Session of 2000
By Committee on Business, Commerce and Labor

10             AN  ACT relating to the Kansas consumer protection act; concerning the
11             definition of consumer and remedies available thereunder; amending
12             K.S.A. 50-624 and 50-632 and repealing the existing sections.
14       Be it enacted by the Legislature of the State of Kansas:
15             Section  1. K.S.A. 50-624 is hereby amended to read as follows: 50-
16       624. As used in this act:
17             (a) "Agricultural purpose" means a purpose related to the production,
18       harvest, exhibition, marketing, transportation, processing or manufacture
19       of agricultural products by a consumer who cultivates, plants, propagates
20       or nurtures the agricultural products. "Agricultural products" includes
21       agricultural, horticultural, viticultural, and dairy products, livestock, wild-
22       life, poultry, bees, forest products, fish and shellfish, and any products
23       thereof, including processed and manufactured products, and any and all
24       products raised or produced on farms and any processed or manufactured
25       products thereof.
26             (b) "Consumer" means an individual or, sole proprietor, or husband
27       and wife, who seeks or acquires property or services for personal, family,
28       household, business or agricultural purposes.
29             (c) "Consumer transaction" means a sale, lease, assignment or other
30       disposition for value of property or services within this state (except in-
31       surance contracts regulated under state law) to a consumer; or a solici-
32       tation by a supplier with respect to any of these dispositions.
33             (d) "Final judgment" means a judgment, including any supporting
34       opinion, that determines the rights of the parties and concerning which
35       appellate remedies have been exhausted or the time for appeal has
36       expired.
37             (e) "Merchantable" means, in addition to the qualities prescribed in
38       K.S.A. 84-2-314 and amendments thereto, in conformity in all material
39       respects with applicable state and federal statutes and regulations estab-
40       lishing standards of quality and safety.
41             (f) "Person" means any individual, corporation, government, govern-
42       mental subdivision or agency, business trust, estate, trust, partnership,
43       association, cooperative or other legal entity.


  1             (g) "Property" includes real estate, goods and intangible personal
  2       property.
  3             (h) "Services" includes:
  4             (1) Work, labor and other personal services;
  5             (2) privileges with respect to transportation, hotel and restaurant ac-
  6       commodations, education, entertainment, recreation, physical culture,
  7       hospital accommodations, funerals and cemetery accommodations; and
  8             (3) any other act performed for a consumer by a supplier.
  9             (i) "Supplier" means a manufacturer, distributor, dealer, seller, les-
10       sor, assignor, or other person who, in the ordinary course of business,
11       solicits, engages in or enforces consumer transactions, whether or not
12       dealing directly with the consumer.
13             Sec.  2. K.S.A. 50-632 is hereby amended to read as follows: 50-632.
14       (a) The attorney general or any county or district attorney may bring an
15       action:
16             (1) To obtain a declaratory judgment that an act or practice violates
17       this act;
18             (2) to enjoin, or to obtain a restraining order against a supplier who
19       has violated, is violating, or is otherwise likely to violate this act; or
20             (3) to recover damages on behalf of consumers by reason of violations
21       of this act; and
22             (4) to recover reasonable expenses and investigation fees.
23             (b) In lieu of instigating or continuing an action or proceeding, the
24       attorney general may accept a consent judgment with respect to any act
25       or practice declared to be a violation of this act. Such a consent judgment
26       shall provide for the discontinuance by the supplier entering the same of
27       any act or practice declared to be a violation of this act, and it may include
28       a stipulation for the payment by such supplier of reasonable expenses and
29       investigation fees incurred by the attorney general. The consent judgment
30       also may include a stipulation for restitution to be made by such supplier
31       to consumers of money, property or other things received from such
32       consumers in connection with a violation of this act and also may include
33       a stipulation for specific performance. Any consent judgment entered into
34       pursuant to this section shall not be deemed to admit the violation, unless
35       it does so by its terms. Before any consent judgment entered into pur-
36       suant to this section shall be effective, it must be approved by the district
37       court and an entry made thereof in the manner required for making an
38       entry of judgment. Once such approval is received, any breach of the
39       conditions of such consent judgment shall be treated as a violation of a
40       court order, and shall be subject to all the penalties provided by law
41       therefor.
42             (c) In any action brought by the attorney general or the county or
43       district attorney, the court may, without requiring bond of the attorney


  1       general or the county or district attorney:
  2             (1) Make such orders or judgments as may be necessary to prevent
  3       the use or employment by a supplier of any practices declared to be a
  4       violation of this act;
  5             (2) make such orders or judgments as may be necessary to compen-
  6       sate any consumer for damages sustained;
  7             (3) make such orders or judgments as may be necessary to carry out
  8       a transaction in accordance with consumers' reasonable expectations;
  9             (4) appoint a master or receiver or order sequestration of assets
10       whenever it shall appear from a motion, verified by affidavit, that the
11       supplier threatens or is about to remove, conceal or dispose of property
12       to the damage of consumers to whom restoration would be made under
13       this subsection or whenever it shall appear that the property was derived
14       or is commingled with other property derived from transactions involving
15       violations of the act, the court shall assess the expenses of a master or
16       receiver against the supplier. An order of sequestration issued pursuant
17       to this paragraph shall operate as a lien on the sequestered assets and
18       may contain other provisions as the court deems appropriate. Any sup-
19       plier whose assets are sequestered in an ex parte preceeding pursuant to
20       this paragraph shall be promptly notified of the sequestration, and notice
21       required by this paragraph may be served in any manner permitted by
22       the code of civil procedure or by ordinary first-class mail to the last known
23       address of the supplier. Any supplier whose assets are sequestered may
24       file a motion to dissolve the sequestration, verified by affidavit, putting in
25       issue the sufficiency of the proceedings, the supplier's claim of exemption
26       as to any property which has been sequestered, or the truth of the facts
27       alleged in the affidavit on which the sequestration was ordered. The court
28       shall hold a hearing on the motion within five days after the receipt
29       thereof;
30             (5) revoke any license or certificate authorizing that supplier to en-
31       gage in business in this state;
32             (6) issue a temporary restraining order or enjoin any supplier from
33       engaging in business in this state;
34             (7) award reasonable expenses and investigation fees, civil penalties
35       and costs; and
36             (8) grant other appropriate relief. 
37       Sec.  3. K.S.A. 50-624 and 50-632 are hereby repealed.
38        Sec.  4. This act shall take effect and be in force from and after its
39       publication in the statute book.