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) NRS 598.782 Criminal penalty. 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) NRS 598.787 Provisions and remedies not exclusive; violation constitutes deceptive trade practice. 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 NRS 598.840 Definitions. 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) NRS 598.845 Scope. 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, is not subject to the provisions of NRS 598.840 to 598.930, inclusive. (Added to NRS by 1985, 960) NRS 598.851 Organization to register and post security before advertising services or conducting business in this State. 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) NRS 598.855 Trust account required for payments on contracts. 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) NRS 598.860 Trust account required for payments on g

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