Iowa Code 552A.2 – Exemptions
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Terms Used In Iowa Code 552A.2
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
- year: means twelve consecutive months. See Iowa Code 4.1
552A.2 Exemptions.
This chapter does not apply to any of the following:
1. Building and loan associations, state or national banks, insurance companies and associations, and mutual or cooperative telephone companies organized under chapter 491 which have been determined to be exempt from taxation under section 501(c)(12) of the Internal Revenue Code.
2. Corporations and cooperative associations subject to regulation under chapter 497, 498, or 499.
3. The sale of membership camping contracts by persons or entities registered or exempt under chapter 557B.
4. The sale of physical exercise club contracts by persons or entities registered under chapter 552.
5. Corporations, partnerships, unincorporated associations, or other business enterprises which sell or offer for sale memberships to an individual or to a family unit for consideration of no more than fifty dollars for a one-year period. Consideration for this purpose includes but is not limited to the amount of any required purchase under the terms of the contract.
6. a. The sale of goods or services by corporations, partnerships, unincorporated associations, or other business enterprises which sell products to direct sellers as defined by section 3508 of the Internal Revenue Code, where the initial contract establishing the relationship with the direct seller is terminable at will by either party, and where the corporation, partnership, unincorporated association, or other business enterprise offers to repurchase the products at reasonable commercial terms.
b. For purposes of this subsection, “”reasonable commercial terms”” includes the repurchase of all unencumbered products which are in an unused, commercially resalable condition within one year from the direct seller’s date of purchase. The repurchase shall be at a price not less than ninety percent of the original net cost to the direct seller of the products being returned. “”Original net cost”” means the amount actually paid by the direct seller for the products, less any consideration received by the direct seller for the purchase of the products being returned. Products which are no longer marketed by a program shall be deemed resalable if the products are otherwise in an unused, commercially resalable condition and are returned to the seller within one year from the direct seller’s date of purchase, provided, however, that products which are no longer marketed by a program shall not be deemed resalable if the products are sold to direct sellers as nonreturnable, discontinued, seasonal, or special promotion items and the nonreturnable nature of the product was clearly disclosed to the direct seller prior to purchase.
93 Acts, ch 60, §2; 2012 Acts, ch 1023, §157
Referred to in §557B.14
This chapter does not apply to any of the following:
1. Building and loan associations, state or national banks, insurance companies and associations, and mutual or cooperative telephone companies organized under chapter 491 which have been determined to be exempt from taxation under section 501(c)(12) of the Internal Revenue Code.
2. Corporations and cooperative associations subject to regulation under chapter 497, 498, or 499.
3. The sale of membership camping contracts by persons or entities registered or exempt under chapter 557B.
4. The sale of physical exercise club contracts by persons or entities registered under chapter 552.
5. Corporations, partnerships, unincorporated associations, or other business enterprises which sell or offer for sale memberships to an individual or to a family unit for consideration of no more than fifty dollars for a one-year period. Consideration for this purpose includes but is not limited to the amount of any required purchase under the terms of the contract.
6. a. The sale of goods or services by corporations, partnerships, unincorporated associations, or other business enterprises which sell products to direct sellers as defined by section 3508 of the Internal Revenue Code, where the initial contract establishing the relationship with the direct seller is terminable at will by either party, and where the corporation, partnership, unincorporated association, or other business enterprise offers to repurchase the products at reasonable commercial terms.
b. For purposes of this subsection, “”reasonable commercial terms”” includes the repurchase of all unencumbered products which are in an unused, commercially resalable condition within one year from the direct seller’s date of purchase. The repurchase shall be at a price not less than ninety percent of the original net cost to the direct seller of the products being returned. “”Original net cost”” means the amount actually paid by the direct seller for the products, less any consideration received by the direct seller for the purchase of the products being returned. Products which are no longer marketed by a program shall be deemed resalable if the products are otherwise in an unused, commercially resalable condition and are returned to the seller within one year from the direct seller’s date of purchase, provided, however, that products which are no longer marketed by a program shall not be deemed resalable if the products are sold to direct sellers as nonreturnable, discontinued, seasonal, or special promotion items and the nonreturnable nature of the product was clearly disclosed to the direct seller prior to purchase.
93 Acts, ch 60, §2; 2012 Acts, ch 1023, §157
Referred to in §557B.14