NRS598.870. Disclosure of information to buyer required before buyer signs contract or application for membership.

  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)