Assembly Bill No. 431–Committee on Commerce and Labor

March 10, 1999

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Referred to Committee on Commerce and Labor

 

SUMMARY—Revises protections provided to individual buyers, lessees, guests of public accommodations and recipients of workers’ compensation benefits. (BDR 52-182)

FISCAL NOTE: Effect on Local Government: Yes.

Effect on the State or on Industrial Insurance: Yes.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to the protection of certain persons in commercial transactions; providing additional deceptive trade practices; extending the exemption of workers’ compensation benefits from creditors; requiring an owner or keeper of a hotel, inn, motel or motor court to maintain a printed statement of the charge or rate of charges by the day for lodging and to make that statement available upon request; eliminating the requirement that the rates be posted in every bedroom of the establishment; eliminating the provisions that prohibit such an establishment from requiring a person to pay for a greater number of days than actually requested to secure accommodations; providing a penalty; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. NRS 598.0905 is hereby amended to read as follows:

1-2 598.0905 "Advertisement" means the attempt by publication,

1-3 dissemination, solicitation or circulation to induce, directly or indirectly,

1-4 any person to enter into any obligation to lease or to acquire any title or

1-5 interest in any property.

1-6 Sec. 2. NRS 598.0915 is hereby amended to read as follows:

1-7 598.0915 A person engages in a "deceptive trade practice" if, in the

1-8 course of his business or occupation, he:

1-9 1. Knowingly passes off goods or services for sale or lease as those of

1-10 another.

2-1 2. Knowingly makes a false representation as to the source,

2-2 sponsorship, approval or certification of goods or services [.] for sale or

2-3 lease.

2-4 3. Knowingly makes a false representation as to affiliation, connection,

2-5 association with or certification by another.

2-6 4. Uses deceptive representations or designations of geographic origin

2-7 in connection with goods or services [.] for sale or lease.

2-8 5. Knowingly makes a false representation as to the characteristics,

2-9 ingredients, uses, benefits, alterations or quantities of goods or services for

2-10 sale or lease or a false representation as to the sponsorship, approval,

2-11 status, affiliation or connection of a person therewith.

2-12 6. Represents that goods for sale or lease are original or new if he

2-13 knows or should know that they are deteriorated, altered, reconditioned,

2-14 reclaimed, used or secondhand.

2-15 7. Represents that goods or services for sale or lease are of a particular

2-16 standard, quality or grade, or that such goods are of a particular style or

2-17 model, if he knows or should know that they are of another.

2-18 8. Disparages the goods, services or business of another by false or

2-19 misleading representation of fact.

2-20 9. Advertises goods or services with intent not to sell or lease them as

2-21 advertised.

2-22 10. Advertises goods or services for sale or lease with intent not to

2-23 supply reasonably expectable public demand, unless the advertisement

2-24 discloses a limitation of quantity.

2-25 11. Advertises under the guise of obtaining sales personnel when in

2-26 fact the purpose is to first sell or lease goods or services to the sales

2-27 personnel applicant.

2-28 12. Makes false or misleading statements of fact concerning the price

2-29 of goods or services [,] for sale or lease, or the reasons for, existence of or

2-30 amounts of price reductions.

2-31 13. Fraudulently alters any contract, written estimate of repair, written

2-32 statement of charges or other document in connection with the [provision]

2-33 sale or lease of goods or services.

2-34 14. Knowingly makes any other false representation in a transaction.

2-35 Sec. 3. NRS 598.0917 is hereby amended to read as follows:

2-36 598.0917 A person engages in a "deceptive trade practice" when in the

2-37 course of his business or occupation he employs "bait and switch"

2-38 advertising, which consists of an offer to sell or lease goods or services

2-39 which the seller or lessor in truth may not intend or desire to sell [,] or

2-40 lease, accompanied by one or more of the following practices:

2-41 1. Refusal to show the goods advertised.

2-42 2. Disparagement in any material respect of the advertised goods or

2-43 services or the terms of sale [.] or lease.

3-1 3. Requiring other sales or other undisclosed conditions to be met

3-2 before selling or leasing the advertised goods or services.

3-3 4. Refusal to take orders for the sale or lease of goods or services

3-4 advertised for delivery within a reasonable time.

3-5 5. Showing or demonstrating defective goods for sale or lease which

3-6 are unusable or impractical for the purposes set forth in the advertisement.

3-7 6. Accepting a deposit for the goods or services for sale or lease and

3-8 subsequently switching the purchase order or lease to higher priced goods

3-9 or services.

3-10 7. Tendering a lease of goods advertised for sale or a sale of goods

3-11 advertised for lease or tendering terms of sale or lease less favorable than

3-12 the terms advertised.

3-13 Sec. 4. NRS 598.092 is hereby amended to read as follows:

3-14 598.092 A person engages in a "deceptive trade practice" when in the

3-15 course of his business or occupation he:

3-16 1. Knowingly fails to identify goods for sale or lease as being

3-17 damaged by water.

3-18 2. Solicits by telephone or door to door as a lessor or seller, unless the

3-19 lessor or seller identifies himself, whom he represents and the purpose of

3-20 his call within 30 seconds after beginning the conversation.

3-21 3. Knowingly states that services, replacement parts or repairs are

3-22 needed when no such services, replacement parts or repairs are actually

3-23 needed.

3-24 4. Fails to make delivery of goods or services for sale or lease within a

3-25 reasonable time or to make a refund for the goods or services, if he allows

3-26 refunds.

3-27 5. Advertises or offers an opportunity for investment and:

3-28 (a) Represents that the investment is guaranteed, secured or protected in

3-29 a manner which he knows or has reason to know, is false or misleading;

3-30 (b) Represents that the investment will earn a rate of return which he

3-31 knows or has reasons to know is false or misleading;

3-32 (c) Makes any untrue statement of a material fact or omits to state a

3-33 material fact which is necessary to make another statement, considering the

3-34 circumstances under which it is made, not misleading;

3-35 (d) Fails to maintain adequate records so that an investor may determine

3-36 how his money is invested;

3-37 (e) Fails to provide information to an investor after a reasonable request

3-38 for information concerning his investment;

3-39 (f) Fails to comply with any law or regulation for the marketing of

3-40 securities or other investments; or

3-41 (g) Represents that he is licensed by an agency of the state to sell or

3-42 offer for sale investments or services for investments if he is not so

3-43 licensed.

4-1 6. Charges a fee for advice with respect to investment of money and

4-2 fails to disclose:

4-3 (a) That he is selling or offering to lease goods or services and, if he is,

4-4 their identity; or

4-5 (b) That he is licensed by an agency of any state or of the United States

4-6 to sell or to offer for sale investments or services for investments, or holds

4-7 any other license related to the service he is providing.

4-8 7. Notifies any person, by any means, as a part of an advertising plan

4-9 or scheme, that he has won a prize and that as a condition of receiving the

4-10 prize he must purchase or [rent] lease goods or services.

4-11 8. Fails to inform customers, if he does not allow refunds or exchanges,

4-12 that he does not allow refunds or exchanges by:

4-13 (a) Printing a statement on the face of the lease or sales receipt;

4-14 (b) Printing a statement on the face of the price tag; or

4-15 (c) Posting in an open and conspicuous place a sign at least 8 by 10

4-16 inches in size with boldface letters,

4-17 specifying that no refunds or exchanges are allowed.

4-18 Sec. 5. NRS 598.0923 is hereby amended to read as follows:

4-19 598.0923 A person engages in a "deceptive trade practice" when in the

4-20 course of his business or occupation he knowingly:

4-21 1. Conducts the business or occupation without all required state,

4-22 county or city licenses.

4-23 2. Fails to disclose a material fact in connection with the sale or lease

4-24 of goods or services.

4-25 3. Violates a state or federal statute or regulation relating to the sale

4-26 or lease of goods or services.

4-27 4. Uses coercion, duress or intimidation in a transaction.

4-28 Sec. 6. NRS 482.351 is hereby amended to read as follows:

4-29 482.351 1. No vehicle dealer or rebuilder may employ "bait and

4-30 switch" advertising or otherwise intentionally publish, display or circulate

4-31 any advertising which is misleading or inaccurate in any material particular

4-32 or which misrepresents any of the products sold, leased, manufactured,

4-33 handled or furnished to the public.

4-34 2. The director [, after hearing, may adopt such rules and] shall adopt

4-35 such regulations as may be necessary for making the administration of this

4-36 section effective.

4-37 3. As used in this section, "bait and switch" advertising consists of

4-38 an offer to sell goods or services which the seller in truth may not intend

4-39 or desire to sell, accompanied by one or more of the following practices:

4-40 (a) Refusal to show the goods advertised.

4-41 (b) Disparagement in any material respect of the advertised goods or

4-42 services or the terms of sale.

5-1 (c) Requiring other sales or other undisclosed conditions to be met

5-2 before selling the advertised goods or services.

5-3 (d) Refusal to take orders for the goods or services advertised for

5-4 delivery within a reasonable time.

5-5 (e) Showing or demonstrating defective goods which are unusable or

5-6 impractical for the purposes set forth in the advertisement.

5-7 (f) Accepting a deposit for the goods or services and subsequently

5-8 switching the purchase order to higher priced goods or services.

5-9 Sec. 7. NRS 482.36395 is hereby amended to read as follows:

5-10 482.36395 No motor vehicle manufacturer, distributor, factory branch

5-11 or representative thereof may:

5-12 1. Encourage, aid or abet a dealer to sell or lease motor vehicles

5-13 through any false, deceptive or misleading sales or financing practice.

5-14 2. Refuse to deliver an order of a dealer within 60 days after the order

5-15 is received in writing unless the inability to deliver the order is caused by

5-16 shortage or curtailment of material, labor, production capacity,

5-17 transportation or utility services, or to any labor or production difficulty, or

5-18 to any cause beyond the reasonable control of the motor vehicle

5-19 manufacturer or distributor.

5-20 3. Coerce, compel or otherwise require any dealer to pay over or to

5-21 repay any amount of money or other consideration which is in

5-22 substantiation of or repayment for any advertising, [promotion]

5-23 promotional activity or scheme, or method of implementing the sale or

5-24 lease of motor vehicles.

5-25 4. Demand or require, directly or indirectly, a dealer to pay any amount

5-26 of money which is projected or proposed for the advertisement, display or

5-27 promotion of any motor vehicle which is being sold or leased pursuant to a

5-28 franchise, unless the dealer has agreed thereto in writing.

5-29 5. Demand or require, directly or indirectly, a dealer to comply with

5-30 standards which exceed commonly accepted business practices within the

5-31 automotive industry relating to sales , leases or service of motor vehicles.

5-32 6. Based solely upon the results of a survey of a dealer’s customers

5-33 conducted by or on behalf of a motor vehicle manufacturer which is

5-34 intended or otherwise purports to measure the performance of a dealer:

5-35 (a) Discriminate, directly or indirectly, against a dealer; or

5-36 (b) Take any action to terminate a dealer’s franchise.

5-37 This subsection does not prohibit a motor vehicle manufacturer, distributor,

5-38 factory branch or representative thereof from conducting a contest or other

5-39 award program to recognize the performance of a dealer based on

5-40 reasonable criteria relating to sales , leases or service of motor vehicles.

5-41 Sec. 8. NRS 616C.205 is hereby amended to read as follows:

5-42 616C.205 Except as otherwise provided in this section and NRS

5-43 31A.150 and 31A.330, compensation payable or paid under chapters 616A

6-1 to 616D, inclusive, or chapter 617 of NRS, whether determined or due, or

6-2 not, is not, before the issuance and delivery of the check, assignable, is

6-3 exempt from attachment, garnishment and execution, and does not pass to

6-4 any other person by operation of law. In the case of the death of an injured

6-5 employee covered by chapters 616A to 616D, inclusive, or chapter 617 of

6-6 NRS from causes independent from the injury for which compensation is

6-7 payable, any compensation due the employee which was awarded or

6-8 accrued but for which a check was not issued or delivered at the date of

6-9 death of the employee is payable to his dependents as defined in NRS

6-10 616C.505.

6-11 Sec. 9. NRS 651.030 is hereby amended to read as follows:

6-12 651.030 1. Every owner or keeper of any hotel, inn, motel or motor

6-13 court in this state shall [post,] :

6-14 (a) Post in a conspicuous place in the office and in every bedroom of

6-15 [such establishment,] the establishment a printed copy of this section and

6-16 NRS 651.010 and 651.020 [and a] ; and

6-17 (b) Maintain a printed statement of the charge or rate of charges by the

6-18 day for lodging [.] and make the statement available for viewing, upon

6-19 request, at the registration desk or an equivalent location in the

6-20 establishment.

6-21 2. No charge or sum [shall] may be collected for any greater or other

6-22 sum than [he] the owner or keeper is entitled to [by] charge pursuant to

6-23 the general rules and regulations of [such] the establishment.

6-24 3. For any violation of this section, or any provision herein contained,

6-25 the offender shall forfeit to the injured party 3 times the amount of the sum

6-26 charged in excess of what he is entitled to charge.

6-27 Sec. 10. NRS 651.040 is hereby amended to read as follows:

6-28 651.040 1. As used in this section, unless the context otherwise

6-29 requires:

6-30 (a) "Establishment" means any hotel, motel, inn or motor court.

6-31 (b) "Owner" or "keeper" means any person, firm, association or

6-32 corporation.

6-33 (c) "Rates" means the total charge levied at the establishment for rooms

6-34 or accommodations.

6-35 2. [Pursuant to NRS 651.030, every owner or keeper of any hotel, inn,

6-36 motel or motor court in this state shall post, in a conspicuous place in the

6-37 office and in every bedroom of the establishment, a printed copy of a

6-38 statement of charge or rate of charges by the day for lodging.] The rates

6-39 [posted in the office and every bedroom of the establishment must display]

6-40 listed on the printed statement required to be maintained by an owner or

6-41 keeper of an establishment pursuant to NRS 651.030 must include the

6-42 daily rate of the room for occupancy by one person, for occupancy by two

6-43 persons, the additional charge, if any, for each person over two persons and

7-1 the additional charge, if any, for each additional bed provided in the room.

7-2 Every establishment shall maintain a registration card for each room and

7-3 supply the person or persons registering for accommodations a receipt.

7-4 Both the registration card and the receipt must reflect the type of

7-5 accommodations supplied, the number of persons occupying the

7-6 accommodation and the rate charged each person therefor. An

7-7 establishment shall not charge more than the [posted rates, or require as a

7-8 condition of securing accommodations that any person pay for a greater

7-9 number of days than actually requested or that the accommodations are

7-10 actually occupied by the person or persons.] rates listed on the printed

7-11 statement required to be maintained by an owner or keeper of an

7-12 establishment pursuant to NRS 651.030.

7-13 3. For any violation of this section, or any provision herein contained,

7-14 the offender shall forfeit to the injured party 3 times the amount of the sum

7-15 charged in excess of what he is entitled to charge.

7-16 4. Any owner or keeper of any establishment who violates any of the

7-17 provisions of this section is guilty of a misdemeanor.

7-18 Sec. 11. The amendatory provisions of sections 9 and 10 of this act do

7-19 not apply to offenses that were committed before the effective date of those

7-20 sections.

7-21 Sec. 12. 1. This section and sections 9, 10 and 11 of this act become

7-22 effective upon passage and approval.

7-23 2. Sections 1 to 7, inclusive, of this act become effective on October 1,

7-24 1999.

7-25 3. Section 8 of this act becomes effective at 12:01 a.m. on October 1,

7-26 1999.

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