(REPRINTED WITH ADOPTED AMENDMENTS)

 

Assembly Bill No. 152–Committee on Commerce and Labor

 

(On Behalf of the Office of the Attorney General)

 

February 15, 2001

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Revises provisions governing trade practices. (BDR 52‑485)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to trade practices; authorizing a court to award reasonable attorney’s fees and costs in certain actions relating to deceptive trade practices; providing that certain monopolies and other trade practices are unlawful if thy monopolize trade or commerce in this state; 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 598.0999 is hereby amended to read as follows:

1-2    598.0999  1.  A person who violates a court order or injunction issued

1-3  pursuant to NRS 598.0903 to 598.0997, inclusive, upon a complaint

1-4  brought by the commissioner, the director, the district attorney of any

1-5  county of this state or the attorney general shall forfeit and pay to the state

1-6  general fund a civil penalty of not more than $10,000 for each violation.

1-7  For the purpose of this section, the court issuing the order or injunction

1-8  retains jurisdiction over the action or proceeding. Such civil penalties are in

1-9  addition to any other penalty or remedy available for the enforcement of

1-10  the provisions of NRS 598.0903 to 598.0997, inclusive.

1-11    2.  In any action brought pursuant to NRS 598.0903 to 598.0999,

1-12  inclusive, if the court finds that a person has willfully engaged in a

1-13  deceptive trade practice, the commissioner, the director, the district

1-14  attorney of any county in this state or the attorney general bringing the

1-15  action may recover a civil penalty not to exceed $2,500 for each violation.

1-16  The court in any such action may, in addition to any other relief or

1-17  reimbursement, award reasonable attorney’s fees and costs.

 

2-1    3.  A natural person, firm, or any officer or managing agent of any

2-2  corporation or association who knowingly and willfully engages in a

2-3  deceptive trade practice, other than a deceptive trade practice described in

2-4  NRS 598.992:

2-5    (a) For the first offense, is guilty of a misdemeanor.

2-6    (b) For the second offense, is guilty of a gross misdemeanor.

2-7    (c) For the third and all subsequent offenses, is guilty of a category D

2-8  felony and shall be punished as provided in NRS 193.130.

2-9    4.  Any offense which occurred within 10 years immediately preceding

2-10  the date of the principal offense or after the principal offense constitutes a

2-11  prior offense for the purposes of subsection 3 when evidenced by a

2-12  conviction, without regard to the sequence of the offenses and convictions.

2-13    5.  If a person violates any provision of NRS 598.0903 to 598.0999,

2-14  inclusive, 598.100 to 598.2801, inclusive, 598.281 to 598.289, inclusive,

2-15  598.840 to 598.966, inclusive, or 598.992, fails to comply with a judgment

2-16  or order of any court in this state concerning a violation of such a

2-17  provision, or fails to comply with an assurance of discontinuance or other

2-18  agreement concerning an alleged violation of such a provision, the

2-19  commissioner or the district attorney of any county may bring an action in

2-20  the name of the State of Nevada seeking:

2-21    (a) The suspension of the person’s privilege to conduct business within

2-22  this state; or

2-23    (b) If the defendant is a corporation, dissolution of the corporation.

2-24  The court may grant or deny the relief sought or may order other

2-25  appropriate relief.

2-26    Sec. 2.  NRS 598A.060 is hereby amended to read as follows:

2-27    598A.060  1.  Every activity enumerated [below] in this [section]

2-28  subsection constitutes a contract, combination or conspiracy in restraint of

2-29  trade, and it is unlawful to conduct any part of any such activity in this

2-30  state:

2-31    [1.] (a) Price fixing, which consists of raising, depressing, fixing,

2-32  pegging or stabilizing the price of any commodity or service, and which

2-33  includes, but is not limited to:

2-34      [(a)] (1) Agreements among competitors to depress prices at which

2-35  they will buy essential raw material for the end product.

2-36      [(b)] (2) Agreements to establish prices for commodities or services.

2-37    [(c)] (3) Agreements to establish uniform discounts, or to eliminate

2-38  discounts.

2-39    [(d)] (4) Agreements between manufacturers to price a premium

2-40  commodity a specified amount above inferior commodities.

2-41    [(e)] (5) Agreements not to sell below cost.

2-42    [(f)] (6) Agreements to establish uniform trade-in allowances.

2-43    [(g)] (7) Establishment of uniform cost surveys.

2-44    [(h)] (8) Establishment of minimum markup percentages.

2-45    [(i)] (9) Establishment of single or multiple basing point systems for

2-46  determining the delivered price of commodities.

2-47    [(j)] (10) Agreements not to advertise prices.

2-48    [(k)] (11) Agreements among competitors to fix uniform list prices as a

2-49  place to start bargaining.

3-1    [(l)] (12) Bid rigging, including the misuse of bid depositories,

3-2  foreclosures of competitive activity for a period of time, rotation of jobs

3-3  among competitors, submission of identical bids, and submission of

3-4  complementary bids not intended to secure acceptance by the customer.

3-5    [(m)] (13) Agreements to discontinue a product, or agreements with

3-6  anyone engaged in the manufacture of competitive lines to limit size, styles

3-7  or quantities of items comprising the lines.

3-8    [(n)] (14) Agreements to restrict volume of production.

3-9    [2.] (b) Division of markets, consisting of agreements between

3-10  competitors to divide territories and to refrain from soliciting or selling in

3-11  certain areas.

3-12    [3.] (c) Allocation of customers, consisting of agreements not to sell to

3-13  specified customers of a competitor.

3-14    [4.] (d) Tying arrangements, consisting of contracts in which the seller

3-15  or lessor conditions the sale or lease of commodities or services on the

3-16  purchase or leasing of another commodity or service.

3-17    (e) Monopolization of trade or commerce in this state, including,

3-18  without limitation, attempting to monopolize or otherwise combining or

3-19  conspiring to monopolize trade or commerce in this state.

3-20    (f) Except as otherwise provided in subsection 2, consolidation,

3-21  conversion, merger, acquisition of shares of stock or other equity

3-22  interest, directly or indirectly, of another person engaged in commerce in

3-23  this state or the acquisition of any assets of another person engaged in

3-24  commerce in this state that may:

3-25      (1) Result in the monopolization of trade or commerce in this state

3-26  or would further any attempt to monopolize trade or commerce in this

3-27  state; or

3-28      (2) Substantially lessen competition or be in restraint of trade.

3-29    2.  The provisions of paragraph (f) of subsection 1 do not:

3-30    (a) Apply to a person who, solely for an investment purpose,

3-31  purchases stock or other equity interest or assets of another person if the

3-32  purchaser does not use his acquisition to bring about or attempt to bring

3-33  about the substantial lessening of competition in this state.

3-34    (b) Prevent a person who is engaged in commerce in this state from

3-35  forming a subsidiary corporation or other business organization and

3-36  owning and holding all or part of the stock or equity interest of that

3-37  corporation or organization.

3-38    Sec. 3.  The amendatory provisions of this act do not apply to offenses

3-39  committed before July 1, 2001.

3-40    Sec. 4.  This act becomes effective on July 1, 2001.

 

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