As used in NRS 597.010 to 597.110 ,
inclusive, unless the context otherwise requires:
1. “Consummation” means the time at which a customer becomes
contractually obligated under a lease agreement with an option to
purchase.
2. “Customer” means a natural person who leases personal property
which is to be used primarily for personal, family or household purposes
pursuant to a lease agreement with an option to purchase.
3. “Lease agreement with an option to purchase” means an agreement:
(a) For the possession and use of personal property by a natural
person primarily for personal, family or household purposes, for an
initial period of not more than 4 months;
(b) That is automatically renewable with each payment made after
the initial period;
(c) That does not obligate or require the customer to continue
leasing or using the property beyond the initial period; and
(d) That permits the customer to acquire the ownership of the
property.
4. “Lessor” means a person who regularly provides the possession
and use of property pursuant to a lease agreement with an option to
purchase and to whom rental payments are initially payable as indicated
on the face of the agreement.
(Added to NRS by 1991, 515)—(Substituted in revision for NRS
598.2803)
1. A lease agreement with an option to purchase which complies
with the provisions of NRS 597.010 to
597.110 , inclusive, is exempt from the
provisions of law governing:
(a) A security interest as defined in NRS 104.1201 .
(b) A door-to-door sale as defined in NRS 598.180 .
(c) The sale of consumer goods as defined in NRS 104.9102 .
2. The provisions of NRS 597.010
to 597.110 , inclusive, do not apply to:
(a) A lease agreement with an option to purchase entered into
primarily for business, commercial or agricultural purposes.
(b) A lease agreement with an option to purchase made with any
governmental agency.
(c) The lease of a safe deposit box.
(d) A lease or bailment of personal property which is incidental to
the lease of real property and which does not provide the customer with
an option to purchase the leased property.
(e) The lease of a motor vehicle.
(Added to NRS by 1991, 516; A 1999, 393 ; 2005, 885 )
1. Except as otherwise provided in subsection 2, a lease agreement
with an option to purchase must contain the following disclosures, if
applicable:
(a) The total number and total amount of all payments which are
necessary to acquire ownership of the leased property, and the dates on
which those payments are due.
(b) A statement that the customer will not own the leased property
until he makes all of the payments necessary to acquire ownership.
(c) A statement that the customer is responsible for the fair
market value of the leased property if it is lost, stolen, damaged or
destroyed.
(d) A brief description of the leased property which is sufficient
to identify the property to the customer and lessor, including:
(1) The identification number of the property, if available;
and
(2) A statement indicating whether the property is new or
used. It is not a violation of this section to indicate that new property
is used.
(e) A brief description of any damage to the leased property.
(f) A statement of the price at which the lessor will sell the
leased property to the customer for cash on the date of the agreement. If
at least five items are leased as a set in a single agreement, the
aggregate price of all of the items leased may be indicated.
(g) The total amount of the payments required to be paid at or
before the consummation of the agreement or the delivery of the leased
property, whichever is later.
(h) A statement that the total amount of all payments required to
be paid does not include other fees which may be charged.
(i) A statement of all other fees which may be charged, including,
but not limited to, fees for:
(1) The failure to make timely payments.
(2) Defaulting on the agreement.
(3) Reinstating the agreement.
(4) Returning the leased property to the lessor.
(j) A summary of the terms of the customer’s option to purchase the
leased property, including a statement that the customer has the right to
purchase the leased property at any time before the termination of the
lease, and the price at which the property may be so purchased.
(k) A statement identifying the person who is responsible for
maintaining and servicing the property while it is being leased, and a
description of that responsibility.
(l) A statement that if any part of the manufacturer’s express
warranty covers the leased property when the customer acquires ownership
of the property, it will be transferred to the customer if allowed by the
terms of the warranty.
(m) The date of the transaction and the names of the customer and
lessor.
(n) A statement that the customer may terminate the agreement
without penalty by voluntarily surrendering or returning the leased
property in good repair at the expiration of the term of the lease, and
paying any rental payments that are past due.
(o) A notice of the customer’s right to reinstate the agreement
pursuant to NRS 597.070 .
2. A lessor is not required to comply with the provisions of this
section if the transaction is governed by Part E of the Consumer Credit
Protection Act, 15 U.S.C. §§ 1667 to 1667e, inclusive, and the lessor
complies with the requirements of those sections and the regulations
adopted pursuant thereto.
3. The lessor shall provide the customer with a copy of the lease
agreement with an option to purchase.
(Added to NRS by 1991, 516)—(Substituted in revision for NRS
598.2804)
1. The disclosures required to be made by NRS 597.030 must be made:
(a) At or before the consummation of the lease agreement with an
option to purchase; and
(b) Clearly and conspicuously in writing on the face of the
agreement, directly above the line for the customer’s signature.
2. In a transaction involving more than one lessor, only one
lessor is required to make the required disclosures, but all lessors are
bound by those disclosures.
3. If a disclosure becomes inaccurate after it is delivered to the
customer because of an act or omission of the customer, the resulting
inaccuracy is not a violation of the provisions of NRS 597.010 to 597.110 ,
inclusive.
(Added to NRS by 1991, 517)—(Substituted in revision for NRS
598.28045)
1. The disclosures required by NRS 597.030 :
(a) Must be made if a lease agreement with an option to purchase is
renegotiated.
(b) Are not required to be made if such an agreement is extended.
2. For the purposes of this section, a lease agreement with an
option to purchase:
(a) Is renegotiated if it is replaced by a new agreement entered
into by the same customer and lessor.
(b) Has not been renegotiated if:
(1) The leased property is exchanged or added to or
individual items are returned and the average payment is not changed by
more than 25 percent;
(2) One or more of the periodic payments or portions of a
periodic payment are deferred or extended;
(3) Any additional fees charged are reduced; or
(4) It is the subject of a judicial proceeding.
(Added to NRS by 1991, 518)—(Substituted in revision for NRS
598.2805)
A lease
agreement with an option to purchase may not contain:
1. A confession of judgment.
2. A negotiable instrument.
3. A security interest or any other claim to an interest in
property other than the property delivered by the lessor pursuant to the
agreement.
4. An assignment of wages.
5. A waiver by the customer of any claims or defenses.
6. A provision authorizing the lessor, or any other person acting
on his behalf, to commit any breach of the peace, in order to repossess
the leased property.
(Added to NRS by 1991, 518)—(Substituted in revision for NRS
598.28055)
1. A customer who fails to make a timely payment may reinstate the
lease agreement with an option to purchase without losing any rights or
options contained in the agreement if he pays to the lessor:
(a) All payments that are past due;
(b) The reasonable costs of returning the property to the lessor
and redelivering it to the customer, if the leased property has been
returned to the lessor; and
(c) Any applicable fee for making a late payment.
2. The payments required to be made by subsection 1 must be made
within:
(a) Five days after the date for renewing the agreement if the
customer’s payments are required to be made monthly; or
(b) Two days after the date for renewing the agreement if the
customer’s payments are required to be made more frequently.
3. If a customer has paid less than two-thirds of the total amount
of the payments necessary to acquire ownership of the leased property
and, during the time set forth in subsection 2, returns or voluntarily
surrenders the property to the lessor, other than pursuant to a judicial
order, the customer may reinstate the agreement within 21 days after the
date on which the property was returned.
4. If a customer has paid at least two-thirds of the total amount
of the payments necessary to acquire ownership of the leased property
and, during the time set forth in subsection 2, returns or voluntarily
surrenders the property to the lessor, other than pursuant to a judicial
order, the customer may reinstate the agreement within 45 days after the
date on which the property was returned.
5. This section does not prohibit a lessor from repossessing the
leased property during the time allowed for reinstatement. If the lessor
repossesses the leased property during that time:
(a) The repossession does not affect the customer’s right to
reinstate the agreement.
(b) The lessor shall return the property to the customer or provide
him with property which is of comparable quality and in comparable
condition if the agreement is reinstated.
(Added to NRS by 1991, 518)—(Substituted in revision for NRS
598.2806)
A
lessor shall give to a customer a written receipt for each payment made
in cash or with a money order.
(Added to NRS by 1991, 519)—(Substituted in revision for NRS
598.28065)
1. An advertisement for a lease agreement with an option to
purchase that refers to or states the amount of any required payment and
the right to acquire ownership of any individual item of property must
clearly and conspicuously indicate:
(a) That the transaction advertised is a lease agreement with an
option to purchase;
(b) The total amount of payments necessary to acquire ownership of
the property; and
(c) That the customer does not acquire ownership of the property if
the total amount of payments is not paid.
2. This section does not apply to an advertisement for a lease
agreement with an option to purchase which is published in a telephone or
business directory.
3. This section does not create any liability for the acts of a
publisher, owner, agent or employee of a newspaper, magazine, periodical,
radio station, television station or other advertising medium for the
publication or dissemination of an advertisement for a lease agreement
with an option to purchase if the publisher, owner, agent or employee did
not know that the advertisement violated the provisions of this section.
4. As used in this section, “advertisement” means the attempt by
publication, dissemination, solicitation or circulation to induce,
directly or indirectly, any person to enter into a lease agreement with
an option to purchase.
(Added to NRS by 1991, 519)—(Substituted in revision for NRS
598.2807)
A person who willfully and
intentionally violates any provision of NRS 597.010 to 597.090 ,
inclusive, is guilty of a misdemeanor.
(Added to NRS by 1991, 519)—(Substituted in revision for NRS
598.28075)
Unless the lease agreement with an
option to purchase provides otherwise:
1. In addition to any penalty imposed pursuant to NRS 597.100
, the lessor or his assignee is liable,
except as otherwise provided in subsection 3, in civil suit to the
customer for an amount equal to the actual damages resulting from a
violation of a provision of NRS 597.010
to 597.110 , inclusive, or 25 percent of
the total cost to acquire ownership of the property under the lease
agreement, whichever amount is greater. The court shall award the
prevailing party in such an action attorney’s fees and his costs of the
action.
2. If the lessor commences a civil suit to enforce such a lease
agreement, the customer may set off or counterclaim damages in the amount
specified in subsection 1 for such a violation.
3. Such a civil penalty may not be imposed upon a lessor or his
assignee unless:
(a) The customer has notified the lessor or, if applicable, his
assignee in writing of the alleged violation; and
(b) The lessor or assignee does not correct the violation, if any,
within 30 days after receiving the notice.
(Added to NRS by 1991, 519)—(Substituted in revision for NRS
598.2808)
DEALERS OF FARM EQUIPMENT
As used in NRS 597.112 to 597.118 ,
inclusive, unless the context otherwise requires, the words and terms
defined in NRS 597.1123 to 597.114
, inclusive, have the meanings ascribed
to them in those sections.
(Added to NRS by 2003, 3399 )
“Dealer” means any person who
engages in the business of selling inventory.
(Added to NRS by 2003, 3399 )
“Dealer agreement” means
an oral or written agreement between a supplier and a dealer by which:
1. A commercial relationship of definite duration or continuing
indefinite duration is established;
2. The dealer is granted the right to offer and sell inventory at
retail;
3. The dealer constitutes a component of a system for the
distribution of inventory; and
4. The operation of a portion of the dealer’s business is
substantially dependent upon the supplier for a continued supply of
inventory.
(Added to NRS by 2003, 3399 )
“Inventory” means farm equipment
or any attachments or repair parts for that farm equipment.
(Added to NRS by 2003, 3399 )
“Net price” means the price set
forth in the price list or catalog of a supplier which is in effect when
a dealer agreement is terminated, less any applicable trade or cash
discounts.
(Added to NRS by 2003, 3400 )
“Superseded part” or “superseded repair part” means a part
which has an equivalent function of a part which is available on the date
of the termination of a dealer agreement.
(Added to NRS by 2003, 3400 )
“Supplier” means:
1. A manufacturer, wholesaler or wholesale distributor of new
inventory;
2. A purchaser of the assets or shares of a surviving corporation
resulting from a merger or liquidation of a supplier; or
3. A receiver, assignee or trustee of such a manufacturer,
wholesaler or wholesale distributor.
(Added to NRS by 2003, 3400 )
1. A supplier shall not terminate, fail to renew or substantially
change the terms of a dealer agreement without good cause.
2. Except as otherwise provided in this section, a supplier may
terminate or refuse to renew a dealer agreement for good cause if the
supplier provides to the dealer a written notice setting forth the
reasons for the termination or nonrenewal of the dealer agreement at
least 180 days before the termination or nonrenewal of the dealer
agreement.
3. A supplier shall include in the written notice required by
subsection 2 an explanation of the deficiencies of the dealer and the
manner in which those deficiencies must be corrected. If the dealer
corrects the deficiencies set forth in the notice within 60 days after he
receives the notice, the supplier shall not terminate or fail to renew
the dealer agreement for the reasons set forth in the notice.
4. A supplier shall not terminate or refuse to renew a dealer
agreement based solely on the failure of the dealer to comply with the
requirements of the dealer agreement concerning the share of the market
the dealer was required to obtain unless the supplier has, for not less
than 1 year, provided assistance to the dealer in the dealer’s effort to
obtain the required share of the market.
5. A supplier is not required to comply with the provisions of
subsections 2 and 3 if the supplier terminates or refuses to renew a
dealer agreement for any reason set forth in paragraphs (b) to (i),
inclusive, of subsection 6.
6. As used in this section, “good cause” means:
(a) A dealer fails to comply with the terms of a dealer agreement,
if the terms are not substantially different from the terms required for
other dealers in this state or any other state;
(b) A closeout or sale of a substantial part of the business assets
of a dealer or a commencement of the dissolution or liquidation of the
business assets of the dealer;
(c) A dealer changes its principal place of business or adds other
places of business without the prior approval of the supplier, which may
not be unreasonably withheld;
(d) A dealer substantially defaults under a chattel mortgage or
other security agreement between the dealer and the supplier;
(e) A guarantee of a present or future obligation of a dealer to
the supplier is revoked or discontinued;
(f) A dealer fails to operate in the normal course of business for
at least 7 consecutive days;
(g) A dealer abandons the dealership;
(h) A dealer pleads guilty to or is convicted of a felony affecting
the business relationship between the dealer and supplier; or
(i) A dealer transfers a financial interest in the dealership, a
person who has a substantial financial interest in the ownership or
control of the dealership dies or withdraws from the dealership, or the
financial interest of a partner or major shareholder in the dealership is
substantially reduced.
Ê For the purposes of this section, good cause does not exist if the
supplier consents to any action described in this section.
(Added to NRS by 2003, 3400 )
1. Each year a supplier shall allow each dealer with whom it has
entered into a dealer agreement to return to the supplier for credit a
portion of the surplus parts in the dealer’s inventory.
2. A supplier shall notify each dealer of the period it has
designated for that dealer to submit a list of the surplus parts the
dealer wishes to return and for that dealer to return the surplus parts
to the supplier. The period designated for each dealer for the return of
surplus parts must not be less than 90 days.
3. If a supplier fails to notify a dealer of the period during
which the dealer may return surplus parts within the preceding 12 months,
the supplier shall authorize the return of a dealer’s surplus parts
within 60 days after the supplier receives a request from the dealer to
return the surplus parts.
4. A dealer may return surplus parts equal to not more than 10
percent of the value of the parts purchased by the dealer from the
supplier during:
(a) The 12-month period immediately preceding the notice provided
to the dealer by the supplier pursuant to subsection 2; or
(b) The month the supplier receives a request from a dealer
pursuant to subsection 3 to return surplus parts to the supplier,
Ê whichever is applicable.
5. Any part included in the supplier’s list of returnable parts or
any superseded part that is not eligible for return to the supplier on
the date the supplier provides notice to the dealer pursuant to
subsection 2 or the date the supplier receives the dealer’s request
pursuant to subsection 3, whichever is applicable, is eligible for credit
as a returned surplus part. A part which is returned must be in new and
undamaged condition and must have been purchased by the dealer from the
supplier to whom it is returned.
6. The minimum credit allowed for a returned part is 95 percent of
the net price, as set forth in the supplier’s list of returnable parts on
the date the supplier provides notice to the dealer pursuant to
subsection 2 or the date the supplier receives the dealer’s request
pursuant to subsection 3, whichever is applicable.
7. All applicable credit for the returned parts must be issued or
provided to the dealer within 90 days after the supplier receives the
dealer’s returned surplus parts.
8. The provisions of this section:
(a) Do not apply to a supplier that has established a program for
its dealers for the return of surplus repair parts if the program
provides credit of not less than 85 percent of the net price for the
returned repair parts;
(b) Do not prohibit a supplier from charging a dealer’s account for
the amounts previously paid or credited by the supplier as a discount
incident to the dealer’s purchase of goods; and
(c) Do not require a dealer to return for credit surplus parts to a
supplier.
(Added to NRS by 2003, 3401 )
A
supplier shall not:
1. Require a dealer to accept delivery of equipment, parts or
accessories which the dealer has not ordered unless the equipment, parts
or accessories are required by the supplier for the safe use of any
inventory provided to the dealer by the supplier;
2. Condition the sale of any equipment to a dealer upon the
purchase of additional goods or services, except that a supplier may
require a dealer to purchase those parts which are necessary to maintain
the equipment used in the area where the dealership is located;
3. Prohibit a dealer from purchasing equipment manufactured by
another supplier; or
4. Terminate, fail to renew or substantially change the terms of a
dealer agreement because of a natural disaster, including a drought in
the market area of the dealership, a labor dispute or any other similar
circumstances which are beyond the control of the dealer.
(Added to NRS by 2003, 3402 )
1. Except as otherwise provided in this section, upon the
termination of a dealer agreement by a supplier or dealer, the supplier
shall repurchase the inventory held by the dealer on the date of the
termination of the dealer agreement.
2. A supplier who repurchases the inventory of a dealer pursuant
to subsection 1 shall:
(a) Pay the dealer:
(1) One hundred percent of the net price of all new and
undamaged inventory; and
(2) Ninety-five percent of the net price of new and undamaged
superseded repair parts.
(b) Except as otherwise provided in this paragraph, pay the dealer
an amount equal to 5 percent of the net price of all new and undamaged
repair parts returned to the supplier to cover the cost incurred by the
dealer for handling, packing and shipping the superseded repair parts to
the supplier. If the supplier handles, packs and ships the superseded
repair parts, the dealer is not entitled to receive any money for those
services which the supplier performed.
(c) Purchase, at its depreciated value, any computers, software or
telecommunications equipment that the supplier required the dealer to
purchase within the previous 5 years.
(d) Repurchase, at 75 percent of the net cost, any specialized
repair tools purchased if those tools are:
(1) Included in the tool catalog of the supplier;
(2) Purchased in accordance with the requirements of the
supplier;
(3) Held by the dealer on the date of the termination of the
dealer agreement; and
(4) Complete and in resalable condition.
(e) Repurchase any inventory which is owned by the supplier and
leased, rented or used in demonstrations by the dealer if the supplier
receives an allowance based on the use of such inventory. Inventory which
is used in demonstrations for not more than a total of 50 hours shall be
deemed new inventory. Inventory which is used in demonstrations for more
than 50 hours and purchased from the supplier less than 36 months before
the termination of the dealer’s agreement must be repurchased at its
depreciated value, as determined by the supplier and dealer.
3. If the dealer agreement authorizes the dealer to retain the
inventory upon the termination of the dealer agreement, the dealer may
retain any portion of the inventory, except any specialized tools
described in paragraph (d) of subsection 2 which the supplier wishes to
repurchase from the dealer.
4. If the dealer owes any outstanding debts to the supplier, the
amount of the repurchase of the inventory may be set off or credited to
the account of the dealer.
5. Upon payment to the dealer of the amount for the repurchase of
the inventory pursuant to this section, the title and right of possession
to the inventory transfers to the supplier.
(Added to NRS by 2003, 3402 )
1. At the end of each year after the termination of a dealer
agreement, a dealer’s reserve account for recourse, retail sale or lease
contracts may not be debited by a supplier or lender for any deficiency
unless the dealer is given written notice of at least 7 business days by
certified or registered mail, return receipt requested, of any proposed
sale of the inventory which was financed and an opportunity to purchase
the inventory.
2. The dealer must be given quarterly reports concerning any
remaining outstanding recourse contracts. As the recourse contracts are
reduced, any money in the reserve account must be returned to the dealer
in direct proportion to the liabilities outstanding.
(Added to NRS by 2003, 3403 )
The provisions of NRS 597.112 to 597.118 ,
inclusive, do not require a supplier to repurchase from a dealer:
1. Any repair part which is not in new and undamaged condition or,
because of its condition, is not resalable as a new part;
2. Any inventory which the dealer retains pursuant to subsection 3
of NRS 597.1153 ;
3. Any inventory which is not in new, undamaged and complete
condition;
4. Any inventory which was ordered by the dealer on or after the
date of the termination of the dealer agreement; or
5. Any inventory which was purchased more than 36 months before
the notice of the termination of the dealer agreement is provided.
(Added to NRS by 2003, 3403 )
If a
supplier fails or refuses to repurchase and pay a dealer for any
inventory the supplier is required to repurchase in accordance with the
provisions of NRS 597.112 to 597.118
, inclusive, within 60 days after
shipment of the inventory to the supplier, the supplier is liable for:
1. An amount equal to 100 percent of the net price of the
inventory;
2. Any shipping charges paid by the dealer;
3. Attorney’s fees and court costs; and
4. An amount equal to the interest on the amount of the net price
calculated at the legal rate of interest from the 61st day after the date
of the shipment of the inventory to the supplier.
(Added to NRS by 2003, 3403 )
1. Upon the death of a dealer or the majority shareholder of a
corporation which operates as a dealer, the supplier shall, upon the
approval or request of the devisee or heir of the dealer or majority
shareholder, repurchase the inventory of the dealer in the manner
prescribed in NRS 597.1153 .
2. The devisee or heir shall, within 1 year after the death of the
dealer or majority stockholder, notify the supplier whether the supplier
will be required to repurchase the inventory of the dealer.
3. A supplier is not required to repurchase the inventory of the
dealer if the devisee or heir and the supplier enter into a new dealer
agreement to operate the dealership.
4. This section does not authorize any person, including a devisee
or heir, to operate a dealership without the written approval of the
supplier.
5. An agreement executed by the supplier and dealer that sets
forth the rights relating to succession to the operation of the
dealership is enforceable without regard to the person who is designated
as the successor to the dealership.
6. As used in this section:
(a) “Devisee” has the meaning ascribed to it in NRS 132.100 .
(b) “Heir” has the meaning ascribed to it in NRS 132.165 .
(Added to NRS by 2003, 3403 )
The provisions of NRS 597.112 to 597.118 ,
inclusive, do not affect any security interest which a supplier has in
the inventory of a dealer. The dealer and supplier shall each provide a
representative to inspect the inventory and certify its acceptability
when packaged for shipment. The failure of the supplier to provide a
representative for the inspection within 60 days shall be deemed
acceptance by the supplier of the inventory returned to the supplier.
(Added to NRS by 2003, 3404 )
1. A dealer may bring a civil action for damages in a court of
competent jurisdiction against a supplier who violates any of the
provisions of NRS 597.112 to 597.118
, inclusive, and may recover damages
incurred as a result of any violation committed by the supplier,
including costs and attorney’s fees.
2. A dealer may apply for injunctive relief for the unlawful
termination, nonrenewal or substantial change of the terms of a dealer
agreement.
3. The remedies provided in this section are in addition to any
other remedies provided by law.
(Added to NRS by 2003, 3404 )
1. Except as otherwise provided in this section, any agreement
entered into by a supplier and a dealer concerning reimbursement for work
performed under a warranty, including, without limitation, a dealer
agreement, must comply with the provisions set forth in this section.
2. A supplier who authorizes a dealer to perform work under a
warranty shall reimburse a dealer who submits a warranty claim for such
work. A dealer may submit a warranty claim to a supplier:
(a) During the period the dealer agreement is in effect; or
(b) After the termination of a dealer agreement if the warranty
claim concerns work performed under a warranty during the period the
dealer agreement was in effect.
3. A warranty claim which is submitted to a supplier must be paid
within 30 days after the claim is approved by the supplier. The supplier
shall approve or disapprove a warranty claim or any part thereof within
30 days after it receives the warranty claim. If the warranty claim is
disapproved, the supplier shall, not later than 30 days after it receives
the warranty claim, send written notice to the dealer setting forth the
reasons for disapproval of the warranty claim. A warranty claim which is
not disapproved by the supplier within the prescribed period shall be
deemed approved.
4. The amount of a warranty claim must not be less than the amount
equal to the sum of:
(a) The reasonable and customary time required by the dealer to
complete the work, including diagnostic time, expressed in hours and
fractions of hours, multiplied by the dealer’s hourly retail rate for
labor;
(b) The dealer’s net price for any repair parts replaced, plus 20
percent of the net price for those parts; and
(c) If a warranty claim concerns repair work for any equipment
which is performed by the dealer in accordance with a safety or
modification order issued by a supplier, the costs incurred by the dealer
to transport to the dealer’s place of business for repair any equipment
which is within the dealer’s service area and subject to a safety or
modification order.
5. After a supplier has paid a warranty claim, the supplier shall
not charge back, set off or otherwise attempt to recover from a dealer
any amount of the warranty claim unless:
(a) The warranty claim is fraudulent;
(b) The work was not performed properly or was not necessary to
comply with the requirements of the warranty; or
(c) The dealer did not provide the records for the warranty claim
as required by the agreement for work performed under the warranty.
6. A supplier shall not require a dealer to pay the costs incurred
by the supplier in paying warranty claims by:
(a) Imposing a surcharge;
(b) Reducing any discounts provided to a dealer; or
(c) Imposing additional requirements for the certification of a
dealer authorized to perform work under a warranty.
7. Except for a warranty claim where fraud is alleged, a supplier
may not audit the records of a dealer relating to a warranty claim more
than 1 year after the warranty claim is submitted to the supplier. A
supplier may not audit a warranty claim more than once. The provisions of
this subsection do not prohibit a supplier from requesting additional
information from a dealer if the initial audit of the warranty claim
indicates any errors, inconsistencies or fraud.
8. The provisions of this section do not apply to a written dealer
agreement which provides compensation to a dealer for any labor required
to be performed under a warranty before the labor is performed if the
compensation is based on:
(a) A reduction of the price of the equipment sold to the dealer; or
(b) A lump-sum payment of not less than 5 percent of the suggested
retail price of the equipment.
9. As used in this section:
(a) “Audit” means an examination by a supplier of the records of a
warranty claim submitted by a dealer.
(b) “Net price” means the price a supplier charges a dealer for a
repair part.
(c) “Warranty claim” means a request submitted by a dealer to a
supplier for payment for work performed under a warranty or a safety or
modification order issued by the supplier.
(Added to NRS by 2003, 3404 )
1. A person may not waive or modify a right, obligation or
liability set forth in the provisions of NRS 597.112 to 597.118 ,
inclusive.
2. A condition, stipulation or provision of a dealer agreement or
any other agreement that:
(a) Limits the procedural or substantive rights of a dealer
pursuant to the provisions of NRS 597.112 to 597.118 ,
inclusive;
(b) Requires a person to waive a right set forth in the provisions
of NRS 597.112 to 597.118 , inclusive; or
(c) Relieves a person of an obligation or liability imposed by the
provisions of NRS 597.112 to 597.118
, inclusive,
Ê is void.
(Added to NRS by 2003, 3406 )
ALCOHOLIC BEVERAGES
Franchises Between Liquor Suppliers and Wholesalers
As used in NRS 597.120 to 597.180 ,
inclusive, unless the context otherwise requires, the words and terms
defined in NRS 597.125 to 597.150
, inclusive, have the meanings ascribed
to them in those sections.
(Added to NRS by 1973, 1353; A 1995, 1569)
“Alcoholic beverage”
has the meaning ascribed to it in NRS 597.200 .
(Added to NRS by 1995, 1567)
“Franchise” means a contract or
agreement either expressed or implied, whether written or oral, between a
supplier and wholesaler, wherein:
1. A commercial relationship of definite duration or continuing
indefinite duration is involved; and
2. The wholesaler is granted the right to offer, sell and
distribute within this state or any designated area thereof such of the
supplier’s brands of packaged malt beverages, distilled spirits and
wines, or all of them, as may be specified.
(Added to NRS by 1973, 1353)—(Substituted in revision for NRS
598.300)
“Good cause” means:
1. Failure by a wholesaler to comply substantially with essential
and reasonable requirements imposed on him by a supplier, or sought to be
imposed by a supplier, if the requirements are not discriminatory as
compared with requirements imposed on other similarly suited wholesalers
either by their terms or in the manner of their enforcement.
2. Bad faith by the wholesaler in carrying out the terms of the
franchise agreement.
(Added to NRS by 1995, 1567)
“Marketing area” means the
area where a wholesaler sells a product of a supplier pursuant to the
terms, provisions and conditions of a franchise.
(Added to NRS by 1995, 1567)
“Supplier” means any person,
partnership, corporation or other form of business enterprise engaged in
business as a manufacturer, distiller, rectifier, brewer, importer,
vintner, broker or agent therefor, which distributes any or all of its
brands of malt beverages, distilled spirits and wines, or all of them,
through licensed wholesalers in this state.
(Added to NRS by 1973, 1353)—(Substituted in revision for NRS
598.310)
“Wholesaler” means any person,
partnership, corporation or other form of business enterprise licensed by
the Nevada Tax Commission to sell malt beverages, distilled spirits and
wines, or all of them, as it is originally packaged to retail liquor
stores or to another licensed wholesaler, but not to sell to the consumer
or general public.
(Added to NRS by 1973, 1353; A 1995, 1569)
1. Except as otherwise provided in subsection 2, a supplier must,
at least 90 days before he terminates or refuses to continue any
franchise with a wholesaler or causes a wholesaler to resign from any
franchise, send a notice by certified mail, return receipt requested, to
the wholesaler. The notice must include:
(a) The reason for the proposed action and a description of any
failure of the wholesaler to comply with the terms, provisions and
conditions of the franchise alleged by the supplier pursuant to NRS
597.160 ; and
(b) A statement that the wholesaler may correct any such failure
within the period prescribed in NRS 597.160 .
2. Any action taken by a supplier pursuant to subsection 1 becomes
effective on the date the wholesaler receives the notice required
pursuant to subsection 1 if the wholesaler:
(a) Has had his license to sell alcoholic beverages issued pursuant
to state or federal law revoked or suspended for more than 31 days;
(b) Is insolvent pursuant to 11 U.S.C. § 101;
(c) Has had an order for relief entered against him pursuant to 11
U.S.C. §§ 701 et seq.;
(d) Has had his ability to conduct business substantially affected
by a liquidation or dissolution;
(e) Or any other person who has a financial interest in the
wholesaler of not less than 10 percent and is active in the management of
the wholesaler has been convicted of or has pleaded guilty to a felony
and the supplier determines that the conviction or plea substantially and
adversely affects the ability of the wholesaler to sell the products of
the supplier;
(f) Has committed fraud or has made a material misrepresentation in
his dealings with the supplier or the products of the supplier;
(g) Has sold alcoholic beverages which the wholesaler received from
the supplier to:
(1) A retailer who the wholesaler knows or should know does
not have a place of business where the retailer is entitled to sell
alcoholic beverages within the marketing area of the wholesaler; or
(2) Any person who the wholesaler knows or should know sells
or supplies alcoholic beverages to any retailer who does not have a place
of business where the retailer is entitled to sell alcoholic beverages
within the marketing area of the wholesaler;
(h) Has failed to pay for any product ordered and delivered
pursuant to the provisions of an agreement between the supplier and
wholesaler within 7 business days after the supplier sends to the
wholesaler a written notice which includes a statement that he has failed
to pay for the product and a demand for immediate payment;
(i) Has made an assignment for the benefit of creditors or a
similar disposition of substantially all the assets of his franchise;
(j) Or any other person who has a financial interest in the
wholesaler has:
(1) Transferred or attempted to transfer the assets of the
franchise, voting stock of the wholesaler or voting stock of any parent
corporation of the wholesaler; or
(2) Changed or attempted to change the beneficial ownership
or control of any such entity,
Ê unless the wholesaler first notified the supplier in writing and the
supplier has not unreasonably withheld his approval; or
(k) Discontinues selling the products of the supplier, unless:
(1) The discontinuance is a result of an accident which the
wholesaler was unable to prevent;
(2) The wholesaler has, if applicable, taken action to
correct the condition which caused the accident; and
(3) The wholesaler has notified the supplier of the accident
if he has discontinued selling the products of the supplier for more than
10 days.
(Added to NRS by 1995, 1567)
1. Except as otherwise provided in subsection 4, if more than one
franchise for the same brand or brands of malt beverages, distilled
spirits and wines, or all of them, is granted to different wholesalers in
this state, it is a violation of NRS 597.120 to 597.180 ,
inclusive, for any supplier to discriminate between such wholesalers with
respect to any of the terms, provisions and conditions of these
franchises.
2. Except as otherwise provided in this subsection and
notwithstanding the terms, provisions or conditions of any franchise, a
supplier shall not unilaterally terminate or refuse to continue any
franchise with a wholesaler or cause a wholesaler to resign from that
franchise unless the supplier has first established good cause for that
termination, noncontinuance or causing of that resignation. This
subsection does not apply to a supplier who sells less than 2,500 barrels
of malt beverages, less than 250 cases of distilled spirits or less than
2,000 cases of wine in this state in any calendar year, or who operates a
winery pursuant to NRS 597.240 .
3. A wholesaler may, within 60 days after he receives a notice
required pursuant to NRS 597.155 ,
correct any failure to comply with the terms, provisions and conditions
of the franchise alleged by the supplier.
4. Unless otherwise specified by contract between the supplier and
wholesaler, a supplier shall not grant more than one franchise to a
wholesaler for any brand of alcoholic beverage in a marketing area.
(Added to NRS by 1973, 1354; A 1995, 1569)
A supplier shall not require a
wholesaler to increase his payment to the supplier for any product of
that supplier after the product is delivered to the wholesaler.
(Added to NRS by 1995, 1567)
1. Any wholesaler may bring an action in a court of competent
jurisdiction against a supplier for violation of NRS 597.120 to 597.180 ,
inclusive, and may recover the damages sustained by him, together with
such costs of the action and reasonable attorney’s fees as are authorized
under NRS 18.110 .
2. The remedies provided in NRS 597.120 to 597.180 ,
inclusive, are independent of and supplemental to any other remedy or
remedies available to the wholesaler in law or equity.
(Added to NRS by 1973, 1354)—(Substituted in revision for NRS
598.340)
In any
action brought by a wholesaler against a supplier for termination or
noncontinuance of, or causing to resign from a franchise in violation of
NRS 597.120 to 597.180 , inclusive, the supplier has the burden of
establishing that he acted for good cause and that the wholesaler did not
act in good faith. It is a complete defense for the supplier to prove
that the termination, noncontinuance or causing to resign was done in
good faith and for good cause.
(Added to NRS by 1973, 1354; A 1995, 1569)
Regulation of Business Practices
It is the policy of
the Legislature to insure the orderly distribution and marketing of
alcoholic beverages in this state in order to protect locally owned and
operated business enterprises and those residents whose livelihoods and
investments are dependent on their freedom to manage their businesses
without economic and coercive control by nonresident suppliers of
alcoholic beverages.
(Added to NRS by 1975, 623)—(Substituted in revision for NRS
598.351)
As used in NRS 597.190 to 597.250 ,
inclusive, unless the context otherwise requires:
1. “Alcoholic beverage” means any malt beverage or spirituous,
vinous or malt liquor which contains 1 percent or more ethyl alcohol by
volume.
2. “Brew pub” means an establishment which manufactures malt
beverages and sells those malt beverages at retail pursuant to the
provisions of NRS 597.230 .
3. “Engage in” includes participation in a business as an owner or
partner, or through a subsidiary, affiliate, ownership equity or in any
other manner.
4. “Instructional wine-making facility” means an instructional
wine-making facility operated pursuant to NRS 597.245 .
5. “Legal age” means the age at which a person is legally
permitted to purchase an alcoholic beverage pursuant to NRS 202.020
.
6. “Malt beverage” means beer, ale, porter, stout and other
similar fermented beverages of any name or description, brewed or
produced from malt, wholly or in part.
7. “Supplier” has the meaning ascribed to it in NRS 597.140 .
8. “Wine” has the meaning ascribed to it in NRS 369.140 .
(Added to NRS by 1975, 623; A 1985, 531; 1991, 108; 1995, 1570;
2005, 1272 , 1326 )
1. Except as otherwise provided in NRS 597.240 , a person engaged in business as a supplier or
engaged in the business of manufacturing, blending or bottling alcoholic
beverages within or without this State shall not engage in the business
of importing, wholesaling or retailing alcoholic beverages.
2. This section does not:
(a) Preclude any person engaged in the business of importing,
wholesaling or retailing alcoholic beverages from owning less than 2
percent of the outstanding ownership equity in any organization which
manufactures, blends or bottles alcoholic beverages.
(b) Prohibit a person engaged in the business of rectifying or
bottling alcoholic beverages from importing neutral or distilled spirits
in bulk only for the express purpose of rectification pursuant to NRS
369.415 .
(c) Prohibit a person from operating a brew pub pursuant to NRS
597.230 .
(d) Prohibit a person from operating an instructional wine-making
facility pursuant to NRS 597.245 .
(Added to NRS by 1975, 623, 1463; A 1991, 109, 384; 1995, 1570;
2005, 1273 , 1326 )
1. Any person who is engaged in the business of importing or
wholesaling alcoholic beverages in the State of Nevada shall not engage
in the business of retailing alcoholic beverages in this state.
2. For the purposes of this section, a person who transfers or
receives alcoholic beverages in the manner described in NRS 369.4865
must not be considered to be engaged
in the business of wholesaling alcoholic beverages based solely upon
those transfers.
(Added to NRS by 1975, 624; A 2001 Special Session, 165 )
1. A person who operates a grocery store may serve samples of
alcoholic beverages on the premises of the grocery store if the person:
(a) Is licensed to sell, at retail, alcoholic beverages on the
premises of the grocery store;
(b) Obtains an annual permit to serve such samples from the local
governing body that has jurisdiction to license and regulate the sale of
alcoholic beverages on the premises of the grocery store;
(c) Purchases any alcoholic beverages used for such samples from a
wholesale dealer of alcoholic beverages who is licensed under chapter 369
of NRS; and
(d) Complies with the requirements of this section.
2. A person who holds an annual permit issued pursuant to this
section may serve samples of alcoholic beverages on the premises of the
grocery store only to persons of legal age and only in such quantities as
are necessary to provide a sample or taste of the alcoholic beverages.
3. Notwithstanding any other provision of law, a supplier,
manufacturer, importer or wholesale dealer of alcoholic beverages may
assist a person who operates a grocery store in serving samples of
alcoholic beverages pursuant to this section. The assistance authorized
by this subsection is limited to the pouring of such samples or the
provision of information, instruction or education regarding the product
being sampled, or any combination of those tasks. The provision of such
assistance does not relieve the person who operates the grocery store
from the responsibility of complying with all the requirements of this
section.
4. A local governing body may adopt reasonable restrictions
regarding the time, place, manner and frequency of the activities
authorized by this section. Such restrictions must not prohibit or
unreasonably interfere with the activities authorized by this section.
5. A person who serves samples of alcoholic beverages on the
premises of a grocery store in violation of any provision of this section
is guilty of a misdemeanor.
6. This section preempts any local charter, code, ordinance or
regulation that is in conflict with the purposes and objectives of this
section.
7. A local governing body may not charge any fee for issuing an
annual permit pursuant to this section.
8. As used in this section:
(a) “Convenience store” means a store which is principally devoted
to providing the public with a convenient location to purchase consumable
products quickly and in which the area open to the public is less than
5,000 square feet.
(b) “Grocery store” means a store which is principally devoted to
the sale of food for human consumption off the premises or which derives
a substantial amount of its gross revenue from the sale of food for human
consumption off the premises, regardless of whether the store is also
devoted to or derives gross revenue from the sale of nonfood items. The
term does not include:
(1) A convenience store.
(2) A store at which the sale of food for human consumption
off the premises is incidental to the principal purpose of the store.
(Added to NRS by 2005, 1270 )
1. In a county whose population is 400,000 or more, a person may
operate a brew pub:
(a) In any redevelopment area established in that county pursuant
to NRS 279.382 to 279.685 , inclusive;
(b) In any historic district established in that county pursuant to
NRS 384.005 ;
(c) In any retail liquor store as that term is defined in NRS
369.090 ; or
(d) In any other area in the county designated by the board of
county commissioners for the operation of brew pubs. In a city which is
located in that county, a person may operate a brew pub in any area in
the city designated by the governing body of that city for the operation
of brew pubs.
Ê A person who operates one or more brew pubs may not manufacture more
than 15,000 barrels of malt beverages for all the brew pubs he operates
in that county in any calendar year.
2. In a county whose population is less than 400,000, a person may
operate a brew pub:
(a) In any redevelopment area established in that county pursuant
to NRS 279.382 to 279.685 ;
(b) In any historic district established in that county pursuant to
NRS 384.005 ;
(c) In any retail liquor store as that term is defined in NRS
369.090 ; or
(d) In any other area in the county designated by the board of
county commissioners for the operation of brew pubs. In a city which is
located in that county, a person may operate a brew pub in any area in
the city designated by the governing body of that city for the operation
of brew pubs.
Ê A person who operates one or more brew pubs may not manufacture more
than 5,000 barrels of malt beverages for all brew pubs he operates in
that county in any calendar year.
3. The premises of any brew pub operated pursuant to this section
must be conspicuously identified as a “brew pub.”
4. A person who operates a brew pub pursuant to this section may,
upon obtaining a license pursuant to chapter 369 of NRS and complying with any other applicable
governmental requirements:
(a) Manufacture and store malt beverages on the premises of the
brew pub and sell and transport the malt beverages manufactured on the
premises to a person holding a valid wholesale wine and liquor dealer’s
license or wholesale beer dealer’s license issued pursuant to chapter 369
of NRS.
(b) Sell at retail malt beverages manufactured on or off the
premises of the brew pub for consumption on the premises.
(c) Sell at retail in packages sealed on the premises of the brew
pub, malt beverages, including malt beverages in unpasteurized form,
manufactured on the premises for consumption off the premises.
(Added to NRS by 1991, 383; A 1995, 1570, 1571)
1. A winery located in a county whose population is 100,000 or
less, if it is federally bonded, may:
(a) Import wine or juice from a bonded winery in another state, to
be fermented into wine or, if already fermented, to be mixed with other
wine or aged in a suitable cellar, or both.
(b) Sell at retail or serve by the glass, on its premises and at
one other location, wine produced, blended or aged by the winery. The
amount of wine sold at a location other than on the premises of the
winery may not exceed 50 percent of the total volume of the wine sold by
the winery.
(c) Serve by the glass, on its premises, any alcoholic beverage.
2. For the purposes of this section, an instructional wine-making
facility is not a winery. This section does not prohibit a person from
operating an instructional wine-making facility in any county.
(Added to NRS by 1991, 108; A 1993, 325, 1442; 2005, 1273 )
1. A person may operate an instructional wine-making facility if
the person:
(a) Obtains a license for the facility pursuant to chapter 369
of NRS;
(b) Complies with the requirements of this section; and
(c) Complies with any other applicable governmental requirements
for the operation of such a facility, including, without limitation,
compliance with all applicable federal bonding, permitting and other
requirements for the production, blending, treatment, storage and
bottling of wine.
2. A person who is licensed to operate an instructional
wine-making facility may:
(a) Engage in the process of wine making on the premises of the
facility;
(b) Charge a fee to other persons of legal age for the purpose of
providing those persons with instruction and the opportunity to
participate directly in the process of wine making on the premises of the
facility; and
(c) Serve wine produced on the premises of the facility by the
glass for consumption on the premises of the facility.
3. Wine produced on the premises of an instructional wine-making
facility must be:
(a) Used, consumed or disposed of on the premises of the facility;
or
(b) Distributed from the facility to a person of legal age who has
participated directly in the process of wine making on the premises of
the facility for the person’s own household or personal use. That person:
(1) May distribute the wine to any other person of legal age
as a gift.
(2) Shall not remove from the facility:
(I) Any wine other than that which the person
participated directly in the process of making on the premises of the
facility.
(II) More than 60 gallons of wine during any period of
12 months.
4. Except as otherwise permitted by this section, if a person
knows or reasonably should know that wine was produced on the premises of
an instructional wine-making facility, the person shall not:
(a) Directly or indirectly or through any other person, sell, offer
to sell or solicit the purchase or sale of such wine at wholesale or
retail; or
(b) Use such wine for any purpose other than for the person’s own
household or personal use.
5. A person who violates any provision of this section is guilty
of a misdemeanor.
6. As used in this section:
(a) “Instructional wine-making facility” means any facility that,
for a fee, provides a person of legal age with instruction and the
opportunity to participate directly in the process of wine making on the
premises of the facility. The term does not include:
(1) A wine maker or winery that is licensed pursuant to
chapter 369 of NRS.
(2) A university, state college or community college that is
part of the Nevada System of Higher Education or any other postsecondary
educational institution that is licensed by a federal or state agency and
is accredited by a nationally recognized educational accrediting
association.
(b) “Process of wine making” means the usual and customary steps
taken to produce wine. Such steps may include, without limitation:
(1) Growing, buying and importing agricultural products and
ingredients.
(2) Selecting, preparing and processing agricultural
products and ingredients.
(3) Barreling, fermenting, aging, filtering, bottling,
labeling, racking, warehousing and storing.
(4) Importing bulk wine or juice from a bonded winery in
another state, to be fermented into wine or, if already fermented, to be
blended with other wine and aged in a suitable cellar.
(Added to NRS by 2005, 1271 )
The
license of any person who violates the provisions of NRS 597.210 , 597.220 ,
597.230 or 597.245 must be suspended or revoked in the manner
provided in chapter 369 of NRS.
(Added to NRS by 1975, 624; A 1991, 384; 2005, 1273 )
Substitution of Brands
1. It is unlawful for a retailer of alcoholic beverages to
substitute one brand of alcoholic beverage for a brand that has been
specifically requested by the customer, unless the customer consents to
the substitution. Any violation of this subsection by an employee must be
attributed to the retailer.
2. A retailer who violates the provisions of subsection 1:
(a) For the first offense, is guilty of a misdemeanor and shall be
fined an amount not to exceed $1,000, plus the costs of prosecution. No
sentence of incarceration may be imposed.
(b) For the second offense, is guilty of a gross misdemeanor and
shall be fined an amount not to exceed $2,000, plus the costs of
prosecution. No sentence of incarceration may be imposed.
(c) For a third or subsequent offense, is guilty of a gross
misdemeanor and shall be fined an amount equal to the costs of
prosecution. The court shall impose no other criminal penalty, but shall,
within 5 working days after the conviction, issue an order revoking the
license to sell intoxicating liquor of the business and forward a
certified copy of the order to the liquor board of county or governing
body of the city, as applicable, which licensed the sale of liquor at the
retailer’s place of business. The board shall not reissue such a license
for that place of business for a period of at least 1 year.
3. In addition to the criminal penalties set forth in this
section, the retailer, upon conviction, is liable in civil suit to the
customer and to the supplier and wholesaler of the requested alcoholic
beverage for the damages which result from the substitution. The court
shall award the prevailing party in such an action attorney’s fees and
his costs of the action.
4. As used in this section:
(a) “Alcoholic beverage” has the meaning ascribed to it in NRS
202.015 .
(b) “Retailer” means the owner of a business where alcoholic
beverages are sold by the drink. The term includes any person employed by
the owner.
(c) “Supplier” has the meaning ascribed to it in NRS 597.140 .
(d) “Wholesaler” has the meaning ascribed to it in NRS 597.150
.
(Added to NRS by 1991, 360; A 1995, 1572)
Enforcement
1. Except as otherwise provided in this section and NRS 228.380
, the Attorney General has primary
jurisdiction to enforce the provisions of NRS 597.120 to 597.260 ,
inclusive, and shall cause appropriate legal action to be taken to
enforce those provisions.
2. The Attorney General has concurrent jurisdiction with the
district attorneys of this State to enforce the provisions of NRS 597.225
and 597.245 .
3. This section does not prohibit:
(a) A wholesaler from bringing an action against a supplier
pursuant to NRS 597.170 .
(b) A customer, supplier or wholesaler from bringing an action
against a retailer pursuant to NRS 597.260 .
(Added to NRS by 2003, 973 ; A 2005, 1273 )
ASSISTIVE DEVICES
As used in NRS 597.264 to 597.2667 , inclusive, unless the context otherwise
requires the words and terms defined in NRS 597.2643 to 597.265 ,
inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 1997, 942)
“Assistive device” means
a device purchased or accepted for delivery in this state that enhances
the ability of a person to perform a major life activity, including, but
not limited to:
1. Manual or motorized wheelchairs, scooters and other devices
that enhance the ability of a person to move;
2. Hearing aids, devices for telecommunication and any other
devices that enhance the ability of a person to hear;
3. Voice synthesizers, optical scanners, Braille printers and any
other devices that enhance the ability of a person to communicate;
4. Light amplifiers, magnification equipment, Braille equipment
and any other devices that enhance the ability of a person to see; and
5. Any other device that enhances the ability of a person to move,
hear, communicate or see.
(Added to NRS by 1997, 942)
“Consumer” means:
1. A person who leases or purchases, other than for the purposes
of resale, an assistive device;
2. A person to whom an assistive device is transferred during the
period the express warranty of a manufacturer is in effect; or
3. Any other person who is entitled by the terms of the warranty
to enforce its obligations.
(Added to NRS by 1997, 943)
“Dealer” means a person who sells
or leases assistive devices to consumers.
(Added to NRS by 1997, 943)
“Manufacturer” means a person
who manufactures or assembles assistive devices or an agent of that
person, including an importer or a distributor. The term does not include
a dealer.
(Added to NRS by 1997, 943)
1. A manufacturer who, directly or through a dealer, sells or
leases to a consumer in this state an assistive device that has not been
previously sold or leased shall provide an express warranty for that
device. The express warranty does not:
(a) Take effect until the consumer takes possession of the device;
and
(b) Expire less than 1 year after the delivery of the device to the
consumer.
2. If a manufacturer fails to provide an express warranty required
by this section, the assistive device shall be deemed to be covered by
the express warranty of the manufacturer.
(Added to NRS by 1997, 943)
If an assistive device does not conform to the express
warranty of the manufacturer and the consumer reports the nonconformity
to the manufacturer or dealer and makes the assistive device available
for repair before the expiration of the express warranty, the
manufacturer or dealer shall make the repairs necessary to conform the
assistive device to the express warranty without regard to whether the
repairs will be made after the expiration of the express warranty.
(Added to NRS by 1997, 943)
1. If, after a reasonable number of repairs, the manufacturer or
dealer is unable to conform the assistive device to the express warranty
and the defect or condition causing the nonconformity substantially
impairs the use and value of the assistive device to the consumer and is
not the result of abuse, neglect or unauthorized modifications or
alterations of the assistive device by the consumer, the manufacturer
shall:
(a) Replace the assistive device with an assistive device of the
same model and having the same features as the replaced device, or if
such a device cannot be delivered to the consumer within a reasonable
period, a comparable assistive device substantially similar to the
replaced device; or
(b) Accept the return of the assistive device from the consumer and
refund to the consumer, within 30 days after the return of the device,
the purchase price of the device, including all sales taxes and finance
charges paid by the consumer, and any other expenses related to the
purchase and use of the assistive device, less a reasonable allowance for
use of the assistive device. As used in this paragraph “reasonable
allowance for use” means that amount that is directly attributable to the
use of the device by the consumer before his first report of the
nonconformity to the manufacturer or dealer and during any subsequent
period that the assistive device is not out of service for repairs.
2. It is presumed that a reasonable number of repairs have been
undertaken to conform an assistive device to an applicable express
warranty if:
(a) The same nonconformity has been subject to repair three or more
times by the manufacturer or dealer within the time the express warranty
is in effect, but the nonconformity continues to exist; or
(b) The assistive device is unavailable for use by the consumer
because of a nonconformity for a cumulative total of 30 days or more
within the period the express warranty is in effect, except that if the
necessary repairs cannot be made for reasons which are beyond the control
of the manufacturer or dealer, the number of days required to give rise
to the presumption must be appropriately extended.
(Added to NRS by 1997, 943)
1. If an assistive device covered by an express warranty of a
manufacturer is made available for repair pursuant to NRS 597.2655 and:
(a) The device is not repaired within 10 working days, including
the day on which the assistive device is made available for repair; or
(b) The defect or malfunction that is the cause of nonconformity is
the same defect or malfunction for which the assistive device has been
made available for repair two or more times,
Ê the manufacturer shall provide to the consumer, for the duration of the
period of repair, a reimbursement of not more than $30 each day for the
rental of an assistive device.
2. If a dealer does not deliver the assistive device to the
manufacturer in a timely manner that allows the manufacturer to repair
the device within 10 working days, the manufacturer may bring an action
against the dealer for reimbursement of any money that the manufacturer
is required to pay to a consumer pursuant to subsection 1.
(Added to NRS by 1997, 944)
An assistive
device that is returned to a manufacturer by a consumer in this state
pursuant to NRS 597.2657 may not be
sold or leased in this state unless the reason for the return of the
assistive device is disclosed to the prospective consumer.
(Added to NRS by 1997, 944)
1. In addition to any other remedy available to a consumer, a
consumer may bring an action to recover any damages caused by a
manufacturer or dealer who violates any of the provisions of NRS 597.264
to 597.2667 , inclusive.
2. The court shall award to the prevailing party not more than
twice the amount of the damages, and costs, including attorney’s fees and
any equitable relief that the court determines is appropriate.
(Added to NRS by 1997, 944)
1. The provisions of NRS 597.264
to 597.2667 , inclusive, do not limit
any rights or remedies a consumer may have pursuant to any other law or
agreement.
2. A waiver by a consumer of any of the rights provided pursuant
to NRS 597.264 to 597.2667 , inclusive, is void.
(Added to NRS by 1997, 944)
AUTOMOTIVE SERVICES
Service Stations
As used in NRS 597.270 to 597.470 ,
inclusive, unless the context requires otherwise, the words and terms
defined in NRS 597.280 to 597.380
, inclusive, have the meanings ascribed
to them in those sections.
(Added to NRS by 1975, 1280; A 1987, 2197; 1999, 702 )
“Affiliate” means any person who
controls, is controlled by or is under common control with any other
person.
(Added to NRS by 1987, 2196)—(Substituted in revision for NRS
598.651)
“Control” means the direct or
indirect ownership of, or right to exercise a directing influence over,
more than 50 percent of the beneficial interest in any other person.
(Added to NRS by 1987, 2196)—(Substituted in revision for NRS
598.6512)
“Franchise” or “franchise agreement” means a written or oral agreement
between a refiner and a retailer under which the retailer is granted the
right:
1. To use a trademark, trade name, service mark or other
identifying symbol or name owned by the refiner; or
2. To occupy premises owned, leased or controlled by the refiner,
for the purpose of engaging in the retail sale of motor vehicle fuel.
(Added to NRS by 1987, 2196)—(Substituted in revision for NRS
598.6514)
“Lessee dealer” means a
retailer who operates a service station pursuant to a franchise agreement
if the service station is leased to the retailer by the refiner with whom
the retailer has entered into the franchise agreement.
(Added to NRS by 1997, 2015)
“Marketing area” means an
area of not more than 5 miles in any direction from a service station
selling the products of a refiner pursuant to a franchise.
(Added to NRS by 1987, 2196)—(Substituted in revision for NRS
598.6516)
“Motor vehicle fuel”
has the meaning ascribed to it in NRS 365.060 , except that it includes diesel fuel.
(Added to NRS by 1987, 2196)—(Substituted in revision for NRS
598.6518)
“Price” means the net purchase price
after any adjustment for a commission, fee, rebate or discount, or for
the furnishing of services or facilities.
(Added to NRS by 1987, 2196)—(Substituted in revision for NRS
598.652)
“Refiner” means any person,
including an affiliate, who:
1. Produced quantities of crude oil equal to more than 30 percent
of the domestic and imported crude oil supplied to his refinery during
the most recent calendar year for which information is available;
2. Refines motor vehicle fuel from crude oil; and
3. Has a total refinery capacity of more than 175,000 barrels a
day.
(Added to NRS by 1987, 2196)—(Substituted in revision for NRS
598.6522)
“Refinery” means a manufacturing
facility at which motor vehicle fuel is produced from crude oil.
(Added to NRS by 1987, 2196)—(Substituted in revision for NRS
598.6524)
“Retailer” means a:
1. Wholesale purchaser; or
2. Person who operates a service station pursuant to a franchise
agreement with a refiner or wholesale purchaser.
(Added to NRS by 1987, 2196)—(Substituted in revision for NRS
598.6526)
“Service station” means an
establishment where motor vehicle fuel is sold to the general public.
(Added to NRS by 1987, 2197)—(Substituted in revision for NRS
598.6528)
“Wholesale purchaser”
means any person who purchases motor vehicle fuel or other petroleum
products from a refiner or other wholesaler for distribution to service
stations or to individual or business consumers.
(Added to NRS by 1987, 2197)—(Substituted in revision for NRS
598.653)
A refiner shall
not, directly or indirectly or through any officer, agent or employee:
1. Prohibit, directly or indirectly, the right of free association
among retailers or wholesale purchasers for any lawful purpose.
2. Change or modify any restrictions upon business activities of a
retailer during the term of the franchise that are not related to the
sale of motor vehicle fuel or other petroleum products.
3. Unreasonably reduce, limit or curtail the supply of motor
vehicle fuel or other petroleum products to any retailer or wholesale
purchaser.
4. Place unreasonable restrictions upon business activities of a
retailer that are not related to the sale of motor vehicle fuel or other
petroleum products or upon any business activities of a wholesale
purchaser.
(Added to NRS by 1975, 1281; A 1987, 2198)—(Substituted in revision
for NRS 598.655)
1. A refiner shall not fail to renew the franchise of any retailer
without fairly compensating the retailer at a fair going business value
for his capital investment if:
(a) The capital investment was entered into with reasonable and
prudent business judgment for the purpose of fulfilling the franchise; and
(b) The cancellation or failure to renew was not done in good faith.
2. For the purposes of this section, “capital investment”
includes, but is not limited to, tools, equipment and any inventory of
parts possessed by the retailer on the day of notification of
cancellation or nonrenewal and which are still in the retailer’s
possession on the day the cancellation or nonrenewal is effective.
(Added to NRS by 1975, 1281; A 1987, 2199)—(Substituted in revision
for NRS 598.660)
1. Except as otherwise provided in subsection 2 or 3, a refiner
shall not, directly or indirectly, or through an officer, agent or
employee terminate, cancel or fail to renew a franchise or a contract
with a wholesale purchaser without first giving to the retailer or
wholesale purchaser written notice as follows:
(a) In case of cancellation or termination, specifying all matters
of claimed noncompliance with the agreement and allowing the other party
at least 30 days to comply with the terms of the agreement. If the other
party does not comply, the cancellation or termination is effective on
the date set forth in the notice.
(b) At least 30 days before the expiration of a term of an
agreement, specifying:
(1) All the reasons for any intention of the refiner not to
renew; or
(2) Any change in price, rent, terms or conditions to which
renewal of the agreement is subject.
2. If the alleged ground is voluntary abandonment by the retailer
of the franchise, or by the wholesale purchaser of his contract, the
written notice may be given 3 days before the termination or cancellation.
3. If the alleged ground is the conviction of the retailer of a
crime punishable as a felony and related to the business conducted
pursuant to the franchise, termination, cancellation or failure to renew
may be effective immediately.
(Added to NRS by 1975, 1281; A 1987, 2199)—(Substituted in revision
for NRS 598.665)
The failure of a
refiner to serve notice upon a retailer or wholesale purchaser as
required in NRS 597.410 constitutes a
grant of the option by the refiner to the retailer or wholesale purchaser
to renew the franchise or contract for a period of 1 year under the same
price, rent, terms and conditions as the expiring agreement. The option
expires 45 days after the date when notice should have been served,
unless exercised by written notice to the refiner.
(Added to NRS by 1975, 1282; A 1987, 2199)—(Substituted in revision
for NRS 598.670)
All notices required of
refiners under NRS 597.410 or 597.420
must be given in writing by certified
mail, return receipt requested, to:
1. The address indicated in the agreement or as subsequently
changed by the party in writing; or
2. If no address was designated, the party’s place of business.
(Added to NRS by 1975, 1282; A 1987, 2200)—(Substituted in revision
for NRS 598.675)
On or after January 1, 2001, a refiner who engages in the
direct operation of:
1. Less than 30 service stations in this state, with his own
employees or through a subsidiary or commissioned agent or a person on
the basis of a fee, may commence the direct operation of not more than 5
additional service stations per calendar year, but in no case may he
commence the direct operation of more than 30 service stations without
complying with the provisions of subsection 2.
2. At least 30 service stations in this state, with his own
employees or through a subsidiary or commissioned agent or a person on
the basis of a fee, may commence the direct operation of additional
service stations per year, with his own employees or through a subsidiary
or commissioned agent or person on the basis of a fee, only if, during
the year in which the service stations are added, he leases, in addition
to the number of service stations leased by the refiner to lessee dealers
on July 1, 1997, at least 1 additional service station to a lessee dealer
for every 2 directly operated service stations added. For the purposes of
this subsection, an additional service station leased by the refiner to a
lessee dealer before the refiner engages in the direct operation of at
least 30 service stations shall be deemed to be 1 service station leased
to a lessee dealer during any year following the year in which the
refiner engages in the direct operation of at least 30 service stations.
(Added to NRS by 1987, 2197; A 1997, 2016; 2003, 1221 )
1. If a refiner is unable to commence the direct operation of a
service station because of the restrictions set forth in NRS 597.440
, the refiner may operate the service
station temporarily for not more than 180 days if:
(a) The retailer voluntarily terminates or agrees not to renew the
franchise for the service station; or
(b) The franchise for the service station is terminated by the
refiner pursuant to NRS 597.270 to
597.470 , inclusive.
2. During the temporary operation of a service station by a
refiner, the refiner may sell motor vehicle fuel to other retailers in
the marketing area of that service station at a price not less than 4
cents below the retail price of fuel at the service station he is
operating.
(Added to NRS by 1987, 2197; A 2003, 1222 )
A refiner shall not, directly or indirectly or
through any officer, agent or employee:
1. Fail to act in good faith in performing or complying with any
term or provision of, or collateral to, a franchise or a contract with a
wholesale purchaser.
2. Use undue influence to induce a retailer to surrender any right
given to the retailer by any provision contained in the franchise.
(Added to NRS by 1987, 2197)—(Substituted in revision for NRS
598.679)
1. A retailer, wholesale purchaser or refiner may bring an action
against the other party for violation of their respective agreements and
may:
(a) Recover the damages sustained.
(b) Obtain injunctive relief to prevent loss of rights or restore
rights lost.
2. The remedies provided in this section are independent of and
supplemental to any other remedy available to the retailer, wholesale
purchaser or refiner in law or equity.
3. In any action under this section the prevailing party is
entitled to recover from the losing party all costs incurred, including
reasonable attorney’s fees.
(Added to NRS by 1975, 1282; A 1987, 2200)—(Substituted in revision
for NRS 598.680)
Automotive Repairs
As used in NRS 597.480 to 597.590 ,
inclusive, unless the context otherwise requires:
1. “Garage” has the meaning ascribed to it in NRS 487.540 .
2. “Garageman” has the meaning ascribed to it in NRS 487.545
.
3. “Motor vehicle” means:
(a) A motorcycle as defined in NRS 482.070 ;
(b) A motortruck as defined in NRS 482.073 if the gross weight of the vehicle does not
exceed 10,000 pounds;
(c) A passenger car as defined in NRS 482.087 ;
(d) A mini motor home as defined in NRS 482.066 ;
(e) A motor home as defined in NRS 482.071 ; and
(f) A recreational vehicle as defined in NRS 482.101 .
4. “Person authorizing repairs” means a person who uses the
services of a garage. The term includes an insurance company, its agents
or representatives, authorizing repairs to motor vehicles under a policy
of insurance.
(Added to NRS by 1975, 637; A 1985, 531; 1989, 1606; 1997, 1374)
1. Each garageman shall display conspicuously in those areas of
his place of business frequented by persons seeking repairs on motor
vehicles a sign, not less than 22 inches by 28 inches in size, setting
forth in boldface letters the following:
STATE OF NEVADA
REGISTERED GARAGE
THIS GARAGE IS REGISTERED WITH THE DEPARTMENT OF MOTOR VEHICLES
NEVADA AUTOMOTIVE REPAIR CUSTOMER BILL OF RIGHTS
AS A CUSTOMER IN NEVADA:
YOU have the right to receive repairs from a business that is REGISTERED
with the Department of Motor Vehicles that will ensure the proper repair
of your vehicle. (NRS 597.490 )
YOU have the right to receive a WRITTEN ESTIMATE of charges for repairs
made to your vehicle which exceed $50. (NRS 597.510 )
YOU have the right to read and understand all documents and warranties
BEFORE YOU SIGN THEM. (NRS 597.490 )
YOU have the right to INSPECT ALL REPLACED PARTS and accessories that are
covered by a warranty and for which a charge is made. (NRS 597.550 )
YOU have the right to request that all replaced parts and accessories
that are not covered by a warranty BE RETURNED TO YOU AT THE TIME OF
SERVICE. (NRS 597.550 )
YOU have the right to require authorization BEFORE any additional repairs
are made to your vehicle if the charges for those repairs exceed 20% of
the original estimate or $100, whichever is less. (NRS 597.520 )
YOU have the right to receive a COMPLETED STATEMENT OF CHARGES for
repairs made to your vehicle. (NRS 487.035 )
YOU have the right to a FAIR RESOLUTION of any dispute that develops
concerning the repair of your vehicle. (NRS 597.490 )
FOR MORE INFORMATION PLEASE CONTACT:
THE DEPARTMENT OF BUSINESS AND INDUSTRY
CONSUMER AFFAIRS DIVISION
IN CLARK COUNTY: (702) 486-7355
ALL OTHER AREAS TOLL-FREE: 1-800-326-5202
2. The sign required pursuant to the provisions of subsection 1
must include a replica of the great seal of the State of Nevada. The seal
must be 2 inches in diameter and be centered on the face of the sign
directly above the words “STATE OF NEVADA.”
3. Any person who violates the provisions of this section is
guilty of a misdemeanor.
(Added to NRS by 1975, 639; A 1999, 1893 ; 2001, 2630 )
Whenever any garageman accepts or assumes control of a motor
vehicle for the purpose of making or completing any repair, he shall
comply with the provisions of NRS 597.510 to 597.570 ,
inclusive.
(Added to NRS by 1975, 637)—(Substituted in revision for NRS
598.700)
1. Except as otherwise provided in NRS 597.530 , a person requesting or authorizing the repair
of a motor vehicle that is more than $50 must be furnished an estimate or
statement signed by the person making the estimate or statement on behalf
of the garageman, indicating the total charge for the performance of the
work necessary to accomplish the repair, including the charge for labor
and all parts and accessories necessary to perform the work.
2. If the estimate is for the purpose of diagnosing a malfunction,
the estimate must include the cost of:
(a) Diagnosis and disassembly; and
(b) Reassembly, if the person does not authorize the repair.
3. The provisions of this section do not require a garageman to
reassemble a motor vehicle if he determines that the reassembly of the
motor vehicle would render the vehicle unsafe to operate.
(Added to NRS by 1975, 637; A 1999, 1895 )
Except as otherwise provided in NRS 597.530 , if it is determined that additional charges
are required to perform the repair authorized, and those additional
charges exceed, by 20 percent or $100, whichever is less, the amount set
forth in the estimate or statement required to be furnished pursuant to
the provisions of NRS 597.510 , the
garageman shall notify the person authorizing the repairs of the amount
of those additional charges.
(Added to NRS by 1975, 637; A 1999, 1895 )
The person authorizing the repairs may
waive the estimate or statement required pursuant to the provisions of
NRS 597.510 or the notification
required by NRS 597.520 by executing a
written waiver of that requirement or notification. The waiver must be
executed by the person authorizing the repairs at the time he authorizes
those repairs.
(Added to NRS by 1975, 638; A 1999, 1895 )
1. A person authorizing repairs who has been notified of
additional charges pursuant to NRS 597.520 shall:
(a) Authorize the performance of the repair at the additional
expense; or
(b) Without delay, and upon payment of the authorized charges, take
possession of the motor vehicle.
2. Until the election provided for in subsection 1 has been made,
the garageman shall not undertake any repair which would involve such
additional charges.
3. If the person elects to take possession of the motor vehicle
but fails to take possession within a 24-hour period after such election,
the garageman may charge for storage of the vehicle.
(Added to NRS by 1975, 638)—(Substituted in revision for NRS
598.720)
1. Whenever the repair work performed on a motor vehicle requires
the replacement of any parts or accessories, the garageman shall, at the
request of the person authorizing the repairs or any person entitled to
possession of the motor vehicle, deliver to such person all parts and
accessories replaced as a result of the work done.
2. The provisions of subsection 1 do not apply to parts or
accessories which must be returned to a manufacturer or distributor under
a warranty arrangement or which are subject to exchange, but the customer
on request is entitled to be shown such warranty parts for which a charge
is made.
(Added to NRS by 1975, 638)—(Substituted in revision for NRS
598.725)
The garageman
shall retain copies of any estimate, statement or waiver required by NRS
597.510 to 597.550 , inclusive, as an ordinary business record of
the garage, for a period of not less than 1 year from the date such
estimate, statement or waiver is signed.
(Added to NRS by 1975, 639)—(Substituted in revision for NRS
598.730)
035 also required; enforcement of liens and
contracts. In every instance where charges are made for the repair of a
motor vehicle, the garageman making the repairs shall comply with the
provisions of NRS 487.035 as well as
the provisions of NRS 597.510 to
597.550 , inclusive. He is not entitled
to detain a motor vehicle by virtue of any common law or statutory lien,
or otherwise enforce such lien, nor shall he have the right to sue on any
contract for repairs made by him, unless he has complied with the
requirements of NRS 597.510 to 597.550
, inclusive, in addition to those of NRS
487.035 .
(Added to NRS by 1975, 639)—(Substituted in revision for NRS
598.735)
The Attorney General
or any district attorney may bring an action in any court of competent
jurisdiction in the name of the State of Nevada on the complaint of the
Commissioner of Consumer Affairs or of any person allegedly aggrieved by
such violation to enjoin any violation of the provisions of NRS 597.510
to 597.570 , inclusive.
(Added to NRS by 1975, 639)—(Substituted in revision for NRS
598.740)
Any person who knowingly
violates any provision of NRS 597.500
to 597.570 , inclusive, is liable, in
addition to any other penalty or remedy which may be provided by law, to
a civil penalty of not more than $500 for each offense, which may be
recovered by civil action on complaint of the Commissioner of Consumer
Affairs, the Director of the Department of Business and Industry or the
district attorney.
(Added to NRS by 1975, 639; A 1977, 307; 1985, 2260; 1993,
1800)—(Substituted in revision for NRS 598.745)
Repairs to Conform to Express Warranties
As used in NRS 597.600 to 597.688 ,
inclusive, unless the context otherwise requires:
1. “Buyer” means:
(a) A person who purchases or contracts to purchase, other than for
purposes of resale, a motor vehicle normally used for personal, family or
household purposes.
(b) Any person to whom the motor vehicle is transferred during the
time a manufacturer’s express warranty applicable to the motor vehicle is
in effect.
(c) Any other person entitled by the terms of the warranty to
enforce its obligations.
2. Except as otherwise provided in this subsection, “motor
vehicle” has the meaning ascribed to it in NRS 482.075 . The term does not include motor homes or
off-road vehicles except for the purposes of NRS 597.680 .
(Added to NRS by 1983, 610; A 1985, 2026; 1995, 2366; 2005, 1249
)
If a new motor vehicle does not conform to all of the
manufacturer’s applicable express warranties and the buyer reports the
nonconformity in writing to the manufacturer:
1. Before the expiration of the manufacturer’s express warranties;
or
2. No later than 1 year after the date the motor vehicle is
delivered to the original buyer,
Ê whichever occurs earlier, the manufacturer, its agent or its authorized
dealer shall make such repairs as are necessary to conform the vehicle to
the express warranties without regard to whether the repairs will be made
after the expiration of the express warranty or the time described in
subsection 2.
(Added to NRS by 1983, 610)—(Substituted in revision for NRS
598.756)
If the manufacturer has
established or designated a procedure for settling disputes informally
which substantially complies with the provisions of Title 16 of the Code
of Federal Regulations, Part 703, a buyer must first submit his claim for
replacement of the motor vehicle or for refund of the purchase price
under that procedure before bringing any action under NRS 597.630 .
(Added to NRS by 1983, 612)—(Substituted in revision for NRS
598.761)
1. If, after a reasonable number of attempts, the manufacturer, or
its agent or authorized dealer is unable to conform the motor vehicle to
any applicable express warranty by repair or correction and the defect or
condition causing the nonconformity substantially impairs the use and
value of the motor vehicle to the buyer and is not the result of abuse,
neglect or unauthorized modifications or alterations of the motor
vehicle, the manufacturer shall:
(a) Replace the motor vehicle with a comparable motor vehicle of
the same model and having the same features as the replaced vehicle, or
if such a vehicle cannot be delivered to the buyer within a reasonable
time, then a comparable motor vehicle substantially similar to the
replaced vehicle; or
(b) Accept return of the motor vehicle from the buyer and refund to
him the full purchase price including all sales taxes, license fees,
registration fees and other similar governmental charges, less a
reasonable allowance for his use of the vehicle. A reasonable allowance
for use is that amount directly attributable to use by the buyer before
his first report of the nonconformity to the manufacturer, agent or
dealer and during any subsequent period when the vehicle is not out of
service for repairs. Refunds must be made to the buyer, and lienholder if
any, as their interests may appear.
2. It is presumed that a reasonable number of attempts have been
undertaken to conform a motor vehicle to the applicable express
warranties where:
(a) The same nonconformity has been subject to repair four or more
times by the manufacturer, or its agent or authorized dealer within the
time the express warranty is in effect or within 1 year following the
date the motor vehicle is delivered to the original buyer, whichever
occurs earlier, but the nonconformity continues to exist; or
(b) The motor vehicle is out of service for repairs for a
cumulative total of 30 or more calendar days within the time the express
warranty is in effect or within 1 year following the date the motor
vehicle is delivered to the original buyer, whichever occurs earlier,
except that if the necessary repairs cannot be made for reasons which are
beyond the control of the manufacturer or its agent or authorized dealer,
the number of days required to give rise to the presumption must be
appropriately extended.
(Added to NRS by 1983, 611)—(Substituted in revision for NRS
598.766)
For the
purposes of NRS 597.600 to 597.670
, inclusive, the running of the time an
express warranty is in effect or of any other period of time described in
those sections is tolled for the time during which services to repair the
motor vehicle are not reasonably available to the buyer because of a war,
invasion or strike, or because of a fire, flood or other natural disaster.
(Added to NRS by 1983, 611)—(Substituted in revision for NRS
598.771)
Any action brought
pursuant to NRS 597.600 to 597.630
, inclusive, must be commenced within 18
months after the date of the original delivery of the motor vehicle to
the buyer.
(Added to NRS by 1983, 612)—(Substituted in revision for NRS
598.776)
Any provision
in any agreement between the manufacturer or its agent or authorized
dealer and the buyer which provides that the buyer agrees to waive or
forego any rights or remedies afforded by NRS 597.600 to 597.630 ,
inclusive, is void.
(Added to NRS by 1983, 612)—(Substituted in revision for NRS
598.781)
The
provisions of NRS 597.600 to 597.630
, inclusive, do not limit any other
right or remedy which the buyer may have by law or by agreement.
(Added to NRS by 1983, 612)—(Substituted in revision for NRS
598.786)
Any person entitled by the terms of a
manufacturer’s express warranty to enforce its obligations is responsible
for notifying the manufacturer of any change in his residential address.
(Added to NRS by 1995, 2366)
The manufacturer shall reimburse
its agent or authorized dealer for the cost of repairs made to a motor
vehicle to conform it to the manufacturer’s express warranties. The
reimbursement must be paid at the rate usually billed by the agent or
dealer to the general public for similar repairs.
(Added to NRS by 1985, 2026)—(Substituted in revision for NRS
598.791)
1. A manufacturer, or its agent or authorized dealer, who
reacquires a motor vehicle pursuant NRS 597.630 that was registered in this State, or any
other state, the District of Columbia or any territory or possession of
the United States, or who assists a lienholder in reacquiring such a
motor vehicle, shall, before selling, leasing or transferring ownership
of the motor vehicle in this State or exporting the motor vehicle to
another state for sale, lease or transfer:
(a) Cause the motor vehicle to be retitled in the name of the
manufacturer;
(b) Request the Department of Motor Vehicles to inscribe the
certificate of ownership for the motor vehicle with the notation “Lemon
Law Buyback”; and
(c) Affix a decal to the motor vehicle in accordance with
subsection 6.
2. Any manufacturer who reacquires, or assists a dealer or
lienholder in reacquiring, a motor vehicle in response to a request by
the buyer or lessee that the motor vehicle be replaced or accepted for a
refund because the motor vehicle did not conform to express warranties
shall, before the sale, lease or other transfer of the motor vehicle,
execute and deliver to the subsequent transferee a notice and obtain the
transferee’s written acknowledgment of the notice in accordance with NRS
597.684 .
3. Any person, including any dealer, who acquires a motor vehicle
for resale and knows that the motor vehicle was reacquired by the
manufacturer of the motor vehicle pursuant to NRS 597.630 shall, before the sale, lease or other
transfer, execute and deliver to the subsequent transferee a notice and
obtain the transferee’s written acknowledgment of the notice in
accordance with NRS 597.684 .
4. Any person, including any manufacturer or dealer, who sells,
leases or transfers ownership of a motor vehicle when the certificate of
ownership for the motor vehicle is inscribed with the notation “Lemon Law
Buyback” shall, before the sale, lease, or ownership transfer of the
motor vehicle, submit to the transferee a written disclosure signed by
the transferee stating that:
THIS VEHICLE WAS REPURCHASED BY ITS MANUFACTURER BECAUSE OF A
DEFECT IN THE VEHICLE PURSUANT TO CONSUMER WARRANTY LAWS. THE TITLE TO
THIS VEHICLE HAS BEEN PERMANENTLY INSCRIBED WITH THE NOTATION “LEMON LAW
BUYBACK.”
5. The requirements for disclosure set forth in subsections 1, 2
and 3 are in addition to any other notice requirements for consumers and
do not relieve any person, including any dealer or manufacturer, from
complying with any other applicable law.
6. The decal required pursuant to subsection 1 must be affixed to
the left front doorframe of the motor vehicle or, if the motor vehicle
does not have a left front doorframe, in a location designated by the
Department of Motor Vehicles. The decal must specify that the certificate
of title to the motor vehicle has been permanently inscribed with the
notation “Lemon Law Buyback.” A person shall not knowingly remove or
alter any decal affixed to a motor vehicle pursuant to this subsection,
regardless of whether the motor vehicle is licensed pursuant to this
chapter.
(Added to NRS by 2005, 1246 )
1. The notice required pursuant to subsections 1, 2 and 3 of NRS
597.682 must be prepared by the
manufacturer of the reacquired motor vehicle and specify:
(a) The year, make, model and vehicle identification number of the
motor vehicle.
(b) Whether the certificate of title for the motor vehicle has been
inscribed with the notation “Lemon Law Buyback.”
(c) The nature of each nonconformity reported by the original buyer
or lessee of the motor vehicle.
(d) The repairs, if any, made to the motor vehicle in an attempt to
correct each nonconformity reported by the original buyer or lessee.
2. The notice must be included on a form 8 1/2 x 11 inches in size
and printed in a size equal to at least 10-point black type on a white
background. The form must only contain the following information and be
completed by the manufacturer:
WARRANTY BUYBACK NOTICE
(Check One)
/__/ This vehicle was repurchased by the vehicle’s manufacturer after the
last retail owner or lessee requested its repurchase because of the
problems listed below.
/__/ THIS VEHICLE WAS REPURCHASED BY ITS MANUFACTURER BECAUSE OF A DEFECT
IN THE VEHICLE PURSUANT TO CONSUMER WARRANTY LAWS. THE TITLE TO THIS
VEHICLE HAS BEEN PERMANENTLY INSCRIBED WITH THE NOTATION “LEMON LAW
BUYBACK.” Under Nevada law, the manufacturer must warrant to you, for 1
year, that the vehicle is free of the problems listed below.
V.I.N.
Year
Make
Model
Problem(s) Reported by Original Owner
Repairs Made, if any, to Correct Reported Problem(s)
Signature of Manufacturer Date
..................................................................
Signature of Dealers Date
..................................................................
..................................................................
Signature of Retail Buyer or Lessee Date
..................................................................
..................................................................
(Added to NRS by 2005, 1247 )
1. A manufacturer, importer, distributor, dealer or lienholder who
reacquires or assists in reacquiring a motor vehicle, whether by
judgment, decree, arbitration award, settlement agreement or voluntary
agreement, shall not:
(a) Require, as a condition of the reacquisition of the motor
vehicle, a buyer or lessee who is a resident of this State to agree to
refrain from disclosing the problems with the motor vehicle experienced
by the buyer or lessee or the nonfinancial terms of the reacquisition.
(b) Include, in any release or other agreement, whether prepared by
the manufacturer, importer, distributor, dealer or lienholder, for
signature by the buyer or lessee, a confidentiality clause, gag clause or
similar clause prohibiting the buyer or lessee from disclosing
information to any other person concerning the problems with the motor
vehicle or the nonfinancial terms of the reacquisition of the motor
vehicle by the manufacturer, importer, distributor, dealer or lienholder.
2. Any confidentiality clause, gag clause or similar clause
included in the release or other agreement in violation of this section
is void.
3. The provisions of this section do not prohibit the inclusion
within the release or other agreement any confidentiality clause, gag
clause or similar clause regarding the financial terms of the
reacquisition of the motor vehicle.
(Added to NRS by 2005, 1248 )
A person who incurs
an injury or damages as the proximate result of a violation of the
provisions of NRS 597.682 , 597.684
or 597.686 may commence an action in a court of competent
jurisdiction for the recovery of his actual damages, costs and reasonable
attorney’s fees and for any punitive damages that the facts may warrant.
(Added to NRS 2005, 1249 )
Miscellaneous Provisions
1. Every manufacturer of a vehicle who furnishes notification to
the registered owner of the vehicle of any defect in the vehicle related
to vehicle safety shall, notwithstanding the limitations of any warranty
relating to such vehicle, correct such defect at the manufacturer’s
expense and without charge to the registered owner of the vehicle if the
vehicle is returned to any vehicle dealer franchised by the manufacturer
to market the vehicle, or, at the election of the manufacturer, reimburse
the registered owner for the actual cost of making such correction.
2. This section does not require a vehicle dealer to make the
required correction if the manufacturer has failed to make available to
the dealer the parts needed to make the correction.
(Added to NRS by 1973, 675)—(Substituted in revision for NRS
598.796)
It is unlawful for a person, for compensation, to place,
install, affix or apply upon the windshield or side or rear window of a
motor vehicle any transparent material which alters the color or reduces
the light transmission of the windshield or side or rear window unless he
displays conspicuously in those areas of his place of business frequented
by persons seeking such services a sign, not less than 22 inches by 28
inches in size, setting forth in boldface letters the following:
STATE LAW PROHIBITS THE PLACEMENT OF ANY MATERIAL ON A WINDSHIELD OR SIDE
OR REAR WINDOW WHICH ALTERS THE COLOR OR REDUCES THE LIGHT TRANSMISSION
OF THE WINDSHIELD OR ANY SIDE OR REAR WINDOW OF A MOTOR VEHICLE, EXCEPT
THAT THIS PROHIBITION DOES NOT APPLY TO:
1. A WINDOW THAT IS TO THE IMMEDIATE RIGHT OR LEFT OF THE DRIVER
IF THE WINDOW IS:
(A) NONREFLECTIVE; AND
(B) HAS A TOTAL LIGHT TRANSMISSION THROUGH THE COMBINATION, IF
ANY, OF TRANSPARENT MATERIAL AND SAFETY GLAZING OF NOT LESS THAN 35
PERCENT WITH A TOLERANCE OF 7 PERCENT.
2. A SIDE WINDOW THAT IS TO THE REAR OF THE DRIVER, OR A REAR
WINDOW, IF THE VEHICLE HAS OUTSIDE MIRRORS ON EACH SIDE THAT ARE LOCATED
SO AS TO REFLECT TO THE DRIVER A VIEW OF THE HIGHWAY THROUGH EACH MIRROR
FOR A DISTANCE OF NOT LESS THAN 200 FEET TO THE REAR OF THE VEHICLE.
3. ANY TRANSPARENT MATERIAL THAT IS INSTALLED, AFFIXED OR APPLIED
TO THE TOPMOST PORTION OF THE WINDSHIELD IF:
(A) THE BOTTOM EDGE OF THE MATERIAL IS NOT LESS THAN 29 INCHES
ABOVE THE UNDEPRESSED DRIVER’S SEAT WHEN MEASURED FROM A POINT 5 INCHES
IN FRONT OF THE BOTTOM OF THE BACKREST WITH THE DRIVER’S SEAT IN ITS
REARMOST AND LOWERMOST POSITION WITH THE VEHICLE ON A LEVEL SURFACE; AND
(B) THE MATERIAL IS NOT RED OR AMBER IN COLOR.
(Added to NRS by 1993, 2434)
RESIDENTIAL SWIMMING POOLS AND SPAS
[Replaced in revision by NRS 624.900
to 624.915 , inclusive.]
[Replaced in revision by NRS 624.930 .]
[Replaced in
revision by NRS 624.935 .]
[Replaced in revision by NRS 624.940 .]
[Replaced in revision by NRS
624.945 .]
[Replaced in revision
by NRS 624.950 .]
[Replaced in revision by NRS 624.955 .]
[Replaced in revision by NRS 624.960 .]
[Replaced in revision by NRS 624.965 .]
WORKS OF ART
As used in NRS 597.720 to 597.760 ,
inclusive, unless the context otherwise requires:
1. “Artist” means a person who creates a work of art.
2. “Reproduction” means a copy, in any medium, of a work of art,
that is represented as the work of art as created by the artist.
3. “Work of art” means any original creation of visual or graphic
art in any medium including painting, drawing, photographic print or
sculpture of a limited edition of not more than 300 copies. The term does
not include:
(a) Sequential imagery such as that in motion pictures.
(b) Work prepared under contract for commercial use by the
purchaser.
(c) Work prepared by the employee of a publisher during the course
of his employment.
(d) Work submitted for publication at no charge.
(Added to NRS by 1989, 192)—(Substituted in revision for NRS
598.970)
An artist may:
1. Claim authorship of his work of art. The right to claim
authorship includes the right of the artist to have his name appear on or
with his work of art.
2. Disclaim authorship of his work of art if necessary to protect
his reputation from damage. It is presumed necessary for an artist to
protect his reputation from damage if his work of art is displayed,
published or reproduced in this state, without his consent, in a defaced,
mutilated or altered form and damage to his reputation is reasonably
foreseeable.
(Added to NRS by 1989, 193)—(Substituted in revision for NRS
598.972)
1. Except as otherwise provided in subsection 3, if damage to the
reputation of an artist is reasonably foreseeable, a person shall not,
without the consent of that artist, publish or display in public, in this
state, the artist’s work of art or a reproduction of the artist’s work of
art, in a defaced, mutilated or altered form and represent it as the work
of the artist.
2. An artist who is injured by a violation of subsection 1 may
bring an action for damages, together with reasonable attorney’s fees and
the costs of the action as are authorized under NRS 18.110 .
3. Defacement, mutilation or alteration of a work of art which is
caused by the passage of time or the inherent nature of the materials
used in the creation of the work of art does not give an artist the right
to disclaim authorship pursuant to NRS 597.730 or a cause of action under subsection 2,
unless the defacement, mutilation or alteration of the work of art is the
result of negligent conservation. For the purposes of this subsection,
“conservation” means those acts taken to preserve and protect a work of
art or to slow its deterioration.
4. A change in a work of art that is an ordinary result of a
medium of reproduction does not constitute defacement, mutilation or
alteration.
(Added to NRS by 1989, 193)—(Substituted in revision for NRS
598.974)
An artist may waive, in writing,
his rights under NRS 597.720 to 597.760
, inclusive.
(Added to NRS by 1989, 193)—(Substituted in revision for NRS
598.976)
1. When ownership of a work of art is transferred from the artist
who created it or his heirs, the right of reproduction remains with the
artist or his heirs until it passes into the public domain by act or
operation of law or is expressly transferred in writing.
2. When an exclusive or nonexclusive right of reproduction is
transferred by the owner of such right, it must be presumed that
ownership of the physical work of art remains with the owner of the work
of art unless it is expressly transferred in writing with the right of
reproduction.
3. For the purposes of this section “right of reproduction” means
the right to reproduce, display and distribute copies of a work of art.
The term includes the right to prepare variations of the original work of
art.
(Added to NRS by 1989, 193)—(Substituted in revision for NRS
598.978)
RIGHT OF PUBLICITY
As used in NRS 597.770 to 597.810 ,
inclusive:
1. “Commercial use” includes the use of the name, voice,
signature, photograph or likeness of a person on or in any product,
merchandise or goods or for the purposes of advertising, selling or
soliciting the purchase of any product, merchandise, goods or service.
2. “Governmental agency” means the Commission on Tourism and a
governmental entity in a county whose population is 100,000 or more that
has as a statutory purpose, power or duty the promotion of travel or
tourism in this state and that employs photographers full-time or by
contract to take pictures to promote travel and tourism, portray
historical events or commemorate persons or physical sites that are
significant in the history of the state.
3. “Person” means a natural person.
(Added to NRS by 1989, 1608; A 1995, 1645)
The provisions of NRS 597.770 to 597.810 ,
inclusive, apply to any commercial use within this state of a living or
deceased person’s name, voice, signature, photograph or likeness
regardless of the person’s domicile.
(Added to NRS by 1989, 1610)—(Substituted in revision for NRS
598.982)
1. There is a right of publicity in the name, voice, signature,
photograph or likeness of every person. The right endures for a term
consisting of the life of the person and 50 years after his death,
regardless of whether the person commercially exploits the right during
his lifetime.
2. Any commercial use by another of the name, voice, signature,
photograph or likeness of a person requires the written consent of that
person or his successor in interest unless:
(a) The use is contained in material which is commercially
sponsored but the use is not directly connected with the commercial
sponsorship;
(b) The use is an attempt to portray, imitate, simulate or
impersonate a person in a live performance;
(c) The use is in connection with a news, public affairs or sports
broadcast or publication;
(d) The use is an attempt to portray, imitate, simulate or
impersonate a person in a play, book, magazine article, newspaper
article, musical composition, film, or a radio, television or other audio
or visual program, except where the use is directly connected with
commercial sponsorship;
(e) The use is in connection with an original work of art except
that multiple editions of such a work of art require consent;
(f) The use is in connection with an advertisement or commercial
announcement for a use permitted by this subsection; or
(g) The use is in connection with the efforts of a governmental
agency to promote travel and tourism in this state, portray historical
events or commemorate persons or physical sites that are significant in
the history of this state, except where the use is directly connected
with commercial sponsorship.
Ê For the purposes of this subsection, the issue of whether a use is
directly connected with commercial sponsorship is a question of fact, to
be determined by the trier of fact in an action brought pursuant to NRS
597.810 .
3. If a governmental agency intends to have photographs taken at a
public event for use pursuant to paragraph (g) of subsection 2, the
governmental agency shall, if practicable, announce or otherwise inform
the public, or request the sponsor of the event to announce or otherwise
inform the public, that photographs may be taken that can be used in
materials for the promotion of travel and tourism in this state without
permission from the person photographed.
(Added to NRS by 1989, 1608; A 1995, 1646)
1. The right of publicity established by NRS 597.790 is freely transferable, in whole or in part,
by contract, license, gift, conveyance, assignment, devise or
testamentary trust by a person or his successor in interest.
2. If a deceased person has not transferred his rights as provided
by subsection 1, and he has no surviving beneficiary or successor in
interest upon his death, the commercial use of his name, voice,
signature, photograph or likeness does not require consent.
3. A successor in interest or a licensee of a deceased person may
file in the Office of the Secretary of State, on a form prescribed by the
Secretary of State and upon the payment of a filing fee of $25, a
verified application for registration of his claim. The application must
include:
(a) The legal and professional name of the deceased person;
(b) The date of death of the deceased person;
(c) The name and address of the claimant;
(d) The basis of the claim; and
(e) A description of the rights claimed.
4. A successor in interest or a licensee of a deceased person may
not assert any right against any unauthorized commercial use of the
deceased person’s name, voice, signature, photograph or likeness that
begins before the filing of an application to register his claim.
5. A person, firm or corporation seeking to use the name, voice,
signature, photograph or likeness of a deceased person for commercial
purposes must first make a reasonable effort, in good faith, to discover
the identity of any person who qualifies as a successor in interest to
the deceased person. A person claiming to be a successor in interest to a
deceased person must, within 6 months after the date he becomes aware or
should reasonably have become aware of an unauthorized commercial use of
the deceased person’s name, voice, signature, photograph or likeness,
register a claim with the Secretary of State pursuant to subsection 3.
Failure to register shall be deemed a waiver of any right of publicity.
6. The Secretary of State may microfilm or reproduce by other
techniques any document filed pursuant to this section and thereafter
destroy the original of the document. The microfilm or other reproduction
is admissible in any court of record. The Secretary of State may destroy
the microfilm or other reproduction 50 years after the death of the
person whose identity is the subject of the claim.
7. A claim registered pursuant to this section is a public record.
(Added to NRS by 1989, 1609)—(Substituted in revision for NRS
598.986)
1. Any commercial use of the name, voice, signature, photograph or
likeness of another by a person, firm or corporation without first having
obtained written consent for the use is subject to:
(a) Injunctive relief to prevent or restrain the unauthorized use;
and
(b) An action at law for any injuries sustained by reason of the
unauthorized use. In such a suit, the plaintiff may recover:
(1) Actual damages, but not less than $750; and
(2) Exemplary or punitive damages, if the trier of fact
finds that the defendant knowingly made use of the name, voice,
signature, photograph or likeness of another person without the consent
required by NRS 597.790 .
2. No owner or employee of any medium used for advertising is
liable pursuant to this section for any unauthorized commercial use of a
person’s name, voice, signature, photograph or likeness unless it is
established that the owner or employee had actual knowledge of the
unauthorized use.
(Added to NRS by 1989, 1609)—(Substituted in revision for NRS
598.988)
DEVICES FOR AUTOMATIC DIALING AND ANNOUNCING
As used in NRS 597.812 to 597.818
, inclusive, “device for automatic
dialing and announcing” means any equipment that:
1. Incorporates a storage capability of telephone numbers to be
called and utilizes a random or sequential number generator producing
telephone numbers to be called; and
2. Is used exclusively, working alone or in conjunction with other
equipment, to disseminate a prerecorded message to the telephone number
called to solicit a person at the telephone number called to purchase
goods or services.
(Added to NRS by 1999, 3331 )
1. Except as otherwise provided in subsection 3 and NRS 597.816
, a person shall not use a device for
automatic dialing and announcing to disseminate a prerecorded message in
a telephone call unless, before the message is disseminated, a recorded
or unrecorded natural voice:
(a) Informs the person who answers the telephone call of the nature
of the call, including, without limitation, the fact that a device for
automatic dialing and announcing will be used to disseminate the message
if the person who answers the call remains on the line; and
(b) Provides to the person who answers the telephone call the name,
address and telephone number of the business or organization, if any,
being represented by the caller.
2. A person shall not operate a device for automatic dialing and
announcing to place:
(a) A call that is received by a telephone located in this State
during the period between 8 p.m. and 9 a.m.; or
(b) A call-back or second call to the same telephone number if a
person at the telephone number terminated the original call.
3. This section does not prohibit the use of a device for
automatic dialing and announcing to dial the number of and play a
recorded message to a person with whom the person using the device or
another person affiliated with the person using the device has a
preexisting business relationship.
(Added to NRS by 1989, 79; A 1999, 3332 ; 2003, 2874 )
The
provisions of NRS 597.814 do not
prohibit the use of a device for automatic dialing and announcing by any
person exclusively on behalf of:
1. A school or school district to contact the parents or guardians
of a pupil regarding the attendance of the pupil or regarding other
business of the school or school district.
2. A nonprofit organization.
3. A company that provides cable television services to contact
its customers regarding a previously arranged installation of such
services at the premises of the customer.
4. A public utility to contact its customers regarding a
previously arranged installation of utility services at the premises of
the customer.
5. A facility that processes or stores petroleum, volatile
petroleum products, natural gas, liquefied petroleum gas, combustible
chemicals, explosives, high-level radioactive waste or other dangerous
substances to advise local residents, public service agencies and news
media of an actual or potential life-threatening emergency.
6. A state or local governmental agency, or a private entity
operating under contract with and at the direction of such an agency, to
provide:
(a) Information relating to public safety;
(b) Information relating to a police or fire emergency; or
(c) A warning of an impending or threatening emergency.
7. A candidate for public office, committee advocating the passage
or defeat of a ballot question, political party, committee sponsored by a
political party or a committee for political action.
(Added to NRS by 1999, 3331 )
1. A person who violates any provision of NRS 597.814 is guilty of a misdemeanor.
2. If a person is found guilty of, or has pleaded guilty or nolo
contendere to, violating any provision of NRS 597.814 , his telephone service to which a device for
automatic dialing and announcing has been connected must be suspended for
a period determined by the court.
(Added to NRS by 1999, 3332 )
MISCELLANEOUS PROVISIONS
1. No person, dealer, firm, agency, partnership, corporation,
service station, garage, or business concern of any kind, wholesale or
retail, shall add to the selling price of any article of merchandise,
commodity, service or utility, motor part or accessory, tire, gasoline or
other motor fuel or lubricating liquid, or any article whatsoever upon
which there is or hereafter may be a sales tax, either federal or state,
when sold, offered or exposed for sale, trade or barter in this State,
more than the actual amount of such sales tax in the smallest unit under
which any of such articles is offered for sale or sold; provided, that
where such sales tax in case of units of any such merchandise or articles
amounts to less than 1 cent, 1 cent and no more may be added to the price
of the unit when sold.
2. A violation of the provisions of subsection 1 shall be a
misdemeanor.
[Part 1:175:1933; 1931 NCL § 6821] + [Part 2:175:1933; 1931 NCL §
6821.01]—(NRS A 1967, 620)—(Substituted in revision for NRS 598.010)
1. If a federal or state tax is imposed on an admission to or on a
ticket sold for a public entertainment or amusement of any kind in this
state, it shall be unlawful to add to the price of the admission or
ticket more than the actual amount of the tax.
2. A violation of the provisions of subsection 1 shall be a
misdemeanor.
[Part 1:175:1933; 1931 NCL § 6821] + [Part 2:175:1933; 1931 NCL §
6821.01]—(NRS A 1967, 620)—(Substituted in revision for NRS 598.020)
1. A person shall not hold a deposit for the purchase of an item
longer than the time specified in a contract between the purchaser and
the seller if the purchaser is entitled to the return of the deposit.
2. A person who violates the provisions of subsection 1 shall be
punished by a fine of not more than the amount of the deposit multiplied
by the number of working days the deposit was retained after return was
due.
(Added to NRS by 1985, 2255)—(Substituted in revision for NRS
598.025)
1. As used in this section and in NRS 597.860 and 597.870 :
(a) “Merchandise” means any personal property, capable of manual
delivery, displayed, held or offered for sale by a merchant.
(b) “Merchant” means an owner or operator, and the agent,
consignee, employee, lessee, or officer of an owner or operator, of any
merchant’s premises.
(c) “Premises” means any establishment or part thereof wherein
merchandise is displayed, held or offered for sale.
2. Any merchant may request any person on his premises to place or
keep in full view any merchandise the person may have removed, or which
the merchant has reason to believe he may have removed, from its place of
display or elsewhere, whether for examination, purchase or for any other
purpose. No merchant is criminally or civilly liable on account of having
made such a request.
3. Any merchant who has reason to believe that merchandise has
been wrongfully taken by a person and that he can recover the merchandise
by taking the person into custody and detaining him may, for the purpose
of attempting to effect such recovery or for the purpose of informing a
peace officer of the circumstances of such detention, take the person
into custody and detain him, on the premises, in a reasonable manner and
for a reasonable length of time. A merchant is presumed to have reason to
believe that merchandise has been wrongfully taken by a person and that
he can recover the merchandise by taking the person into custody and
detaining him if the merchant observed the person concealing merchandise
while on the premises. Such taking into custody and detention by a
merchant does not render the merchant criminally or civilly liable for
false arrest, false imprisonment, slander or unlawful detention unless
the taking into custody and detention are unreasonable under all the
circumstances.
4. No merchant is entitled to the immunity from liability provided
for in this section unless there is displayed in a conspicuous place on
his premises a notice in boldface type clearly legible and in
substantially the following form:
Any merchant or his agent who has reason to believe that
merchandise has been wrongfully taken by a person may detain such person
on the premises of the merchant for the purpose of recovering the
property or notifying a peace officer. An adult or the parents or legal
guardian of a minor, who steals merchandise is civilly liable for its
value and additional damages. NRS 597.850 , 597.860 and
597.870 .
(Added to NRS by 1959, 407; A 1961, 357; 1963, 504; 1969, 1528;
1973, 376, 1476; 1985, 468; 1993, 1798; 1997, 22; 1999, 96 ; 2005, 1093 )
1. An adult who steals merchandise from, or damages property on, a
merchant’s premises is civilly liable for the retail value of the
merchandise or the fair market value of the other property, plus damages
of not less than $100 nor more than $250, costs of suit and reasonable
attorney’s fees. An action may be brought even if there has been no
criminal conviction for the theft or damage.
2. An action under this section may be brought as a small claim in
a Justice Court if the total amount sought does not exceed the statutory
limit for such a claim.
(Added to NRS by 1973, 376; A 1985, 796; 1993, 77)—(Substituted in
revision for NRS 598.033)
1. The parent or legal guardian, as the case may be, of a minor
who steals merchandise from, or damages property on, a merchant’s
premises is civilly liable for:
(a) The retail value of the merchandise; and
(b) The fair market value of the damaged property,
Ê plus damages of not less than $100 nor more than $250, costs of suit
and reasonable attorney’s fees. An action may be brought even if there
has been no criminal conviction for the theft or damage. Recovery under
this section may be had in addition to, and is not limited by, any other
provision of law which limits the liability of a parent or legal guardian
for the tortious conduct of a minor.
2. An action under this section may be brought as a small claim in
a Justice Court if the total amount sought does not exceed the statutory
limit for such a claim.
(Added to NRS by 1973, 376; A 1985, 796; 1993, 78)—(Substituted in
revision for NRS 598.035)
1. As used in this section, “master motor vehicle key set” means a
key or keys that may be used to operate more than one motor vehicle.
2. A person shall not sell a master motor vehicle key set to any
person except automobile dealers, automobile repairmen, locksmiths and
peace officers of the State of Nevada.
3. A person shall not advertise the sale of a master motor vehicle
key set except in trade journals of automobile dealers, automobile
repairmen and locksmiths.
4. Any person who violates the provisions of subsection 2 or 3 is
guilty of a misdemeanor.
(Added to NRS by 1967, 142; A 1985, 347)—(Substituted in revision
for NRS 598.040)
1. The owner of a facility for the storage of personal property or
a person acting on his behalf shall not advertise that the facility is
“climate controlled” unless the advertisement specifies the range of the
minimum and maximum temperature and humidity within which the facility is
maintained.
2. If an owner or a person acting on his behalf fails to indicate
the range of temperature and humidity of a facility in any advertisement
that refers to it as being “climate controlled” or fails to maintain the
temperature and humidity of the facility within the advertised range, the
owner is guilty of a misdemeanor and is liable to the occupant for any
damages that are caused to the occupant’s personal property as a result
of extremes in temperature or humidity, notwithstanding any contrary
provision in the rental agreement.
3. As used in this section, the terms “facility,” “occupant,”
“owner,” “personal property” and “rental agreement” have the meanings
ascribed to them respectively in NRS 108.4733 to 108.4745 , inclusive.
(Added to NRS by 1991, 2164)—(Substituted in revision for NRS
598.045)
1. As used in this section:
(a) “Imitation Indian arts or crafts articles” means those made by
machine, or made either wholly or partially out of synthetic or
artificial materials, or articles which are not made by Indian labor or
workmanship.
(b) “Indian” means a person who is enrolled or who is a lineal
descendant of one enrolled upon an enrollment listing of the Bureau of
Indian Affairs, or upon the enrollment listing of a recognized Indian
tribe, domiciled in the United States.
2. A person shall not distribute, sell or offer for sale in this
state any imitation Indian art or craft articles unless the articles are
at all times clearly and legibly designated as imitation.
3. Only those articles bearing a registered trademark or label of
authentic Indian labor or workmanship may be deemed authentic Indian arts
or crafts articles.
4. Any person violating the provisions of this section is guilty
of a misdemeanor.
(Added to NRS by 1967, 765; A 1985, 347)—(Substituted in revision
for NRS 598.050)
1. Residents of the State of Nevada may purchase rifles and
shotguns in states contiguous to Nevada if:
(a) Such residents conform to the applicable provisions of the
federal firearms control law (18 U.S.C. §§ 921 et seq.) and any
regulation promulgated thereunder.
(b) Such residents conform to the provisions of law applicable to
such a purchase in Nevada and in the state where the purchase is made.
2. Residents of a state contiguous to the State of Nevada may
purchase rifles and shotguns in Nevada if:
(a) Such residents conform to the applicable provisions of the
federal firearms control law (18 U.S.C. §§ 921 et seq.) and any
regulation promulgated thereunder.
(b) Such residents conform to the provisions of law applicable to
such purchase in Nevada and in the state where such persons reside.
(Added to NRS by 1969, 730)—(Substituted in revision for NRS
598.060)
1. An informal merchant shall not offer for sale or knowingly
allow the sale of any new product that he knows or reasonably should have
known is stolen, has been recalled by the manufacturer, has been
adulterated, has not been maintained at the proper temperature, has an
expiration date that has passed, has been discarded by the manufacturer
or a retailer, is an inferior product if he does not clearly indicate
such inferiority, or has any other defect that makes the product
ineffective for the use for which it is purchased or that makes the
product below the quality expected by the consumer.
2. An informal merchant who violates the provisions of subsection
1 shall be punished:
(a) If the sale of the product does not cause substantial bodily
harm to another person, for a gross misdemeanor.
(b) If the sale of the product causes substantial bodily harm to
another person, for a category C felony as provided in NRS 193.130 .
3. Upon request of a peace officer, an informal merchant shall
provide reliable evidence of the legal acquisition of a new product that
the merchant is offering for sale. If it is determined that the product
was stolen and the informal merchant fails to provide such evidence, an
inference is created that the informal merchant knew or should have known
that the product was stolen.
4. As used in this section:
(a) “Informal market” means:
(1) A gathering at which:
(I) Two or more persons offer personal property for
sale or exchange;
(II) A fee is charged for the sale or exchange of
personal property; or
(III) A fee is charged for admission to the area in
which personal property is offered for sale or exchange; or
(2) A place at which personal property is offered or
displayed for sale or exchange on more than six occasions in a period of
12 months,
Ê whether held in a building, under cover or in the open air.
(b) “Informal merchant” means a person who does not have an
established retail store in the county and who transports an inventory of
goods to an informal market and displays the goods for sale, offers them
for sale at retail or sells them at retail.
(c) “New product” means any tangible good which has never been used
or which is in its original, unopened package or container.
(d) “Stolen” means taken unlawfully from or without the permission
of the owner, whether or not the person who took the item is or has been
prosecuted or convicted for the taking of the item.
(Added to NRS by 1999, 2543 )
1. Except as otherwise provided in this subsection, a business
shall not, without the customer’s consent, record the account number of
any of a customer’s credit cards on the customer’s check or draft as a
condition of accepting that check or draft. This subsection does not
prohibit:
(a) The business from requiring the customer to produce reasonable
forms of positive identification other than a credit card, including,
without limitation:
(1) A driver’s license;
(2) An identification card issued by the Department of Motor
Vehicles; or
(3) A consular identification card,
Ê as a condition of accepting a check or draft.
(b) The business from requesting the customer to display a credit
card as an indicia of creditworthiness or financial responsibility, if
the only information recorded by the business concerning the credit card
is the type of credit card displayed, the issuer of the card and the date
the card expires.
(c) The business from requesting the customer to record the account
number of his credit card on the check or draft with which payment on the
credit card account is being made.
(d) The business from requesting the production of or recording of
the account number of a credit card as a condition of cashing a check or
draft if:
(1) The business has agreed with the issuer of the credit
card to cash the checks or drafts as a service to the cardholders of the
issuer;
(2) The issuer has agreed to guarantee any such check or
draft so cashed; and
(3) The cardholder has given actual, apparent or implied
authority for the use of his account number for this purpose.
2. Except as otherwise provided in this subsection, a business
shall not, without the customer’s consent, record a customer’s telephone
number on the credit card sales slip as a condition of accepting his
credit card. This subsection does not:
(a) Prohibit the recordation of personal identifying information
required for a special purpose incidental to the use of the credit card,
such as the delivery, shipping, servicing or installation of the
purchased merchandise.
(b) Apply to a transaction in which the customer receives a cash
advance against his credit card or to a transaction involving the use of
preprinted spaces for personal identifying information that the business
accepting the credit card has a contractual obligation to record in order
to complete the transaction.
(c) Apply to a transaction in which the customer’s purchase is made
by the use of a device that electronically authorizes the use of the
credit card and processes information relating thereto.
3. As used in this section, unless the context otherwise requires:
(a) “Consular identification card” means an identification card
issued by a consulate of a foreign government, which consulate is located
within the State of Nevada.
(b) “Credit card” has the meaning ascribed to it in NRS 205.630
.
(c) “Identification card issued by the Department of Motor
Vehicles” means an identification card of the type described in NRS
483.810 to 483.890 , inclusive.
(Added to NRS by 1991, 1418; A 2003, 1936 )
1. Except as otherwise provided in this section, if a person
accepts credit cards or debit cards for the transaction of business, the
person shall not do any of the following:
(a) Print the expiration date of the credit card or debit card on
any receipt provided to the cardholder.
(b) Print more than the last five digits of the account number of
the credit card or debit card on any receipt provided to the cardholder.
2. This section:
(a) Applies only to receipts that are electronically printed.
(b) Does not apply to transactions in which the only means of
recording the credit card or debit card number is:
(1) By handwriting the credit card or debit card number; or
(2) By imprinting or copying the credit card or debit card.
3. If any cash register or other machine or device that
electronically prints receipts for credit card or debit card transactions
was first put into use before October 1, 2003, the provisions of this
section do not apply to any transaction that occurs with regard to that
cash register or other machine or device before January 1, 2008.
4. As used in this section:
(a) “Credit card” means any instrument or device, whether known as
a credit card, credit plate or by any other name, issued with or without
fee by an issuer for the use of the cardholder in obtaining money,
property, goods, services or anything else of value on credit.
(b) “Debit card” means any instrument or device, whether known as a
debit card or by any other name, that is issued with or without a fee by
an issuer for the use of the cardholder in obtaining money, property,
goods, services or anything else of value, subject to the issuer removing
money from the checking account or savings account of the cardholder.
(Added to NRS by 2003, 1358 )
1. Any person who receives unsolicited goods, wares or merchandise
offered for sale, but not actually ordered or requested by him orally or
in writing, is entitled to consider those goods, wares or merchandise an
unconditional gift, and he may use or dispose of them as he sees fit
without obligation on his part to the sender.
2. The sender of unsolicited goods, wares or merchandise must pay
actual and reasonable expenses incurred by the recipient:
(a) In returning the goods, wares or merchandise to the sender; or
(b) In resisting attempts by the sender to collect payment for the
goods, wares or merchandise.
3. The sender of unsolicited goods, wares or merchandise is liable
to the recipient for any impairment of the credit of the recipient caused
by attempts by the sender to collect payment for the goods, wares or
merchandise.
4. The provisions of subsections 1, 2 and 3 do not apply to the
following:
(a) Where delivery of goods, wares or merchandise is by mistake in
response to an order to the sender for other goods, wares or merchandise.
(b) Where delivery is made by mistake to someone other than a
person who ordered goods, wares or merchandise from the sender.
(c) Where the sender has sent a substitute or substitutes in
response to an order for certain goods, wares or merchandise.
(d) Where someone has ordered a gift for another from the sender,
and the goods, wares or merchandise were sent directly to the recipient
of the gift.
(e) Where delivery of goods, wares or merchandise is made by
mistake to a member of a subscription-type plan (such as a book club or
record club) operated by the sender.
(Added to NRS by 1971, 383; A 1979, 188)—(Substituted in revision
for NRS 598.090)
1. A seller, or his agent, may collect a fee of not more than $25
for each check which was accepted by the seller as payment for goods or
services and, upon presentment to the drawee, was not honored because the
drawer stopped payment on the check, the drawer does not have an account
with the drawee or the drawer does not have sufficient funds in his
account or credit with the drawee to cover the amount of the check.
2. As used in this section:
(a) “Check” includes a draft or other negotiable order for the
payment of money on demand which is drawn on a bank or other financial
institution.
(b) “Drawee” means the person ordered in the check to make payment.
(c) “Drawer” means the person who signs or is identified in the
check as the person ordering payment.
(Added to NRS by 1995, 342)
[Effective October 1, 2008.]
1. A business in this State shall not transfer any personal
information of a customer through an electronic transmission other than a
facsimile to a person outside of the secure system of the business unless
the business uses encryption to ensure the security of electronic
transmission.
2. As used in this section:
(a) “Encryption” has the meaning ascribed to it in NRS 205.4742
.
(b) “Personal information” has the meaning ascribed to it in NRS
603A.040 .
(Added to NRS by 2005, 2506 , effective October 1, 2008)
As used in NRS 598.0903 to 598.0999 , inclusive, unless the context otherwise
requires, the words and terms defined in NRS 598.0905 to 598.0947 , inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 1973, 1482; A 1983, 881; 1985, 1480, 2256; 1989,
649; 1993, 1979; 1995, 2174; 1997, 158; 1999, 3334 ; 2001, 660 ; 2003, 587 ; 2005, 1227 , 1249 )
“Advertisement” means the
attempt by publication, dissemination, solicitation or circulation to
induce, directly or indirectly, any person to enter into any obligation
to lease or to acquire any title or interest in any property.
(Added to NRS by 1973, 1482; A 1999, 3280 )
“Certification mark”
means a mark used in connection with the goods or services of a person
other than the certifier to indicate geographic origin, material, mode of
manufacture, quality, accuracy or other characteristics of the goods or
services or to indicate that the work or labor on the goods or services
was performed by members of a union or other organization.
(Added to NRS by 1973, 1482)—(Substituted in revision for NRS
598.380)
“Collective mark” means a
mark used by members of a cooperative, association or other collective
group or organization to identify goods or services and distinguish them
from those of others, or to indicate membership in the collective group
or organization.
(Added to NRS by 1973, 1483)—(Substituted in revision for NRS
598.390)
“Commissioner” means the
Commissioner of Consumer Affairs.
(Added to NRS by 1973, 1483)—(Substituted in revision for NRS
598.400)
A person engages
in a “deceptive trade practice” if, in the course of his business or
occupation, he:
1. Knowingly passes off goods or services for sale or lease as
those of another person.
2. Knowingly makes a false representation as to the source,
sponsorship, approval or certification of goods or services for sale or
lease.
3. Knowingly makes a false representation as to affiliation,
connection, association with or certification by another person.
4. Uses deceptive representations or designations of geographic
origin in connection with goods or services for sale or lease.
5. Knowingly makes a false representation as to the
characteristics, ingredients, uses, benefits, alterations or quantities
of goods or services for sale or lease or a false representation as to
the sponsorship, approval, status, affiliation or connection of a person
therewith.
6. Represents that goods for sale or lease are original or new if
he knows or should know that they are deteriorated, altered,
reconditioned, reclaimed, used or secondhand.
7. Represents that goods or services for sale or lease are of a
particular standard, quality or grade, or that such goods are of a
particular style or model, if he knows or should know that they are of
another standard, quality, grade, style or model.
8. Disparages the goods, services or business of another person by
false or misleading representation of fact.
9. Advertises goods or services with intent not to sell or lease
them as advertised.
10. Advertises goods or services for sale or lease with intent not
to supply reasonably expectable public demand, unless the advertisement
discloses a limitation of quantity.
11. Advertises goods or services as being available free of charge
with intent to require payment of undisclosed costs as a condition of
receiving the goods or services.
12. Advertises under the guise of obtaining sales personnel when
the purpose is to first sell or lease goods or services to the sales
personnel applicant.
13. Makes false or misleading statements of fact concerning the
price of goods or services for sale or lease, or the reasons for,
existence of or amounts of price reductions.
14. Fraudulently alters any contract, written estimate of repair,
written statement of charges or other document in connection with the
sale or lease of goods or services.
15. Knowingly makes any other false representation in a
transaction.
16. Knowingly falsifies an application for credit relating to a
retail installment transaction, as defined in NRS 97.115 .
(Added to NRS by 1973, 1483; A 1983, 881; 1985, 2256; 1995, 1094;
1997, 1375; 1999, 3280 ; 2001, 489 , 2149 )
A person engages
in a “deceptive trade practice” when, in the course of his business or
occupation, he disseminates an unsolicited prerecorded message to solicit
a person to purchase goods or services by telephone and he does not have
a preexisting business relationship with the person being called unless a
recorded or unrecorded natural voice:
1. Informs the person who answers the telephone call of the nature
of the call; and
2. Provides to the person who answers the telephone call the name,
address and telephone number of the business or organization, if any,
represented by the caller.
(Added to NRS by 1999, 3332 )
A person engages
in a “deceptive trade practice” when in the course of his business or
occupation he employs “bait and switch” advertising, which consists of an
offer to sell or lease goods or services which the seller or lessor in
truth may not intend or desire to sell or lease, accompanied by one or
more of the following practices:
1. Refusal to show the goods advertised.
2. Disparagement in any material respect of the advertised goods
or services or the terms of sale or lease.
3. Requiring other sales or other undisclosed conditions to be met
before selling or leasing the advertised goods or services.
4. Refusal to take orders for the sale or lease of goods or
services advertised for delivery within a reasonable time.
5. Showing or demonstrating defective goods for sale or lease
which are unusable or impractical for the purposes set forth in the
advertisement.
6. Accepting a deposit for the goods or services for sale or lease
and subsequently switching the purchase order or lease to higher priced
goods or services.
7. Tendering a lease of goods advertised for sale or a sale of
goods advertised for lease or tendering terms of sale or lease less
favorable than the terms advertised.
(Added to NRS by 1985, 2255; A 1993, 1959; 1999, 3281 )
A person engages
in a “deceptive trade practice” if, during a solicitation by telephone or
sales presentation, he:
1. Uses threatening, intimidating, profane or obscene language;
2. Repeatedly or continuously conducts the solicitation or
presentation in a manner that is considered by a reasonable person to be
annoying, abusive or harassing;
3. Solicits a person by telephone at his residence between 8 p.m.
and 9 a.m.;
4. Blocks or otherwise intentionally circumvents any service used
to identify the caller when placing an unsolicited telephone call; or
5. Places an unsolicited telephone call that does not allow a
service to identify the caller by the telephone number or name of the
business, unless such identification is not technically feasible.
(Added to NRS by 2001, 659 ; A 2003, 2875 )
A person engages
in a “deceptive trade practice” when in the course of his business or
occupation he:
1. Knowingly fails to identify goods for sale or lease as being
damaged by water.
2. Solicits by telephone or door to door as a lessor or seller,
unless the lessor or seller identifies himself, whom he represents and
the purpose of his call within 30 seconds after beginning the
conversation.
3. Knowingly states that services, replacement parts or repairs
are needed when no such services, replacement parts or repairs are
actually needed.
4. Fails to make delivery of goods or services for sale or lease
within a reasonable time or to make a refund for the goods or services,
if he allows refunds.
5. Advertises or offers an opportunity for investment and:
(a) Represents that the investment is guaranteed, secured or
protected in a manner which he knows or has reason to know is false or
misleading;
(b) Represents that the investment will earn a rate of return which
he knows or has reason to know is false or misleading;
(c) Makes any untrue statement of a material fact or omits to state
a material fact which is necessary to make another statement, considering
the circumstances under which it is made, not misleading;
(d) Fails to maintain adequate records so that an investor may
determine how his money is invested;
(e) Fails to provide information to an investor after a reasonable
request for information concerning his investment;
(f) Fails to comply with any law or regulation for the marketing of
securities or other investments; or
(g) Represents that he is licensed by an agency of the State to
sell or offer for sale investments or services for investments if he is
not so licensed.
6. Charges a fee for advice with respect to investment of money
and fails to disclose:
(a) That he is selling or offering to lease goods or services and,
if he is, their identity; or
(b) That he is licensed by an agency of any state or of the United
States to sell or to offer for sale investments or services for
investments, or holds any other license related to the service he is
providing.
7. Notifies any person, by any means, as a part of an advertising
plan or scheme, that he has won a prize and that as a condition of
receiving the prize he must purchase or lease goods or services.
8. Knowingly misrepresents the legal rights, obligations or
remedies of a party to a transaction.
9. Fails, in a consumer transaction that is rescinded, cancelled
or otherwise terminated in accordance with the terms of an agreement,
advertisement, representation or provision of law, to promptly restore to
a person entitled to it a deposit, down payment or other payment or, in
the case of property traded in but not available, the agreed value of the
property, or fails to cancel within a specified time or an otherwise
reasonable time an acquired security interest. This subsection does not
apply to a person who is holding a deposit, down payment or other payment
on behalf of another if all parties to the transaction have not agreed to
the release of the deposit, down payment or other payment.
10. Fails to inform customers, if he does not allow refunds or
exchanges, that he does not allow refunds or exchanges by:
(a) Printing a statement on the face of the lease or sales receipt;
(b) Printing a statement on the face of the price tag; or
(c) Posting in an open and conspicuous place a sign at least 8 by
10 inches in size with boldface letters,
Ê specifying that no refunds or exchanges are allowed.
(Added to NRS by 1985, 2256; A 1987, 87; 1993, 1959; 1999, 3281
; 2005, 1426 )
1. A person engages in a “deceptive trade practice” if, in the
course of his business or occupation:
(a) He issues a gift certificate that expires on a certain date,
unless either of the following is printed plainly and conspicuously on
the front or back of the gift certificate in at least 10-point font and
in such a manner that the print is readily visible to the buyer of the
gift certificate before the buyer purchases the gift certificate:
(1) The expiration date of the gift certificate; or
(2) A toll-free telephone number accompanied by a statement
setting forth that the buyer or holder of the gift certificate may call
the telephone number to obtain the balance of the gift certificate and
the expiration date of the gift certificate;
(b) He imposes upon the buyer or holder of a gift certificate a
service fee, unless each of the following is printed plainly and
conspicuously on the front or back of the gift certificate in at least
10-point font and in such a manner that the print is readily visible to
the buyer of the gift certificate before the buyer purchases the gift
certificate:
(1) The amount of the service fee;
(2) The event or events that will cause the service fee to
be imposed;
(3) The frequency with which the service fee will be
imposed; and
(4) If the service fee will be imposed on the basis of
inactivity, the duration of inactivity that will cause the service fee to
be imposed; or
(c) Regardless of the notice provided, he imposes upon the buyer or
holder of a gift certificate:
(1) A service fee or a combination of service fees that
exceed a total of $1 per month; or
(2) A service fee that commences or is imposed within the
first 12 months after the issuance of the gift certificate.
2. The provisions of this section do not apply to:
(a) A gift certificate that is issued as part of an award, loyalty,
promotional, rebate, incentive or reward program and for which issuance
the issuer does not receive money or any other thing of value;
(b) A gift certificate that is sold at a reduced price to an
employer or nonprofit or charitable organization, if the expiration date
of the gift certificate is not more than 30 days after the date of sale;
and
(c) A gift certificate that is issued by an establishment licensed
pursuant to the provisions of chapter 463 of
NRS.
3. As used in this section:
(a) “Gift certificate” means an instrument or a record evidencing a
promise by the seller or issuer of the instrument or record to provide
goods or services to the holder of the gift certificate for the value
shown in, upon or ascribed to the instrument or record and for which the
value shown in, upon or ascribed to the instrument or record is decreased
in an amount equal to the value of goods or services provided by the
issuer or seller to the holder. The term includes, without limitation, a
gift card, certificate or similar instrument. The term does not include:
(1) An instrument or record for prepaid telecommunications
or technology services, including, without limitation, a card for prepaid
telephone services, a card for prepaid technical support services and an
instrument for prepaid Internet service purchased or otherwise
distributed to a consumer of such services, including, without
limitation, as part of an award, loyalty, promotional or reward program;
or
(2) An instrument or record, by whatever name called, that
may be used to obtain goods or services from more than one person or
business entity, if the expiration date is printed plainly and
conspicuously on the front or back of the instrument or record.
(b) “Issue” means to sell or otherwise provide a gift certificate
to any person and includes, without limitation, adding value to an
existing gift certificate.
(c) “Record” means information which is inscribed on a tangible
medium or which is stored in an electronic or other medium, including,
without limitation, information stored on a microprocessor chip or
magnetic strip, and is retrievable in perceivable form.
(d) “Service fee” means any charge or fee other than the charge or
fee imposed for the issuance of the gift certificate, including, without
limitation, a service fee imposed on the basis of inactivity or any other
type of charge or fee imposed after the sale of the gift certificate.
(Added to NRS by 2005, 1226 )
A person engages
in a “deceptive trade practice” when in the course of his business or
occupation he knowingly:
1. Conducts the business or occupation without all required state,
county or city licenses.
2. Fails to disclose a material fact in connection with the sale
or lease of goods or services.
3. Violates a state or federal statute or regulation relating to
the sale or lease of goods or services.
4. Uses coercion, duress or intimidation in a transaction.
(Added to NRS by 1985, 2256; A 1999, 3282 )
1. Except as otherwise provided in this section, a person engages
in a “deceptive trade practice” when, in the course of his business or
occupation, he:
(a) Makes an assertion of scientific, clinical or quantifiable fact
in an advertisement which would cause a reasonable person to believe that
the assertion is true, unless, at the time the assertion is made, the
person making it has possession of factually objective scientific,
clinical or quantifiable evidence which substantiates the assertion; or
(b) Fails upon request of the Commissioner or Attorney General to
produce within 6 working days the substantiating evidence in his
possession at the time the assertion of scientific, clinical or
quantifiable fact was made.
2. This section does not apply to general assertions of opinion as
to quality, value or condition made without the intent to mislead another
person.
(Added to NRS by 1989, 649; A 1997, 3195)
“Director” means the Director of
the Department of Business and Industry.
(Added to NRS by 1983, 881; A 1993, 1799)—(Substituted in revision
for NRS 598.415)
“Disabled person” means a
person who:
1. Has a physical or mental impairment that substantially limits
one or more of the major life activities of the person;
2. Has a record of such an impairment; or
3. Is regarded as having such an impairment.
(Added to NRS by 1993, 1978)
“Elderly person” means a
person who is 60 years of age or older.
(Added to NRS by 1993, 1978; A 2003, 2569 )
“Goods” includes, without
limitation, a mobile or manufactured home which:
1. Is not affixed to land; or
2. Is affixed to land and sold, leased or offered for sale or
lease separately from the land to which it is affixed.
(Added to NRS by 2003, 587 )
“Mark” means a word, name, symbol,
device or any combination of the foregoing in any form or arrangement.
(Added to NRS by 1973, 1484)—(Substituted in revision for NRS
598.420)
1. Except as otherwise provided in subsection 8, each seller of
travel shall deposit with the Division:
(a) A bond executed by a corporate surety approved by the
Commissioner and licensed to do business in this state;
(b) An irrevocable letter of credit for which the seller of travel
is the obligor, issued by a bank whose deposits are federally insured; or
(c) A certificate of deposit in a financial institution which is
doing business in this state and which is federally insured or insured by
a private insurer approved pursuant to NRS 678.755 . The certificate of deposit may be withdrawn
only on the order of the Commissioner, except that the interest may
accrue to the seller of travel.
2. The term of the bond, letter of credit or certificate of
deposit, or any renewal thereof, must be not less than 1 year.
3. The amount of the bond, letter of credit or certificate of
deposit, or any renewal thereof, must be $50,000.
4. If the seller of travel deposits a bond, the seller of travel
shall keep accurate records of the bond and the payments made on the
premium. The records must be open to inspection by the Division during
business hours. The seller of travel shall notify the Division not later
than 30 days before the date of expiration of the bond and provide
written proof of the renewal of the bond to the Division.
5. The Commissioner may reject any bond, letter of credit or
certificate of deposit that fails to comply with the requirements of this
chapter.
6. A seller of travel may change the form of security that he has
deposited with the Division. If the seller of travel changes the form of
the security, the Commissioner may retain for not more than 1 year any
portion of the security previously deposited by the seller of travel as
security for claims arising during the time the previous security was in
effect.
7. If the amount of the deposited security falls below the amount
required by this chapter for that security, the seller of travel shall be
deemed not to be registered as required by NRS 598.365 for the purposes of this chapter.
8. The provisions of this section do not apply to a seller of
travel who:
(a) Is accredited by and appointed as an agent of the Airlines
Reporting Corporation; or
(b) Maintains a trust account in accordance with the provisions of
NRS 598.361 .
(Added to NRS by 2001, 2147 ; A 2003, 1826 , 2876 , 2889 )
1. The security required to be deposited by a seller of travel
pursuant to NRS 598.375 must be held in
trust for consumers injured as a result of:
(a) Any act of fraud or misrepresentation by the seller of travel
acting in his capacity as a seller of travel;
(b) The bankruptcy of the seller of travel; or
(c) The breach of any contract entered into by the seller of travel
in his capacity as a seller of travel.
2. A consumer so injured may bring and maintain an action in any
court of competent jurisdiction to recover against the security.
3. The Division may bring an action for interpleader against all
claimants upon the security. If the Division brings such an action, the
Division shall publish notice of the action at least once each week for 2
weeks in a newspaper of general circulation in the county in which the
seller of travel has its principal place of business. The Division may
deduct its costs of the action, including the costs of the publication of
the notice, from the amount of the security. All claims against the
security have equal priority. If the security is insufficient to pay all
the claims in full, the claims must be paid pro rata. If the seller of
travel has posted a bond with the Division, the surety is then relieved
of all liability under the bond.
4. The Division may, in lieu of bringing an action for
interpleader pursuant to subsection 3, conduct a hearing to determine the
distribution of the security to claimants. The Division shall adopt
regulations to provide for adequate notice and the conduct of the
hearing. If the seller of travel has posted a bond with the Division,
distribution pursuant to this subsection relieves the surety of all
liability under the bond.
5. If the security is sufficient to pay all claims against the
security in full, the Division may deduct from the amount of the
security, the cost of any investigation or hearing it conducted to
determine the distribution of the security.
(Added to NRS by 2001, 2148 ; A 2003, 1826 , 2889 )
1. If no claims have been filed against the security deposited
with the Division pursuant to NRS 598.375 within 6 months after the seller of travel
ceases to operate or his registration expires, whichever occurs later,
the Commissioner shall release the security to the seller of travel and
shall not audit any claims filed against the security thereafter by
consumers.
2. If one or more claims have been filed against the security
within 6 months after the seller of travel ceases to operate or his
registration expires, whichever occurs later, the proceeds must not be
released to the seller of travel or distributed to any consumer earlier
than 1 year after the seller of travel ceases to operate or his
registration expires, whichever occurs later.
3. For the purposes of this section, the Commissioner shall
determine the date on which a seller of travel ceases to operate.
(Added to NRS by 2001, 2149 ; A 2003, 1826 , 2889 )
SIGHTSEEING TOURS
As used in NRS 598.405 to 598.525 ,
inclusive, unless the context otherwise requires, the words and terms
defined in NRS 598.416 to 598.465
, inclusive, have the meanings ascribed
to them in those sections.
(Added to NRS by 2001, 979 ; A 2003, 1826 )
“Advertise”
and “advertisement” mean the attempt by publication, dissemination,
solicitation or circulation to induce, directly or indirectly, any person
to take a sightseeing tour.
(Added to NRS by 2001, 980 )
“Commissioner” means the
Commissioner of the Division.
(Added to NRS by 2001, 980 )
“Division” means the Consumer
Affairs Division of the Department of Business and Industry.
(Added to NRS by 2001, 980 )
“Sightseeing tour” means
an excursion that:
1. Has a duration of 24 hours or less;
2. Travels to one or more points of interest; and
3. Is conducted using one or more means of motorized conveyance,
including, without limitation, an airplane, bus, helicopter, tour boat or
touring raft.
(Added to NRS by 2001, 980 )
“Tour broker” means a person
who, in this state, advertises a sightseeing tour for a tour operator and
collects money from customers for a sightseeing tour.
(Added to NRS by 2001, 980 )
“Tour operator” means a
person who, in this state, engages in the business of providing a
sightseeing tour to customers.
(Added to NRS by 2001, 980 )
1. Before advertising its services or conducting business in this
State, a tour broker or tour operator must register with the Division by:
(a) Submitting to the Division an application for registration on a
form prescribed by the Division;
(b) Paying to the Division a fee of $25; and
(c) If the tour broker or tour operator is subject to the
provisions of NRS 598.495 , depositing
the security required by NRS 598.495
with the Division.
2. The Division shall issue a certificate of registration to the
tour broker or tour operator upon receipt of:
(a) The security in the proper form as required by NRS 598.495
, if the tour broker or tour operator is
subject to the provisions of NRS 598.495 ; and
(b) The payment of the fee required by subsection 1.
3. A certificate of registration:
(a) Is not transferable or assignable; and
(b) Expires 1 year after it is issued.
4. A tour broker or tour operator must renew a certificate of
registration issued pursuant to this section before the certificate
expires by:
(a) Submitting to the Division an application for the renewal of
the certificate on a form prescribed by the Division; and
(b) Paying to the Division a fee of $25.
(Added to NRS by 2003, 1824 )
1. In each advertisement for a sightseeing tour, a tour broker and
a tour operator shall disclose in a clear and conspicuous manner the
total price a customer is required to pay to take the sightseeing tour.
Unless the inclusion of a fee or tax in the total price would violate a
specific statute of this state or a federal statute or regulation, the
total price must include, without limitation, all fees, taxes and other
charges that a customer for a sightseeing tour is required to pay to take
the sightseeing tour. If a fee or tax cannot be included in the total
price because its inclusion would violate a specific statute of this
state or a federal statute or regulation, the tour broker or tour
operator, as applicable, shall disclose in a clear and conspicuous manner
that the fee or tax is not included in the total price and must be paid
in addition to the total price.
2. A tour broker and a tour operator shall not charge a customer
for a sightseeing tour an amount that exceeds the sum of:
(a) The total price for the sightseeing tour which is disclosed in
an advertisement for the sightseeing tour; and
(b) Any fee or tax that is not included in the total price for the
sightseeing tour because its inclusion would violate a specific statute
of this state or a federal statute or regulation.
3. On a billing invoice or receipt given to a customer for a
sightseeing tour, a tour broker and a tour operator shall provide a clear
and conspicuous notice which:
(a) Sets forth the provisions of subsection 2;
(b) States that complaints concerning the charges for a sightseeing
tour may be directed to the Division; and
(c) Provides a telephone number for the Division.
4. If a tour operator issues or causes to be issued a coupon or
other indicia of discount or special promotion, the tour operator shall
honor the coupon or other indicia in good faith unless:
(a) The coupon or other indicia sets forth a date of expiration
that is clearly legible; and
(b) The date of expiration has passed.
5. The failure of a tour broker or tour operator to comply with a
provision of this section constitutes a deceptive trade practice for the
purposes of NRS 598.0903 to 598.0999
, inclusive.
(Added to NRS by 2001, 980 )
The provisions of NRS
598.495 , 598.506 and 598.515
do not apply to a tour broker whose business is confined to advertising,
or a tour operator whose business is confined to advertising and
conducting, sightseeing tours that originate in a county other than a
county whose population is 400,000 or more.
(Added to NRS by 2001, 981 )
1. Each tour broker and tour operator shall deposit with the
Division:
(a) A bond executed by a corporate surety approved by the
Commissioner and licensed to do business in this state;
(b) An irrevocable letter of credit for which the tour broker or
tour operator is the obligor, issued by a bank whose deposits are
federally insured; or
(c) A certificate of deposit in a financial institution which is
doing business in this state and which is federally insured or insured by
a private insurer approved pursuant to NRS 678.755 . The certificate of deposit may be withdrawn
only on the order of the Commissioner, except that the interest may
accrue to the tour broker or tour operator.
2. The term of the bond, letter of credit or certificate of
deposit, or any renewal thereof, must be not less than 1 year.
3. The amount of the bond, letter of credit or certificate of
deposit, or any renewal thereof, must be $10,000.
4. If the tour broker or tour operator deposits a bond, the tour
broker or tour operator shall keep accurate records of the bond and the
payments made on the premium. The records must be open to inspection by
the Division during business hours. The tour broker or tour operator
shall notify the Division not later than 30 days before the date of
expiration of the bond and provide written proof of the renewal of the
bond to the Division.
5. The Commissioner may reject any bond, letter of credit or
certificate of deposit that fails to conform to the requirements of this
chapter.
6. A tour broker or tour operator may change the form of security
that he has deposited with the Division. If the tour broker or tour
operator changes the form of the security, the Commissioner may retain
for not more than 1 year any portion of the security previously deposited
by the tour broker or tour operator as security for claims arising during
the time the previous security was in effect.
7. If the amount of the bond, letter of credit or certificate of
deposit falls below the amount required by this section, the tour broker
or tour operator shall, within 30 days, increase the amount of the bond,
letter of credit or certificate of deposit to the amount required by this
section.
(Added to NRS by 2001, 981 )
1. The security required to be deposited by a tour broker or tour
operator pursuant to NRS 598.495 must
be held in trust for consumers injured by:
(a) The bankruptcy of the tour broker or tour operator; or
(b) The tour broker’s or tour operator’s breach of any agreement
entered into in his capacity as a tour broker or tour operator.
2. A consumer so injured may bring and maintain an action in any
court of competent jurisdiction to recover against the security.
3. The Division may bring an action for interpleader against all
claimants upon the security. If the Division brings such an action, the
Division shall publish notice of the action at least once each week for 2
weeks in a newspaper of general circulation in the county in which the
tour broker or tour operator has its principal place of business. The
Division may deduct its costs of the action, including, without
limitation, the costs of the publication of the notice, from the amount
of the security. All claims against the security have equal priority. If
the security is insufficient to pay all the claims in full, the claims
must be paid pro rata. If the tour broker or tour operator has posted a
bond with the Division, the surety is then relieved of all liability
under the bond.
4. The Division may, in lieu of bringing an action for
interpleader pursuant to subsection 3, conduct a hearing to determine the
distribution of the security to claimants. The Division shall adopt
regulations to provide for adequate notice and the conduct of the
hearing. If the tour broker or tour operator has posted a bond with the
Division, distribution pursuant to this subsection relieves the surety of
all liability under the bond.
(Added to NRS by 2001, 981 )
1. If no claims have been filed against the security deposited
with the Division pursuant to NRS 598.495 within 6 months after the tour broker or tour
operator ceases to operate, the Commissioner shall release the security
to the tour broker or tour operator and shall not audit any claims filed
against the security thereafter by consumers.
2. If one or more claims have been filed against the security
within 6 months after the tour broker or tour operator ceases to operate,
the proceeds must not be released to the tour broker or tour operator or
distributed to any consumer earlier than 1 year after the tour broker or
tour operator ceases to operate.
3. For the purposes of this section, the Commissioner shall
determine the date on which a tour broker or tour operator ceases to
operate.
(Added to NRS by 2001, 982 )
The Commissioner may adopt such
regulations as the Commissioner determines are necessary to carry out the
intent of NRS 598.405 to 598.525 , inclusive.
(Added to NRS by 2001, 982 ; A 2003, 1826 )
CREDIT SERVICE ORGANIZATIONS, ORGANIZATIONS FOR BUYING GOODS OR SERVICES
AT DISCOUNT, DANCE STUDIOS AND HEALTH CLUBS
General Provisions
As used in NRS 598.701 to 598.736 ,
inclusive, unless the context otherwise requires, the words and terms
defined in NRS 598.706 , 598.711 and 598.716
have the meanings ascribed to them in those sections.
(Added to NRS by 1997, 3192)—(Substituted in revision for NRS
598.2802)
“Commissioner” means the
Commissioner of the Consumer Affairs Division of the Department of
Business and Industry.
(Added to NRS by 1997, 3192)—(Substituted in revision for NRS
598.2803)
“Division” means the Consumer
Affairs Division of the Department of Business and Industry.
(Added to NRS by 1997, 3192)—(Substituted in revision for NRS
598.2804)
“Registrant” means a credit
service organization, an organization for buying goods or services at a
discount, a dance studio or a health club which is required to register
and post security with the Division pursuant to the provisions of this
chapter.
(Added to NRS by 1997, 3192)—(Substituted in revision for NRS
598.2805)
1. Each credit service organization, organization for buying goods
or services at a discount, dance studio and health club regulated by the
provisions of this chapter shall apply for registration on the form
prescribed by the Division.
2. At the time of application for registration, the applicant must
pay to the Division an administrative fee of $25 and deposit the required
security with the Division.
3. Upon receipt of the security in the proper form and the payment
of the administrative fee required by this section, the Division shall
issue a certificate of registration to the applicant. A certificate of
registration:
(a) Is not transferable or assignable; and
(b) Expires 1 year after it is issued.
4. A registrant must renew a certificate of registration issued
pursuant to this section before the certificate expires by submitting to
the Division an application for the renewal of the certificate on a form
prescribed by the Division.
(Added to NRS by 1997, 3192; A 2001, 2151 )—(Substituted in revision for NRS
598.2806)
1. Each registrant shall deposit with the Division:
(a) A bond executed by a corporate surety approved by the
Commissioner and licensed to do business in this state;
(b) An irrevocable letter of credit for which the registrant is the
obligor, issued by a bank whose deposits are federally insured; or
(c) A certificate of deposit in a financial institution which is
doing business in this state and which is federally insured or insured by
a private insurer approved pursuant to NRS 678.755 . The certificate of deposit may be withdrawn
only on the order of the Commissioner, except that the interest may
accrue to the registrant.
2. The term of the bond, letter of credit or certificate of
deposit, or any renewal thereof, must be not less than 1 year.
3. If the registrant deposits a bond, the registrant shall keep
accurate records of the bond and the payments made on the premium. The
records must be open to inspection by the Division during business hours.
The registrant shall notify the Division not later than 30 days before
the date of expiration of the bond and provide written proof of the
renewal of the bond to the Division.
4. The Commissioner may reject any bond, letter of credit or
certificate of deposit which fails to conform to the requirements of this
chapter.
5. A registrant may change the form of security which he has
deposited with the Division. If the registrant changes the form of the
security, the Commissioner may retain for not more than 1 year any
portion of the security previously deposited by the registrant as
security for claims arising during the time the previous security was in
effect.
6. If the amount of the deposited security falls below the amount
required by this chapter for that security, the registrant shall be
deemed not to be registered as required by NRS 598.721 for the purposes of this chapter.
(Added to NRS by 1997, 3192; A 1999, 1517 )—(Substituted in revision for NRS
598.2807)
1. The security required to be deposited by a registrant pursuant
to NRS 598.726 must be held in trust
for consumers injured by the bankruptcy of the registrant or the
registrant’s breach of any agreement entered into in his capacity as a
registrant.
2. A consumer so injured may bring and maintain an action in any
court of competent jurisdiction to recover against the security.
3. The Division may bring an action for interpleader against all
claimants upon the security. If the Division brings such an action, the
Division shall publish notice of the action at least once each week for 2
weeks in a newspaper of general circulation in the county in which the
organization has its principal place of business. The Division may deduct
its costs of the action, including the costs of the publication of the
notice, from the amount of the security. All claims against the security
have equal priority. If the security is insufficient to pay all the
claims in full, the claims must be paid pro rata. If the registrant has
posted a bond with the Division, the surety is then relieved of all
liability under the bond.
4. The Division may, in lieu of bringing an action for
interpleader pursuant to subsection 3, conduct a hearing to determine the
distribution of the security to claimants. The Division shall adopt
regulations to provide for adequate notice and the conduct of the
hearing. If the registrant has posted a bond with the Division,
distribution pursuant to this subsection relieves the surety of all
liability under the bond.
5. If the security is sufficient to pay all claims against the
security in full, the Division may deduct from the amount of the
security, the cost of any investigation or hearing it conducted to
determine the distribution of the security.
(Added to NRS by 1997, 3193; A 2001, 2151 )—(Substituted in revision for NRS
598.2808)
1. If no claims have been filed against the security deposited
with the Division pursuant to NRS 598.726 within 6 months after the registrant ceases to
operate or his registration expires, whichever occurs later, the
Commissioner shall release the security to the registrant and shall not
audit any claims filed against the security thereafter by consumers.
2. If one or more claims have been filed against the security
within 6 months after the registrant ceases to operate or his
registration expires, whichever occurs later, the proceeds must not be
released to the registrant or distributed to any consumer earlier than 1
year after the registrant ceases to operate or his registration expires,
whichever occurs later.
3. For the purposes of this section, the Commissioner shall
determine the date on which a registrant ceases to operate.
(Added to NRS by 1997, 3193)—(Substituted in revision for NRS
598.2809)
Credit Service Organizations
As used in NRS 598.741 to 598.787 ,
inclusive, unless the context otherwise requires:
1. “Buyer” means a natural person who is solicited to purchase or
who purchases the services of an organization which provides credit
services.
2. “Commissioner” means the Commissioner of Consumer Affairs.
3. “Division” means the Consumer Affairs Division of the
Department of Business and Industry.
4. “Extension of credit” means the right to defer payment of debt
or to incur debt and defer its payment, offered or granted primarily for
personal, family or household purposes.
5. “Organization”:
(a) Means a person who, with respect to the extension of credit by
others, sells, provides or performs, or represents that he can or will
sell, provide or perform, any of the following services, in return for
the payment of money or other valuable consideration:
(1) Improving a buyer’s credit record, history or rating.
(2) Obtaining an extension of credit for a buyer.
(3) Providing counseling or assistance to a person in
establishing or effecting a plan for the payment of his indebtedness,
unless that counseling or assistance is provided by and is within the
scope of the authorized practice of a debt adjuster licensed pursuant to
chapter 676 of NRS.
(4) Providing advice or assistance to a buyer with regard to
subparagraph (1) or (2).
(b) Does not include:
(1) A person organized, chartered or holding a license or
authorization certificate to make loans or extensions of credit pursuant
to the laws of this state or the United States who is subject to
regulation and supervision by an officer or agency of this state or the
United States.
(2) A bank, credit union or savings and loan institution
whose deposits or accounts are eligible for insurance by the Federal
Deposit Insurance Corporation, the National Credit Union Share Insurance
Fund or a private insurer approved pursuant to NRS 678.755 .
(3) A person licensed as a real estate broker by this state
where the person is acting within the course and scope of that license,
unless the person is rendering those services in the course and scope of
employment by or other affiliation with an organization.
(4) A person licensed to practice law in this state where
the person renders services within the course and scope of his practice
as an attorney at law, unless the person is rendering those services in
the course and scope of employment by or other affiliation with an
organization.
(5) A broker-dealer registered with the Securities and
Exchange Commission or the Commodity Futures Trading Commission where the
broker-dealer is acting within the course and scope of such regulation.
(6) A person licensed as a debt adjuster pursuant to chapter
676 of NRS.
(7) A reporting agency.
6. “Reporting agency” means a person who, for fees, dues or on a
cooperative nonprofit basis, regularly engages in whole or in part in the
business of assembling or evaluating information regarding the credit of
or other information regarding consumers to furnish consumer reports to
third parties, regardless of the means or facility of commerce used to
prepare or furnish the consumer reports. The term does not include:
(a) A person solely for the reason that he conveys a decision
regarding whether to guarantee a check in response to a request by a
third party;
(b) A person who obtains or creates a consumer report and provides
the report or information contained in it to a subsidiary or affiliate; or
(c) A person licensed pursuant to chapter 463 of NRS.
(Added to NRS by 1987, 1517; A 1989, 935; 1993, 1798, 2272, 2801;
1995, 692; 1999, 1518 , 2544 )—(Substituted in revision for NRS 598.281)
An
organization and its agents, employees and representatives who sell or
attempt to sell the services of the organization, shall not:
1. Charge or receive any money or other valuable consideration
before full and complete performance of the services the organization has
agreed to perform for or on behalf of the buyer.
2. Charge or receive any money or other valuable consideration
solely for referral of the buyer to a retail seller who will or may
extend credit to the buyer, if the credit which is or will be extended to
the buyer is upon substantially the same terms as those available to the
general public.
3. Make, counsel or advise any buyer to make, any statement which
is untrue or misleading and which is known, or which by the exercise of
reasonable care should be known, to be untrue or misleading, to a
consumer credit reporting agency or to any person who has extended credit
to a buyer or to whom a buyer is applying for an extension of credit,
with respect to a buyer’s creditworthiness, credit standing or credit
capacity.
4. Make or use any untrue or misleading representations in the
offer or sale of the services of an organization. For the purposes of
this subsection, a “misleading representation” includes a guarantee that:
(a) The organization is able to remove information that is adverse
to the buyer’s ability to obtain credit from the buyer’s credit record,
history or rating.
(b) The organization is able to obtain an extension of credit for
the buyer regardless of the buyer’s existing credit record, history or
rating.
5. Engage, directly or indirectly, in any act, practice or course
of business which operates or would operate as a fraud or deception upon
any person in connection with the offer or sale of the services of an
organization.
6. Remove, or assist or advise the buyer to remove from the
buyer’s credit record, history or rating, information that is adverse to
the buyer’s ability to obtain credit if the information is accurate and
not obsolete.
7. Create, or assist or advise the buyer to create a new credit
record, history or rating by using a different name, address, social
security number, employee identification number or other misleading
information.
8. Attempt to transfer or assign the organization’s certificate of
registration.
9. Submit a buyer’s dispute to a consumer credit reporting agency
without the buyer’s knowledge.
10. Call, or authorize any other person who is not the buyer to
call a consumer credit reporting agency and portray himself as the buyer.
(Added to NRS by 1987, 1518; A 1993, 2274)—(Substituted in revision
for NRS 598.282)
1. Before advertising its services or conducting business in this
State, an organization must register pursuant to NRS 598.721 and deposit security in the amount of $100,000
with the Division pursuant to NRS 598.726 . The security must be conditioned on
compliance by the organization with the provisions of NRS 598.746 to 598.772 ,
inclusive, and the terms of its contracts with buyers.
2. If an organization has deposited the required security, a
salesperson, agent or representative of the organization who sells its
services is not required to deposit his own separate security. For the
purposes of this subsection, a person is a salesman, agent or
representative of an organization if:
(a) He does business under the same name as the organization; or
(b) The organization and the issuer of the security certify in
writing that the security covers the salesperson, agent or representative.
3. The Division shall adopt such regulations as it deems necessary
to carry out the provisions of this section.
(Added to NRS by 1993, 2272; A 1997, 3196)—(Substituted in revision
for NRS 598.2825)
1. Before the execution of a contract between the buyer and an
organization or before the receipt by the organization of any money or
other valuable consideration, whichever occurs first, the organization
must provide to the buyer, in writing:
(a) A statement:
(1) That the buyer has a right pursuant to 15 U.S.C. §§
1681g and 1681h to receive disclosure of all information, except medical
information, in any file on him maintained by a consumer credit reporting
agency;
(2) That 15 U.S.C. § 1681j requires that this disclosure be
made free to the buyer if he requests it within 30 days after receipt of
notice of a denial of credit;
(3) Of the approximate cost to the buyer of receiving this
disclosure when there has not been a denial of credit; and
(4) That the buyer has the right pursuant to 15 U.S.C. §
1681i to dispute the completeness or accuracy of any item contained in
any file on him maintained by any consumer credit reporting agency.
(b) A detailed description of the services to be performed by the
organization for the buyer and the total amount the buyer will become
obligated to pay for the services.
(c) A statement that the buyer has a right to proceed against the
security deposited with the Division by the organization under the
circumstances and in the manner set forth in NRS 598.731 and 598.736 .
The statement provided pursuant to this paragraph must include the name
and address of the issuer of the security.
(d) A statement that the buyer may cancel a contract for the
services of an organization within 5 days after its execution by written
notice mailed or delivered to the organization.
(e) A statement identifying the availability of any nonprofit
association which provides services similar to those offered by the
organization. The statement provided pursuant to this paragraph must
include the association’s telephone number, including the association’s
national toll-free telephone number, if any.
2. The written information provided pursuant to subsection 1 must
be printed in at least 10-point bold type and must include the following
statement or a similar statement approved by the Division:
RIGHTS OF CONSUMERS REGARDING CREDIT FILES
PURSUANT TO STATE AND FEDERAL LAW
You have the right to obtain a copy of your credit file from a
consumer credit reporting agency. There is no fee if, within the past 30
days, you have been turned down for credit, employment or insurance
because of information in your credit report. The consumer credit
reporting agency is obligated to provide someone to help you interpret
the information in your credit file.
You have a right to dispute inaccurate information by contacting
the consumer credit reporting agency directly. However, neither you nor
any credit service organization has the right to have accurate, current
and verifiable information removed from your credit report. Generally,
under the Fair Credit Reporting Act, the consumer credit reporting agency
is obligated to remove accurate, negative information from your report
only if it is more than 7 years old and bankruptcy information can be
reported for 10 years. If you have notified a credit reporting agency
that you dispute the accuracy of information in your credit file, the
consumer credit reporting agency is obligated to make an investigation
and modify or remove inaccurate information. The consumer credit
reporting agency may not charge a fee for this service. Any relevant
information and copies of all documents you have concerning the disputed
information should be given to the consumer credit reporting agency. If
the investigation does not resolve the dispute to your satisfaction, you
may send a brief statement to the consumer credit reporting agency to
keep in your credit file, explaining why you think the information in the
credit file is inaccurate. The consumer credit reporting agency is
obligated to include your statement or a summary of your statement about
disputed information in any report it issues about you.
RIGHTS OF CONSUMERS REGARDING
CANCELLATION OF A CONTRACT
You have a right to give written notice of your intent to cancel a
contract with a credit service organization for any reason within 5
working days from the date you signed it. If for any reason you do cancel
a contract during this time, you do not owe any money. You have a right
to sue a credit service organization if it misleads you.
3. The organization shall retain a copy of the written information
it provides pursuant to the requirements of subsections 1 and 2 for not
less than 2 years.
(Added to NRS by 1987, 1518; A 1993, 2274; 1997, 3197)—(Substituted
in revision for NRS 598.283)
1. A contract between a buyer and an organization for the purchase
of the services of the organization:
(a) Must be in writing;
(b) Must be signed by the buyer;
(c) Must be dated; and
(d) Must clearly indicate above the signature line that the buyer
may cancel the contract within 5 days after its execution by giving
written notice to the organization of his intent to cancel the contract.
If the notice is mailed, it must be postmarked not later than 5 days
after the execution of the contract.
2. A copy of each contract executed by a buyer and an organization
must be retained by the organization for not less than 2 years.
(Added to NRS by 1987, 1519; A 1993, 2276)—(Substituted in revision
for NRS 598.284)
An organization shall file with the Division a
designation and acceptance of and continuously maintain a resident agent
for service of legal process.
(Added to NRS by 1993, 2272)—(Substituted in revision for NRS
598.2855)
1. Any waiver by a buyer of the provisions of NRS 598.746 to 598.777 ,
inclusive, is contrary to public policy and is void and unenforceable.
Any attempt by an organization to have a buyer waive rights given by NRS
598.746 to 598.777 , inclusive, is unlawful.
2. In any proceeding involving NRS 598.741 to 598.787 ,
inclusive, the burden of proving an exemption or an exception from a
definition is upon the person claiming it.
(Added to NRS by 1987, 1520; A 1993, 2277)—(Substituted in revision
for NRS 598.286)
A buyer injured by a
violation of NRS 598.746 to 598.772
, inclusive, or by a breach by an
organization of a contract subject to those sections, may bring an action
for recovery of damages, for injunctive relief or for both recovery of
damages and injunctive relief. Judgment for damages must be entered for
actual damages, but in no case less than the amount paid by the buyer to
the organization, plus reasonable attorney’s fees and costs. If the court
deems it proper, the court may award punitive damages.
(Added to NRS by 1987, 1520; A 1993, 2277)—(Substituted in revision
for NRS 598.287)
1. Except as otherwise provided in subsection 2, a person who
violates any provision of NRS 598.746
to 598.772 , inclusive, is guilty of a
misdemeanor.
2. A person who breaches a contract subject to NRS 598.746 to 598.772 ,
inclusive, is not guilty of a misdemeanor solely because of the breach.
(Added to NRS by 1987, 1520; A 1993, 2277)—(Substituted in revision
for NRS 598.288)
1. The provisions of NRS 598.746
to 598.777 , inclusive, are not
exclusive and do not relieve the parties or the contracts subject thereto
from compliance with any other applicable provision of law.
2. The remedies provided in NRS 598.772 and 598.777
for violation of any provision of NRS 598.746 to 598.772 ,
inclusive, are in addition to any other procedures or remedies for any
violation or conduct provided for in any other law.
3. Any violation of NRS 598.746
to 598.772 , inclusive, constitutes a
deceptive trade practice for the purposes of NRS 598.0903 to 598.0999 , inclusive.
(Added to NRS by 1987, 1520; A 1993, 1959, 2278; 1995, 692; 1997,
3198)—(Substituted in revision for NRS 598.289)
Organizations for Buying Goods or Services at Discount
As used in NRS 598.840 to 598.930 ,
inclusive, unless the context otherwise requires:
1. “Affiliate organization” means an organization for buying goods
or services at a discount that:
(a) Is a subsidiary of a parent business entity; or
(b) Operates under a franchise granted by a parent business entity.
2. “Business day” means any calendar day except Sunday, or the
following business holidays: New Year’s Day, Martin Luther King, Jr.’s
Birthday, Washington’s Birthday, Memorial Day, Independence Day, Labor
Day, Nevada Day, Veterans’ Day, Thanksgiving Day and Christmas Day.
3. “Buyer” means a person who purchases by contract a membership
in an organization for buying goods or services at a discount.
4. “Commissioner” means the Commissioner of the Consumer Affairs
Division.
5. “Consumer Affairs Division” means the Consumer Affairs Division
of the Department of Business and Industry.
6. “Franchise” has the meaning ascribed to it in 16 C.F.R. §
436.2, as amended or substituted in revision by the Federal Trade
Commission.
7. “Organization for buying goods or services at a discount” or
“organization” means a person who, for a consideration, provides or
claims to provide a buyer with the ability to purchase goods or services
at a price which is represented to be lower than the price generally
charged in the area. The term includes, without limitation, an affiliate
organization.
8. “Parent business entity” or “parent” means any business entity
that, directly or indirectly, has owned, operated, controlled or granted
franchises to, in any combination thereof, at least 15 organizations or
affiliate organizations for a consecutive period of 5 years or more.
9. “Subsidiary” means an organization for buying goods or services
at a discount that is owned, operated or controlled, either directly or
indirectly or in whole or in part, by a parent business entity.
(Added to NRS by 1985, 960; A 1993, 1800, 1960; 1995, 663; 1997,
3199; 2005, 1373 )
An organization in which:
1. The consideration for the contract for membership is $50 or
less or is an annual fee of $25 or less; or
2. Providing goods or services at a discount is not the primary
purpose of the organization but is incidental to membership in the
organization,
Ê is not subject to the provisions of NRS 598.840 to 598.930 ,
inclusive.
(Added to NRS by 1985, 960)
Before
advertising its services or conducting business in this State, an
organization for buying goods or services at a discount must register
pursuant to NRS 598.721 and post
security in the amount of $50,000 with the Consumer Affairs Division
pursuant to NRS 598.726 . The security
must be conditioned on compliance by the organization with the provisions
of NRS 598.840 to 598.930 , inclusive, the terms of the buyer’s contract
for membership in the organization and the terms of any contract with the
buyer for the purchase of goods or services.
(Added to NRS by 1997, 3194; A 2005, 1374 )
1. Before the organization receives any money from any buyer
pursuant to a contract for membership in the organization, it shall
establish a trust account for payments on contracts at a financial
institution that is federally insured or insured by a private insurer
approved pursuant to NRS 678.755 . Each
payment from a buyer for his contract for membership, except for $50 of
the first payment, must be deposited in the trust account.
2. Except as otherwise provided in subsection 3, during each
quarter of the term of a buyer’s contract or each 6 months, whichever
period is shorter, the trustee shall withdraw one-quarter of the buyer’s
payments under the contract from the trust account and pay the amount to
the organization.
3. If an affiliate organization obtains the express consent of its
parent and the parent posts the security required by subsection 4, the
affiliate organization may:
(a) Authorize the parent to serve as the trustee pursuant to NRS
598.865 for the trust accounts required
by this section and NRS 598.860 ; and
(b) Authorize the trustee to make the following withdrawals from
the trust account required by this section:
(1) During the first quarter of the term of a buyer’s
contract or the first 6 months, whichever period is shorter, the trustee
shall withdraw not more than one-half of the buyer’s payments under the
contract from the trust account and pay the amount to the affiliate
organization; and
(2) During the second quarter of the term of the buyer’s
contract or the second 6 months, whichever period is shorter, the trustee
shall withdraw the remaining balance of the buyer’s payments under the
contract from the trust account and pay the amount to the affiliate
organization.
4. Before a trustee may withdraw money from a trust account
pursuant to subsection 3, the parent must post security in the amount of
$250,000 with the Consumer Affairs Division pursuant to NRS 598.726
. The security posted by the parent:
(a) Provides coverage for all of the parent’s affiliate
organizations that are authorized to act pursuant to subsection 3;
(b) Must be conditioned on compliance by such an affiliate
organization with the provisions of NRS 598.840 to 598.930 ,
inclusive, the terms of the buyer’s contract for membership in the
affiliate organization and the terms of any contract with the buyer for
the purchase of goods or services; and
(c) May be used to pay a claim against such an affiliate
organization only if the security posted by the affiliate organization
pursuant to NRS 598.851 has been
exhausted.
5. If the organization sells, transfers or assigns the contract
with the buyer to a third party, and the third party gives reasonable
consideration for the contract, the organization shall deposit the
consideration in the trust account. If the third party does not give
reasonable consideration for the contract, the organization shall deposit
all payments on the contract from the buyer in the organization’s trust
account for payments on the contract.
(Added to NRS by 1985, 961; A 1999, 1519 ; 2005, 1374 )
1. Before the organization accepts money from any buyer for an
order of goods or services, it shall establish a trust account for the
deposit of payments on goods or services. The organization shall deposit
all money received from each buyer for goods or services, including
charges for freight, delivery, installation or taxes or other charges,
unless the total cost is $50 or less in the trust account. The trust
account must be for the benefit of buyers who order goods or services
from the organization.
2. The trustee may withdraw money from the trust account for
payments on goods or services to pay the source of the goods or services
ordered by the buyer, or to make a refund to the buyer. After such
withdrawal, the trustee may withdraw that percentage of the remainder of
the deposit from the buyer which represents the organization’s profit.
(Added to NRS by 1985, 962)
1. Except as otherwise provided in subsection 3 of NRS 598.855
, the trust accounts required by NRS
598.855 and 598.860 must be administered by an independent trustee
approved by the Commissioner. All fees charged by the trustee to
administer a trust account must be paid by the organization.
2. The trustee shall withdraw money from the trust account for
payments on goods or services only upon written proof from the source of
the goods or services that the items have been shipped or delivered to
the buyer. The Commissioner may audit the trustee as necessary to ensure
compliance with NRS 598.840 to 598.930
, inclusive.
(Added to NRS by 1985, 962; A 2005, 1375 )
Each organization, before
the prospective buyer signs a contract or application for membership in
the organization, shall give to the buyer in writing:
1. A description of the exact nature of the services it provides,
specifying the general categories of goods which are available at the
organization’s place of business or warehouse, those categories of goods
which must be ordered or obtained through stores to which the
organization refers the buyer and those categories of goods which must be
ordered or obtained through the mail.
2. A list, current within 60 days immediately preceding the
signing of the contract, of at least 100 items which are sold by or
through the organization or available to a buyer, identified by the name
of the brand, model and total price including a reasonable estimate of
charges for freight, delivery and installation, the organization’s markup
and a reasonable estimate of any other charges the organization imposes.
The items must be reasonably representative of the type of goods
available. In lieu of providing such a list, the organization shall give
to the buyer, in writing, a list of at least 100 items which were
purchased by its members through the discount buying organization during
the preceding 60 days. The list must identify the items by the name of
the brand, model and total selling price including charges for freight,
delivery and installation, the organization’s markup, and any other
charges imposed by the discount buying organization, and must be
representative as to the type of goods sold and the prices charged for
the goods listed as sold during that period. If the number of different
items available through an organization is less than 100, it may furnish
a list of the total items available, containing the same information as
the previous lists, with a statement that those are the only goods
available. Any list required by this subsection must state the date on
which it was prepared.
3. A statement of the organization’s policy with respect to
warranties or guarantees on goods ordered, and the policy with respect to
the return of ordered goods, cancellation of orders by the buyer and
refunds for cancellation or return.
4. A description of any charges, such as charges for freight,
delivery and installation, the seller’s markup and any other charges
which are incidental to the purchase of goods and which are to be paid by
the buyer. A disclosure of specific costs must also be made on each order
placed through the organization.
5. A statement whether any stockholder, director, officer, general
or limited partner of the discount buying organization:
(a) Has been convicted of a felony or misdemeanor or pleaded nolo
contendere to a felony or misdemeanor charge, if it involved fraud,
embezzlement, misappropriation of property or a violation of NRS 598.840
to 598.930 , inclusive;
(b) Has been held liable in a civil action by final judgment or
consented to the entry of a stipulated judgment if the civil action
alleged fraud, embezzlement, misappropriation of property, a violation of
NRS 598.840 to 598.930 , inclusive, the use of untrue or misleading
representations in an attempt to sell or dispose of real or personal
property, or the use of unfair, unlawful or deceptive business practices;
or
(c) Is subject to a currently effective injunction or restrictive
order relating to any business activity as the result of an action
brought by a governmental agency, and including the name of the court,
the date of the order or injunction and the name of the governmental
agency that filed the action.
(Added to NRS by 1985, 962)
Each
contract for membership in an organization must:
1. Be in writing, legible and have all spaces filled in before the
buyer signs it;
2. Be in the language in which the sales presentation was given;
3. Contain the addresses of the buyer and the organization;
4. Be given to the buyer when he signs it;
5. Disclose that the security required by NRS 598.726 , 598.851
and, if applicable, NRS 598.855 has
been obtained and deposited with the Consumer Affairs Division;
6. Specify the term of the membership of the buyer, which may not
be measured by the buyer’s life;
7. Clearly specify the buyer’s right to cancel the contract
pursuant to NRS 598.885 ;
8. Clearly specify the buyer’s right to rescind the contract and
to be given a refund pro rata pursuant to NRS 598.910 and the conditions and limitations on that
right;
9. Clearly specify the buyer’s right to a refund on the purchase
of goods pursuant to NRS 598.895 and
the conditions and limitations on that right; and
10. Clearly specify whether or not the buyer is given any other
rights to a refund on the purchase of goods or services and, if so, any
conditions and limitations on those rights.
(Added to NRS by 1985, 963; A 1997, 3199; 2005, 1375 )
A contract for
membership in an organization must not:
1. Require payments or financing by the buyer for more than 2
years from the date the contract was executed; or
2. Deny a third party the right to assert a cause of action or
defense which the buyer has against the organization.
(Added to NRS by 1985, 963)
The buyer may cancel a contract for membership in an organization by
giving the organization written notice of the cancellation within 3
business days after he receives a copy of the contract. The notice must
be delivered in person or by mail postmarked by midnight of the third
business day. The organization shall return all money paid by the buyer
within 15 days after it receives the notice of cancellation.
(Added to NRS by 1985, 964)
The membership of the buyer in an organization becomes effective
7 days after the contract for membership is signed.
(Added to NRS by 1985, 964)
If any goods ordered by the buyer are not delivered to
the buyer or available for pickup by the buyer at a location within his
county of residence within 6 weeks after he places the order for the
goods or by a date agreed upon at the time of the order, any money paid
by the buyer for the goods must, at his request, be refunded.
(Added to NRS by 1985, 964)
An organization shall not make any
untrue or misleading representations to the buyer or in its advertising.
A contract for membership in an organization where any untrue or
misleading representation was made to the buyer or the buyer was made
aware of the untrue or misleading representation is void and
unenforceable by the organization.
(Added to NRS by 1985, 964)
If an organization does not
comply with the provisions of NRS 598.840 to 598.895 ,
inclusive, or 598.905 to 598.930 , inclusive, the buyer may agree in writing,
after a full disclosure, to any correction of the defect if the
correction is made within 30 days after he signs the contract for
membership in the organization. If the buyer does not consent, or if the
correction is not made within the 30-day period, the contract is
rescinded, and the buyer must be given a full refund.
(Added to NRS by 1985, 964)
1. If an organization transfers its obligation to provide goods or
services to a buyer to another organization which provides substantially
fewer goods or services, the buyer may consent to the transfer in writing
after a full disclosure to him of the goods and services to be provided
by the new organization. If a buyer does not consent, his contract is
rescinded, and he must be given a refund pro rata based on the amount of
time he was a member of the organization.
2. The buyer may rescind the contract and the organization shall
give him a refund pro rata based on the amount of time he was a member of
the organization if any of the following circumstances occur:
(a) Except as otherwise provided in this paragraph, the
organization moves its place of business which is geographically closest
to the buyer’s residence, as indicated in the contract, more than 20
miles farther from the buyer’s residence than it was when the contract
for membership was signed. The provisions of this paragraph do not apply
if:
(1) The organization offers the buyer a substantially
equivalent at-home ordering service through at least one other generally
available channel of communication, including, without limitation, the
Internet;
(2) The at-home ordering service offers the same categories
of goods and services provided by the organization at the time the
organization moves its place of business; and
(3) Any goods ordered by the buyer through the at-home
ordering service are shipped, at the election of the buyer, to either the
buyer’s residence, as indicated in the contract, or a freight receiver
within 20 miles of that residence.
(b) Within 6 months after the contract for membership was signed,
the organization stops providing any category of goods or services
represented to the buyer to be available when he signed the contract.
(Added to NRS by 1985, 964; A 2005, 1375 )
Any waiver by the
buyer of the provisions of NRS 598.840
to 598.930 , inclusive, is contrary to
public policy and void.
(Added to NRS by 1985, 964)
1. A cause of action or a defense of a buyer against the
organization is not extinguished by the transfer, assignment or sale of
the contract for membership in the organization to a third party.
2. In an action by a buyer against an organization for violation
of the provisions of NRS 598.840 to
598.930 , inclusive, the court may award
restitution, treble damages, reasonable attorney’s fees and costs. If the
course of action was based on a violation of NRS 598.900 , the court may award the buyer $1,000,
reasonable attorney’s fees and costs, or restitution, treble damages,
reasonable attorney’s fees and costs, whichever is greater.
(Added to NRS by 1985, 965)
1. The remedies, duties and prohibitions of NRS 598.840 to 598.930 ,
inclusive, are not exclusive and are in addition to any other remedies
provided by law.
2. Any violation of NRS 598.851
to 598.900 , inclusive, constitutes a
deceptive trade practice for the purposes of NRS 598.0903 to 598.0999 , inclusive.
(Added to NRS by 1985, 965; A 1993, 1961; 1997, 3199)
Dance Studios and Health Clubs
As used in NRS 598.940 to 598.966 ,
inclusive, unless the context otherwise requires, the words and terms
defined in NRS 598.9403 to 598.9417
, inclusive, have the meanings ascribed
to them in those sections.
(Added to NRS by 1989, 2037; A 1993, 1801, 1962; 1995, 663)
“Business day” means any
calendar day except Sunday, or the following business holidays: New
Year’s Day, Martin Luther King, Jr.’s Birthday, Washington’s Birthday,
Memorial Day, Independence Day, Labor Day, Nevada Day, Veterans’ Day,
Thanksgiving Day and Christmas Day.
(Added to NRS by 1993, 1956)
“Buyer” means any person who
purchases by contract dance lessons, the use of facilities or other
services from a dance studio or health club.
(Added to NRS by 1993, 1956)
“Commissioner” means the
Commissioner of the Division.
(Added to NRS by 1993, 1956)
“Dance studio” means any
enterprise that offers instruction in ballroom or other types of dancing,
including lessons or other services, except:
1. A nonprofit public or private school, college or university;
2. The State or any political subdivision; or
3. A nonprofit religious or ethnic organization or a nonprofit
organization for the benefit of the community or its members.
(Added to NRS by 1993, 1956)
“Division” means the Consumer
Affairs Division of the Department of Business and Industry.
(Added to NRS by 1993, 1956; A 1995, 663)
“Health club” means any
enterprise which offers the use of its facilities for the maintenance or
development of physical fitness or the control of weight, except:
1. A nonprofit public or private school, college or university;
2. The State or any political subdivision; or
3. A nonprofit religious or ethnic organization or a nonprofit
organization for the benefit of the community or its members.
(Added to NRS by 1993, 1956)
“Pre-sale” means the sale of
dance lessons, the use of facilities or other services by a dance studio
or health club before all amenities, facilities or benefits identified in
the contract or sales presentation are available to the buyer.
(Added to NRS by 1993, 1957)
The provisions of NRS 598.940 to 598.966 ,
inclusive, apply to contracts for dance lessons, the use of facilities or
other services from a dance studio or health club only if the membership
is intended for use by the buyer or for the buyer and the members of his
family and:
1. The buyer purchases or becomes obligated to purchase the dance
lessons, use of facilities or other services for more than 3 months and
the dance studio or health club requires the payment of any fee or dues
more than 3 months in advance;
2. The dance studio or health club requires the payment of a fee
for initiation or membership in an amount greater than $75; or
3. The dance studio or health club accepts from a buyer more than
$100 at any one time for dance lessons, the use of facilities or other
services.
(Added to NRS by 1989, 2038; A 1993, 1962)
1. Each owner of a dance studio or health club shall register with
the Division pursuant to NRS 598.721 ,
listing the full name and address of the studio or club and any other
description of its facilities or activities the Division requires.
2. At least one member of the governing body of the dance studio
or health club must live in the county where the studio or club is
located. He is the agent of the studio or club and its owner for receipt
of process served.
(Added to NRS by 1989, 2038; A 1993, 1962; 1997, 3199)
1. Except as otherwise provided in subsection 5, before
advertising its services or conducting business in this State, the owner
of a dance studio or a health club must register pursuant to NRS 598.721
and 598.944 and deposit security with the Division
pursuant to NRS 598.726 . The security
must:
(a) Be conditioned on compliance by the owner with the provisions
of NRS 598.940 to 598.966 , inclusive, and the terms of the contract with
a buyer; and
(b) Remain on deposit with the Division until the release of the
security is authorized or required pursuant to NRS 598.736 , except that the dance studio or health club
may change the form of the security as provided in NRS 598.726 .
2. Except as otherwise provided in subsection 3, the amount of the
security to be deposited must be:
(a) Ten thousand dollars, if the dance studio or health club has
less than 400 members;
(b) Fifteen thousand dollars, if the dance studio or health club
has 400 members or more but less than 800 members;
(c) Twenty thousand dollars, if the dance studio or health club has
800 members or more but less than 1,200 members;
(d) Twenty-five thousand dollars, if the dance studio or health
club has 1,200 members or more but less than 1,500 members;
(e) Thirty-five thousand dollars, if the dance studio or health
club has 1,500 members or more but less than 4,000 members;
(f) Fifty thousand dollars, if the dance studio or health club has
4,000 members or more but less than 25,000 members; and
(g) Two hundred and fifty thousand dollars, if the dance studio or
health club has 25,000 or more members.
3. If a dance studio or health club conducts any pre-sale of dance
lessons, the use of facilities or other services, the amount of the
security required by this section is $100,000 unless a greater amount is
required pursuant to paragraph (g) of subsection 2.
4. A dance studio or health club shall report to the Division on a
quarterly basis the size of its membership and shall, on the basis of any
change in the size of that membership, adjust accordingly the amount of
the security deposited with the Division.
5. If, on October 1, 2001, a dance studio or health club has not
deposited security with the Division pursuant to NRS 598.726 because it was not required to do so pursuant
to this section, the dance studio or health club:
(a) Is not required to deposit security with the Division pursuant
to NRS 598.726 ; and
(b) Shall obtain a written acknowledgment from each member and
prominently post a notice on its premises stating that no security for
refunds or reimbursement has been deposited with the State of Nevada.
(Added to NRS by 1989, 2038; A 1993, 1963; 1997, 3200; 2001, 2152
)
Each contract between the buyer and the dance
studio or health club must:
1. Be in writing, legible and have all spaces filled in before the
buyer signs it;
2. Be in the language in which the sales presentation was given;
3. Contain the addresses of the buyer and the studio or club;
4. Be given to the buyer when he signs it;
5. Disclose whether security has been obtained and deposited with
the Division pursuant to NRS 598.726 ;
6. Specify the term of membership of the buyer, which must not be
measured by the life of the buyer;
7. Clearly specify the right of the buyer to cancel the contract
pursuant to NRS 598.950 ;
8. Not contain a clause by which the contract is automatically
renewed; and
9. Specify the number of lessons and the cost of each lesson, if
the contract is for dance lessons.
(Added to NRS by 1989, 2039; A 1993, 1964; 1997, 3201)
A
buyer may cancel a contract for dance lessons, the use of facilities or
other services from a dance studio or health club within 3 business days
after he receives a copy of the contract by notifying the studio or club
in writing. The notice must be delivered in person or by mail postmarked
by midnight of the third business day. The studio or club shall return
all money paid by the buyer within 15 days after it receives the notice
of cancellation.
(Added to NRS by 1989, 2040; A 1993, 1965)
A dance studio or health
club shall not make any false or misleading representation to the buyer
or in its advertising. A contract for services from a dance studio or
health club is void and unenforceable if any false or misleading
representation was made to the buyer.
(Added to NRS by 1989, 2040; A 1993, 1965)
If a buyer becomes disabled during the term of a contract, and
a physician confirms in writing to the dance studio or health club that:
1. The buyer is not physically able to use the facilities of the
studio or club; and
2. The disability will continue for more than 3 months,
Ê the buyer is entitled to suspend the contract for the duration of the
disability. After he recovers, he is entitled to an extension of the
contract for a period equal to the time of the disability. If he is
permanently disabled, he may cancel the contract and receive a refund pro
rata of the amount paid pursuant to it.
(Added to NRS by 1989, 2040; A 1993, 1965)
1. If a dance studio or health club is closed for more than 1
month, through no fault of the buyer, he is entitled to:
(a) Extend the contract for a period equal to the time the studio
or club is closed; or
(b) Receive a refund pro rata of the amount paid pursuant to the
contract.
2. If the dance studio or health club is closed without fault of
its owner or management, the election of remedies under subsection 1 must
be made by the studio or club. If the studio or club is closed because of
the fault of its owner or management, the election must be made by the
buyer.
(Added to NRS by 1989, 2040; A 1993, 1965)
1. If a dance studio or health club transfers its obligations to
provide goods or services to a buyer to another studio or club that
provides substantially fewer goods or services, the buyer may consent to
the transfer in writing after a full disclosure of the goods and services
provided by the new studio or club. If the buyer does not consent, his
contract is rescinded and he must be given a refund pro rata upon the
amount of time he was a member of the dance studio or health club.
2. If a dance studio or health club moves its place of business
that is geographically closest to the residence of the buyer as set forth
in the contract, more than 20 miles farther away from the residence of
the buyer than it was when the contract for services was signed, the
buyer may rescind the contract and the dance studio or health club shall
provide a refund pro rata based upon the amount of time he was a member.
(Added to NRS by 1989, 2040; A 1993, 1965)
If a dance studio or health
club does not comply with the provisions of NRS 598.940 to 598.950 ,
inclusive, or 598.954 to 598.966 , inclusive, the buyer may agree in writing,
after a full disclosure, to any correction of the defect if the
correction is made within 30 days after he signs a contract for dance
lessons, the use of facilities or other services. If the buyer does not
consent, or if the correction is not made within the 30-day period, the
contract is rescinded and the buyer must be given a full refund.
(Added to NRS by 1989, 2041; A 1993, 1966)
Any waiver by the buyer
of the provisions of NRS 598.940 to
598.966 , inclusive, is contrary to
public policy and void.
(Added to NRS by 1989, 2041)
1. The remedies, duties and prohibitions of NRS 598.940 to 598.966 ,
inclusive, are not exclusive and are in addition to any other remedies
provided by law.
2. Any violation of NRS 598.944
to 598.958 , inclusive, constitutes a
deceptive trade practice for the purposes of NRS 598.0903 to 598.0999 , inclusive.
(Added to NRS by 1989, 2041; A 1993, 1966)
PROVISION OF TELECOMMUNICATIONS SERVICES
As used in NRS 598.968 to 598.9694 , inclusive, unless the context otherwise
requires, the words and terms defined in NRS 598.9682 and 598.9684 have the meanings ascribed to them in those
sections.
(Added to NRS by 1999, 2715 ; A 2001, 2153 )
“Provider” means:
1. A person who is in the business of providing a
telecommunications service;
2. An agent, employee, independent contractor or representative of
a person who is in the business of providing a telecommunications
service; or
3. A person who originates a charge for a telecommunications
service and directly or indirectly bills a customer for the charge.
(Added to NRS by 1999, 2715 )
“Telecommunications service” means a service that is designed or has the
capability to generate, process, store, retrieve, convey, emit, transmit,
receive, relay, record or reproduce any data, information, image,
program, signal or sound over a communications system or network,
including, without limitation, a communications system or network that
uses analog, digital, electronic, electromagnetic, magnetic or optical
technology.
(Added to NRS by 1999, 2715 )
A provider shall not:
1. Make a statement or representation regarding the provision of a
telecommunications service, including, without limitation, a statement
regarding the rates, terms or conditions of a telecommunications service,
that:
(a) Is false, misleading or deceptive; or
(b) Fails to include material information which makes the statement
or representation false, misleading or deceptive.
2. Misrepresent his identity.
3. Falsely state to a person that the person has subscribed or
authorized a subscription to or has received a telecommunications service.
4. Omit, when explaining the terms and conditions of a
subscription to a telecommunications service, a material fact concerning
the subscription.
5. Fail to provide a customer with timely written notice
containing:
(a) A clear and detailed description relating directly to the
services for which the customer is being billed and the amount the
customer is being charged for each service;
(b) All terms and conditions relating directly to the services
provided; and
(c) The name, address and telephone number of the provider.
6. Fail to honor, within a reasonable period, a request of a
customer to cancel a telecommunications service pursuant to the terms and
conditions for the service.
7. Bill a customer for a telecommunications service after the
customer has cancelled the telecommunications service pursuant to the
terms and conditions of the service.
8. Bill a customer for services that the provider knows the
customer has not authorized, unless the service is required to be
provided by law. The failure of a customer to refuse a proposal from a
provider does not constitute specific authorization.
9. Change a customer’s subscription to a local exchange carrier or
an interexchange carrier unless:
(a) The customer has authorized the change within the 30 days
immediately preceding the date of the change; and
(b) The provider complies with the provisions of 47 U.S.C. § 258,
as amended, and the verification procedures set forth in 47 C.F.R. part
64, subpart K, as amended.
10. Fail to provide to a customer who has authorized the provider
to change his subscription to a local exchange carrier or an
interexchange carrier a written confirmation of the change within 30 days
after the date of the change.
11. Propose or enter into a contract with a person that purports
to:
(a) Waive the protection afforded to the person by any provision of
this section; or
(b) Authorize the provider or an agent, employee, independent
contractor or representative of the provider to violate any provision of
this section.
(Added to NRS by 1999, 2715 )
The Public Utilities Commission of Nevada may adopt
regulations governing the disclosures that must be made by a provider to
a customer before the customer may be charged for a telecommunications
service.
(Added to NRS by 2001, 2149 )
A
provider who is a local exchange carrier shall, in a competitively
neutral manner, offer to each customer the opportunity to freeze the
interexchange carrier selected by the customer.
(Added to NRS by 1999, 2716 )
1. The remedies, duties and prohibitions of NRS 598.968 to 598.9694 , inclusive, are not exclusive and are in
addition to any other remedies provided by law.
2. A violation of any provision of NRS 598.968 to 598.9694 , inclusive, constitutes a deceptive trade
practice for the purposes of NRS 598.0903 to 598.0999 , inclusive.
(Added to NRS by 1999, 2716 )
REPAIR OF MOTOR VEHICLES
As used in NRS 598.971 to 598.990 ,
inclusive, unless the context otherwise requires, the words and terms
defined in NRS 598.975 and 598.981
have the meanings ascribed to them in
those sections.
(Added to NRS by 1997, 1374)
“Department” means the
Department of Motor Vehicles.
(Added to NRS by 1997, 1374; A 2001, 2631 )
“Division” means the Consumer
Affairs Division of the Department of Business and Industry.
(Added to NRS by 1997, 1374)
1. The Division and the Department shall cooperate to enhance the
protection of persons who authorize the repair of motor vehicles by a
garage that is registered with the Department pursuant to the provisions
of NRS 487.530 to 487.570 , inclusive.
2. The Commissioner of Consumer Affairs may provide to the
Department a copy of any complaint filed with the Division that alleges a
deceptive trade practice pursuant to the provisions of NRS 598.0903
to 598.0999 , inclusive, by a garage or garageman
registered pursuant to the provisions of NRS 487.530 to 487.570 ,
inclusive. If the Commissioner provides the Department with a copy of a
complaint, the Department is subject to the provisions of NRS 598.098
with respect to the complaint.
3. The Department may provide assistance to the Division in
carrying out the provisions of NRS 598.990 .
(Added to NRS by 1997, 1374)
The Division shall:
1. Establish and maintain a toll-free telephone number for persons
to report to the Division information concerning alleged violations of
NRS 487.035 , 487.530 to 487.570 ,
inclusive, 597.480 to 597.590 , inclusive, and 598.0903 to 598.0999 , inclusive.
2. Develop a program to provide information to the public
concerning:
(a) The duties imposed on a garageman by the provisions of NRS
487.035 , 487.530 to 487.570 ,
inclusive, and 597.480 to 597.590
, inclusive;
(b) The rights and protections established for a person who uses
the services of a garage;
(c) The repair of motor vehicles; and
(d) Deceptive trade practices relating to the repair of motor
vehicles by a garage.
(Added to NRS by 1997, 1375)
“Property” means any real or
personal property, or both real and personal property, intangible
property or services.
(Added to NRS by 1973, 1484)—(Substituted in revision for NRS
598.440)
“Sale” includes any sale, offer for
sale or attempt to sell any property for any consideration.
(Added to NRS by 1973, 1484)—(Substituted in revision for NRS
598.450)
“Service mark” means a mark
used by a person to identify services and to distinguish them from the
services of others.
(Added to NRS by 1973, 1484)—(Substituted in revision for NRS
598.460)
“Trademark” means a mark used
by a person to identify goods and to distinguish them from the goods of
others.
(Added to NRS by 1973, 1484)—(Substituted in revision for NRS
598.470)
“Trade name” means a word,
name, symbol, device or any combination of the foregoing in any form or
arrangement used by a person to identify his business or occupation, and
to distinguish it from the business or occupation of others.
(Added to NRS by 1973, 1484)—(Substituted in revision for NRS
598.480)
1. Evidence that a person has engaged in a deceptive trade
practice is prima facie evidence of intent to injure competitors and to
destroy or substantially lessen competition.
2. The deceptive trade practices listed in NRS 598.0915 to 598.0925 , inclusive, are in addition to and do not
limit the types of unfair trade practices actionable at common law or
defined as such in other statutes of this state.
(Added to NRS by 1973, 1484; A 1985, 2258; 1989, 649)—(Substituted
in revision for NRS 598.490)
0903 to 598.0999 , inclusive.
1. The provisions of NRS 598.0903 to 598.0999 , inclusive, do not apply to:
(a) Conduct in compliance with the orders or rules of, or a statute
administered by, a federal, state or local governmental agency.
(b) Publishers, including outdoor advertising media, advertising
agencies, broadcasters or printers engaged in the dissemination of
information or reproduction of printed or pictorial matter who publish,
broadcast or reproduce material without knowledge of its deceptive
character.
(c) Actions or appeals pending on July 1, 1973.
2. The provisions of NRS 598.0903 to 598.0999 , inclusive, do not apply to the use by a
person of any service mark, trademark, certification mark, collective
mark, trade name or other trade identification which was used and not
abandoned prior to July 1, 1973, if the use was in good faith and is
otherwise lawful except for the provisions of NRS 598.0903 to 598.0999 , inclusive.
(Added to NRS by 1973, 1484; A 2005, 1227 )
The
Director may, in one or more particular cases, delegate his powers and
duties under the provisions of NRS 598.0903 to 598.0999 , inclusive, to any person under his direct
supervision and direction.
(Added to NRS by 1983, 881)—(Substituted in revision for NRS
598.505)
The Commissioner and Director may,
independently, create and appoint advisory committees whenever necessary
to advise them in the performance of their powers and duties pursuant to
NRS 598.0903 to 598.0999 , inclusive. Any such committee must be
created by a regulation adopted in accordance with the provisions of
chapter 233B of NRS. The regulation must
specify:
1. The membership of the committee;
2. The duties of the committee and the purpose for which it is
created;
3. The period of existence of the committee; and
4. The rules for the governance of the committee.
Ê The membership of the committee must include a member who is a
representative of any business or industry which may be affected by any
advice provided by the committee. The members of an advisory committee
created pursuant to this section serve without compensation unless an
appropriation or other money for that purpose is provided by the
Legislature.
(Added to NRS by 1995, 2173)
When the Commissioner, Director or Attorney General has cause to believe
that any person has engaged or is engaging in any deceptive trade
practice, he may:
1. Request the person to file a statement or report in writing
under oath or otherwise, on such forms as may be prescribed by the
Commissioner, Director or Attorney General, as to all facts and
circumstances concerning the sale or advertisement of property by the
person, and such other data and information as the Commissioner, Director
or Attorney General may deem necessary.
2. Examine under oath any person in connection with the sale or
advertisement of any property.
3. Examine any property or sample thereof, record, book, document,
account or paper as he may deem necessary.
4. Make true copies, at the expense of the Consumer Affairs
Division of the Department of Business and Industry, of any record, book,
document, account or paper examined pursuant to subsection 3, which
copies may be offered into evidence in lieu of the originals thereof in
actions brought pursuant to NRS 598.097
and 598.0979 .
5. Pursuant to an order of any district court, impound any sample
of property which is material to the deceptive trade practice and retain
the property in his possession until completion of all proceedings as
provided in NRS 598.0903 to 598.0999
, inclusive. An order may not be issued
pursuant to this subsection unless:
(a) The Commissioner, Director or Attorney General, and the court
give the accused full opportunity to be heard; and
(b) The Commissioner, Director or Attorney General proves by clear
and convincing evidence that the business activities of the accused will
not be impaired thereby.
(Added to NRS by 1973, 1485; A 1983, 883; 1993, 1799; 1997, 3195)
1. Whenever the Attorney General is requested in writing by the
Commissioner or the Director to represent him in instituting a legal
proceeding against a person who has engaged or is engaging in a deceptive
trade practice, the Attorney General may bring an action in the name of
the State of Nevada against that person on behalf of the Commissioner or
Director.
2. The Attorney General may institute criminal proceedings to
enforce the provisions of NRS 598.0903
to 598.0999 , inclusive. The Attorney
General is not required to obtain leave of the court before instituting
criminal proceedings pursuant to this subsection.
3. If the Attorney General has reason to believe that a person has
engaged or is engaging in a deceptive trade practice, the Attorney
General may bring an action in the name of the State of Nevada against
that person to obtain a temporary restraining order, a preliminary or
permanent injunction, or other appropriate relief.
4. If the Attorney General has cause to believe that a person has
engaged or is engaging in a deceptive trade practice, the Attorney
General may issue a subpoena to require the testimony of any person or
the production of any documents, and may administer an oath or
affirmation to any person providing such testimony. The subpoena must be
served upon the person in the manner required for service of process in
this state or by certified mail with return receipt requested. An
employee of the Attorney General may personally serve the subpoena.
(Added to NRS by 1985, 1479; A 1993, 2095; 1997, 3195)
1. Within the limits of legislative appropriation and the
availability of personnel, the Commissioner or Director shall provide
investigative assistance, including the identification and use of
relevant evidence in his possession, necessary for litigation referred to
the Attorney General pursuant to NRS 598.0963 or 598.0979 . The Attorney General shall provide legal
advice and guidance to the Commissioner or Director in carrying out his
powers and duties pursuant to NRS 598.0903 to 598.0999 , inclusive, including the investigation of
any alleged violation of those sections and the preparation for
litigation.
2. Upon written request by the Attorney General, the Commissioner
or Director may provide any investigative assistance, including evidence
and information in his possession, for use in any action brought by the
Attorney General pursuant to subsection 3 of NRS 598.0963 . No request for assistance may be
unreasonably denied.
(Added to NRS by 1985, 1480)—(Substituted in revision for NRS
598.514)
1. There is hereby created a Revolving Account for the Consumer
Affairs Division of the Department of Business and Industry in the sum of
$7,500, which must be used for the payment of expenses related to
conducting an undercover investigation of a person who is allegedly
engaging in a deceptive trade practice.
2. The Commissioner shall deposit the money in the Revolving
Account in a bank or credit union qualified to receive deposits of public
money as provided by law, and the deposit must be secured by a depository
bond satisfactory to the State Board of Examiners.
3. The Commissioner or his designee may:
(a) Sign all checks drawn upon the Revolving Account; and
(b) Make withdrawals of cash from the Revolving Account.
4. Payments made from the Revolving Account must be promptly
reimbursed from the legislative appropriation, if any, to the Consumer
Affairs Division for the expenses related to conducting an undercover
investigation of a person who is allegedly engaging in a deceptive trade
practice. The claim for reimbursement must be processed and paid as other
claims against the State are paid.
5. The Commissioner shall:
(a) Approve any disbursement from the Revolving Account; and
(b) Maintain records of any such disbursement.
(Added to NRS by 1997, 157; A 1999, 1516 )
1. The Commissioner and the Director, in addition to other powers
conferred upon them by NRS 598.0903 to
598.0999 , inclusive, may issue
subpoenas to require the attendance of witnesses or the production of
documents, conduct hearings in aid of any investigation or inquiry and
prescribe such forms and adopt such regulations as may be necessary to
administer the provisions of NRS 598.0903 to 598.0999 , inclusive. Such regulations may include,
without limitation, provisions concerning the applicability of the
provisions of NRS 598.0903 to 598.0999
, inclusive, to particular persons or
circumstances.
2. Service of any notice or subpoena must be made as provided in
N.R.C.P. 45 (c).
(Added to NRS by 1973, 1485; A 1981, 95; 1983, 883; 1995, 2174;
2005, 1227 )
If any person fails to cooperate with any investigation, as
provided in NRS 598.096 , or if any
person fails to obey a subpoena issued by the Commissioner, Director or
Attorney General pursuant to NRS 598.0963 or 598.0967 , the Commissioner, Director or Attorney
General may apply to any district court for equitable relief. The
application must state reasonable grounds showing that the relief is
necessary to terminate or prevent a deceptive trade practice. If the
court is satisfied of the reasonable grounds, the court may:
1. Grant injunctive relief restraining the sale or advertisement
of any property by the person.
2. Require the attendance of or the production of documents by the
person, or both.
3. Grant other relief necessary to compel compliance by the person.
(Added to NRS by 1973, 1485; A 1983, 883; 1997, 3196)
1. If, after an investigation, the Commissioner has reasonable
cause to believe that any person has been engaged or is engaging in any
deceptive trade practice in violation of NRS 598.0903 to 598.0999 , inclusive, the Commissioner may issue an
order directed to the person to show cause why the Commissioner should
not order the person to cease and desist from engaging in the practice.
The order must contain a statement of the charges and a notice of a
hearing to be held thereon. The order must be served upon the person
directly or by certified or registered mail, return receipt requested.
2. If, after conducting a hearing pursuant to the provisions of
subsection 1, the Commissioner determines that the person has violated
any of the provisions of NRS 598.0903
to 598.0999 , inclusive, or if the
person fails to appear for the hearing after being properly served with
the statement of charges and notice of hearing, the Commissioner may make
a written report of his findings of fact concerning the violation and
cause to be served a copy thereof upon the person and any intervener at
the hearing. If the Commissioner determines in the report that such a
violation has occurred, he may order the violator to:
(a) Cease and desist from engaging in the practice or other
activity constituting the violation;
(b) Pay the costs of conducting the investigation, costs of
conducting the hearing, costs of reporting services, fees for experts and
other witnesses, charges for the rental of a hearing room if such a room
is not available to the Commissioner free of charge, charges for
providing an independent hearing officer, if any, and charges incurred
for any service of process, if the violator is adjudicated to have
committed a violation of NRS 598.0903
to 598.0999 , inclusive; and
(c) Provide restitution for any money or property improperly
received or obtained as a result of the violation.
Ê The order must be served upon the person directly or by certified or
registered mail, return receipt requested. The order becomes effective
upon service in the manner provided in this subsection.
3. Any person whose pecuniary interests are directly and
immediately affected by an order issued pursuant to subsection 2 or who
is aggrieved by the order may petition for judicial review in the manner
provided in chapter 233B of NRS. Such a
petition must be filed within 30 days after the service of the order. The
order becomes final upon the filing of the petition.
4. If a person fails to comply with any provision of an order
issued pursuant to subsection 2, the Commissioner may, through the
Attorney General, at any time after 30 days after the service of the
order, cause an action to be instituted in the district court of the
county wherein the person resides or has his principal place of business
requesting the court to enforce the provisions of the order or to provide
any other appropriate injunctive relief.
5. If the court finds that:
(a) The violation complained of is a deceptive trade practice;
(b) The proceedings by the Commissioner concerning the written
report and any order issued pursuant to subsection 2 are in the interest
of the public; and
(c) The findings of the Commissioner are supported by the weight of
the evidence,
Ê the court shall issue an order enforcing the provisions of the order of
the Commissioner.
6. Except as otherwise provided in NRS 598.0974 , an order issued pursuant to subsection 5 may
include:
(a) A provision requiring the payment to the Commissioner of a
penalty of not more than $5,000 for each act amounting to a failure to
comply with the Commissioner’s order; or
(b) Such injunctive or other equitable or extraordinary relief as
is determined appropriate by the court.
7. Any aggrieved party may appeal from the final judgment, order
or decree of the court in a like manner as provided for appeals in civil
cases.
8. Upon the violation of any judgment, order or decree issued
pursuant to subsection 5 or 6, the Commissioner, after a hearing thereon,
may proceed in accordance with the provisions of NRS 598.0999 .
(Added to NRS by 1995, 2173; A 2005, 1228 , 1249 , 1427 )
1. Except as otherwise provided in NRS 598.0974 , in any action brought pursuant to NRS
598.0979 to 598.099 , inclusive, if the court finds that a person
has engaged in a deceptive trade practice directed toward an elderly or
disabled person, the court may, in addition to any other civil or
criminal penalty, impose a civil penalty of not more than $12,500 for
each violation.
2. In determining whether to impose a civil penalty pursuant to
subsection 1, the court shall consider whether:
(a) The conduct of the person was in disregard of the rights of the
elderly or disabled person;
(b) The person knew or should have known that his conduct was
directed toward an elderly or disabled person;
(c) The elderly or disabled person was more vulnerable to the
conduct of the person because of the age, health, infirmity, impaired
understanding, restricted mobility or disability of the elderly or
disabled person;
(d) The conduct of the person caused the elderly or disabled person
to suffer actual and substantial physical, emotional or economic damage;
(e) The conduct of the person caused the elderly or disabled person
to suffer:
(1) Mental or emotional anguish;
(2) The loss of the primary residence of the elderly or
disabled person;
(3) The loss of the principal employment or source of income
of the elderly or disabled person;
(4) The loss of money received from a pension, retirement
plan or governmental program;
(5) The loss of property that had been set aside for
retirement or for personal or family care and maintenance;
(6) The loss of assets which are essential to the health and
welfare of the elderly or disabled person; or
(7) Any other interference with the economic well-being of
the elderly or disabled person, including the encumbrance of his primary
residence or principal source of income; or
(f) Any other factors that the court deems to be appropriate.
(Added to NRS by 1993, 1978; A 2005, 1251 , 1428 )
A civil penalty must not be imposed against any person who engages in a
deceptive trade practice pursuant to NRS 598.0903 to 598.0999 , inclusive, in a civil proceeding brought by
the Commissioner, Director or Attorney General if a fine has previously
been imposed against that person by the Department of Motor Vehicles
pursuant to NRS 482.554 , for the same
act.
(Added to NRS by 2005, 1249 )
0903 to 598.0999 , inclusive.
1. Except as otherwise provided in subsection 1 of NRS 598.0999
and subsection 3, all fees, civil
penalties and any other money collected pursuant to the provisions of NRS
598.0903 to 598.0999 , inclusive:
(a) In an action brought by the Attorney General, Commissioner or
Director, must be deposited in the State General Fund and may only be
used to offset the costs of administering and enforcing the provisions of
NRS 598.0903 to 598.0999 , inclusive.
(b) In an action brought by the district attorney of a county, must
be deposited with the county treasurer of that county and accounted for
separately in the county general fund.
2. Money in the account created pursuant to paragraph (b) of
subsection 1 must be used by the district attorney of the county for:
(a) The investigation and prosecution of deceptive trade practices
against elderly or disabled persons; and
(b) Programs for the education of consumers which are directed
toward elderly or disabled persons, law enforcement officers, members of
the judicial system, persons who provide social services and the general
public.
3. The provisions of this section do not apply to:
(a) Criminal fines imposed pursuant to NRS 598.0903 to 598.0999 , inclusive; or
(b) Restitution ordered pursuant to NRS 598.0903 to 598.0999 , inclusive, in an action brought by the
Attorney General. Money collected for restitution ordered in such an
action must be deposited by the Attorney General and credited to the
appropriate account of the Consumer Affairs Division of the Department of
Business and Industry or the Attorney General for distribution to the
person for whom the restitution was ordered.
(Added to NRS by 1993, 1979; A 1995, 930; 2001, 2928 )
If an elderly
or disabled person suffers damage or injury as a result of a deceptive
trade practice, he or his legal representative, if any, may commence a
civil action against any person who engaged in the practice to recover
the actual damages suffered by the elderly or disabled person, punitive
damages, if appropriate, and reasonable attorney’s fees. The collection
of any restitution awarded pursuant to this section has a priority over
the collection of any civil penalty imposed pursuant to NRS 598.0973
.
(Added to NRS by 1993, 1979)
1. Notwithstanding the requirement of knowledge as an element of a
deceptive trade practice, when the Commissioner or Director has cause to
believe that a person has engaged or is engaging in any deceptive trade
practice, knowingly or otherwise, he may request in writing that the
Attorney General represent him in instituting an appropriate legal
proceeding, including, without limitation, an application for an
injunction or temporary restraining order prohibiting the person from
continuing the practices. The court may make orders or judgments
necessary to prevent the use by the person of any such deceptive trade
practice or to restore to any other person any money or property which
may have been acquired by the deceptive trade practice.
2. Where the Commissioner or Director has the authority to
institute a civil action or other proceeding, in lieu thereof or as a
part thereof, he may accept an assurance of discontinuance of any
deceptive trade practice. This assurance may include a stipulation for
the payment by the alleged violator of:
(a) The costs of investigation and the costs of instituting the
action or proceeding;
(b) Any amount of money which he may be required to pay pursuant to
the provisions of NRS 598.0971 in lieu
of any administrative fine; and
(c) The restitution of any money or property acquired by any
deceptive trade practice.
Ê Except as otherwise provided in this subsection, any assurance of
discontinuance accepted by the Commissioner or Director and any
stipulation filed with the court is confidential to the parties to the
action or proceeding and to the court and its employees. Upon final
judgment by the court that an injunction or a temporary restraining
order, issued as provided in subsection 1 of this section, has been
violated, an assurance of discontinuance has been violated or a person
has engaged in the same deceptive trade practice as had previously been
enjoined, the assurance of discontinuance or stipulation becomes a public
record. Proof by a preponderance of the evidence of a violation of an
assurance constitutes prima facie evidence of a deceptive trade practice
for the purpose of any civil action or proceeding brought thereafter by
the Commissioner or Director, whether a new action or a subsequent motion
or petition in any pending action or proceeding.
(Added to NRS by 1973, 1485; A 1983, 884; 1985, 1480, 2258; 1995,
2175)
1. NRS 598.0903 to 598.0999
, inclusive, do not prohibit the
Commissioner or Director from disclosing to the Attorney General, any
district attorney or any law enforcement officer the fact that a crime
has been committed by any person, if this fact has become known as a
result of any investigation conducted pursuant to the provisions of NRS
598.0903 to 598.0999 , inclusive.
2. Subject to the provisions of subsection 2 of NRS 598.0979
and except as otherwise provided in
this section, the Commissioner or Director may not make public the name
of any person alleged to have committed a deceptive trade practice. This
subsection does not:
(a) Prevent the Commissioner or Director from issuing public
statements describing or warning of any course of conduct which
constitutes a deceptive trade practice.
(b) Apply to a person who is subject to an order issued pursuant to
subsection 5 of NRS 598.0971 .
3. Upon request, the Commissioner may:
(a) Disclose the number of written complaints received by the
Commissioner during the current and immediately preceding 3 fiscal years.
A disclosure made pursuant to this paragraph must include the disposition
of the complaint disclosed.
(b) Make public any order to cease and desist issued pursuant to
subsection 5 of NRS 598.0971 .
Ê This subsection does not authorize the Commissioner to disclose or make
public the contents of any complaint described in paragraph (a) or the
record of or any other information concerning a hearing conducted in
relation to the issuance of an order to cease and desist described in
paragraph (b).
4. The Commissioner may adopt regulations authorizing the
disclosure of information concerning any complaint or number of
complaints received by the Commissioner or Director relating to a person
who has been convicted of violating a provision of NRS 598.0903 to 598.0999 , inclusive.
(Added to NRS by 1973, 1486; A 1983, 884; 1985, 1481; 1995, 2175;
2005, 1429 )
1. Before instituting any action pursuant to NRS 598.0985 to 598.0997 , inclusive, the district attorney shall
ascertain whether or not the action in question is subject to the
regulatory authority of any state agency, board, official or other
authority established by virtue of the Nevada Revised Statutes except the
regulatory or administrative authority provided to the Commissioner,
Director or Attorney General by NRS 598.0903 to 598.0999 , inclusive.
2. If the action is subject to such regulatory authority or any
regulation adopted or any statutes administered by any state regulatory
agency, board, official or other authority as provided in subsection 1,
the district attorney shall not institute any proceeding under NRS
598.0985 to 598.0997 , inclusive, until the state agency, board,
official or other state regulatory authority has had reasonable time to
investigate or take any appropriate action with respect to the alleged
facts.
3. For the purposes of this section, a reasonable time has elapsed
if no final action or other disposition is made of any matter otherwise
falling within the provisions of NRS 598.0903 to 598.0999 , inclusive, within 30 days after the matter
is referred to or brought to the attention of any state agency, board,
official or other regulatory authority except the Commissioner, Director
or Attorney General.
4. This section does not prohibit the district attorney of any
county from filing an action pursuant to the provisions of NRS 598.0985
to 598.099 , inclusive, if the referral of any matters
subject to the provisions of NRS 598.0903 to 598.0999 , inclusive, to any state agency, board,
official or other regulatory authority would cause immediate harm to the
public of this state or endanger the public health, safety or welfare,
and such facts are shown by affidavit or by verified complaint.
(Added to NRS by 1973, 1486; A 1983, 885; 1985, 1481)—(Substituted
in revision for NRS 598.560)
Notwithstanding the requirement of knowledge as an element of a
deceptive trade practice, and notwithstanding the enforcement powers
granted to the Commissioner or Director pursuant to NRS 598.0903 to 598.0999 , inclusive, whenever the district attorney of
any county has reason to believe that any person is using, has used or is
about to use any deceptive trade practice, knowingly or otherwise, he may
bring an action in the name of the State of Nevada against that person to
obtain a temporary or permanent injunction against the deceptive trade
practice.
(Added to NRS by 1973, 1487; A 1983, 885; 1985, 2259)—(Substituted
in revision for NRS 598.570)
Except as otherwise provided in NRS
598.099 , appropriate notice must be
given by the district attorney to any person against whom an action is
brought pursuant to NRS 598.0985 . Such
notice must state generally the relief sought and be served in accordance
with NRS 598.0997 at least 10 days
prior to the filing of the action.
(Added to NRS by 1973, 1487)—(Substituted in revision for NRS
598.580)
Any action brought pursuant to NRS 598.0963 or 598.0977 to 598.099 ,
inclusive, may be brought:
1. In a district court in the county in which the defendant
resides or has his principal place of business;
2. In the district court in Carson City if the parties consent
thereto; or
3. In the district court in any county where a deceptive trade
practice has occurred.
Ê Any court in which an action is brought pursuant to those sections may
issue any temporary or permanent injunction in accordance with the Nevada
Rules of Civil Procedure to restrain and prevent any violation of any
provisions of NRS 598.0903 to 598.0999
, inclusive, and such injunctions must
be issued without bond.
(Added to NRS by 1973, 1487; A 1985, 1482)—(Substituted in revision
for NRS 598.590)
Whenever the
district attorney or the Attorney General has reason to believe that the
delay caused by complying with the notice requirement of NRS 598.0987
or the requirements of subsection 3 of
NRS 598.0963 would cause immediate
harm to the public of this state or endanger the public welfare, he may
immediately institute an action for injunctive relief, including a
request for a temporary restraining order, upon proof of specific facts
shown by affidavit or by verified complaint or otherwise that such
immediate harm will be or is likely to be caused by the delay. The
Attorney General shall give written notice of the filing by him of such
an action to the Commissioner or Director. The Nevada Rules of Civil
Procedure pertaining to the issuance of temporary restraining orders
govern all actions instituted pursuant to this section.
(Added to NRS by 1973, 1487; A 1985, 1482)—(Substituted in revision
for NRS 598.600)
The court in which an
action is brought pursuant to NRS 598.0979 and 598.0985 to 598.099 ,
inclusive, may make such additional orders or judgments as may be
necessary to restore to any person in interest any money or property,
real or personal, which may have been acquired by means of any deceptive
trade practice which violates any of the provisions of NRS 598.0903
to 598.0999 , inclusive, but such additional orders or
judgments may be entered only after a final determination has been made
that a deceptive trade practice has occurred.
(Added to NRS by 1973, 1487)—(Substituted in revision for NRS
598.610)
1. In proceeding pursuant to subsection 3 of NRS 598.0963 or NRS 598.0987 to 598.0995 , inclusive, the district attorney or Attorney
General may accept an assurance of discontinuance with respect to any
method, act or practice deemed to be a deceptive trade practice from any
person who is engaged or is about to engage in the method, act or
practice by following the procedures set forth in subsection 2 of NRS
598.0979 .
2. Any assurance made pursuant to subsection 1 must be in writing
and must be filed with and subject to the approval of the district court
in the county in which the alleged violator resides or has his principal
place of business, or the district court in any county where any
deceptive trade practice has occurred or is about to occur or the
district court agreed to by the parties.
3. An assurance of discontinuance made pursuant to subsections 1
and 2 is not an admission of violation for any purpose, but is subject to
the terms, limitations and conditions of NRS 598.0979 .
(Added to NRS by 1973, 1488; A 1985, 1482, 2259)—(Substituted in
revision for NRS 598.620)
Service of any notice under NRS
598.0985 to 598.0995 , inclusive, shall be made by personal service
within the State of Nevada, but if such service cannot be obtained,
substituted service therefor may be made in any of the following ways:
1. Personal service thereof outside the State of Nevada;
2. The mailing thereof by registered or certified mail to the last
known place of business, residence or both, whether inside or outside the
State of Nevada, of such person for whom the notice is intended, in which
event such service shall be deemed complete upon the third day following
the mailing of any notice required under this section;
3. As to any person other than a natural person, service shall be
in the manner provided in the Nevada Rules of Civil Procedure for
completing service of process on such a person, corporation, association
or organization; or
4. Such service as any district court may direct in lieu of
personal service within the State of Nevada.
(Added to NRS by 1973, 1488)—(Substituted in revision for NRS
598.630)
1. Except as otherwise provided in NRS 598.0974 , a person who violates a court order or
injunction issued pursuant to the provisions of NRS 598.0903 to 598.0999 , inclusive, upon a complaint brought by the
Commissioner, the Director, the district attorney of any county of this
State or the Attorney General shall forfeit and pay to the State General
Fund a civil penalty of not more than $10,000 for each violation. For the
purpose of this section, the court issuing the order or injunction
retains jurisdiction over the action or proceeding. Such civil penalties
are in addition to any other penalty or remedy available for the
enforcement of the provisions of NRS 598.0903 to 598.0999 , inclusive.
2. Except as otherwise provided in NRS 598.0974 , in any action brought pursuant to the
provisions of NRS 598.0903 to 598.0999
, inclusive, if the court finds that a
person has willfully engaged in a deceptive trade practice, the
Commissioner, the Director, the district attorney of any county in this
State or the Attorney General bringing the action may recover a civil
penalty not to exceed $5,000 for each violation. The court in any such
action may, in addition to any other relief or reimbursement, award
reasonable attorney’s fees and costs.
3. A natural person, firm, or any officer or managing agent of any
corporation or association who knowingly and willfully engages in a
deceptive trade practice:
(a) For the first offense, is guilty of a misdemeanor.
(b) For the second offense, is guilty of a gross misdemeanor.
(c) For the third and all subsequent offenses, is guilty of a
category D felony and shall be punished as provided in NRS 193.130 .
Ê The court may require the natural person, firm, or officer or managing
agent of the corporation or association to pay to the aggrieved party
damages on all profits derived from the knowing and willful engagement in
a deceptive trade practice and treble damages on all damages suffered by
reason of the deceptive trade practice.
4. Any offense which occurred within 10 years immediately
preceding the date of the principal offense or after the principal
offense constitutes a prior offense for the purposes of subsection 3 when
evidenced by a conviction, without regard to the sequence of the offenses
and convictions.
5. If a person violates any provision of NRS 598.0903 to 598.0999 , inclusive, 598.100 to 598.2801 , inclusive, 598.305 to 598.395 ,
inclusive, 598.405 to 598.525 , inclusive, 598.741 to 598.787 ,
inclusive, or 598.840 to 598.966 , inclusive, fails to comply with a judgment or
order of any court in this State concerning a violation of such a
provision, or fails to comply with an assurance of discontinuance or
other agreement concerning an alleged violation of such a provision, the
Commissioner or the district attorney of any county may bring an action
in the name of the State of Nevada seeking:
(a) The suspension of the person’s privilege to conduct business
within this State; or
(b) If the defendant is a corporation, dissolution of the
corporation.
Ê The court may grant or deny the relief sought or may order other
appropriate relief.
6. If a person violates any provision of NRS 228.500 to 228.640 ,
inclusive, fails to comply with a judgment or order of any court in this
State concerning a violation of such a provision, or fails to comply with
an assurance of discontinuance or other agreement concerning an alleged
violation of such a provision, the Attorney General may bring an action
in the name of the State of Nevada seeking:
(a) The suspension of the person’s privilege to conduct business
within this State; or
(b) If the defendant is a corporation, dissolution of the
corporation.
Ê The court may grant or deny the relief sought or may order other
appropriate relief.
(Added to NRS by 1973, 1488; A 1983, 885; 1985, 1483, 2255, 2260;
1993, 1957; 1995, 1306, 2176; 1997, 603; 1999, 3334 ; 2001, 482 , 660 , 982 , 2150 ; 2003, 1824 , 2875 , 2887 ; 2005, 1229 , 1251 , 1430 )
PYRAMID PROMOTIONAL SCHEMES; ENDLESS CHAINS
For the purposes of NRS 598.100 to 598.130 ,
inclusive:
1. “Compensation” does not mean payment based on sales of goods or
services to persons who are not participants in a pyramid promotional
scheme or endless chain and who are not purchasing in order to
participate in such a program.
2. “Promotes” means inducing one or more other persons to become a
participant in a pyramid promotional scheme or endless chain.
3. A “pyramid promotional scheme” means any program or plan for
the disposal or distribution of property and merchandise or property or
merchandise by which a participant gives or pays a valuable consideration
for the opportunity or chance to receive any compensation or thing of
value in return for procuring or obtaining one or more additional persons
to participate in the program, or for the opportunity to receive
compensation of any kind when a person introduced to the program or plan
by the participant procures or obtains a new participant in such a
program.
(Added to NRS by 1971, 666; A 1985, 530)
Every person who contrives, prepares, sets
up, proposes, operates, advertises or promotes any pyramid promotional
scheme or endless chain commits a deceptive trade practice for the
purposes of NRS 598.0903 to 598.0999
, inclusive.
(Added to NRS by 1971, 666; A 1993, 1957)
All
contracts and agreements, existing or made in the future, which have any
part of the consideration given for the right to participate in a pyramid
promotional scheme or endless chain as defined in NRS 598.100 to 598.130 ,
inclusive, are against public policy and voidable by a participant.
(Added to NRS by 1971, 666)
In addition to any
other relief available under NRS 598.100 to 598.130 ,
inclusive:
1. The Attorney General or any district attorney may commence an
action in the district court having jurisdiction of the area where a
pyramid promotional scheme or endless chain is being prepared, operated
or promoted to enjoin or obtain any other equitable relief to prevent the
further preparation, operation, promotion or prosecution of such scheme
or chain. In addition to the relief authorized by this section, the court
may award reasonable attorneys’ fees and costs in any action brought
under this section.
2. The Attorney General or any district attorney may petition the
district court having jurisdiction of the area where a pyramid
promotional scheme or endless chain is being prepared, operated or
promoted to appoint receivers to secure and distribute in an equitable
manner any assets received by any participant as a result of such scheme
or program. Any such distribution must effect, to the extent possible,
reimbursement for uncompensated payments made to become a participant in
the scheme. In any such action, the court may, in addition to any other
relief or reimbursement, award reasonable attorneys’ fees and costs.
(Added to NRS by 1971, 666; A 1993, 1957)
SOLICITATIONS FOR OR ON BEHALF OF CHARITABLE ORGANIZATIONS
1. A person, in planning, conducting or executing a solicitation
for or on behalf of a charitable organization, shall not:
(a) Make any claim or representation concerning a contribution
which directly, or by implication, has the capacity, tendency or effect
of deceiving or misleading a person acting reasonably under the
circumstances; or
(b) Omit any material fact deemed to be equivalent to a false,
misleading or deceptive claim or representation if the omission, when
considering what has been said or implied, has or would have the
capacity, tendency or effect of deceiving or misleading a person acting
reasonably under the circumstances.
2. Notwithstanding any other provisions of this chapter, the
Attorney General has primary jurisdiction to investigate and prosecute a
violation of this section.
3. Except as otherwise provided in NRS 41.480 and 41.485 ,
a violation of this section constitutes a deceptive trade practice for
the purposes of NRS 598.0903 to
598.0999 , inclusive.
4. As used in this section:
(a) “Charitable organization” means any person who, directly or
indirectly, solicits contributions and who:
(1) The Secretary of the Treasury has determined to be tax
exempt pursuant to the provisions of section 501(c)(3) of the Internal
Revenue Code; or
(2) Is, or holds himself out to be, established for a
charitable purpose.
Ê The term does not include an organization which is established for and
serving bona fide religious purposes.
(b) “Solicitation” means a request for a contribution to a
charitable organization that is made by:
(1) Mail;
(2) Commercial carrier;
(3) Telephone, facsimile or other electronic device; or
(4) A face-to-face meeting.
Ê The term includes solicitations which are made from a location within
this State and solicitations which are made from a location outside of
this State to persons located in this State.
(Added to NRS by 1997, 3194)
SALES PROMOTIONS
As used in NRS 598.131 to 598.139 ,
inclusive, unless the context otherwise requires, the words and terms
defined in NRS 598.1315 to 598.134
, inclusive, have the meanings ascribed
to them in those sections.
(Added to NRS by 1989, 2194)
“Advertisement” means the
attempt by publication, dissemination, solicitation or circulation to
induce, directly or indirectly, any person to enter into any obligation
or to acquire any title or interest in any property, and any acts related
to the inducement, promotion or encouragement of a sale.
(Added to NRS by 1989, 2194)
“Advertiser” means any person
who is engaged in the business of promotion, marketing or sale of
merchandise at retail and who places, either directly or indirectly, an
advertisement before the public.
(Added to NRS by 1989, 2194)
“Advertising premium”
means an offering, gift, prize, award, giveaway, discounted item, bonus,
merchandise, service certificate or anything of value, or its equivalent
in cash, offered in an advertisement.
(Added to NRS by 1989, 2194)
“Merchandise” means personal
property, capable of manual delivery, displayed, held or offered for sale
by a merchant.
(Added to NRS by 1989, 2194)
“Sale” includes a sale, offer for
sale or attempt to sell property for consideration.
(Added to NRS by 1989, 2194)
“Sales promotion” means a
promotion, presentation, solicitation or notification which induces or
attempts to induce a sale of merchandise to a person.
(Added to NRS by 1989, 2194)
The provisions of NRS 598.136 , 598.137 and
598.138 , do not apply to:
1. A contest of skill that does not involve the sale or lease of
any goods, property or service.
2. A person who is licensed as a seller or a salesman pursuant to
chapter 599B of NRS, and is engaging in an
activity within the scope of that license.
3. A sale or purchase, or solicitation or representation made in
connection with the sale or purchase, of goods from a catalog or of
books, recordings, video cassettes, periodicals or other similar goods
offered by a seller or membership group which is regulated by the Federal
Trade Commission if the seller or membership group sends goods, pursuant
to an agreement, to a customer or member for his inspection and, if
unsatisfied after inspecting the goods, the customer or member is
entitled to receive a full refund of the purchase price of the goods if
the goods are returned undamaged to the seller or membership group.
4. A solicitation, advertisement or promotion, or offer to extend
credit, made by a commercial bank, bank holding company, subsidiary or
affiliate of a bank holding company, trust company, savings and loan
association, credit union, industrial loan company, personal property
broker, consumer finance lender, commercial finance lender or insurer, or
any other person engaged in the business of extending credit, who is
regulated by an officer or agency of the State or of the Federal
Government.
5. A person licensed pursuant to chapter 463 of NRS and his employees.
(Added to NRS by 1989, 2196)
1. A person shall not, in connection with the sale or lease or
solicitation for the sale or lease of any goods, property or service,
represent that another person has won anything of value or is the winner
of any contest unless:
(a) The advertiser indicates, clearly and conspicuously, the name
and address of the advertiser at the commencement of an oral solicitation
or advertisement. If the advertisement is written, the information must
be in bold type at least 2 points larger than the type used in the major
portion of the advertisement, and must be placed at the top of the first
page of the advertisement.
(b) The method of selection of the recipient of the prize is one in
which no more than 10 percent of the names considered are selected as
recipients.
(c) The prize is given without obligation to the recipient.
(d) The prize is delivered to the recipient at no expense to him
within 30 days after the representation.
(e) The language of the advertisement represents that it is a sales
promotion.
(f) The language of the advertisement does not represent that the
recipient has been contacted by telephone or any other means when no such
contact has occurred.
(g) The advertisement indicates to the recipient the brand name of
any advertising premium offered. If the advertising premium consists of a
vacation or trip, the advertiser shall indicate, clearly and
conspicuously, the name and location of the accommodations and whether
transportation to and from the vacation site or point of departure is
included. The advertiser shall not offer a vacation or trip for which a
deposit or other fee is required of the recipient.
(h) The advertisement does not misrepresent the value of an
advertising premium by any means, including, but not limited to, the
grouping of advertising premiums of substantially different value.
(i) The advertisement indicates, clearly and conspicuously, to the
recipient that an advertising premium is discounted, no longer
manufactured, damaged or less than first quality.
(j) The advertisement indicates that the advertiser will disclose
upon request and without charge which advertising premium will be
received. The advertiser shall disclose such information upon request.
(k) The advertisement indicates, clearly and conspicuously, the
probability that a person may receive each advertising premium mentioned
in the advertisement. The probability must be indicated adjacent to the
first mention of each advertising premium and expressed in whole numbers.
If the advertisement is written, such information and any rule or
condition must appear in bold type the same size as the type used for the
major portion of the advertisement.
(l) The advertisement indicates, clearly and conspicuously, the
date the prizes are to be awarded, and that a record regarding the names
and addresses of the winners will be provided upon request without
charge. The advertiser shall provide the record to any person upon
request.
(m) The advertiser does not offer merchandise as a substitute for a
reimbursement for travel, allowance for a trip or similar plan of
compensation.
2. As used in this section, “language of the advertisement” means
the use of any language that has a tendency to lead a reasonable person
to believe he has won a contest or merchandise of value, including, but
not limited to, “congratulations,” “you have won,” “you are a winner,”
“you have been chosen,” “you have been selected” and “you are entitled to
receive.”
(Added to NRS by 1989, 2194)
1. A person shall not, in connection with the sale or lease or
solicitation for sale or lease of any goods, property or service,
represent that another person has a chance to receive a prize or item of
value without clearly disclosing on whose behalf the contest or promotion
is conducted and all conditions that a participant must meet.
2. A person who makes a representation described in subsection 1
must display, clearly and conspicuously, adjacent to the description of
the item or prize to which it relates:
(a) The actual retail value of each item or prize;
(b) The number of each item or prize to be awarded; and
(c) The odds of receiving each item or prize, expressed in whole
numbers.
3. It is unlawful to make a representation described in subsection
1 if it has already been determined which items will be given to the
person to whom the representation is made.
4. The provisions of this section do not apply if:
(a) Participants are asked to complete and mail or deposit, at a
local retail commercial establishment, an entry blank obtained locally or
by mail, or to call in their entry by telephone; and
(b) Participants are not asked to listen to a sales presentation.
5. Advertisements with representations made pursuant to subsection
1 that are broadcast by radio or television may be broadcast without the
required disclosures, conditions and restrictions but must clearly
broadcast the availability of such disclosures, conditions and
restrictions to an interested person, without any charge, upon request.
6. This section does not create liability for acts of a publisher,
owner, agent or employee of a newspaper, periodical, radio station,
television station, cable television system or other advertising medium
for the publication or dissemination of an advertisement or promotion
pursuant to this section if the publisher, owner, agent or employee did
not know that the advertisement or promotion violated the provisions of
this section.
7. For the purposes of this section, the actual retail value of an
item or prize is the price at which substantial sales of the item were
made in an area within the last 90 days, or if no substantial sales were
made, the cost of the item or prize to the person on whose behalf the
contest or promotion is conducted.
(Added to NRS by 1989, 2195)
1. A person shall not represent that another person has been
specially selected in connection with the sale or lease or solicitation
for sale or lease of any goods, property or service unless:
(a) The selection process is designed to reach a particular type of
person;
(b) The selection process uses a source other than a telephone
directory, city directory, tax listing, voter registration record,
purchased or leased mailing list or similar source of names; and
(c) No more than 10 percent of those considered are selected.
2. As used in this section, “specially selected” means the use of
language that has a tendency to lead a reasonable person to believe he
has been specially selected, including, but not limited to, “carefully
selected” and “you have been chosen.”
(Added to NRS by 1989, 2196)
Any
violation of NRS 598.136 , 598.137
or 598.138 , constitutes a deceptive trade practice for
the purposes of NRS 598.0903 to
598.0999 , inclusive.
(Added to NRS by 1989, 2197)
DOOR-TO-DOOR SALES
As used in NRS 598.140 to 598.2801 , inclusive, the words and terms defined in
NRS 598.150 to 598.220 , inclusive, have the meanings ascribed to them
in NRS 598.150 to 598.220 , inclusive, unless the context otherwise
requires.
(Added to NRS by 1973, 808)
“Business day” means any
calendar day except Sunday, or the following business holidays: New
Year’s Day, Martin Luther King, Jr.’s Birthday, Washington’s Birthday,
Memorial Day, Independence Day, Labor Day, Nevada Day, Veterans’ Day,
Thanksgiving Day and Christmas Day.
(Added to NRS by 1973, 808; A 1993, 1958)
“Buyer” means any person who enters
into or signs a door-to-door sale contract in order to receive any
consumer goods and services from any seller.
(Added to NRS by 1973, 808)
“Consumer goods
or services” are goods or services purchased, leased or rented primarily
for personal, family or household purposes, including courses of
instruction or training regardless of the purpose for which they are
taken.
(Added to NRS by 1973, 808)
“Door-to-door sale”
means any sale, purchase, lease or rental of any consumer goods or
services with a purchase price of $25 or more which is the result of any
door-to-door solicitation or personal solicitation by the seller or his
representative, whether at the specific invitation of the buyer or not,
and which is made at a place other than the place of business of the
seller. The term “door-to-door sale” does not include a transaction:
1. Made pursuant to a preexisting retail charge agreement or
pursuant to prior negotiations between the parties at or from a retail
business establishment having a fixed permanent location where the goods
are exhibited or the services are offered for sale on a continuing basis.
2. In which the consumer is accorded the right of rescission by
the provisions of the Consumer Credit Protection Act (15 U.S.C. § 1635)
or regulations issued pursuant thereto.
3. In which the buyer has initiated the contact and the goods or
services are needed to meet a bona fide immediate personal emergency of
the buyer, and the buyer furnishes the seller with a separate dated and
signed personal statement in the buyer’s handwriting describing the
situation requiring immediate remedy and expressly acknowledging and
waiving the right to cancel the sale within 3 business days.
4. Conducted and consummated entirely by mail or telephone, and
without any other contact between the buyer and the seller or its
representative prior to delivery of the goods or performance of the
service.
5. In which the buyer has initiated the contact and specifically
requested the seller to visit his home for the purpose of repairing or
performing maintenance upon the buyer’s personal property. If in the
course of the visit, the seller sells the buyer the right to receive
additional services and goods other than replacement parts necessarily
used in performing the maintenance or in making the repairs, the sale of
those additional goods or services would not fall within this exclusion.
6. Pertaining to the sale or rental of real property, to the sale
of insurance or to the sale of securities or commodities by a
broker-dealer registered with the Securities Exchange Commission.
7. Pertaining to the sale or rental of vehicles as defined in NRS
482.135 .
8. Pertaining to the sale or rental of mobile homes.
9. Pertaining to the provision of facilities and services
furnished by utilities under the jurisdiction of the Public Utilities
Commission of Nevada.
(Added to NRS by 1973, 808; A 1997, 2017)
“Place of business”
means the main or permanent branch office or local address of a seller.
(Added to NRS by 1973, 809)
“Purchase price” means the
total price paid or to be paid for consumer goods or services, including
all interest and service charges.
(Added to NRS by 1973, 809)
“Seller” means any person engaged
in the door-to-door sale of any consumer goods or services.
(Added to NRS by 1973, 809)
Any buyer who enters into or signs a door-to-door sale
contract in which the total purchase price of the goods or services is
$25 or more may rescind such contract by giving written notice to the
seller either by delivering, mailing or telegraphing of such notice no
later than midnight of the third business day after the date such
door-to-door sale contract was entered into or signed. The notice shall
be addressed to the seller at the seller’s place of business and shall
contain words indicating the buyer’s intent to rescind the transaction
previously entered into.
(Added to NRS by 1973, 809)
A seller must furnish every buyer with a fully
completed receipt or copy of any door-to-door sale contract at the time a
sale is executed. Such writing shall be in the same language as that
primarily used in the oral sales presentation, show the date of the
transaction and contain the name and address of the seller, and in
immediate proximity to the space reserved in the contract for the
signature of the buyer or on the front page of the receipt if a contract
is not used and in bold type, a statement in substantially the following
form:
You, the buyer, may cancel this transaction at any time prior to midnight
of the third business day after the date of this transaction. See the
attached notice of cancellation form for explanation of this right.
(Added to NRS by 1973, 809)
A seller must furnish every buyer with a fully completed
form in duplicate, captioned “NOTICE OF CANCELLATION,” which must be
attached to the contract or receipt and easily detachable, and which must
contain in boldface type the following information and statements in the
same language as that used in the contract:
NOTICE OF CANCELLATION
(Enter date of transaction)
Date
You may cancel this transaction, without any penalty or
obligation, except as provided by law, within 3 business days from the
above date.
If you cancel, any property traded in, any payments made by you
under the contract or sale, and any negotiable instrument executed by you
will be returned within 10 business days following receipt by the seller
of your cancellation notice, and any security interest arising out of the
transaction will be cancelled.
If you cancel, you must make available to the seller at reasonable
times at your residence, in substantially as good condition as when
received, any goods delivered to you under this contract or sale; or you
must in the alternative comply with the instructions of the seller
regarding the return shipment of the goods at the seller’s expense and
risk.
If the seller does not either provide instructions for the return
of the goods to the seller or pick them up within 20 days of the date of
your notice of cancellation, you may retain or dispose of the goods
without any further obligation.
To cancel this transaction, mail or deliver a signed and dated copy of
this cancellation notice or any other written notice, or send a telegram
to
...........................................................................
...........................................
(Name of seller)
at..............................................……………………........ (Address
of seller’s place of business) not later than midnight of
I hereby cancel this transaction.
..........................................
(Date)
.....................................................................
(Buyer’s signature)
(Added to NRS by 1973, 809; A 1981, 126)
NRS
598.140 to 598.2801 , inclusive, do not prevent any seller from
assessing a penalty for the cancellation of a door-to-door sale contract
if the penalty does not exceed 5 percent of the total purchase price,
$15, or any down payment paid by the buyer at the time any door-to-door
sale contract is entered into or executed, whichever is the lesser amount.
(Added to NRS by 1973, 810)
It is unlawful for any seller:
1. To fail to inform any buyer orally, at the time the buyer signs
any door-to-door sale contract or purchases any consumer goods or
services as a result of a door-to-door sale, of the buyer’s right to
cancel the contract or to misrepresent in any manner said buyer’s right
to cancel;
2. To fail or refuse to honor any valid notice of cancellation by
a buyer;
3. To fail or refuse to return, within 10 business days after
receiving notice of cancellation, any goods or property traded in, in
substantially as good condition as when received;
4. To fail or refuse to refund all payments made under the
contract or sale within 10 business days after receiving notice of
cancellation;
5. To fail to notify a buyer within 10 business days after the
receipt of a buyer’s notice of cancellation whether the seller intends to
repossess or to abandon any shipped or delivered goods; or
6. To negotiate, transfer, sell or assign any note or other
evidence of indebtedness to a finance company or other third party prior
to midnight of the 5th business day following the day the contract was
signed or the goods or services were purchased.
(Added to NRS by 1973, 810)
Any
violation of NRS 598.240 , 598.250
or 598.280 constitutes a deceptive trade practice for the
purposes of NRS 598.0903 to 598.0999
, inclusive.
(Added to NRS by 1993, 1957)
SELLERS OF TRAVEL
General Provisions
As used in NRS 598.305 to 598.395 ,
inclusive, unless the context otherwise requires, the words and terms
defined in NRS 598.307 to 598.356
, inclusive, have the meanings ascribed
to them in those sections.
(Added to NRS by 2001, 2146 ; A 2003, 1825 , 2888 )
“Account” means the account
established pursuant to NRS 598.371 .
(Added to NRS by 2003, 1819 )
“Commissioner” means the
Commissioner of the Division.
(Added to NRS by 2001, 2146 ; A 2003, 1826 , 2889 )
“Consumer” means a person who
pays money to a seller of travel for the purchase of travel services or a
vacation certificate.
(Added to NRS by 2003, 1819 )
“Division” means the Consumer
Affairs Division of the Department of Business and Industry.
(Added to NRS by 2001, 2147 )
“Seller of travel” means
a person who offers for sale, directly or indirectly, transportation by
air, land, rail or water, travel services, vacation certificates or any
combination thereof, to a person or group of persons for a fee,
commission or other valuable consideration. The term:
1. Includes any person who offers membership in a travel club or
any services related to travel for an advance fee, payment or deposit.
2. Does not include:
(a) A person who:
(1) Contracts with a seller of travel to sell travel
services or vacation certificates on behalf of the seller of travel;
(2) Receives compensation for selling the travel services or
vacation certificates only from the seller of travel; and
(3) Requires the consumer who purchases the travel services
or vacation certificates to pay for the travel services or vacation
certificates by transmitting payment directly to the provider of the
travel services or vacation certificates or the seller of travel;
(b) A hotel that provides or arranges travel services for its
patrons or guests;
(c) A person who, for compensation, transports persons or property
by air, land, rail or water;
(d) A tour broker or tour operator who is subject to the provisions
of NRS 598.405 to 598.525 , inclusive; or
(e) A motor club as defined in NRS 696A.050 .
(Added to NRS by 2001, 2147 ; A 2003, 1825 )
“Travel services”
includes, without limitation:
1. Short-term leases of passenger cars;
2. Lodging;
3. Transfers;
4. Sightseeing tours other than sightseeing tours for which a tour
broker or tour operator is regulated pursuant to NRS 598.405 to 598.525 ,
inclusive; and
5. Any other services that are related to travel by air, land,
rail or water or any other method of transportation.
(Added to NRS by 2001, 2147 ; A 2003, 1825 )
“Vacation
certificate” means any document received by a person for consideration
paid in advance which evidences that the holder of the document is
entitled to:
1. Transportation by air, land, rail or water; or
2. The use of lodging or other facilities for a specified period,
Ê during the period for which the certificate is valid.
(Added to NRS by 2001, 2147 )
1. Except as otherwise provided in subsection 2:
(a) A seller of travel shall maintain a trust account in a bank,
credit union or savings and loan association in this state for the
purpose of depositing all money that a consumer pays to the seller of
travel for the purchase of travel services or a vacation certificate.
(b) If a consumer pays money to a seller of travel for the purchase
of travel services or a vacation certificate, the seller of travel shall
deposit all such money in the trust account maintained by the seller of
travel not later than 2 business days after the date on which the
consumer pays the money to the seller of travel.
(c) The seller of travel shall pay out of the trust account the
money paid to the seller of travel by the consumer as needed to complete
the purchase of the travel services or vacation certificate purchased by
the consumer.
2. The provisions of this section do not apply to a seller of
travel who deposits security with the Division pursuant to NRS 598.375
.
(Added to NRS by 2003, 1820 ; A 2003, 2883 )
1. Before advertising its services or conducting business in this
State, a seller of travel must register with the Division by:
(a) Submitting to the Division an application for registration on a
form prescribed by the Division;
(b) Paying to the Division a fee of $25;
(c) Depositing the security required pursuant to NRS 598.375 , if any, with the Division; and
(d) Paying to the Division a fee of $100 for deposit to the account
established pursuant to NRS 598.371 .
2. The Division shall issue a certificate of registration to the
seller of travel upon receipt of:
(a) The security in the proper form if the seller of travel is
required to deposit security pursuant to NRS 598.375 ; and
(b) The payment of any fees required by this section.
3. A certificate of registration:
(a) Is not transferable or assignable; and
(b) Expires 1 year after it is issued.
4. A seller of travel must renew a certificate of registration
issued pursuant to this section before the certificate expires by:
(a) Submitting to the Division an application for the renewal of
the certificate on a form prescribed by the Division;
(b) Paying to the Division a fee of $25; and
(c) Paying to the Division a fee of $100 for deposit to the account
established pursuant to NRS 598.371 .
5. The Division shall mail an application for the renewal of a
certificate to the last known address of a seller of travel at least 30
days before the expiration of the certificate.
6. The provisions of this section do not require a person
described in paragraph (a) of subsection 2 of NRS 598.335 to register with the Division.
(Added to NRS by 2001, 2147 ; A 2003, 1826 , 2888 )
A seller of travel shall include the registration number from his
certificate of registration in any advertising conducted by, or on the
behalf of, the seller of travel. The statement must be prominently
displayed in the advertisement and be in substantially the following form
in at least 10-point bold type in a font that is easy to read:
Nevada Seller of Travel
Registration No. _____.
(Added to NRS by 2003, 1820 )
1. A seller of travel shall display conspicuously, at each place
of business of the seller of travel and on any website maintained by the
seller of travel for business purposes, a legible and typewritten
statement that notifies consumers that they may be eligible to recover
certain financial damages from the Recovery Fund. The written statement
must be in substantially the following form:
RECOVERY FUND FOR CONSUMERS
DAMAGED BY SELLERS OF TRAVEL
You may be eligible for payment from the Recovery Fund if you have
paid money to a seller of travel registered in this State for the
purchase of travel services or a vacation certificate and you have
suffered certain financial damages as a result of the transaction. To
obtain information relating to your rights under the Recovery Fund and
the filing of a claim for recovery from the Recovery Fund, you may
contact the Consumer Affairs Division of the Department of Business and
Industry at the following locations:
SOUTHERN NEVADA: 1850 East Sahara Avenue
Suite 101
Las Vegas, Nevada 89104
Phone: (702) 486-7355
Fax: (702) 486-7371
ncad@fyiconsumer.org
NORTHERN NEVADA: 4600 Kietzke Lane
Building B, Suite 113
Reno, Nevada 89502
Phone: (775) 688-1800
Fax: (775) 688-1803
2. The Division may impose upon a seller of travel an
administrative fine of not more than:
(a) For the first violation of subsection 1, $100; and
(b) For a second or subsequent violation of subsection 1, $250.
3. The Division shall deposit any money received pursuant to this
section in the account established pursuant to NRS 598.371 .
4. The provisions of NRS 598.305
to 598.395 , inclusive, do not limit the
authority of the Division to take disciplinary action against a seller of
travel.
(Added to NRS by 2003, 1822 ; A 2003, 2885 )
Recovery Fund
1. The Division shall administer and account separately for the
money received from each seller of travel pursuant to the provisions of
paragraph (d) of subsection 1 and paragraph (c) of subsection 4 of NRS
598.365 . The Division may refer to the
money in the account as the “Recovery Fund.”
2. Except as otherwise provided in NRS 598.372 , the money in the account must be used to pay
claims made by consumers who are eligible for recovery from the account
pursuant to NRS 598.373 and 598.374
.
(Added to NRS by 2003, 1820 )
1. The Division shall:
(a) On or before February 1 of each year, prepare and submit to the
Director of the Legislative Counsel Bureau for transmittal to the
appropriate legislative committee if the Legislature is in session, or to
the Interim Finance Committee if the Legislature is not in session, a
statement of the condition of the account that is prepared in accordance
with generally accepted accounting principles.
(b) Employ accountants as necessary for the performance of the
duties set forth in this section and pay any related expenses from the
money in the account. Except as otherwise provided in subsection 3, the
expenditures made by the Division pursuant to this paragraph must not
exceed $10,000 in any fiscal year.
(c) Employ or contract with persons and procure necessary
equipment, supplies and services to be paid from or purchased with the
money in the account as may be necessary to monitor or process claims
filed by consumers that may result in a recovery from the account.
2. Any interest earned on the money in the account must be
credited to the account. The Division may expend the interest earned on
the money in the account to increase public awareness of the account.
Except as otherwise provided in subsection 3, the expenditures made by
the Division for this purpose must not exceed $50,000 in any fiscal year.
3. The total expenditures made by the Division pursuant to this
section must not exceed 10 percent of the account in any fiscal year.
4. Once an initial balance of $200,000 exists in the account, the
Division shall maintain a minimum balance of $200,000 in the account.
5. The Division shall adopt such regulations as are necessary to
carry out the provisions of NRS 598.305
to 598.395 , inclusive, including,
without limitation, regulations governing:
(a) The disbursement of money from the account; and
(b) The manner in which a complaint is filed with the Division or
its designee pursuant to the provisions of NRS 598.373 .
(Added to NRS by 2003, 1823 ; A 2003, 2886 )
1. Except as otherwise provided in subsection 5, a consumer who is
eligible for recovery from the account must file a complaint with the
Division or its designee not later than 1 year after the scheduled date
of completion of the travel purchased by the consumer. The consumer must
file the complaint on a form established for this purpose by the Division.
2. If the Division receives a complaint pursuant to subsection 1,
the Division or its designee shall hold a hearing on the complaint. The
Division shall:
(a) Affix the time and place for the hearing; and
(b) Notify the interested parties, in writing, at least 10 days
before the date affixed for the hearing, of the time and place of the
hearing.
3. Any testimony taken at the hearing must be considered a part of
the record of the hearing before the Division or its designee.
4. The hearing must be public if a request is made for a public
hearing.
5. If a consumer has obtained a judgment in any court of competent
jurisdiction for recovery of damages against a seller of travel, the
consumer may file with the Division or its designee a complaint for
recovery of the judgment from the account. The consumer must file the
complaint not later than 2 years after the entry of the judgment. The
consumer is eligible for recovery of the judgment from the account if:
(a) The judgment is for actual damages suffered by the consumer as
a result of:
(1) Any act of fraud or misrepresentation by the seller of
travel acting in his capacity as a seller of travel;
(2) The bankruptcy of the seller of travel;
(3) The breach of any contract entered into by the seller of
travel in his capacity as a seller of travel; or
(4) The violation by the seller of travel of any provision
of NRS 598.305 to 598.395 , inclusive;
(b) The proceedings in connection with the judgment, including all
appeals, have terminated;
(c) The consumer files the complaint on a form established for this
purpose by the Division;
(d) The consumer submits proof satisfactory to the Division of the
judgment; and
(e) Upon obtaining payment from the account, the consumer assigns
his rights to enforce the judgment to the Division.
6. If a consumer files a complaint pursuant to this section, the
Division or its designee shall act upon the complaint not later than 60
days after the date on which the complaint is filed with the Division,
unless the Division:
(a) Determines that the complaint involves complex issues that may
not reasonably be resolved within 60 days; and
(b) Notifies the interested parties, in writing, that the time for
acting on the complaint will be extended. If the Division provides such
notice to the interested parties, the Division shall act upon the
complaint not later than 180 days after the date on which the complaint
is filed with the Division.
(Added to NRS by 2003, 1820 ; A 2003, 2883 )
1. Except as otherwise provided in subsection 2, a consumer is
eligible for recovery from the account if:
(a) The Division or its designee, after conducting a hearing on a
complaint filed pursuant to the provisions of subsection 1 of NRS 598.373
, finds that the consumer suffered
actual damages as a result of:
(1) Any act of fraud or misrepresentation by the seller of
travel acting in his capacity as a seller of travel;
(2) The bankruptcy of the seller of travel;
(3) The breach of any contract entered into by the seller of
travel in his capacity as a seller of travel; or
(4) The violation by the seller of travel of any provision
of NRS 598.305 to 598.395 , inclusive; or
(b) The consumer complies with the provisions of subsection 5 of
NRS 598.373 for the recovery of a
judgment from the account.
2. A consumer is not eligible for recovery from the account if:
(a) The consumer is the spouse of the seller of travel or is a
personal representative of the spouse of the seller of travel;
(b) The consumer was associated in a business relationship with the
seller of travel other than with regard to the travel services or
vacation certificate at issue;
(c) At the time the consumer paid money to the seller of travel for
the purchase of the travel services or vacation certificate at issue, the
seller of travel was not registered with the Division as required by NRS
598.365 ; or
(d) The consumer is seeking recovery of losses which were incurred
by the consumer as the result of a cancellation penalty that:
(1) Was fully disclosed and agreed to by the consumer at the
time the consumer entered into the contract for the purchase of the
travel services or vacation certificate at issue; and
(2) Was imposed against the consumer, in accordance with the
terms of the contract, after the cancellation of the travel services or
vacation certificate at issue.
3. If the Division or its designee finds that a consumer is
eligible for recovery from the account pursuant to this section, the
Division or its designee may pay out of the account:
(a) If the complaint was filed pursuant to subsection 1 of NRS
598.373 , the amount of actual damages
suffered, but not to exceed $10,000; or
(b) If the complaint was filed pursuant to subsection 5 of NRS
598.373 , the amount of actual damages
included in the judgment and remaining unpaid, but not to exceed $10,000.
4. If a consumer has recovered a portion of his losses from
sources other than the account, the Division shall deduct the amount
recovered from the other sources from the amount payable upon the claim
and direct the difference to be paid from the account.
5. To the extent that payments are made from the account to a
consumer, the Division is subrogated to the rights of the consumer. The
Division and the Attorney General shall promptly enforce all subrogation
claims.
6. The amount of recovery from the account based upon claims made
against any single seller of travel:
(a) Must not exceed $200,000; and
(b) For any single action of the seller of travel, must not exceed
20 percent of the balance of the account.
(Added to NRS by 2003, 1821 ; A 2003, 2884 )
Security Deposited by Seller
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