iPhone Rental Terms and Conditions
The following describes the terms and conditions (“Agreement”) under which Apple Inc. (“Apple”) agrees to rent to Customer an iPhone (“AppleCare Service Phone”) while Apple services Customer’s iPhone (“Customer Equipment”).
1. Term
1.1. Agreement. This Agreement begins on the Effective Date and will continue until the AppleCare Service Phone is returned to Apple in its entirety, in full operational condition, normal wear and tear excepted.
1.2. Rental Period. The rental period (“Rental Period”) will be from the date that the AppleCare Service Phone is received by Customer on the date that the AppleCare Service Phone is shipped to Customer’s location, until the earliest of (i) seven (7) days following shipment to Customer of the Customer Equipment after servicing, (ii) ten (10) days following shipment to Customer of the AppleCare Service Phone if Customer does not return the Customer Equipment to Apple in accordance with the service request, or (iii) the effective date of termination.
2. Delivery & Return. Apple will ship the AppleCare Service Phone to Customer’s location at no charge. Customer will return the AppleCare Service Phone to Apple before the end of the Rental Period in accordance with Apple’s instructions. Proof of delivery or return will be provided by both parties through a delivery receipt or acknowledgement via common carrier.
3. Rental Charges and Security Deposit/Reserve. Customer will prepay Apple the rental charge described at http://www.apple.com/support/iphone/service/faq/ (“Rental Charge”). In addition, a reserve against the Customer’s credit card equal to the equipment replacement value of the AppleCare Service Phone described at http://www.apple.com/support/iphone/service/faq/ (“Equipment Replacement Value”) may be made at any time on or after the Effective Date but prior to the termination of this Agreement. This reserve will be maintained by Apple and will be applied against any damage to or loss of the AppleCare Service Phone or other payments due Apple. If the AppleCare Service Phone is not received by Apple by the end of the Rental Period, Customer’s credit card will be charged with the full Equipment Replacement Value, but if Customer later returns the AppleCare Service Phone and it is received by Apple within ten (10) days after the end of the Rental Period, Apple will retain a fee as described at http://www.apple.com/support/iphone/service/faq/ (“Late Rental Fee”) as additional rental, and the cost of repair for any damage for which Customer is responsible, and the remainder of the Equipment Replacement Value will be credited to Customer’s credit card. Upon termination of this Agreement, and after all charges are paid in full, the reserve will be released from the credit card.
4. Equipment Use. Customer will exercise reasonable care when using the AppleCare Service Phone.
5. Warranty. Apple warrants that the AppleCare Service Phone will be suitable for normal operation and use at the time of delivery. APPLE MAKES NO OTHER REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLED, WRITTEN OR ORAL, AS TO THE APPLECARE SERVICE PHONE. APPLE DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
6. Ownership and Security Interest
6.1. Ownership. Title to the AppleCare Service Phone will remain vested in Apple at all times. Nothing in this Agreement will be construed as conveying to Customer any right, title or interest in the AppleCare Service Phone, other than as a lessee only. Customer will keep the AppleCare Service Phone free from all claims, liens and other encumbrances by Customer’s creditors or other claimants. Customer will not remove, obliterate or obscure markings, which identify Apple as the owner of the AppleCare Service Phone.
6.2. Security Interest. Customer grants Apple a security interest in Customer’s interest in the AppleCare Service Phone. Customer authorizes Apple to file financing statements under the Uniform Commercial Code.
7. Insurance/Risk of Loss
7.1. Insurance. Apple will not insure the AppleCare Service Phone during the Rental Period. Customer may elect to insure the AppleCare Service Phone during the Rental Period at his/her own expense.
7.2. Risk of Loss. Customer is responsible for all malfunctions, failures, damage to or loss of the AppleCare Service Phone, except those due to manufacturing defects and normal wear and tear. In the event of damage or loss to the AppleCare Service Phone for which Customer is responsible, Customer will promptly notify Apple, and either pay Apple (i) an amount equal to the Equipment Replacement Value, or (ii) the cost of repairing the AppleCare Service Phone, if Apple determines that the AppleCare Service Phone is repairable. If Apple determines that the AppleCare Service Phone is not repairable, then option (i) above will apply.
7.3. Service Unit. Until all outstanding payments are received for damage or loss to the AppleCare Service Phone, Apple may suspend its future warranty or extended service contract obligations with respect to the Customer Equipment, and refuse Customer’s requests for further AppleCare Service Phone.
8. Service. Apple or its authorized agent will be the exclusive source of service for the AppleCare Service Phone and will maintain the AppleCare Service Phone in operational condition or if necessary, replace it with an equivalent unit. In the event the AppleCare Service Phone requires service, Customer will deliver the AppleCare Service Phone to Apple or its agent for service in accordance with Apple’s instructions. Service will be provided without charge to address malfunctions and failures due to manufacturing defects and normal wear and tear. Service required for other malfunctions or damage, such as those caused by improper power source, abuse or accident, are covered under the section titled “Risk of Loss”. The Customer will not open the AppleCare Service Phone, alter or repair or permit the alteration or repair of the AppleCare Service Phone without the prior written approval of Apple.
9. Limitation of Liability/Indemnity
9.1. Limitation of Liability. IN NO EVENT WILL APPLE OR ITS AGENTS BE LIABLE TO THE CUSTOMER FOR ANY INDIRECT, CONSEQUENTIAL, INCIDENTAL OR SPECIAL DAMAGES, HOWEVER CAUSED, WHETHER THROUGH APPLE’S OR ITS AGENTS’ NEGLIGENCE OR OTHERWISE. APPLE AND ITS AGENTS’ ENTIRE LIABILITY FOR DIRECT DAMAGES UNDER THIS AGREEMENT IS LIMITED TO THE RENTAL CHARGES.
9.2. Indemnity. Customer will defend, indemnify and hold Apple harmless against any and all claims, demands and liabilities arising out of or in connection with the possession or operation of the AppleCare Service Phone.
10. Default. If Customer fails to perform any obligation under this Agreement, Apple, in addition to any other rights available to it, may terminate this Agreement immediately by providing notice to Customer.
11. General
11.1. Assignment. Customer may not assign his/her rights or obligations under this Agreement except with the prior written consent of Apple. Any prohibited assignment shall be null and void.
11.2. Notices. All notices and other communications required or permitted to be given under this Agreement will be in writing and will be effective either when delivered to their physical address via certified courier or sent successfully to their electronic mail address, set forth below.
11.3. Early Returns. In no event will the Customer be entitled to a refund if the AppleCare Service Phone is returned to Apple before the end of the Rental Period.
11.4. Compliance with Laws. Customer will comply with all laws in connection with the AppleCare Service Phone, including but not limited to U.S. export laws.
11.5. Excusable Delays. Apple will not be liable for failing to perform any obligation that is delayed or postponed due to reasons beyond its reasonable control.
11.6. Complete Agreement. This Agreement supersedes all prior agreements and representations made with respect to this subject matter, and represents the entire agreement between Apple and the Customer.
11.7. Severability. In the event that any one or more provisions contained in this Agreement should, for any reason, be held to be unenforceable in any respect, then all other provisions of this Agreement will remain valid, and this Agreement shall be construed as if such unenforceable provisions had not been contained herein.