refund, the consumer shall return to the manufacturer the assistive technology device or mobility aid having the nonconformity. (c) To receive a refund under AS 45.45.620 (2), a lessor shall offer to transfer possession of the assistive technology device or mobility aid having the nonconformity to its manufacturer. No later than 30 days after that offer, the manufacturer shall provide the refund to the lessor. When the manufacturer provides the refund, the lessor shall provide to the manufacturer any endorsements necessary to transfer legal possession to the manufacturer. Sec. 45.45.640. Lease unenforceable after refund. A person may not enforce the lease for an assistive technology device or a mobility aid against the consumer after the consumer receives a refund under AS 45.45.600 — 45.45.690. Sec. 45.45.650. Limits on sale or lease of returned equipment. An assistive technology device or mobility aid returned by a consumer or a lessor in this state under AS 45.45.600 — 45.45.690, or by a consumer or lessor in another state under a similar law of that state, may not be sold or leased again in this state unless full disclosure of the reasons for return is made to any prospective buyer or lessee. Sec. 45.45.660. Rights may not be waived. A waiver by a consumer of rights under AS 45.45.600 — 45.45.690 is void. Sec. 45.45.670. No limitation of other rights. AS 45.45.600 — 45.45.690 do not limit rights or remedies available to a consumer under any other law. Sec. 45.45.680. Action for damages authorized. In addition to pursuing another remedy, a consumer may bring an action to recover for damages caused by a violation of AS 45.45.600 — 45.45.690. The court shall award a consumer who prevails in an action under this section twice the amount of any pecuniary loss, together with costs, disbursements, and reasonable attorney fees, and any equitable relief that the court determines is appropriate. Sec. 45.45.690. Definitions. In AS 45.45.600 — 45.45.690, (1) “assistive technology device” means an item, piece of equipment, or product system, whether acquired commercially off the shelf, modified, or customized, that is used or designed to be used to increase, maintain, or improve a functional capability of an individual with disabilities; an assistive technology device system that, as a whole, is within the definition of “assistive technology device,” is itself an assistive technology device, and in such case the term also applies to each component product of the assistive technology device system that is itself ordinarily an assistive technology device; to the extent that a device otherwise meets the requirements of this paragraph, “assistive technology device” includes (A) wheelchairs and scooters of any kind, and other aids that enhance the mobility or positioning of an individual, such as motorization, motorized positioning features, and the switches and controls for motorized features; (B) hearing aids, telephone communication devices for the deaf, and other assistive listening devices; (C) computer equipment and reading devices with voice output, optical scanners, talking software, braille printers, and other aids and devices that provide access to text; (D) computer equipment with voice output, artificial larynges, voice amplification devices, and other alternative and augmentative communication devices;

(E) voice recognition computer equipment, software and hardware accommodations, switches, and other forms of alternative access to computers; (F) environmental control units; and (G) simple mechanical aids that enhance the functional capabilities of an individual with disabilities; (2) “assistive technology device system” means the final product resulting from a manufacturer customizing, adapting, reconfiguring, refitting, refurbishing, or composing into a system one or more component products, whether or not new, that may be assistive technology devices or standard products of the same or other manufacturer; (3) “collateral costs” means the following expenses incurred by a consumer: (A) medical expenses for the treatment of a physical injury caused by a nonconformity in an assistive technology device or mobility aid; (B) the cost to rent a substitute assistive technology device or mobility aid during the time repairs are attempted for an assistive technology device or mobility aid that has a nonconformity and during the time preceding receipt of a replacement when repairs have been unsuccessful; (C) the cost of shipping an assistive technology device or mobility aid that has a nonconformity to a manufacturer, lessor, or authorized dealer for repair or replacement; and (D) the documented costs of long-distance telephone calls and facsimile transmissions used to contact the manufacturer, lessor, or authorized dealer for the purpose of effecting a repair or replacement of an assistive technology device or mobility aid that has a nonconformity; (4) “consumer” means (A) the purchaser of an assistive technology device or mobility aid, if the assistive technology device or mobility aid was purchased from a dealer or manufacturer for purposes other than resale; (B) a person to whom the assistive technology device or mobility aid is transferred for purposes other than resale, if the transfer occurs before the expiration of an express warranty applicable to the assistive technology device or mobility aid; (C) a person who may enforce the warranty; or (D) a person who leases an assistive technology device or a mobility aid from a lessor under a written lease; (5) “dealer” means a person who is in the business of selling assistive technology devices or mobility aids without assembly or modification; (6) “demonstrator” means an assistive technology device or a mobility aid used primarily for the purpose of demonstration to the public; (7) “early termination cost” means any expense or obligation that a lessor incurs as a result of both the termination of a written lease before the termination date set out in that lease and the return of an assistive technology device or mobility aid to a manufacturer; “early termination cost” includes a penalty for prepayment under a finance arrangement; (8) “early termination savings” means any expense or obligation that a lessor avoids as a result of both the termination of a written lease before the termination date set out in that lease and the return of an assistive technology device or mobility aid to a manufacturer; “early termination savings” includes an interest charge that the lessor would have paid to finance the assistive technology device or mobility aid or, if the lessor does not finance the assistive technology device or mobility aid, the difference between the total amount for which the lease obligates the consumer during the period of the lease term remaining after the early termination and the present value of that amount at the date of the early termination; (9) “lessor” means a person who leases an assistive technology device or mobility aid to a consumer, or who holds the lessor's rights, under a written lease; (10) “manufacturer” means a person who is in the business of manufacturing, modifying, or assembling assistive technology devices or mobility aids and agents of that person, including an importer, a distributor, factory branch, distributor branch, and any warrantors of the manufacturer's assistive technology devices or mobility aids, but does not include a dealer; (11) “mobility aid” means equipment or a device, including a demonstrator, designed to assist the mobility of a physically disabled person, that a consumer purchases or accepts transfer of in this state; in this paragraph, “device” includes (A) a motorized or nonmotorized wheelchair; (B) a scooter; (C) an automotive crane; (D) a van lift; and (E) special hand controls for a motor vehicle; (12) “nonconformity” means a condition or defect that substantially impairs the use, value, or safety of an assistive technology device or mobility aid or a component of the assistive technology device or mobility aid, but does not include a condition or defect that is the result of abuse, neglect, or unauthorized modification or alteration of the assistive technology device or mobility aid or a component of the assistive technology device or mobility aid by a consumer; (13) “reasonable attempt to repair” means either of the following occurring within the term of an express warranty applicable to a new assistive technology device or mobility aid or within one year after first delivery of the assistive technology device or mobility aid to a consumer, whichever is sooner: (A) the same nonconformity with the warranty is subject to repair by the manufacturer, lessor, or any of the manufacturer's authorized dealers at least four times and the nonconformity continues; (B) the assistive technology device or mobility aid is out of service for an aggregate of at least 30 days because of warranty nonconformities. Article 11. Distributorships. Sec. 45.45.700. Coercion of dealer. (a) A distributor may not coerce or attempt to coerce a dealer to perform certain acts by using duress or by threatening to terminate the distributorship agreement or another agreement between the distributor and the dealer. (b) In this section, “certain acts” means (1) the purchase or acceptance of delivery of merchandise that has not been ordered by the dealer; (2) the assignment, sale, or disposal of a contract or property; or (3) making an expenditure that the dealer has not contracted to make. Sec. 45.45.710. Disposition of merchandise remaining upon contract termination. (a) If a dealer maintains a stock of merchandise supplied for the dealer's resale under a distributorship agreement and if the distributor or the dealer terminates the distributorship agreement, the distributor shall, unless the dealer chooses to keep the merchandise, pay the dealer for the merchandise that was purchased from the distributor and that is held by the dealer on the date of the termination an amount equal to (1) the fair market value for merchandise that is unused and for which the retailer has paid the distributor, plus 100 percent of the transportation charges paid by the dealer to return the merchandise to the distributor; in this paragraph, (A) “fair market value” means the amount the distributor would realize from the sale of the merchandise to another retailer using reasonable good faith efforts; (B) “unused” means unopened merchandise that is still in the original factory packaging or container; (2) 85 percent of the current net price, as listed in the current price list or catalog of the distributor, for repair parts, including superseded parts; and (3) five percent of the current net price of repair parts to cover the handling, packing, and transportation of the repair parts back to the distributor. (b) Upon payment of the amounts required by (a) of this section, the title to the merchandise passes to the distributor making the payment, and the distributor is entitled to the possession of the merchandise for which the payment was made. (c) In (a) of this section, if a repair part is not listed in a current price list or catalog of the distributor, the current net price is the higher of the fair market value or the latest price published by the distributor for the repair part if a dealer has actual proof of the purchase of the repair part from the distributor and if the repair part was purchased within 10 years before the termination. Sec. 45.45.720. Time for payment. A distributor shall make the payments to the dealer under AS 45.45.710 not later than three months after the date the agreement is terminated. When the payment is made, the distributor shall provide the dealer with a final detailed statement of account for the merchandise. Sec. 45.45.730. Death or disability of dealer or holder of majority interest in dealer. Unless the distributorship agreement is continued by the personal representative, an heir, a devisee, or another successor in interest of the individual, upon the death or disability of an individual who is a dealer or holds a majority interest in a dealer, a distributor who supplied merchandise to the dealer shall repurchase from the personal representative, heir, devisee, or other successor in interest the merchandise that was purchased from the distributor and that remains when the distributorship agreement is terminated under this section. To repurchase under this section, the distributor shall pay an amount equal to the amount identified under AS 45.45.710 (a) and (c), and the repurchase is subject to AS 45.45.720 . In this section, “devisee,” “heir,” and “personal representative” have the meanings given in AS 13.06.050 . Sec. 45.45.740. Required purchase, reimbursement, and supplies. (a) In addition to any purchase of merchandise required by AS 45.45.710 , if a distributor terminates a distributorship agreement or makes substantial changes in the competitive situation of the distributor's dealer with regard to distribution of the merchandise or services that are the subject of the distribution agreement, the distributor shall (1) purchase that portion of the dealer's business directly affected by the distributorship agreement or the change, including assets and machinery, at commercially reasonable business valuations; and (2) reimburse the dealer for the expenses that were necessarily incurred by the dealer (A) for that portion of the dealer's business covered by the distributorship agreement; and (B) during the 12 months before the termination or change. (b) In this section, “change” does not include making a price change that affects similarly situated dealers equally. Sec. 45.45.750. Prohibited terms. (a) A distributor may not require a dealer to agree to any of the following terms in a distributorship agreement, or in another agreement that is ancillary to a distributorship agreement, as a condition of an offer, grant, or renewal of a distributorship agreement or ancillary agreement: (1) a requirement that the dealer waive a trial by jury in court cases involving the distributor; (2) a requirement that disputes between the distributor and the dealer be submitted to arbitration or to any other binding alternate dispute resolution procedure, except authorization for the submission of a dispute to arbitration or to binding alternative dispute resolution if the distributor and dealer voluntarily agree to submit the dispute to arbitration or binding alternative dispute resolution when the dispute arises; (3) a requirement that the dealer pay the attorney fees of the distributor; (4) a requirement that prohibits a firearms dealer from selling firearms or related accessories, the sale of which is otherwise legal, but which the firearms distributor does not manufacture or distribute; or (5) a requirement that the agreement be subject to the laws of a state other than Alaska. (b) The provisions of (a) of this section do not apply to an agreement where a lease or sale of real property is the main purpose of the agreement. Sec. 45.45.760. Civil action. (a) A dealer may bring an action in court against a distributor if the distributor engages in activity prohibited under AS 45.45.700 — 45.45.790. (b) In an action brought under (a) of this section, the dealer may obtain one or more of the following types of relief that apply to the specific action of the dealer: (1) damages suffered by the dealer as a result of the activity; (2) an injunction enjoining the distributor from engaging in the activity; (3) a requirement that the distributor make a payment or a purchase required by AS 45.45.700 — 45.45.790; (4) any other relief determined by the court to be appropriate under the circumstances. (c) In this section, “activity prohibited under AS 45.45.700 — 45.45.790” means (1) coercion or attempted coercion under AS 45.45.700 ; (2) terminating a distributorship agreement without paying the dealer as required by AS 45.45.710 ; (3) failing to pay the dealer within the time established by AS 45.45.720 ; (4) failing to provide the statement of account as required by AS 45.45.720 ; (5) failing to make a repurchase payment required by AS 45.45.730 ; (6) failing to make a purchase as required by AS 45.45.740 (a)(1); (7) failing to make the reimbursement required by AS 45.45.740 (a)(2); or (8) violating AS 45.45.750 . Sec. 45.45.770. Exemptions. (a) AS 45.45.700 — 45.45.790 do not apply to (1) a distributorship agreement that would be considered a franchise regulated by 15 U.S.C. 2801 — 2841 (Petroleum Marketing Practices Act); (2) a situation regulated by AS 45.50.800 — 45.50.850; (3) a distributorship agreement, including a franchise agreement, for the sale, repair, or servicing of motor vehicles that are required to be registered under AS 28.10 ; (4) an activity or agreement by a person licensed under AS 04 if the activity or agreement is within the scope of the license or is incidental to the activity or agreement that is within the scope of the license; (5) a distributorship agreement or another contract between a person licensed under AS 04 and a distributor, manufacturer, importer, supplier, or wholesaler of alcoholic beverages who is not located in this state if the subject of the agreement or contract is the distribution of alcoholic beverages to the licensed person by the distributor, manufacturer, importer, supplier, or wholesaler; (6) a distributor, manufacturer, importer, supplier, or wholesaler of alcoholic beverages; (7) a distributorship agreement for the sale or distribution of, or other transaction involving, cigarettes, food, drink, or a component of food or drink; in this paragraph, “cigarette” has the meaning given in AS 43.50.170 ; (8) a manufacturer with 50 or fewer employees; or (9) a marine product or motorized recreational product agreement under AS 45.27 . (b) In (a) of this section, “alcoholic beverage” has the meaning given in AS 04.21.080 . Sec. 45.45.790. Definitions. In AS 45.45.700 — 45.45.790, (1) “dealer” means a person who enters into a distributorship agreement and who, under the agreement, receives merchandise or services from a distributor; (2) “distributor” means a person who enters into a distributorship agreement and who, under the agreement, provides merchandise or services to a dealer; the term includes (A) a wholesaler; (B) a manufacturer; (C) a person that is a parent corporation or an affiliated corporation of a person identified in (A) or (B) of this paragraph; and (D) a field representative, an officer, an agent, or another direct or indirect representative of a person identified in (A), (B), or (C) of this paragraph; (3) “distributorship agreement” means an agreement, whether express, implied, oral, or written, between two or more persons (A) by which a person receives the right to (i) sell or lease merchandise or services at retail or wholesale; or (ii) use a trade name, trademark, service mark, logotype, advertising, or other commercial symbol; and (B) in which the parties to the agreement have a joint interest, whether equal or unequal, in the offering, selling, or leasing of the merchandise or services; (4) “merchandise” includes parts and accessories; (5) “terminate” includes failing to renew. Article 12. Deceptive Acts or Practices Relating to Spyware. Sec. 45.45.792. Prohibited conduct relating to spyware. (a) It is unlawful for a person who is not the owner or authorized user of a computer to engage in deceptive acts or practices described in this subsection using spyware. Deceptive acts or practices under this subsection are (1) causing a pop-up advertisement to be shown on the computer screen of a user by means of a spyware program, knowing that the pop-up advertisement is (A) displayed in response to a user accessing a specific (i) mark; or (ii) Internet website address; and (B) purchased or acquired by a person other than (i) the mark owner; (ii) a licensee of the mark; (iii) an authorized agent of the owner of the mark; (iv) an authorized user of the mark; or (v) a person advertising the lawful sale, lease, or transfer of products bearing the mark through a secondary marketplace for the sale of goods or services; and (2) purchasing advertising that violates (1) of this subsection if the purchaser of the advertising (A) receives notice of the violation from the mark owner; and (B) fails to stop the violation. (b) It is not a violation of this section for a person to display a pop-up advertisement under (a)(1) of this section if the spyware program includes a function that (1) requests information about the user's state of residence before displaying a pop-up advertisement to the user, and the user indicates a residence outside this state; (2) implements a reasonably reliable automated system to determine the user's likely geographic location, according to current best practices in the field, and the system determines that it is unlikely that the user is located in this state; and (3) does not prompt, ask, or otherwise encourage a user to indicate a residence outside this state. (c) It is not a violation of (a)(2) of this section if a person purchases advertising that complies with the requirements of (b) of this section. Sec. 45.45.794. Removal of potentially harmful software. Notwithstanding AS 45.45.792 , a provider of computer software or an interactive computer service may, after notice to a customer, remove from or disable a program on the customer's computer that is used to (1) violate AS 45.45.792 ; or (2) collect information from the computer of the customer without the customer's knowledge. Sec. 45.45.798. Definitions. In AS 45.45.792 — 45.45.798, (1) “interactive computer service” means an information service, system, or access software provider that provides or enables computer access by multiple users to a computer server; “interactive computer service” includes an Internet or online service provider or a service or system providing access to the Internet, including a system operated by a library or educational institution; (2) “Internet” means the combination of computer systems or networks that make up the international network for interactive communications services, including remote logins, file transfer, electronic mail, and newsgroups; (3) “Internet or online service provider” means an interactive computer service that provides software or other material that enables a person to transmit, receive, display, forward, cache, search, subset, organize, reorganize, or translate content; select or analyze content; or allow or disallow content; (4) “mark” means a registered trademark, registered service mark, or registered domain name in an Internet website address that is owned, licensed, or lawfully used by a person doing business in this state; (5) “pop-up advertisement” means material offering for sale or advertising the availability or quality of a property, good, or service that is displayed on a user's computer screen, without any request or consent of the user, separate from an Internet website that a user intentionally accesses; (6) “spyware” (A) means software on the computer of a user who resides in the state that (i) collects information about an Internet website at the time the Internet website is being viewed in the state, unless the Internet website is the Internet website of the person who provides the software; and (ii) uses the information collected contemporaneously to display a pop-up advertisement on the computer; (B) does not mean (i) an Internet website; (ii) a service operated by an Internet or online service provider accessed by a user; (iii) software designed and installed primarily to prevent, diagnose, detect, or resolve technical difficulties or prevent fraudulent activities; (iv) software designed and installed to protect the security of the user's computer from unauthorized access or alteration; (v) software or data that reports information to an Internet website previously stored by the Internet website on the user's computer, including a cookie; in this sub-subparagraph, “cookie” means a text file that is placed on a computer to record information that can be read or recognized when the user of the computer later accesses a particular Internet website, online location, or online service by an interactive computer service, Internet website, or a third party acting on behalf of an interactive computer service or an Internet website; (vi) software that provides the user with the capability to search the Internet; (vii) software installed on the user's computer with the consent of the user the primary purpose of which is to prevent access to certain Internet content; (7) “user” means the owner or authorized user of a computer. Article 13. Miscellaneous Provisions. Sec. 45.45.900. Indemnification agreements against public policy. A provision, clause, covenant, or agreement contained in, collateral to, or affecting a construction contract that purports to indemnify the promisee against liability for damages for (1) death or bodily injury to persons, (2) injury to property, (3) design defects, or (4) other loss, damage or expense arising under (1), (2), or (3) of this section from the sole negligence or wilful misconduct of the promisee or the promisee's agents, servants, or independent contractors who are directly responsible to the promisee, is against public policy and is void and unenforceable; however, this provision does not affect the validity of an insurance contract, workers' compensation, or agreement issued by an insurer subject to the provisions of AS 21 , or a provision, clause, covenant, or agreement of indemnification respecting the handling, containment, or cleanup of oil or hazardous substances as defined in AS 46 . Sec. 45.45.905. Transportation services contracts; indemnification agreements prohibited. (a) A motor carrier and a shipping person may not, with regard to a transportation services contract, agree that (1) the motor carrier will indemnify, defend, or hold the shipping person harmless, or agree to a provision that has the effect of indemnifying, defending, or holding a shipping person harmless, from claims or liability for the negligence, intentional acts, or intentional omissions of the shipping person; or (2) the shipping person will indemnify, defend, or hold the motor carrier harmless, or agree to a provision that has the effect of indemnifying, defending, or holding a motor carrier harmless, from claims or liability for the negligence, intentional acts, or intentional omissions of the motor carrier. (b) An agreement that violates (a) of this section is against public policy and is void and unenforceable. (c) This section does not apply to the Uniform Intermodal Interchange and Facilities Access Agreement administered by the Intermodal Association of North America or to another agreement that provides for the interchange, use, or possession of intermodal chassis, intermodal containers, or other intermodal equipment. (d) In this section, (1) “motor carrier” means a person who is engaged in the transportation of property for compensation by motor vehicle, and includes an agent, employee, servant, or independent contractor of the motor carrier if the agent, employee, servant, or independent contractor provides services in connection with the particular transportation services contract to which (a) of this section is being applied; (2) “motor vehicle” has the meaning given in AS 28.90.990 , except that the motor vehicle must have a gross weight rating or gross combination weight rating that is greater than 10,000 pounds; (3) “shipping person” means a person who enters into a transportation services contract to use the services of a motor carrier, and includes an agent, employee, servant, or independent contractor of the shipping person if the agent, employee, servant, or independent contractor provides services in connection with the particular transportation services contract to which (a) of this section is being applied; (4) “transportation services” means (A) the transportation of property; (B) entry on property to load, unload, or transport property; or (C) providing a service, including the packing or storage of property, incidental to (A) or (B) of this paragraph. Sec. 45.45.910. Sale or transfer of consumer electrical products. (a) Unless exempted by the department under (d) of this section, a person may not sell, offer to sell, or otherwise transfer in the course of the person's business a consumer electrical product that is manufactured after August 14, 1990, unless the product is clearly marked as being listed by an approved third-party certification program. (b) A person may not sell, offer to sell, or otherwise transfer in the course of the person's business a consumer electrical product that is manufactured before August 14, 1990, unless the product is clearly marked (1) as being listed by an approved third-party certification program; or (2) with a warning label that complies with (e) of this section. (c) A person may not sell, offer to sell, or otherwise transfer in the course of the person's business a consumer electrical product that has been exempted under (d) of this section, unless the product is clearly marked with a warning label that complies with (e) of this section. (d) If a consumer electrical product is a work of art or an item that has an unusual application that makes approval by a third-party certification program not reasonably available, the department shall upon request exempt the item from (a) of this section. The department shall establish by regulation guidelines to identify consumer electrical products that qualify for an exemption under this section. (e) The warning label required by this section must be a brightly colored label that contains in simple, direct language a warning that the electrical product is not listed by an approved third-party certification program. The department shall adopt regulations establishing the exact content, color, design, and use of the warning label. (f) Unless a later version has been adopted by the department by regulation, a certification program must meet the requirements of ANSI Z-34.1 — 1987, American National Standards for Certification — Third-Party Certification Program, published by the American National Standards Institute, in order to qualify as an approved third-party certification program under this section. The department may adopt by regulation later versions of the American National Standards for Certification — Third-Party Certification Program, as the standard for third-party certification programs under this section. If the department has adopted a later version, a certification program must meet the requirements of the most recent version adopted by the department in order to qualify as an approved third-party certification program under this section. (g) In this section, (1) “approved third-party certification program” means a program that qualifies under (f) of this section; (2) “consumer electrical product” means an electrical product that is marketed for and commonly purchased by the general public and that is (A) an assembled device that has an electrical circuit that operates at 110 volts AC or higher, except for mechanical attachments, including pump heads, pulleys, and fan blades, that are used in the application of the device; (B) a device that when assembled has an electrical circuit that operates at 110 volts AC or higher; or (C) an individual component part that is intended to be part of an electrical circuit that operates at 110 volts AC or higher; (3) “department” means the Department of Labor and Workforce Development. Sec. 45.45.920. Free trial period. (a) Notwithstanding a provision in AS 45.02 to the contrary, a seller may not offer, promote, advertise, or provide a consumer with goods or services for a free trial period unless the seller complies with all the conditions of this section. (b) When offering, promoting, or advertising consumer goods or services for a free trial period, a seller shall clearly and conspicuously disclose all material terms and conditions of the free trial period, including (1) all material restrictions, limitations, terms, and conditions of the free trial period, including any obligation by the consumer to purchase a minimum quantity of goods or services after the free trial period ends; (2) a description of all charges that will be imposed after the free trial period ends, including whether billing will include charges for shipping and handling and, if the offer, promotion, or advertising is made by telephone, the amount of the shipping and handling charges; (3) a description of the consumer's right to cancel; and (4) any other obligations the consumer assumes by accepting or using the goods or services during the free trial period. (c) Before providing goods or services to a consumer for a free trial period, a seller shall obtain express verifiable consent from the consumer to the free trial period. (d) A consumer who receives goods or services for a free trial period may (1) at any time during the free trial period, return the goods or cancel the services without further obligation to the seller; (2) within 30 days after the free trial period ends, return the goods or cancel the services for a full refund of the charges, if any, or a partial refund for the unused portion of the goods or services. (e) This section does not apply to a seller who provides goods or services to a consumer for free if the consumer does not assume any obligation by accepting the free goods or services. (f) This section does not apply to (1) a telephonic seller who is registered under AS 45.63 and who complies with AS 45.63 ; or (2) a prenotification negative option plan that is regulated by 16 C.F.R. Part 425 and that complies with 16 C.F.R. Part 425. (g) In this section, “seller” means a person who engages in the business of selling, contracting for the sale of, arranging for the sale of, or arranging for a free trial period for goods or services. Sec. 45.45.930. Opt-out marketing plans. (a) Notwithstanding a provision in AS 45.02 to the contrary, a seller may not use an opt-out marketing plan to sell goods or services unless the seller complies with all of the provisions of this section. (b) Before using an opt-out marketing plan, a seller shall obtain express verifiable consent from the buyer that confirms that the buyer agrees to the use of the plan. The seller shall provide the following information before obtaining the consent: (1) a description of the material terms and conditions of the plan, including a description of the goods or services that will be offered; (2) that the buyer's account will be charged unless the buyer takes an affirmative action to avoid the charge; (3) the date the charge will be submitted for payment; and (4) the specific steps the buyer must take to avoid the charge. (c) A seller who charges a buyer for goods or services under an opt-out marketing plan has the burden of proving that the buyer provided the express verifiable consent required by (b) of this section and was given the disclosures required by (b) of this section. (d) This section does not apply to a telephonic seller who is registered under AS 45.63 and who complies with AS 45.63 . (e) In this section, (1) “opt-out marketing plan” (A) means an arrangement under which a seller provides, without the buyer's express verifiable consent, a notice to a buyer that identifies goods or services that the seller intends to provide to the buyer and to charge the buyer for, unless, by a specific date or within a specific time frame, the buyer notifies the seller not to provide the goods or services; (B) does not include a prenotification negative option plan that is regulated by and complies with 16 C.F.R. Part 425; (2) “seller” includes a person who engages in the business of selling, contracting for the sale of, or arranging for the sale of goods or services.