Delaware Code Title 6 Sec. 2827 – Conditions on offering items as an inducement to execute
(a) It is unlawful for any person by any means, as part of an advertising program, to offer any item of value as an inducement to the recipient to visit a vacation time-sharing plan‘s facilities, attend a sales presentation or contact a salesperson, unless the person clearly discloses in writing in the offer in plain language each of the following:
(1) The name and vacation time-sharing plan’s address.
(2) A general statement that the advertising program is being conducted by a seller and the purpose of any requested visit.
(3) A statement of odds, in Arabic numerals, of receiving each item offered.
(4) The approximate retail value of each item offered.
(5) The number of vacation time-sharing plans that are participating in such advertising programs.
(6) The restrictions, qualifications and other conditions that must be satisfied before the recipient is entitled to receive the item, including:
a. Any deadline, if any, by which the recipient must visit the vacation time-sharing facilities, attend the sales presentation or contact a salesperson in order to receive the item.
b. The approximate duration of any visit and sales presentation.
c. The date upon which the offer shall terminate and the final date upon which the gift or prizes are to be awarded.
d. Any other conditions, such as minimum age qualification, a financial qualification or a requirement that if the recipient is married both spouses must be present in order to receive the item.
(7) A statement that the seller reserves the right to provide a rain check or a substitute or like item, if these rights are reserved.
(8) All other material rules, terms and conditions of the offer or program.
Terms Used In Delaware Code Title 6 Sec. 2827
- Advertising: means the use of media, mail or personal contacts to induce, directly or indirectly, any person to enter into any obligation, acquire any title, interest in or otherwise execute a contract as defined in this section. See Delaware Code Title 6 Sec. 2822
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Facilities: means any structure, service, improvement or real property, whether improved or unimproved, which is made available to the purchasers of a time-sharing plan. See Delaware Code Title 6 Sec. 2822
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
- Offer: means any offer, solicitation, advertisement or inducement to execute a contract. See Delaware Code Title 6 Sec. 2822
- Person: means any individual, corporation, partnership, company, unincorporated association or any other legal entity other than a government or agency or a subdivision thereof. See Delaware Code Title 6 Sec. 2822
- Purchaser: means any person who is buying or who has bought a time-share period in a time-sharing plan. See Delaware Code Title 6 Sec. 2822
- Salesperson: means an individual, other than a seller, who offers to sell a contract by means of a direct sales presentation, but does not include a person who merely refers a prospective purchaser to a sales person without making any direct sales presentation. See Delaware Code Title 6 Sec. 2822
- Seller: means any developer, or any other person, or agent or employee thereof, who offers time-share periods for sale to the public in the ordinary course of business, except persons who have acquired a time-share period for their own occupancy and later offer it for resale. See Delaware Code Title 6 Sec. 2822
- Time-sharing plan: means an arrangement, plan, or similar device, whereby a purchaser, in exchange for consideration, receives a right to use accommodations or facilities, or both, for a period of more than 3 years and such use is to occur during specific periods of time which are less than 1 year during any given year within the terms of such arrangement, plan or other device. See Delaware Code Title 6 Sec. 2822
(b) It is unlawful to charge postage, shipping, handling, insurance redemption fees or any other fees for any item of value offered as an inducement to the recipient to visit a vacation time-sharing plan’s facilities and attend a sales presentation.
(c) It is unlawful for any person making an offer subject to subsection (a) of this section or any employee or agent of the person to offer any item if the person knows or has reason to know that the offered item will not be available in a sufficient quantity based on the reasonably anticipated response to the offer.
(d) If the person making an offer subject to subsection (a) of this section is unable to provide an offered item because of limitations of supply, quantity or quality not reasonably foreseeable or controllable by the person making the offer, the person making the offer shall provide the approximate retail value of the item as stated in the advertising program as required under paragraph (a)(4) of this section.
(e) On the written request of a recipient who has received or claims a right to receive any offered item, the person making an offer subject to subsection (a) of this section shall furnish to the recipient sufficient evidence showing that the item provided matches the item randomly or otherwise selected for distribution to that recipient.
(f) It is unlawful for any person making an offer subject to subsection (a) of this section or any employee or agent of the person, to:
(1) Misrepresent the size, quantity, identity or quality of any prize, gift, money or other item of value offered.
(2) Misrepresent in any manner the odds of receiving any particular gift, prize, amount of money or other item of value.
(3) Label any offer a “notice of termination” or “notice of cancellation.”
(4) Materially misrepresent, in any manner, the offer or program.
(g) Any violation of this section shall make any contract entered into voidable at the option of the purchaser.