Nevada Revised Statutes 599B.105 – Rights and remedies of injured consumer; resolution by Unit of claims against security; regulations
1. The bond, letter of credit or certificate of deposit filed pursuant to NRS 599B.100 must be held in trust for consumers injured by the seller.
Terms Used In Nevada Revised Statutes 599B.105
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Commissioner: means the Commissioner of Consumer Affairs. See Nevada Revised Statutes 599B.010
- Consumer: means a person who is solicited by a seller or salesperson. See Nevada Revised Statutes 599B.010
- Goods or services: means any property, tangible or intangible, real, personal or mixed, and any other article, commodity or thing of value. See Nevada Revised Statutes 599B.010
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
- Premium: includes any prize, bonus, award, gift or any other similar inducement or incentive to purchase. See Nevada Revised Statutes 599B.010
- seller: means any person who, on his or her own behalf, causes or attempts to cause a solicitation by telephone to be made through the use of one or more salespersons or any automated dialing announcing device under any of the following circumstances:
(a) The person initiates contact by telephone with a consumer and represents or implies:
(1) That a consumer who buys one or more goods or services will receive additional goods or services, whether or not of the same type as purchased, without further cost, except for actual postage or common carrier charges;
(2) That a consumer will or has a chance or opportunity to receive a premium;
(3) That the items for sale are gold, silver or other precious metals, diamonds, rubies, sapphires or other precious stones, or any interest in oil, gas or mineral fields, wells or exploration sites or any other investment opportunity;
(4) That the product offered for sale is information or opinions relating to sporting events;
(5) That the product offered for sale is the services of a recovery service; or
(6) That the consumer will receive a premium or goods or services if he or she makes a donation;
(b) The solicitation by telephone is made by the person in response to inquiries from a consumer generated by a notification or communication sent or delivered to the consumer that represents or implies:
(1) That the consumer has been in any manner specially selected to receive the notification or communication or the offer contained in the notification or communication;
(2) That the consumer will receive a premium if the recipient calls the person;
(3) That if the consumer buys one or more goods or services from the person, the consumer will also receive additional or other goods or services, whether or not the same type as purchased, without further cost or at a cost that the person represents or implies is less than the regular price of the goods or services;
(4) That the product offered for sale is the services of a recovery service; or
(5) That the consumer will receive a premium or goods or services if he or she makes a donation; or
(c) The solicitation by telephone is made by the person in response to inquiries generated by advertisements that represent or imply that the person is offering to sell any:
(1) Gold, silver or other metals, including coins, diamonds, rubies, sapphires or other stones, coal or other minerals or any interest in oil, gas or other mineral fields, wells or exploration sites, or any other investment opportunity;
(2) Information or opinions relating to sporting events; or
(3) Services of a recovery service. See Nevada Revised Statutes 599B.010
- Unit: means the Consumer Affairs Unit of the Department of Business and Industry. See Nevada Revised Statutes 599B.010
2. Any consumer who is injured by the bankruptcy of the seller or his or her breach of any agreement entered into in his or her capacity as a registrant may bring and maintain an action to recover against the bond, letter of credit or certificate of deposit.
3. In addition to the remedy provided by subsection 2, a consumer may file with the Unit a claim against a bond, letter of credit or certificate of deposit filed pursuant to NRS 599B.100 if he or she:
(a) Has purchased or received goods or services from a registrant;
(b) Was harmed by that registrant’s breach of any agreement entered into in his or her capacity as a registrant; and
(c) Can show that he or she is entitled to a refund pursuant to subsection 1 of NRS 599B.190. No other person is entitled to bring an action against the bond, letter of credit or certificate of deposit pursuant to this subsection.
4. The Unit shall audit each claim to determine whether the consumer is entitled to receive a refund pursuant to subsection 1 of NRS 599B.190. The Unit may request the consumer and the registrant, or either of them, to provide information to assist in the audit.
5. After the Unit has completed its audit, it shall schedule a hearing and notify the registrant and the consumer of its intent to take action or to decline to take action. If the Unit decides that it will take action against the bond, letter of credit or certificate of deposit, it shall notify the registrant not less than 10 days before the date set for the hearing to appear and show cause why the Unit should not take the intended action. If the Unit decides that it will not take action against the bond, letter of credit or certificate of deposit of a registrant on behalf of the consumer, the Unit shall notify the consumer not less than 10 days before the date set for the hearing to appear and show cause why the Unit should not decline to take action.
6. If, upon hearing, the Commissioner determines that there are sufficient grounds to take the intended action against the bond, letter of credit or certificate of deposit, or if the registrant or the consumer fails to appear and show cause why the Unit should not take the intended action, the Commissioner shall take the action provided for in the Unit’s notice of intended action.
7. The Unit shall not distribute or cause to be distributed to the consumer more than the actual amount of money that the consumer paid for the product, service or premium. The Unit shall not distribute or cause to be distributed to the consumer the value of a premium if the value exceeds the amount paid by the consumer.
8. Except as otherwise provided in subsection 10, if the total amount of money awarded to consumers against a bond does not exceed the amount of that bond, the surety on the bond shall distribute the money from the bond to the consumers according to the terms of the order of the Commissioner and is thereby relieved of all liability pursuant to the bond.
9. If the total amount of money awarded to consumers against a bond exceeds the amount of that bond, or if the security is held in the form of a letter of credit or a certificate of deposit, the surety on the bond or the issuer of the letter of credit or certificate of deposit shall deposit the amount of the security with the Unit and is thereby relieved of all liability pursuant thereto. Except as otherwise provided in subsection 10, the Unit shall distribute to each consumer his or her pro rata share of the proceeds of the bond, letter of credit or certificate of deposit.
10. Before distributing the proceeds of the bond, letter of credit or certificate of deposit to the consumer, the Unit:
(a) Shall allow the registrant a reasonable amount of time within which to resolve the claims.
(b) Is entitled to deduct from the proceeds of the bond, letter of credit or certificate of deposit the Unit’s or Commissioner’s costs of hearing, auditing and determining the claim, including attorney’s fees.
11. A consumer who receives less than a full refund may bring an action in a court of competent jurisdiction against the registrant to recover the unpaid balance.
12. The Commissioner may adopt regulations regarding the distribution of the money to claimants pursuant to this section, including the conduct of hearings relating to such distributions.