oods and services. 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) NRS 598.865 Administration of trust accounts; audits. 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) NRS 598.870 Disclosure of information to buyer required before he 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) NRS 598.875 Requirements for contracts for membership. 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) NRS 598.880 Limits on contracts for membership. 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) NRS 598.885 Cancellation of contract by buyer; notice required. 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) NRS 598.890 Membership of buyer effective 7 days after contract signed. 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) NRS 598.895 Refund required, if requested, for goods not delivered within 6 weeks. If any goods ordered by the buyer are not deliver

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