NRS: CHAPTER 597 - MISCELLANEOUS TRADE REGULATIONS AND PROHIBITED ACTS

[Rev. 1/17/2009 7:53:02 PM]

TITLE 52 - TRADE REGULATIONS AND PRACTICES

CHAPTER 597 - MISCELLANEOUS TRADE REGULATIONS AND PROHIBITED ACTS

LEASE OF PERSONAL PROPERTY WITH OPTION TO PURCHASE

NRS 597.020 Applicability of laws.

NRS 597.030 Lease agreement: Disclosures required; exception to requirement; provision of copy to customer.

NRS 597.040 Required disclosures: Manner of making; transactions with multiple lessors; effect of inaccuracy caused by customer.

NRS 597.050 Disclosures required upon renegotiation of lease agreement.

NRS 597.060 Lease agreement: Prohibited provisions.

NRS 597.070 Lease agreement: Reinstatement after customer fails to make timely payment.

NRS 597.080 Receipt required for certain payments by customer.

NRS 597.090 Advertisement for lease agreement.

NRS 597.100 Criminal penalty.

NRS 597.110 Civil penalty.

DEALERS OF FARM EQUIPMENT

NRS 597.112 Definitions.

NRS 597.1123 “Dealer” defined.

NRS 597.1127 “Dealer agreement” defined.

NRS 597.113 “Inventory” defined.

NRS 597.1133 “Net price” defined.

NRS 597.1137 “Superseded part” and “superseded repair part” defined.

NRS 597.114 “Supplier” defined.

NRS 597.1143 Dealer agreement: Termination, failure to renew or substantial change of terms for good cause.

NRS 597.1147 Return of surplus parts to supplier; credit for returned parts.

NRS 597.115 Limitations on requirements imposed by supplier upon dealer; prohibition against certain changes to dealer agreement.

NRS 597.1153 Repurchase of inventory and equipment by supplier upon termination of dealer agreement.

NRS 597.1157 Requirements regarding dealer’s reserve account for recourse after termination of dealer agreement.

NRS 597.116 Limitations on requirements for supplier to repurchase inventory.

NRS 597.1163 Failure of supplier to repurchase inventory.

NRS 597.1167 Death of dealer or majority shareholder of dealer.

NRS 597.117 Security interest of supplier in inventory; inspection of inventory before shipment.

NRS 597.1173 Enforcement by dealer.

NRS 597.1177 Warranty work performed by dealer; payment of warranty claim by supplier; audit of claim.

NRS 597.118 Right, obligation or liability may not be waived.

ALCOHOLIC BEVERAGES

Franchises Between Liquor Suppliers and Wholesalers

NRS 597.120 Definitions.

NRS 597.125 “Alcoholic beverage” defined.

NRS 597.130 “Franchise” defined.

NRS 597.133 “Good cause” defined.

NRS 597.136 “Marketing area” defined.

NRS 597.140 “Supplier” defined.

NRS 597.150 “Wholesaler” defined.

NRS 597.155 Termination of franchise by supplier: Notice; effective date.

NRS 597.160 Prohibited acts by supplier; exceptions; correction by wholesaler of alleged failure to comply with franchise.

NRS 597.165 Requiring wholesaler to increase payment for product prohibited after delivery by supplier.

NRS 597.170 Remedies of wholesaler.

NRS 597.180 Action by wholesaler: Defense by supplier.

Regulation of Business Practices

NRS 597.190 Statement of legislative policy.

NRS 597.200 Definitions.

NRS 597.210 Limitations on engaging in business of importing, wholesaling or retailing alcoholic beverages.

NRS 597.220 Importer or wholesaler may not engage in business of retailing alcoholic beverages.

NRS 597.225 Requirements to serve samples of alcoholic beverages on premises of grocery store.

NRS 597.230 Operation of brew pub.

NRS 597.240 Operation of winery authorized in smaller counties.

NRS 597.245 Operation of instructional wine-making facility.

NRS 597.250 Violations: Suspension or revocation of license.

Substitution of Brands

NRS 597.260 Penalty; civil liability.

Enforcement

NRS 597.262 Enforcement by Attorney General and district attorneys; exceptions.

ASSISTIVE DEVICES

NRS 597.264 Definitions.

NRS 597.2643 “Assistive device” defined.

NRS 597.2645 “Consumer” defined.

NRS 597.2647 “Dealer” defined.

NRS 597.265 “Manufacturer” defined.

NRS 597.2653 Manufacturer to provide express warranty for new assistive device; effective period of warranty; failure to provide warranty.

NRS 597.2655 Repair of assistive device not in conformance with express warranty.

NRS 597.2657 Inability of manufacturer or dealer to conform assistive device to express warranty after reasonable number of repairs: Replacement or refund; presumptions.

NRS 597.266 Manufacturer to reimburse consumer for rental of assistive device in certain circumstances; action against dealer for failure to deliver assistive device for repair in timely manner.

NRS 597.2663 Sale or lease of returned assistive device prohibited unless reason for return disclosed to prospective consumer.

NRS 597.2665 Action for damages and equitable relief; costs and attorney’s fees.

NRS 597.2667 Rights and remedies not exclusive; waiver of rights void.

AUTOMOTIVE SERVICES

Service Stations

NRS 597.270 Definitions.

NRS 597.280 “Affiliate” defined.

NRS 597.290 “Control” defined.

NRS 597.300 “Franchise” and “franchise agreement” defined.

NRS 597.305 “Lessee dealer” defined.

NRS 597.310 “Marketing area” defined.

NRS 597.320 “Motor vehicle fuel” defined.

NRS 597.330 “Price” defined.

NRS 597.340 “Refiner” defined.

NRS 597.350 “Refinery” defined.

NRS 597.360 “Retailer” defined.

NRS 597.370 “Service station” defined.

NRS 597.380 “Wholesale purchaser” defined.

NRS 597.390 Prohibited practices of refiners.

NRS 597.400 Fair compensation required on failure of refiner to renew franchise.

NRS 597.410 Required notice of termination, cancellation or failure to renew franchise or contract.

NRS 597.420 Effect of failure to serve notice.

NRS 597.430 Manner of giving notice.

NRS 597.440 Restrictions on refiner’s operation of service stations.

NRS 597.450 Temporary operation of service station by refiner; limitations on temporary operation; price of motor vehicle fuel sold to other retailers.

NRS 597.460 Refiner’s failure to act in good faith or use of undue influence prohibited.

NRS 597.470 Judicial relief; costs and attorney’s fees.

Automotive Repairs

NRS 597.480 Definitions.

NRS 597.490 Display of sign required; contents of sign; penalty.

NRS 597.500 Duties of body shop or garageman on acceptance of vehicle for repair.

NRS 597.510 Estimate of costs required for certain repairs.

NRS 597.520 Notice of additional charges over estimate required in certain cases.

NRS 597.530 Waiver of estimate of costs or notice of additional charges; execution of waiver.

NRS 597.535 Duty of body shop and garage to repair vehicle in accordance with manufacturer’s specifications and estimate of costs required for repair.

NRS 597.540 Duties of owner and insurer upon receipt of notice of additional charges.

NRS 597.550 Replaced parts to be delivered to person authorizing repairs if requested; exception.

NRS 597.560 Records to be retained by body shop or garageman.

NRS 597.570 Compliance with NRS 597.510 to 597.5706, inclusive; enforcement of liens and contracts.

NRS 597.5701 Certain acts deemed to be deceptive trade practice.

NRS 597.5702 Revolving account for Bureau of Consumer Protection: Creation; use; deposits; claims.

NRS 597.5703 Commissioner or Director authorized to request undercover investigation of alleged deceptive trade practice; Bureau of Consumer Protection authorized to conduct such investigation.

NRS 597.5704 Administrative fine for engaging in deceptive trade practice; deposit and use of money collected as administrative fine.

NRS 597.5705 Statement of charges required for repair of vehicle; violation constitutes misdemeanor; statement required for enforcement of lien.

NRS 597.5706 Submission of annual report by Commissioner to Legislative Commission.

NRS 597.580 Violations: Injunctive relief.

NRS 597.590 Violations: Civil penalties.

Repairs to Conform to Express Warranties

NRS 597.600 Definitions.

NRS 597.610 Report of defect in motor vehicle; duty of manufacturer.

NRS 597.620 Submission of claim to manufacturer for replacement or refund according to designated procedure.

NRS 597.630 Duties of manufacturer if motor vehicle cannot be conformed to express warranties.

NRS 597.640 Tolling of period for express warranties.

NRS 597.650 Commencement of action by buyer.

NRS 597.660 Waiver of rights by buyer prohibited.

NRS 597.670 Effect on other rights and remedies of buyer.

NRS 597.675 Notification of manufacturer regarding change in residential address.

NRS 597.680 Reimbursement by manufacturer for cost of repairs to conform vehicle to express warranties.

NRS 597.682 Lemon Law Buyback: General duties regarding retitling, notice and disclosures.

NRS 597.684 Lemon Law Buyback: Form of notice.

NRS 597.686 Lemon Law Buyback: Prohibition against certain nondisclosure agreements.

NRS 597.688 Lemon Law Buyback: Civil action.

Miscellaneous Provisions

NRS 597.690 Manufacturer required to remedy defects in vehicle related to safety without charge.

NRS 597.710 Unlawful to place certain transparent material upon windshield or side or rear window of motor vehicle for compensation; exception.

WORKS OF ART

NRS 597.720 Definitions.

NRS 597.730 Right to claim or disclaim authorship.

NRS 597.740 Restrictions on publication and public display; civil remedy; defacement, mutilation or alteration of work.

NRS 597.750 Waiver of rights.

NRS 597.760 Transfer of ownership or right of reproduction.

RIGHT OF PUBLICITY

NRS 597.770 Definitions.

NRS 597.780 Scope.

NRS 597.790 Existence and term of right; written consent required for commercial use; exceptions.

NRS 597.800 Transferability of right; commercial use upon death; rights of successors in interest; registration of claim; fee.

NRS 597.810 Remedies for unauthorized commercial use; liability of owner or employee of medium used for advertising.

DEVICES FOR AUTOMATIC DIALING AND ANNOUNCING

NRS 597.812 “Device for automatic dialing and announcing” defined.

NRS 597.814 Use prohibited; exceptions; restrictions.

NRS 597.816 Additional exceptions to prohibition of use.

NRS 597.818 Penalty.

MISCELLANEOUS PROVISIONS

NRS 597.820 Profiteering in articles on which there is sales tax; penalty.

NRS 597.830 Unlawful additions to entertainment or amusement tax; penalty.

NRS 597.840 Unlawful retention of deposit for longer than agreed time; penalty.

NRS 597.850 Shoplifting: Merchant may request person on premises to keep merchandise in full view; detention of suspect; immunity of merchant from liability; display of notice.

NRS 597.860 Shoplifting: Civil liability of adult who steals merchandise from or damages property on merchant’s premises.

NRS 597.870 Shoplifting: Civil liability of parent or guardian of minor who steals merchandise from or damages property on merchant’s premises.

NRS 597.880 Sale and advertising of master keys for motor vehicles limited; penalty.

NRS 597.890 Advertising that climate of facility for storage of personal property is controlled: Requirements; penalty; civil liability.

NRS 597.900 Sale of imitation Indian arts and crafts not clearly labeled as imitation prohibited.

NRS 597.910 Sales of rifles and shotguns to residents of Nevada and contiguous states in accordance with federal law.

NRS 597.915 Informal merchants: Prohibited acts; penalty; evidence of legal acquisition of new product.

NRS 597.940 Restrictions on recording of account number of credit card as condition to accepting check or draft; restrictions on recording of telephone number as condition to accepting credit card.

NRS 597.945 Restrictions on printing expiration date or account number of credit card or debit card on receipt.

NRS 597.950 Unsolicited merchandise deemed unconditional gift to recipient; liability of sender; exceptions.

NRS 597.960 Collection of fee for dishonored check accepted as payment for goods or services.

NRS 597.970 Restrictions on transfer of personal information through electronic transmission. [Effective October 1, 2008.]

_________

LEASE OF PERSONAL PROPERTY WITH OPTION TO PURCHASE

NRS 597.010 Definitions. As used in NRS 597.010 to 597.110, inclusive, unless the context otherwise requires:

1. “Consummation” means the time at which a customer becomes contractually obligated under a lease agreement with an option to purchase.

2. “Customer” means a natural person who leases personal property which is to be used primarily for personal, family or household purposes pursuant to a lease agreement with an option to purchase.

3. “Lease agreement with an option to purchase” means an agreement:

(a) For the possession and use of personal property by a natural person primarily for personal, family or household purposes, for an initial period of not more than 4 months;

(b) That is automatically renewable with each payment made after the initial period;

(c) That does not obligate or require the customer to continue leasing or using the property beyond the initial period; and

(d) That permits the customer to acquire the ownership of the property.

4. “Lessor” means a person who regularly provides the possession and use of property pursuant to a lease agreement with an option to purchase and to whom rental payments are initially payable as indicated on the face of the agreement.

(Added to NRS by 1991, 515)—(Substituted in revision for NRS 598.2803)

NRS 597.020 Applicability of laws.

1. A lease agreement with an option to purchase which complies with the provisions of NRS 597.010 to 597.110, inclusive, is exempt from the provisions of law governing:

(a) A security interest as defined in NRS 104.1201.

(b) A door-to-door sale as defined in NRS 598.180.

2. The provisions of NRS 597.010 to 597.110, inclusive, do not apply to:

(a) A lease agreement with an option to purchase entered into primarily for business, commercial or agricultural purposes.

(b) A lease agreement with an option to purchase made with any governmental agency.

(d) A lease or bailment of personal property which is incidental to the lease of real property and which does not provide the customer with an option to purchase the leased property.

(e) The lease of a motor vehicle.

(Added to NRS by 1991, 516; A 1999, 393; 2005, 885)

NRS 597.030 Lease agreement: Disclosures required; exception to requirement; provision of copy to customer.

1. Except as otherwise provided in subsection 2, a lease agreement with an option to purchase must contain the following disclosures, if applicable:

(a) The total number and total amount of all payments which are necessary to acquire ownership of the leased property, and the dates on which those payments are due.

(b) A statement that the customer will not own the leased property until he makes all of the payments necessary to acquire ownership.

(c) A statement that the customer is responsible for the fair market value of the leased property if it is lost, stolen, damaged or destroyed.

(d) A brief description of the leased property which is sufficient to identify the property to the customer and lessor, including:

(1) The identification number of the property, if available; and

(2) A statement indicating whether the property is new or used. It is not a violation of this section to indicate that new property is used.

(e) A brief description of any damage to the leased property.

(f) A statement of the price at which the lessor will sell the leased property to the customer for cash on the date of the agreement. If at least five items are leased as a set in a single agreement, the aggregate price of all of the items leased may be indicated.

(g) The total amount of the payments required to be paid at or before the consummation of the agreement or the delivery of the leased property, whichever is later.

(h) A statement that the total amount of all payments required to be paid does not include other fees which may be charged.

(i) A statement of all other fees which may be charged, including, but not limited to, fees for:

(1) The failure to make timely payments.

(2) Defaulting on the agreement.

(3) Reinstating the agreement.

(4) Returning the leased property to the lessor.

(j) A summary of the terms of the customer’s option to purchase the leased property, including a statement that the customer has the right to purchase the leased property at any time before the termination of the lease, and the price at which the property may be so purchased.

(k) A statement identifying the person who is responsible for maintaining and servicing the property while it is being leased, and a description of that responsibility.

(l) A statement that if any part of the manufacturer’s express warranty covers the leased property when the customer acquires ownership of the property, it will be transferred to the customer if allowed by the terms of the warranty.

(m) The date of the transaction and the names of the customer and lessor.

(n) A statement that the customer may terminate the agreement without penalty by voluntarily surrendering or returning the leased property in good repair at the expiration of the term of the lease, and paying any rental payments that are past due.

(o) A notice of the customer’s right to reinstate the agreement pursuant to NRS 597.070.

2. A lessor is not required to comply with the provisions of this section if the transaction is governed by Part E of the Consumer Credit Protection Act, 15 U.S.C. §§ 1667 to 1667e, inclusive, and the lessor complies with the requirements of those sections and the regulations adopted pursuant thereto.

3. The lessor shall provide the customer with a copy of the lease agreement with an option to purchase.

(Added to NRS by 1991, 516)—(Substituted in revision for NRS 598.2804)

NRS 597.040 Required disclosures: Manner of making; transactions with multiple lessors; effect of inaccuracy caused by customer.

1. The disclosures required to be made by NRS 597.030 must be made:

(a) At or before the consummation of the lease agreement with an option to purchase; and

(b) Clearly and conspicuously in writing on the face of the agreement, directly above the line for the customer’s signature.

2. In a transaction involving more than one lessor, only one lessor is required to make the required disclosures, but all lessors are bound by those disclosures.

3. If a disclosure becomes inaccurate after it is delivered to the customer because of an act or omission of the customer, the resulting inaccuracy is not a violation of the provisions of NRS 597.010 to 597.110, inclusive.

(Added to NRS by 1991, 517)—(Substituted in revision for NRS 598.28045)

NRS 597.050 Disclosures required upon renegotiation of lease agreement.

1. The disclosures required by NRS 597.030:

(a) Must be made if a lease agreement with an option to purchase is renegotiated.

(b) Are not required to be made if such an agreement is extended.

2. For the purposes of this section, a lease agreement with an option to purchase:

(a) Is renegotiated if it is replaced by a new agreement entered into by the same customer and lessor.

(b) Has not been renegotiated if:

(1) The leased property is exchanged or added to or individual items are returned and the average payment is not changed by more than 25 percent;

(2) One or more of the periodic payments or portions of a periodic payment are deferred or extended;

(3) Any additional fees charged are reduced; or

(4) It is the subject of a judicial proceeding.

(Added to NRS by 1991, 518)—(Substituted in revision for NRS 598.2805)

NRS 597.060 Lease agreement: Prohibited provisions. A lease agreement with an option to purchase may not contain:

1. A confession of judgment.

2. A negotiable instrument.

3. A security interest or any other claim to an interest in property other than the property delivered by the lessor pursuant to the agreement.

4. An assignment of wages.

5. A waiver by the customer of any claims or defenses.

6. A provision authorizing the lessor, or any other person acting on his behalf, to commit any breach of the peace, in order to repossess the leased property.

(Added to NRS by 1991, 518)—(Substituted in revision for NRS 598.28055)

NRS 597.070 Lease agreement: Reinstatement after customer fails to make timely payment.

1. A customer who fails to make a timely payment may reinstate the lease agreement with an option to purchase without losing any rights or options contained in the agreement if he pays to the lessor:

(a) All payments that are past due;

(b) The reasonable costs of returning the property to the lessor and redelivering it to the customer, if the leased property has been returned to the lessor; and

2. The payments required to be made by subsection 1 must be made within:

(a) Five days after the date for renewing the agreement if the customer’s payments are required to be made monthly; or

(b) Two days after the date for renewing the agreement if the customer’s payments are required to be made more frequently.

3. If a customer has paid less than two-thirds of the total amount of the payments necessary to acquire ownership of the leased property and, during the time set forth in subsection 2, returns or voluntarily surrenders the property to the lessor, other than pursuant to a judicial order, the customer may reinstate the agreement within 21 days after the date on which the property was returned.

4. If a customer has paid at least two-thirds of the total amount of the payments necessary to acquire ownership of the leased property and, during the time set forth in subsection 2, returns or voluntarily surrenders the property to the lessor, other than pursuant to a judicial order, the customer may reinstate the agreement within 45 days after the date on which the property was returned.

5. This section does not prohibit a lessor from repossessing the leased property during the time allowed for reinstatement. If the lessor repossesses the leased property during that time:

(a) The repossession does not affect the customer’s right to reinstate the agreement.

(b) The lessor shall return the property to the customer or provide him with property which is of comparable quality and in comparable condition if the agreement is reinstated.

(Added to NRS by 1991, 518)—(Substituted in revision for NRS 598.2806)

NRS 597.080 Receipt required for certain payments by customer. A lessor shall give to a customer a written receipt for each payment made in cash or with a money order.

(Added to NRS by 1991, 519)—(Substituted in revision for NRS 598.28065)

NRS 597.090 Advertisement for lease agreement.

1. An advertisement for a lease agreement with an option to purchase that refers to or states the amount of any required payment and the right to acquire ownership of any individual item of property must clearly and conspicuously indicate:

(a) That the transaction advertised is a lease agreement with an option to purchase;

(b) The total amount of payments necessary to acquire ownership of the property; and

2. This section does not apply to an advertisement for a lease agreement with an option to purchase which is published in a telephone or business directory.

3. This section does not create any liability for the acts of a publisher, owner, agent or employee of a newspaper, magazine, periodical, radio station, television station or other advertising medium for the publication or dissemination of an advertisement for a lease agreement with an option to purchase if the publisher, owner, agent or employee did not know that the advertisement violated the provisions of this section.

4. As used in this section, “advertisement” means the attempt by publication, dissemination, solicitation or circulation to induce, directly or indirectly, any person to enter into a lease agreement with an option to purchase.

(Added to NRS by 1991, 519)—(Substituted in revision for NRS 598.2807)

NRS 597.100 Criminal penalty. A person who willfully and intentionally violates any provision of NRS 597.010 to 597.090, inclusive, is guilty of a misdemeanor.

(Added to NRS by 1991, 519)—(Substituted in revision for NRS 598.28075)

NRS 597.110 Civil penalty. Unless the lease agreement with an option to purchase provides otherwise:

1. In addition to any penalty imposed pursuant to NRS 597.100, the lessor or his assignee is liable, except as otherwise provided in subsection 3, in civil suit to the customer for an amount equal to the actual damages resulting from a violation of a provision of NRS 597.010 to 597.110, inclusive, or 25 percent of the total cost to acquire ownership of the property under the lease agreement, whichever amount is greater. The court shall award the prevailing party in such an action attorney’s fees and his costs of the action.

2. If the lessor commences a civil suit to enforce such a lease agreement, the customer may set off or counterclaim damages in the amount specified in subsection 1 for such a violation.

3. Such a civil penalty may not be imposed upon a lessor or his assignee unless:

(a) The customer has notified the lessor or, if applicable, his assignee in writing of the alleged violation; and

(b) The lessor or assignee does not correct the violation, if any, within 30 days after receiving the notice.

(Added to NRS by 1991, 519)—(Substituted in revision for NRS 598.2808)

DEALERS OF FARM EQUIPMENT

NRS 597.112 Definitions. As used in NRS 597.112 to 597.118, inclusive, unless the context otherwise requires, the words and terms defined in NRS 597.1123 to 597.114, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2003, 3399)

NRS 597.1123 “Dealer” defined. “Dealer” means any person who engages in the business of selling inventory.

(Added to NRS by 2003, 3399)

NRS 597.1127 “Dealer agreement” defined. “Dealer agreement” means an oral or written agreement between a supplier and a dealer by which:

1. A commercial relationship of definite duration or continuing indefinite duration is established;

2. The dealer is granted the right to offer and sell inventory at retail;

3. The dealer constitutes a component of a system for the distribution of inventory; and

4. The operation of a portion of the dealer’s business is substantially dependent upon the supplier for a continued supply of inventory.

(Added to NRS by 2003, 3399)

NRS 597.113 “Inventory” defined. “Inventory” means farm equipment or any attachments or repair parts for that farm equipment.

(Added to NRS by 2003, 3399)

NRS 597.1133 “Net price” defined. “Net price” means the price set forth in the price list or catalog of a supplier which is in effect when a dealer agreement is terminated, less any applicable trade or cash discounts.

(Added to NRS by 2003, 3400)

NRS 597.1137 “Superseded part” and “superseded repair part” defined. “Superseded part” or “superseded repair part” means a part which has an equivalent function of a part which is available on the date of the termination of a dealer agreement.

(Added to NRS by 2003, 3400)

NRS 597.114 “Supplier” defined. “Supplier” means:

1. A manufacturer, wholesaler or wholesale distributor of new inventory;

2. A purchaser of the assets or shares of a surviving corporation resulting from a merger or liquidation of a supplier; or

3. A receiver, assignee or trustee of such a manufacturer, wholesaler or wholesale distributor.

(Added to NRS by 2003, 3400)

NRS 597.1143 Dealer agreement: Termination, failure to renew or substantial change of terms for good cause.

1. A supplier shall not terminate, fail to renew or substantially change the terms of a dealer agreement without good cause.

2. Except as otherwise provided in this section, a supplier may terminate or refuse to renew a dealer agreement for good cause if the supplier provides to the dealer a written notice setting forth the reasons for the termination or nonrenewal of the dealer agreement at least 180 days before the termination or nonrenewal of the dealer agreement.

3. A supplier shall include in the written notice required by subsection 2 an explanation of the deficiencies of the dealer and the manner in which those deficiencies must be corrected. If the dealer corrects the deficiencies set forth in the notice within 60 days after he receives the notice, the supplier shall not terminate or fail to renew the dealer agreement for the reasons set forth in the notice.

4. A supplier shall not terminate or refuse to renew a dealer agreement based solely on the failure of the dealer to comply with the requirements of the dealer agreement concerning the share of the market the dealer was required to obtain unless the supplier has, for not less than 1 year, provided assistance to the dealer in the dealer’s effort to obtain the required share of the market.

5. A supplier is not required to comply with the provisions of subsections 2 and 3 if the supplier terminates or refuses to renew a dealer agreement for any reason set forth in paragraphs (b) to (i), inclusive, of subsection 6.

6. As used in this section, “good cause” means:

(a) A dealer fails to comply with the terms of a dealer agreement, if the terms are not substantially different from the terms required for other dealers in this State or any other state;

(b) A closeout or sale of a substantial part of the business assets of a dealer or a commencement of the dissolution or liquidation of the business assets of the dealer;

(c) A dealer changes its principal place of business or adds other places of business without the prior approval of the supplier, which may not be unreasonably withheld;

(d) A dealer substantially defaults under a chattel mortgage or other security agreement between the dealer and the supplier;

(e) A guarantee of a present or future obligation of a dealer to the supplier is revoked or discontinued;

(f) A dealer fails to operate in the normal course of business for at least 7 consecutive days;

(g) A dealer abandons the dealership;

(h) A dealer pleads guilty or guilty but mentally ill to, or is convicted of, a felony affecting the business relationship between the dealer and supplier; or

(i) A dealer transfers a financial interest in the dealership, a person who has a substantial financial interest in the ownership or control of the dealership dies or withdraws from the dealership, or the financial interest of a partner or major shareholder in the dealership is substantially reduced.

Ê For the purposes of this section, good cause does not exist if the supplier consents to any action described in this section.

(Added to NRS by 2003, 3400; A 2007, 1465)

NRS 597.1147 Return of surplus parts to supplier; credit for returned parts.

1. Each year a supplier shall allow each dealer with whom it has entered into a dealer agreement to return to the supplier for credit a portion of the surplus parts in the dealer’s inventory.

2. A supplier shall notify each dealer of the period it has designated for that dealer to submit a list of the surplus parts the dealer wishes to return and for that dealer to return the surplus parts to the supplier. The period designated for each dealer for the return of surplus parts must not be less than 90 days.

3. If a supplier fails to notify a dealer of the period during which the dealer may return surplus parts within the preceding 12 months, the supplier shall authorize the return of a dealer’s surplus parts within 60 days after the supplier receives a request from the dealer to return the surplus parts.

4. A dealer may return surplus parts equal to not more than 10 percent of the value of the parts purchased by the dealer from the supplier during:

(a) The 12-month period immediately preceding the notice provided to the dealer by the supplier pursuant to subsection 2; or

(b) The month the supplier receives a request from a dealer pursuant to subsection 3 to return surplus parts to the supplier,

Ê whichever is applicable.

5. Any part included in the supplier’s list of returnable parts or any superseded part that is not eligible for return to the supplier on the date the supplier provides notice to the dealer pursuant to subsection 2 or the date the supplier receives the dealer’s request pursuant to subsection 3, whichever is applicable, is eligible for credit as a returned surplus part. A part which is returned must be in new and undamaged condition and must have been purchased by the dealer from the supplier to whom it is returned.

6. The minimum credit allowed for a returned part is 95 percent of the net price, as set forth in the supplier’s list of returnable parts on the date the supplier provides notice to the dealer pursuant to subsection 2 or the date the supplier receives the dealer’s request pursuant to subsection 3, whichever is applicable.

7. All applicable credit for the returned parts must be issued or provided to the dealer within 90 days after the supplier receives the dealer’s returned surplus parts.

8. The provisions of this section:

(a) Do not apply to a supplier that has established a program for its dealers for the return of surplus repair parts if the program provides credit of not less than 85 percent of the net price for the returned repair parts;

(b) Do not prohibit a supplier from charging a dealer’s account for the amounts previously paid or credited by the supplier as a discount incident to the dealer’s purchase of goods; and

(Added to NRS by 2003, 3401)

NRS 597.115 Limitations on requirements imposed by supplier upon dealer; prohibition against certain changes to dealer agreement. A supplier shall not:

1. Require a dealer to accept delivery of equipment, parts or accessories which the dealer has not ordered unless the equipment, parts or accessories are required by the supplier for the safe use of any inventory provided to the dealer by the supplier;

2. Condition the sale of any equipment to a dealer upon the purchase of additional goods or services, except that a supplier may require a dealer to purchase those parts which are necessary to maintain the equipment used in the area where the dealership is located;

3. Prohibit a dealer from purchasing equipment manufactured by another supplier; or

4. Terminate, fail to renew or substantially change the terms of a dealer agreement because of a natural disaster, including a drought in the market area of the dealership, a labor dispute or any other similar circumstances which are beyond the control of the dealer.

(Added to NRS by 2003, 3402)

NRS 597.1153 Repurchase of inventory and equipment by supplier upon termination of dealer agreement.

1. Except as otherwise provided in this section, upon the termination of a dealer agreement by a supplier or dealer, the supplier shall repurchase the inventory held by the dealer on the date of the termination of the dealer agreement.

2. A supplier who repurchases the inventory of a dealer pursuant to subsection 1 shall:

(a) Pay the dealer:

(1) One hundred percent of the net price of all new and undamaged inventory; and

(2) Ninety-five percent of the net price of new and undamaged superseded repair parts.

(b) Except as otherwise provided in this paragraph, pay the dealer an amount equal to 5 percent of the net price of all new and undamaged repair parts returned to the supplier to cover the cost incurred by the dealer for handling, packing and shipping the superseded repair parts to the supplier. If the supplier handles, packs and ships the superseded repair parts, the dealer is not entitled to receive any money for those services which the supplier performed.

(c) Purchase, at its depreciated value, any computers, software or telecommunications equipment that the supplier required the dealer to purchase within the previous 5 years.

(d) Repurchase, at 75 percent of the net cost, any specialized repair tools purchased if those tools are:

(1) Included in the tool catalog of the supplier;

(2) Purchased in accordance with the requirements of the supplier;

(3) Held by the dealer on the date of the termination of the dealer agreement; and

(4) Complete and in resalable condition.

(e) Repurchase any inventory which is owned by the supplier and leased, rented or used in demonstrations by the dealer if the supplier receives an allowance based on the use of such inventory. Inventory which is used in demonstrations for not more than a total of 50 hours shall be deemed new inventory. Inventory which is used in demonstrations for more than 50 hours and purchased from the supplier less than 36 months before the termination of the dealer’s agreement must be repurchased at its depreciated value, as determined by the supplier and dealer.

3. If the dealer agreement authorizes the dealer to retain the inventory upon the termination of the dealer agreement, the dealer may retain any portion of the inventory, except any specialized tools described in paragraph (d) of subsection 2 which the supplier wishes to repurchase from the dealer.

4. If the dealer owes any outstanding debts to the supplier, the amount of the repurchase of the inventory may be set off or credited to the account of the dealer.

5. Upon payment to the dealer of the amount for the repurchase of the inventory pursuant to this section, the title and right of possession to the inventory transfers to the supplier.

(Added to NRS by 2003, 3402)

NRS 597.1157 Requirements regarding dealer’s reserve account for recourse after termination of dealer agreement.

1. At the end of each year after the termination of a dealer agreement, a dealer’s reserve account for recourse, retail sale or lease contracts may not be debited by a supplier or lender for any deficiency unless the dealer is given written notice of at least 7 business days by certified or registered mail, return receipt requested, of any proposed sale of the inventory which was financed and an opportunity to purchase the inventory.

2. The dealer must be given quarterly reports concerning any remaining outstanding recourse contracts. As the recourse contracts are reduced, any money in the reserve account must be returned to the dealer in direct proportion to the liabilities outstanding.

(Added to NRS by 2003, 3403)

NRS 597.116 Limitations on requirements for supplier to repurchase inventory. The provisions of NRS 597.112 to 597.118, inclusive, do not require a supplier to repurchase from a dealer:

1. Any repair part which is not in new and undamaged condition or, because of its condition, is not resalable as a new part;

2. Any inventory which the dealer retains pursuant to subsection 3 of NRS 597.1153;

3. Any inventory which is not in new, undamaged and complete condition;

4. Any inventory which was ordered by the dealer on or after the date of the termination of the dealer agreement; or

5. Any inventory which was purchased more than 36 months before the notice of the termination of the dealer agreement is provided.

(Added to NRS by 2003, 3403)

NRS 597.1163 Failure of supplier to repurchase inventory. If a supplier fails or refuses to repurchase and pay a dealer for any inventory the supplier is required to repurchase in accordance with the provisions of NRS 597.112 to 597.118, inclusive, within 60 days after shipment of the inventory to the supplier, the supplier is liable for:

1. An amount equal to 100 percent of the net price of the inventory;

2. Any shipping charges paid by the dealer;

3. Attorney’s fees and court costs; and

4. An amount equal to the interest on the amount of the net price calculated at the legal rate of interest from the 61st day after the date of the shipment of the inventory to the supplier.

(Added to NRS by 2003, 3403)

NRS 597.1167 Death of dealer or majority shareholder of dealer.

1. Upon the death of a dealer or the majority shareholder of a corporation which operates as a dealer, the supplier shall, upon the approval or request of the devisee or heir of the dealer or majority shareholder, repurchase the inventory of the dealer in the manner prescribed in NRS 597.1153.

2. The devisee or heir shall, within 1 year after the death of the dealer or majority stockholder, notify the supplier whether the supplier will be required to repurchase the inventory of the dealer.

3. A supplier is not required to repurchase the inventory of the dealer if the devisee or heir and the supplier enter into a new dealer agreement to operate the dealership.

4. This section does not authorize any person, including a devisee or heir, to operate a dealership without the written approval of the supplier.

5. An agreement executed by the supplier and dealer that sets forth the rights relating to succession to the operation of the dealership is enforceable without regard to the person who is designated as the successor to the dealership.

6. As used in this section:

(a) “Devisee” has the meaning ascribed to it in NRS 132.100.

(b) “Heir” has the meaning ascribed to it in NRS 132.165.

(Added to NRS by 2003, 3403)

NRS 597.117 Security interest of supplier in inventory; inspection of inventory before shipment. The provisions of NRS 597.112 to 597.118, inclusive, do not affect any security interest which a supplier has in the inventory of a dealer. The dealer and supplier shall each provide a representative to inspect the inventory and certify its acceptability when packaged for shipment. The failure of the supplier to provide a representative for the inspection within 60 days shall be deemed acceptance by the supplier of the inventory returned to the supplier.

(Added to NRS by 2003, 3404)

NRS 597.1173 Enforcement by dealer.

1. A dealer may bring a civil action for damages in a court of competent jurisdiction against a supplier who violates any of the provisions of NRS 597.112 to 597.118, inclusive, and may recover damages incurred as a result of any violation committed by the supplier, including costs and attorney’s fees.

2. A dealer may apply for injunctive relief for the unlawful termination, nonrenewal or substantial change of the terms of a dealer agreement.

3. The remedies provided in this section are in addition to any other remedies provided by law.

(Added to NRS by 2003, 3404)

NRS 597.1177 Warranty work performed by dealer; payment of warranty claim by supplier; audit of claim.

1. Except as otherwise provided in this section, any agreement entered into by a supplier and a dealer concerning reimbursement for work performed under a warranty, including, without limitation, a dealer agreement, must comply with the provisions set forth in this section.

2. A supplier who authorizes a dealer to perform work under a warranty shall reimburse a dealer who submits a warranty claim for such work. A dealer may submit a warranty claim to a supplier:

(a) During the period the dealer agreement is in effect; or

(b) After the termination of a dealer agreement if the warranty claim concerns work performed under a warranty during the period the dealer agreement was in effect.

3. A warranty claim which is submitted to a supplier must be paid within 30 days after the claim is approved by the supplier. The supplier shall approve or disapprove a warranty claim or any part thereof within 30 days after it receives the warranty claim. If the warranty claim is disapproved, the supplier shall, not later than 30 days after it receives the warranty claim, send written notice to the dealer setting forth the reasons for disapproval of the warranty claim. A warranty claim which is not disapproved by the supplier within the prescribed period shall be deemed approved.

4. The amount of a warranty claim must not be less than the amount equal to the sum of:

(a) The reasonable and customary time required by the dealer to complete the work, including diagnostic time, expressed in hours and fractions of hours, multiplied by the dealer’s hourly retail rate for labor;

(b) The dealer’s net price for any repair parts replaced, plus 20 percent of the net price for those parts; and

(c) If a warranty claim concerns repair work for any equipment which is performed by the dealer in accordance with a safety or modification order issued by a supplier, the costs incurred by the dealer to transport to the dealer’s place of business for repair any equipment which is within the dealer’s service area and subject to a safety or modification order.

5. After a supplier has paid a warranty claim, the supplier shall not charge back, set off or otherwise attempt to recover from a dealer any amount of the warranty claim unless:

(a) The warranty claim is fraudulent;

(b) The work was not performed properly or was not necessary to comply with the requirements of the warranty; or

(c) The dealer did not provide the records for the warranty claim as required by the agreement for work performed under the warranty.

6. A supplier shall not require a dealer to pay the costs incurred by the supplier in paying warranty claims by:

(a) Imposing a surcharge;

(b) Reducing any discounts provided to a dealer; or

7. Except for a warranty claim where fraud is alleged, a supplier may not audit the records of a dealer relating to a warranty claim more than 1 year after the warranty claim is submitted to the supplier. A supplier may not audit a warranty claim more than once. The provisions of this subsection do not prohibit a supplier from requesting additional information from a dealer if the initial audit of the warranty claim indicates any errors, inconsistencies or fraud.

8. The provisions of this section do not apply to a written dealer agreement which provides compensation to a dealer for any labor required to be performed under a warranty before the labor is performed if the compensation is based on:

(a) A reduction of the price of the equipment sold to the dealer; or

(b) A lump-sum payment of not less than 5 percent of the suggested retail price of the equipment.

9. As used in this section:

(a) “Audit” means an examination by a supplier of the records of a warranty claim submitted by a dealer.

(b) “Net price” means the price a supplier charges a dealer for a repair part.

(c) “Warranty claim” means a request submitted by a dealer to a supplier for payment for work performed under a warranty or a safety or modification order issued by the supplier.

(Added to NRS by 2003, 3404)

NRS 597.118 Right, obligation or liability may not be waived.

1. A person may not waive or modify a right, obligation or liability set forth in the provisions of NRS 597.112 to 597.118, inclusive.

2. A condition, stipulation or provision of a dealer agreement or any other agreement that:

(a) Limits the procedural or substantive rights of a dealer pursuant to the provisions of NRS 597.112 to 597.118, inclusive;

(b) Requires a person to waive a right set forth in the provisions of NRS 597.112 to 597.118, inclusive; or

Ê is void.

(Added to NRS by 2003, 3406)

ALCOHOLIC BEVERAGES

Franchises Between Liquor Suppliers and Wholesalers

NRS 597.120 Definitions. As used in NRS 597.120 to 597.180, inclusive, unless the context otherwise requires, the words and terms defined in NRS 597.125 to 597.150, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 1973, 1353; A 1995, 1569)

NRS 597.125 “Alcoholic beverage” defined. “Alcoholic beverage” has the meaning ascribed to it in NRS 597.200.

(Added to NRS by 1995, 1567)

NRS 597.130 “Franchise” defined. “Franchise” means a contract or agreement either expressed or implied, whether written or oral, between a supplier and wholesaler, wherein:

1. A commercial relationship of definite duration or continuing indefinite duration is involved; and

2. The wholesaler is granted the right to offer, sell and distribute within this state or any designated area thereof such of the supplier’s brands of packaged malt beverages, distilled spirits and wines, or all of them, as may be specified.

(Added to NRS by 1973, 1353)—(Substituted in revision for NRS 598.300)

NRS 597.133 “Good cause” defined. “Good cause” means:

1. Failure by a wholesaler to comply substantially with essential and reasonable requirements imposed on him by a supplier, or sought to be imposed by a supplier, if the requirements are not discriminatory as compared with requirements imposed on other similarly suited wholesalers either by their terms or in the manner of their enforcement.

2. Bad faith by the wholesaler in carrying out the terms of the franchise agreement.

(Added to NRS by 1995, 1567)

NRS 597.136 “Marketing area” defined. “Marketing area” means the area where a wholesaler sells a product of a supplier pursuant to the terms, provisions and conditions of a franchise.

(Added to NRS by 1995, 1567)

NRS 597.140 “Supplier” defined. “Supplier” means any person, partnership, corporation or other form of business enterprise engaged in business as a manufacturer, distiller, rectifier, brewer, importer, vintner, broker or agent therefor, which distributes any or all of its brands of malt beverages, distilled spirits and wines, or all of them, through licensed wholesalers in this state.

(Added to NRS by 1973, 1353)—(Substituted in revision for NRS 598.310)

NRS 597.150 “Wholesaler” defined. “Wholesaler” means any person, partnership, corporation or other form of business enterprise licensed by the Nevada Tax Commission to sell malt beverages, distilled spirits and wines, or all of them, as it is originally packaged to retail liquor stores or to another licensed wholesaler, but not to sell to the consumer or general public.

(Added to NRS by 1973, 1353; A 1995, 1569)

NRS 597.155 Termination of franchise by supplier: Notice; effective date.

1. Except as otherwise provided in subsection 2, a supplier must, at least 90 days before he terminates or refuses to continue any franchise with a wholesaler or causes a wholesaler to resign from any franchise, send a notice by certified mail, return receipt requested, to the wholesaler. The notice must include:

(a) The reason for the proposed action and a description of any failure of the wholesaler to comply with the terms, provisions and conditions of the franchise alleged by the supplier pursuant to NRS 597.160; and

(b) A statement that the wholesaler may correct any such failure within the period prescribed in NRS 597.160.

2. Any action taken by a supplier pursuant to subsection 1 becomes effective on the date the wholesaler receives the notice required pursuant to subsection 1 if the wholesaler:

(a) Has had his license to sell alcoholic beverages issued pursuant to state or federal law revoked or suspended for more than 31 days;

(b) Is insolvent pursuant to 11 U.S.C. § 101;

(d) Has had his ability to conduct business substantially affected by a liquidation or dissolution;

(e) Or any other person who has a financial interest in the wholesaler of not less than 10 percent and is active in the management of the wholesaler has been convicted of, or has pleaded guilty or guilty but mentally ill to, a felony and the supplier determines that the conviction or plea substantially and adversely affects the ability of the wholesaler to sell the products of the supplier;

(f) Has committed fraud or has made a material misrepresentation in his dealings with the supplier or the products of the supplier;

(g) Has sold alcoholic beverages which the wholesaler received from the supplier to:

(1) A retailer who the wholesaler knows or should know does not have a place of business where the retailer is entitled to sell alcoholic beverages within the marketing area of the wholesaler; or

(2) Any person who the wholesaler knows or should know sells or supplies alcoholic beverages to any retailer who does not have a place of business where the retailer is entitled to sell alcoholic beverages within the marketing area of the wholesaler;

(h) Has failed to pay for any product ordered and delivered pursuant to the provisions of an agreement between the supplier and wholesaler within 7 business days after the supplier sends to the wholesaler a written notice which includes a statement that he has failed to pay for the product and a demand for immediate payment;

(i) Has made an assignment for the benefit of creditors or a similar disposition of substantially all the assets of his franchise;

(j) Or any other person who has a financial interest in the wholesaler has:

(1) Transferred or attempted to transfer the assets of the franchise, voting stock of the wholesaler or voting stock of any parent corporation of the wholesaler; or

(2) Changed or attempted to change the beneficial ownership or control of any such entity,

Ê unless the wholesaler first notified the supplier in writing and the supplier has not unreasonably withheld his approval; or

(k) Discontinues selling the products of the supplier, unless:

(1) The discontinuance is a result of an accident which the wholesaler was unable to prevent;

(2) The wholesaler has, if applicable, taken action to correct the condition which caused the accident; and

(3) The wholesaler has notified the supplier of the accident if he has discontinued selling the products of the supplier for more than 10 days.

(Added to NRS by 1995, 1567; A 2007, 1466)

NRS 597.160 Prohibited acts by supplier; exceptions; correction by wholesaler of alleged failure to comply with franchise.

1. Except as otherwise provided in subsection 4, if more than one franchise for the same brand or brands of malt beverages, distilled spirits and wines, or all of them, is granted to different wholesalers in this state, it is a violation of NRS 597.120 to 597.180, inclusive, for any supplier to discriminate between such wholesalers with respect to any of the terms, provisions and conditions of these franchises.

2. Except as otherwise provided in this subsection and notwithstanding the terms, provisions or conditions of any franchise, a supplier shall not unilaterally terminate or refuse to continue any franchise with a wholesaler or cause a wholesaler to resign from that franchise unless the supplier has first established good cause for that termination, noncontinuance or causing of that resignation. This subsection does not apply to a supplier who sells less than 2,500 barrels of malt beverages, less than 250 cases of distilled spirits or less than 2,000 cases of wine in this state in any calendar year, or who operates a winery pursuant to NRS 597.240.

3. A wholesaler may, within 60 days after he receives a notice required pursuant to NRS 597.155, correct any failure to comply with the terms, provisions and conditions of the franchise alleged by the supplier.

4. Unless otherwise specified by contract between the supplier and wholesaler, a supplier shall not grant more than one franchise to a wholesaler for any brand of alcoholic beverage in a marketing area.

(Added to NRS by 1973, 1354; A 1995, 1569)

NRS 597.165 Requiring wholesaler to increase payment for product prohibited after delivery by supplier. A supplier shall not require a wholesaler to increase his payment to the supplier for any product of that supplier after the product is delivered to the wholesaler.

(Added to NRS by 1995, 1567)

NRS 597.170 Remedies of wholesaler.

1. Any wholesaler may bring an action in a court of competent jurisdiction against a supplier for violation of NRS 597.120 to 597.180, inclusive, and may recover the damages sustained by him, together with such costs of the action and reasonable attorney’s fees as are authorized under NRS 18.110.

2. The remedies provided in NRS 597.120 to 597.180, inclusive, are independent of and supplemental to any other remedy or remedies available to the wholesaler in law or equity.

(Added to NRS by 1973, 1354)—(Substituted in revision for NRS 598.340)

NRS 597.180 Action by wholesaler: Defense by supplier. In any action brought by a wholesaler against a supplier for termination or noncontinuance of, or causing to resign from a franchise in violation of NRS 597.120 to 597.180, inclusive, the supplier has the burden of establishing that he acted for good cause and that the wholesaler did not act in good faith. It is a complete defense for the supplier to prove that the termination, noncontinuance or causing to resign was done in good faith and for good cause.

(Added to NRS by 1973, 1354; A 1995, 1569)

Regulation of Business Practices

NRS 597.190 Statement of legislative policy. It is the policy of the Legislature to insure the orderly distribution and marketing of alcoholic beverages in this state in order to protect locally owned and operated business enterprises and those residents whose livelihoods and investments are dependent on their freedom to manage their businesses without economic and coercive control by nonresident suppliers of alcoholic beverages.

(Added to NRS by 1975, 623)—(Substituted in revision for NRS 598.351)

NRS 597.200 Definitions. As used in NRS 597.190 to 597.250, inclusive, unless the context otherwise requires:

1. “Alcoholic beverage” means any malt beverage or spirituous, vinous or malt liquor which contains 1 percent or more ethyl alcohol by volume.

2. “Brew pub” means an establishment which manufactures malt beverages and sells those malt beverages at retail pursuant to the provisions of NRS 597.230.

3. “Engage in” includes participation in a business as an owner or partner, or through a subsidiary, affiliate, ownership equity or in any other manner.

4. “Instructional wine-making facility” means an instructional wine-making facility operated pursuant to NRS 597.245.

5. “Legal age” means the age at which a person is legally permitted to purchase an alcoholic beverage pursuant to NRS 202.020.

6. “Malt beverage” means beer, ale, porter, stout and other similar fermented beverages of any name or description, brewed or produced from malt, wholly or in part.

7. “Supplier” has the meaning ascribed to it in NRS 597.140.

8. “Wine” has the meaning ascribed to it in NRS 369.140.

(Added to NRS by 1975, 623; A 1985, 531; 1991, 108; 1995, 1570; 2005, 1272, 1326)

NRS 597.210 Limitations on engaging in business of importing, wholesaling or retailing alcoholic beverages.

1. Except as otherwise provided in NRS 597.240, a person engaged in business as a supplier or engaged in the business of manufacturing, blending or bottling alcoholic beverages within or without this State shall not engage in the business of importing, wholesaling or retailing alcoholic beverages.

2. This section does not:

(a) Preclude any person engaged in the business of importing, wholesaling or retailing alcoholic beverages from owning less than 2 percent of the outstanding ownership equity in any organization which manufactures, blends or bottles alcoholic beverages.

(b) Prohibit a person engaged in the business of rectifying or bottling alcoholic beverages from importing neutral or distilled spirits in bulk only for the express purpose of rectification pursuant to NRS 369.415.

(d) Prohibit a person from operating an instructional wine-making facility pursuant to NRS 597.245.

(Added to NRS by 1975, 623, 1463; A 1991, 109, 384; 1995, 1570; 2005, 1273, 1326)

NRS 597.220 Importer or wholesaler may not engage in business of retailing alcoholic beverages.

1. Any person who is engaged in the business of importing or wholesaling alcoholic beverages in the State of Nevada shall not engage in the business of retailing alcoholic beverages in this state.

2. For the purposes of this section, a person who transfers or receives alcoholic beverages in the manner described in NRS 369.4865 must not be considered to be engaged in the business of wholesaling alcoholic beverages based solely upon those transfers.

(Added to NRS by 1975, 624; A 2001 Special Session, 165)

NRS 597.225 Requirements to serve samples of alcoholic beverages on premises of grocery store.

1. A person who operates a grocery store may serve samples of alcoholic beverages on the premises of the grocery store if the person:

(a) Is licensed to sell, at retail, alcoholic beverages on the premises of the grocery store;

(b) Obtains an annual permit to serve such samples from the local governing body that has jurisdiction to license and regulate the sale of alcoholic beverages on the premises of the grocery store;

(c) Purchases any alcoholic beverages used for such samples from a wholesale dealer of alcoholic beverages who is licensed under chapter 369 of NRS; and

(d) Complies with the requirements of this section.

2. A person who holds an annual permit issued pursuant to this section may serve samples of alcoholic beverages on the premises of the grocery store only to persons of legal age and only in such quantities as are necessary to provide a sample or taste of the alcoholic beverages.

3. Notwithstanding any other provision of law, a supplier, manufacturer, importer or wholesale dealer of alcoholic beverages may assist a person who operates a grocery store in serving samples of alcoholic beverages pursuant to this section. The assistance authorized by this subsection is limited to the pouring of such samples or the provision of information, instruction or education regarding the product being sampled, or any combination of those tasks. The provision of such assistance does not relieve the person who operates the grocery store from the responsibility of complying with all the requirements of this section.

4. A local governing body may adopt reasonable restrictions regarding the time, place, manner and frequency of the activities authorized by this section. Such restrictions must not prohibit or unreasonably interfere with the activities authorized by this section.

5. A person who serves samples of alcoholic beverages on the premises of a grocery store in violation of any provision of this section is guilty of a misdemeanor.

6. This section preempts any local charter, code, ordinance or regulation that is in conflict with the purposes and objectives of this section.

7. A local governing body may not charge any fee for issuing an annual permit pursuant to this section.

8. As used in this section:

(a) “Convenience store” means a store which is principally devoted to providing the public with a convenient location to purchase consumable products quickly and in which the area open to the public is less than 5,000 square feet.

(b) “Grocery store” means a store which is principally devoted to the sale of food for human consumption off the premises or which derives a substantial amount of its gross revenue from the sale of food for human consumption off the premises, regardless of whether the store is also devoted to or derives gross revenue from the sale of nonfood items. The term does not include:

(1) A convenience store.

(2) A store at which the sale of food for human consumption off the premises is incidental to the principal purpose of the store.

(Added to NRS by 2005, 1270)

NRS 597.230 Operation of brew pub.

1. In a county whose population is 400,000 or more, a person may operate a brew pub:

(a) In any redevelopment area established in that county pursuant to NRS 279.382 to 279.685, inclusive;

(b) In any historic district established in that county pursuant to NRS 384.005;

(d) In any other area in the county designated by the board of county commissioners for the operation of brew pubs. In a city which is located in that county, a person may operate a brew pub in any area in the city designated by the governing body of that city for the operation of brew pubs.

Ê A person who operates one or more brew pubs may not manufacture more than 15,000 barrels of malt beverages for all the brew pubs he operates in that county in any calendar year.

2. In a county whose population is less than 400,000, a person may operate a brew pub:

(a) In any redevelopment area established in that county pursuant to NRS 279.382 to 279.685;

(b) In any historic district established in that county pursuant to NRS 384.005;

Ê A person who operates one or more brew pubs may not manufacture more than 5,000 barrels of malt beverages for all brew pubs he operates in that county in any calendar year.

3. The premises of any brew pub operated pursuant to this section must be conspicuously identified as a “brew pub.”

4. A person who operates a brew pub pursuant to this section may, upon obtaining a license pursuant to chapter 369 of NRS and complying with any other applicable governmental requirements:

(a) Manufacture and store malt beverages on the premises of the brew pub and sell and transport the malt beverages manufactured on the premises to a person holding a valid wholesale wine and liquor dealer’s license or wholesale beer dealer’s license issued pursuant to chapter 369 of NRS.

(b) Sell at retail malt beverages manufactured on or off the premises of the brew pub for consumption on the premises.

(c) Sell at retail in packages sealed on the premises of the brew pub, malt beverages, including malt beverages in unpasteurized form, manufactured on the premises for consumption off the premises.

(Added to NRS by 1991, 383; A 1995, 1570, 1571)

NRS 597.240 Operation of winery authorized in smaller counties.

1. A winery located in a county whose population is 100,000 or less, if it is federally bonded, may:

(a) Import wine or juice from a bonded winery in another state, to be fermented into wine or, if already fermented, to be mixed with other wine or aged in a suitable cellar, or both.

(b) Sell at retail or serve by the glass, on its premises and at one other location, wine produced, blended or aged by the winery. The amount of wine sold at a location other than on the premises of the winery may not exceed 50 percent of the total volume of the wine sold by the winery.

2. For the purposes of this section, an instructional wine-making facility is not a winery. This section does not prohibit a person from operating an instructional wine-making facility in any county.

(Added to NRS by 1991, 108; A 1993, 325, 1442; 2005, 1273)

NRS 597.245 Operation of instructional wine-making facility.

1. A person may operate an instructional wine-making facility if the person:

(a) Obtains a license for the facility pursuant to chapter 369 of NRS;

(b) Complies with the requirements of this section; and

(c) Complies with any other applicable governmental requirements for the operation of such a facility, including, without limitation, compliance with all applicable federal bonding, permitting and other requirements for the production, blending, treatment, storage and bottling of wine.

2. A person who is licensed to operate an instructional wine-making facility may:

(a) Engage in the process of wine making on the premises of the facility;

(b) Charge a fee to other persons of legal age for the purpose of providing those persons with instruction and the opportunity to participate directly in the process of wine making on the premises of the facility; and

3. Wine produced on the premises of an instructional wine-making facility must be:

(a) Used, consumed or disposed of on the premises of the facility; or

(b) Distributed from the facility to a person of legal age who has participated directly in the process of wine making on the premises of the facility for the person’s own household or personal use. That person:

(1) May distribute the wine to any other person of legal age as a gift.

(2) Shall not remove from the facility:

(I) Any wine other than that which the person participated directly in the process of making on the premises of the facility.

(II) More than 60 gallons of wine during any period of 12 months.

4. Except as otherwise permitted by this section, if a person knows or reasonably should know that wine was produced on the premises of an instructional wine-making facility, the person shall not:

(a) Directly or indirectly or through any other person, sell, offer to sell or solicit the purchase or sale of such wine at wholesale or retail; or

(b) Use such wine for any purpose other than for the person’s own household or personal use.

5. A person who violates any provision of this section is guilty of a misdemeanor.

6. As used in this section:

(a) “Instructional wine-making facility” means any facility that, for a fee, provides a person of legal age with instruction and the opportunity to participate directly in the process of wine making on the premises of the facility. The term does not include:

(1) A wine maker or winery that is licensed pursuant to chapter 369 of NRS.

(2) A university, state college or community college that is part of the Nevada System of Higher Education or any other postsecondary educational institution that is licensed by a federal or state agency and is accredited by a nationally recognized educational accrediting association.

(b) “Process of wine making” means the usual and customary steps taken to produce wine. Such steps may include, without limitation:

(1) Growing, buying and importing agricultural products and ingredients.

(2) Selecting, preparing and processing agricultural products and ingredients.

(3) Barreling, fermenting, aging, filtering, bottling, labeling, racking, warehousing and storing.

(4) Importing bulk wine or juice from a bonded winery in another state, to be fermented into wine or, if already fermented, to be blended with other wine and aged in a suitable cellar.

(Added to NRS by 2005, 1271)

NRS 597.250 Violations: Suspension or revocation of license. The license of any person who violates the provisions of NRS 597.210, 597.220, 597.230 or 597.245 must be suspended or revoked in the manner provided in chapter 369 of NRS.

(Added to NRS by 1975, 624; A 1991, 384; 2005, 1273)

Substitution of Brands

NRS 597.260 Penalty; civil liability.

1. It is unlawful for a retailer of alcoholic beverages to substitute one brand of alcoholic beverage for a brand that has been specifically requested by the customer, unless the customer consents to the substitution. Any violation of this subsection by an employee must be attributed to the retailer.

2. A retailer who violates the provisions of subsection 1:

(a) For the first offense, is guilty of a misdemeanor and shall be fined an amount not to exceed $1,000, plus the costs of prosecution. No sentence of incarceration may be imposed.

(b) For the second offense, is guilty of a gross misdemeanor and shall be fined an amount not to exceed $2,000, plus the costs of prosecution. No sentence of incarceration may be imposed.

(c) For a third or subsequent offense, is guilty of a gross misdemeanor and shall be fined an amount equal to the costs of prosecution. The court shall impose no other criminal penalty, but shall, within 5 working days after the conviction, issue an order revoking the license to sell intoxicating liquor of the business and forward a certified copy of the order to the liquor board of county or governing body of the city, as applicable, which licensed the sale of liquor at the retailer’s place of business. The board shall not reissue such a license for that place of business for a period of at least 1 year.

3. In addition to the criminal penalties set forth in this section, the retailer, upon conviction, is liable in civil suit to the customer and to the supplier and wholesaler of the requested alcoholic beverage for the damages which result from the substitution. The court shall award the prevailing party in such an action attorney’s fees and his costs of the action.

4. As used in this section:

(a) “Alcoholic beverage” has the meaning ascribed to it in NRS 202.015.

(b) “Retailer” means the owner of a business where alcoholic beverages are sold by the drink. The term includes any person employed by the owner.

(d) “Wholesaler” has the meaning ascribed to it in NRS 597.150.

(Added to NRS by 1991, 360; A 1995, 1572)

Enforcement

NRS 597.262 Enforcement by Attorney General and district attorneys; exceptions.

1. Except as otherwise provided in this section and NRS 228.380, the Attorney General has primary jurisdiction to enforce the provisions of NRS 597.120 to 597.260, inclusive, and shall cause appropriate legal action to be taken to enforce those provisions.

2. The Attorney General has concurrent jurisdiction with the district attorneys of this State to enforce the provisions of NRS 597.225 and 597.245.

3. This section does not prohibit:

(a) A wholesaler from bringing an action against a supplier pursuant to NRS 597.170.

(b) A customer, supplier or wholesaler from bringing an action against a retailer pursuant to NRS 597.260.

(Added to NRS by 2003, 973; A 2005, 1273)

ASSISTIVE DEVICES

NRS 597.264 Definitions. As used in NRS 597.264 to 597.2667, inclusive, unless the context otherwise requires the words and terms defined in NRS 597.2643 to 597.265, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 1997, 942)

NRS 597.2643 “Assistive device” defined. “Assistive device” means a device purchased or accepted for delivery in this state that enhances the ability of a person to perform a major life activity, including, but not limited to:

1. Manual or motorized wheelchairs, scooters and other devices that enhance the ability of a person to move;

2. Hearing aids, devices for telecommunication and any other devices that enhance the ability of a person to hear;

3. Voice synthesizers, optical scanners, Braille printers and any other devices that enhance the ability of a person to communicate;

4. Light amplifiers, magnification equipment, Braille equipment and any other devices that enhance the ability of a person to see; and

5. Any other device that enhances the ability of a person to move, hear, communicate or see.

(Added to NRS by 1997, 942)

NRS 597.2645 “Consumer” defined. “Consumer” means:

1. A person who leases or purchases, other than for the purposes of resale, an assistive device;

2. A person to whom an assistive device is transferred during the period the express warranty of a manufacturer is in effect; or

3. Any other person who is entitled by the terms of the warranty to enforce its obligations.

(Added to NRS by 1997, 943)

NRS 597.2647 “Dealer” defined. “Dealer” means a person who sells or leases assistive devices to consumers.

(Added to NRS by 1997, 943)

NRS 597.265 “Manufacturer” defined. “Manufacturer” means a person who manufactures or assembles assistive devices or an agent of that person, including an importer or a distributor. The term does not include a dealer.

(Added to NRS by 1997, 943)

NRS 597.2653 Manufacturer to provide express warranty for new assistive device; effective period of warranty; failure to provide warranty.

1. A manufacturer who, directly or through a dealer, sells or leases to a consumer in this state an assistive device that has not been previously sold or leased shall provide an express warranty for that device. The express warranty does not:

(a) Take effect until the consumer takes possession of the device; and

(b) Expire less than 1 year after the delivery of the device to the consumer.

2. If a manufacturer fails to provide an express warranty required by this section, the assistive device shall be deemed to be covered by the express warranty of the manufacturer.

(Added to NRS by 1997, 943)

NRS 597.2655 Repair of assistive device not in conformance with express warranty. If an assistive device does not conform to the express warranty of the manufacturer and the consumer reports the nonconformity to the manufacturer or dealer and makes the assistive device available for repair before the expiration of the express warranty, the manufacturer or dealer shall make the repairs necessary to conform the assistive device to the express warranty without regard to whether the repairs will be made after the expiration of the express warranty.

(Added to NRS by 1997, 943)

NRS 597.2657 Inability of manufacturer or dealer to conform assistive device to express warranty after reasonable number of repairs: Replacement or refund; presumptions.

1. If, after a reasonable number of repairs, the manufacturer or dealer is unable to conform the assistive device to the express warranty and the defect or condition causing the nonconformity substantially impairs the use and value of the assistive device to the consumer and is not the result of abuse, neglect or unauthorized modifications or alterations of the assistive device by the consumer, the manufacturer shall:

(a) Replace the assistive device with an assistive device of the same model and having the same features as the replaced device, or if such a device cannot be delivered to the consumer within a reasonable period, a comparable assistive device substantially similar to the replaced device; or

(b) Accept the return of the assistive device from the consumer and refund to the consumer, within 30 days after the return of the device, the purchase price of the device, including all sales taxes and finance charges paid by the consumer, and any other expenses related to the purchase and use of the assistive device, less a reasonable allowance for use of the assistive device. As used in this paragraph “reasonable allowance for use” means that amount that is directly attributable to the use of the device by the consumer before his first report of the nonconformity to the manufacturer or dealer and during any subsequent period that the assistive device is not out of service for repairs.

2. It is presumed that a reasonable number of repairs have been undertaken to conform an assistive device to an applicable express warranty if:

(a) The same nonconformity has been subject to repair three or more times by the manufacturer or dealer within the time the express warranty is in effect, but the nonconformity continues to exist; or

(b) The assistive device is unavailable for use by the consumer because of a nonconformity for a cumulative total of 30 days or more within the period the express warranty is in effect, except that if the necessary repairs cannot be made for reasons which are beyond the control of the manufacturer or dealer, the number of days required to give rise to the presumption must be appropriately extended.

(Added to NRS by 1997, 943)

NRS 597.266 Manufacturer to reimburse consumer for rental of assistive device in certain circumstances; action against dealer for failure to deliver assistive device for repair in timely manner.

1. If an assistive device covered by an express warranty of a manufacturer is made available for repair pursuant to NRS 597.2655 and:

(a) The device is not repaired within 10 working days, including the day on which the assistive device is made available for repair; or

(b) The defect or malfunction that is the cause of nonconformity is the same defect or malfunction for which the assistive device has been made available for repair two or more times,

Ê the manufacturer shall provide to the consumer, for the duration of the period of repair, a reimbursement of not more than $30 each day for the rental of an assistive device.

2. If a dealer does not deliver the assistive device to the manufacturer in a timely manner that allows the manufacturer to repair the device within 10 working days, the manufacturer may bring an action against the dealer for reimbursement of any money that the manufacturer is required to pay to a consumer pursuant to subsection 1.

(Added to NRS by 1997, 944)

NRS 597.2663 Sale or lease of returned assistive device prohibited unless reason for return disclosed to prospective consumer. An assistive device that is returned to a manufacturer by a consumer in this state pursuant to NRS 597.2657 may not be sold or leased in this state unless the reason for the return of the assistive device is disclosed to the prospective consumer.

(Added to NRS by 1997, 944)

NRS 597.2665 Action for damages and equitable relief; costs and attorney’s fees.

1. In addition to any other remedy available to a consumer, a consumer may bring an action to recover any damages caused by a manufacturer or dealer who violates any of the provisions of NRS 597.264 to 597.2667, inclusive.

2. The court shall award to the prevailing party not more than twice the amount of the damages, and costs, including attorney’s fees and any equitable relief that the court determines is appropriate.

(Added to NRS by 1997, 944)

NRS 597.2667 Rights and remedies not exclusive; waiver of rights void.

1. The provisions of NRS 597.264 to 597.2667, inclusive, do not limit any rights or remedies a consumer may have pursuant to any other law or agreement.

2. A waiver by a consumer of any of the rights provided pursuant to NRS 597.264 to 597.2667, inclusive, is void.

(Added to NRS by 1997, 944)

AUTOMOTIVE SERVICES

Service Stations

NRS 597.270 Definitions. As used in NRS 597.270 to 597.470, inclusive, unless the context requires otherwise, the words and terms defined in NRS 597.280 to 597.380, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 1975, 1280; A 1987, 2197; 1999, 702)

NRS 597.280 “Affiliate” defined. “Affiliate” means any person who controls, is controlled by or is under common control with any other person.

(Added to NRS by 1987, 2196)—(Substituted in revision for NRS 598.651)

NRS 597.290 “Control” defined. “Control” means the direct or indirect ownership of, or right to exercise a directing influence over, more than 50 percent of the beneficial interest in any other person.

(Added to NRS by 1987, 2196)—(Substituted in revision for NRS 598.6512)

NRS 597.300 “Franchise” and “franchise agreement” defined. “Franchise” or “franchise agreement” means a written or oral agreement between a refiner and a retailer under which the retailer is granted the right:

1. To use a trademark, trade name, service mark or other identifying symbol or name owned by the refiner; or

2. To occupy premises owned, leased or controlled by the refiner, for the purpose of engaging in the retail sale of motor vehicle fuel.

(Added to NRS by 1987, 2196)—(Substituted in revision for NRS 598.6514)

NRS 597.305 “Lessee dealer” defined. “Lessee dealer” means a retailer who operates a service station pursuant to a franchise agreement if the service station is leased to the retailer by the refiner with whom the retailer has entered into the franchise agreement.

(Added to NRS by 1997, 2015)

NRS 597.310 “Marketing area” defined. “Marketing area” means an area of not more than 5 miles in any direction from a service station selling the products of a refiner pursuant to a franchise.

(Added to NRS by 1987, 2196)—(Substituted in revision for NRS 598.6516)

NRS 597.320 “Motor vehicle fuel” defined. “Motor vehicle fuel” has the meaning ascribed to it in NRS 365.060, except that it includes diesel fuel.

(Added to NRS by 1987, 2196)—(Substituted in revision for NRS 598.6518)

NRS 597.330 “Price” defined. “Price” means the net purchase price after any adjustment for a commission, fee, rebate or discount, or for the furnishing of services or facilities.

(Added to NRS by 1987, 2196)—(Substituted in revision for NRS 598.652)

NRS 597.340 “Refiner” defined. “Refiner” means any person, including an affiliate, who:

1. Produced quantities of crude oil equal to more than 30 percent of the domestic and imported crude oil supplied to his refinery during the most recent calendar year for which information is available;

2. Refines motor vehicle fuel from crude oil; and

3. Has a total refinery capacity of more than 175,000 barrels a day.

(Added to NRS by 1987, 2196)—(Substituted in revision for NRS 598.6522)

NRS 597.350 “Refinery” defined. “Refinery” means a manufacturing facility at which motor vehicle fuel is produced from crude oil.

(Added to NRS by 1987, 2196)—(Substituted in revision for NRS 598.6524)

NRS 597.360 “Retailer” defined. “Retailer” means a:

1. Wholesale purchaser; or

2. Person who operates a service station pursuant to a franchise agreement with a refiner or wholesale purchaser.

(Added to NRS by 1987, 2196)—(Substituted in revision for NRS 598.6526)

NRS 597.370 “Service station” defined. “Service station” means an establishment where motor vehicle fuel is sold to the general public.

(Added to NRS by 1987, 2197)—(Substituted in revision for NRS 598.6528)

NRS 597.380 “Wholesale purchaser” defined. “Wholesale purchaser” means any person who purchases motor vehicle fuel or other petroleum products from a refiner or other wholesaler for distribution to service stations or to individual or business consumers.

(Added to NRS by 1987, 2197)—(Substituted in revision for NRS 598.653)

NRS 597.390 Prohibited practices of refiners. A refiner shall not, directly or indirectly or through any officer, agent or employee:

1. Prohibit, directly or indirectly, the right of free association among retailers or wholesale purchasers for any lawful purpose.

2. Change or modify any restrictions upon business activities of a retailer during the term of the franchise that are not related to the sale of motor vehicle fuel or other petroleum products.

3. Unreasonably reduce, limit or curtail the supply of motor vehicle fuel or other petroleum products to any retailer or wholesale purchaser.

4. Place unreasonable restrictions upon business activities of a retailer that are not related to the sale of motor vehicle fuel or other petroleum products or upon any business activities of a wholesale purchaser.

(Added to NRS by 1975, 1281; A 1987, 2198)—(Substituted in revision for NRS 598.655)

NRS 597.400 Fair compensation required on failure of refiner to renew franchise.

1. A refiner shall not fail to renew the franchise of any retailer without fairly compensating the retailer at a fair going business value for his capital investment if:

(a) The capital investment was entered into with reasonable and prudent business judgment for the purpose of fulfilling the franchise; and

(b) The cancellation or failure to renew was not done in good faith.

2. For the purposes of this section, “capital investment” includes, but is not limited to, tools, equipment and any inventory of parts possessed by the retailer on the day of notification of cancellation or nonrenewal and which are still in the retailer’s possession on the day the cancellation or nonrenewal is effective.

(Added to NRS by 1975, 1281; A 1987, 2199)—(Substituted in revision for NRS 598.660)

NRS 597.410 Required notice of termination, cancellation or failure to renew franchise or contract.

1. Except as otherwise provided in subsection 2 or 3, a refiner shall not, directly or indirectly, or through an officer, agent or employee terminate, cancel or fail to renew a franchise or a contract with a wholesale purchaser without first giving to the retailer or wholesale purchaser written notice as follows:

(a) In case of cancellation or termination, specifying all matters of claimed noncompliance with the agreement and allowing the other party at least 30 days to comply with the terms of the agreement. If the other party does not comply, the cancellation or termination is effective on the date set forth in the notice.

(b) At least 30 days before the expiration of a term of an agreement, specifying:

(1) All the reasons for any intention of the refiner not to renew; or

(2) Any change in price, rent, terms or conditions to which renewal of the agreement is subject.

2. If the alleged ground is voluntary abandonment by the retailer of the franchise, or by the wholesale purchaser of his contract, the written notice may be given 3 days before the termination or cancellation.

3. If the alleged ground is the conviction of the retailer of a crime punishable as a felony and related to the business conducted pursuant to the franchise, termination, cancellation or failure to renew may be effective immediately.

(Added to NRS by 1975, 1281; A 1987, 2199)—(Substituted in revision for NRS 598.665)

NRS 597.420 Effect of failure to serve notice. The failure of a refiner to serve notice upon a retailer or wholesale purchaser as required in NRS 597.410 constitutes a grant of the option by the refiner to the retailer or wholesale purchaser to renew the franchise or contract for a period of 1 year under the same price, rent, terms and conditions as the expiring agreement. The option expires 45 days after the date when notice should have been served, unless exercised by written notice to the refiner.

(Added to NRS by 1975, 1282; A 1987, 2199)—(Substituted in revision for NRS 598.670)

NRS 597.430 Manner of giving notice. All notices required of refiners under NRS 597.410 or 597.420 must be given in writing by certified mail, return receipt requested, to:

1. The address indicated in the agreement or as subsequently changed by the party in writing; or

2. If no address was designated, the party’s place of business.

(Added to NRS by 1975, 1282; A 1987, 2200)—(Substituted in revision for NRS 598.675)

NRS 597.440 Restrictions on refiner’s operation of service stations. On or after January 1, 2001, a refiner who engages in the direct operation of:

1. Less than 30 service stations in this state, with his own employees or through a subsidiary or commissioned agent or a person on the basis of a fee, may commence the direct operation of not more than 5 additional service stations per calendar year, but in no case may he commence the direct operation of more than 30 service stations without complying with the provisions of subsection 2.

2. At least 30 service stations in this state, with his own employees or through a subsidiary or commissioned agent or a person on the basis of a fee, may commence the direct operation of additional service stations per year, with his own employees or through a subsidiary or commissioned agent or person on the basis of a fee, only if, during the year in which the service stations are added, he leases, in addition to the number of service stations leased by the refiner to lessee dealers on July 1, 1997, at least 1 additional service station to a lessee dealer for every 2 directly operated service stations added. For the purposes of this subsection, an additional service station leased by the refiner to a lessee dealer before the refiner engages in the direct operation of at least 30 service stations shall be deemed to be 1 service station leased to a lessee dealer during any year following the year in which the refiner engages in the direct operation of at least 30 service stations.

(Added to NRS by 1987, 2197; A 1997, 2016; 2003, 1221)

NRS 597.450 Temporary operation of service station by refiner; limitations on temporary operation; price of motor vehicle fuel sold to other retailers.

1. If a refiner is unable to commence the direct operation of a service station because of the restrictions set forth in NRS 597.440, the refiner may operate the service station temporarily for not more than 180 days if:

(a) The retailer voluntarily terminates or agrees not to renew the franchise for the service station; or

(b) The franchise for the service station is terminated by the refiner pursuant to NRS 597.270 to 597.470, inclusive.

2. During the temporary operation of a service station by a refiner, the refiner may sell motor vehicle fuel to other retailers in the marketing area of that service station at a price not less than 4 cents below the retail price of fuel at the service station he is operating.

(Added to NRS by 1987, 2197; A 2003, 1222)

NRS 597.460 Refiner’s failure to act in good faith or use of undue influence prohibited. A refiner shall not, directly or indirectly or through any officer, agent or employee:

1. Fail to act in good faith in performing or complying with any term or provision of, or collateral to, a franchise or a contract with a wholesale purchaser.

2. Use undue influence to induce a retailer to surrender any right given to the retailer by any provision contained in the franchise.

(Added to NRS by 1987, 2197)—(Substituted in revision for NRS 598.679)

NRS 597.470 Judicial relief; costs and attorney’s fees.

1. A retailer, wholesale purchaser or refiner may bring an action against the other party for violation of their respective agreements and may:

(a) Recover the damages sustained.

(b) Obtain injunctive relief to prevent loss of rights or restore rights lost.

2. The remedies provided in this section are independent of and supplemental to any other remedy available to the retailer, wholesale purchaser or refiner in law or equity.

3. In any action under this section the prevailing party is entitled to recover from the losing party all costs incurred, including reasonable attorney’s fees.

(Added to NRS by 1975, 1282; A 1987, 2200)—(Substituted in revision for NRS 598.680)

Automotive Repairs

NRS 597.480 Definitions. As used in NRS 597.480 to 597.590, inclusive, unless the context otherwise requires:

1. “Body shop” has the meaning ascribed to it in NRS 487.600.

2. “Commissioner” means the Commissioner of Consumer Affairs.

3. “Garage” has the meaning ascribed to it in NRS 487.540.

4. “Garageman” has the meaning ascribed to it in NRS 487.545.

5. “Motor vehicle” means:

(a) A motorcycle as defined in NRS 482.070;

(b) A motortruck as defined in NRS 482.073 if the gross weight of the vehicle does not exceed 10,000 pounds;

(d) A mini motor home as defined in NRS 482.066;

(e) A motor home as defined in NRS 482.071; and

(f) A recreational vehicle as defined in NRS 482.101.

6. “Person authorizing repairs” means a person who uses the services of a garage. The term includes an insurance company, its agents or representatives, authorizing repairs to motor vehicles under a policy of insurance.

(Added to NRS by 1975, 637; A 1985, 531; 1989, 1606; 1997, 1374; 2007, 220, 3418)

NRS 597.490 Display of sign required; contents of sign; penalty.

1. Each garageman shall display conspicuously in those areas of his place of business frequented by persons seeking repairs on motor vehicles a sign, not less than 22 inches by 28 inches in size, setting forth in boldface letters the following:

STATE OF NEVADA

REGISTERED GARAGE

THIS GARAGE IS REGISTERED WITH THE DEPARTMENT OF MOTOR VEHICLES

NEVADA AUTOMOTIVE REPAIR CUSTOMER BILL OF RIGHTS

AS A CUSTOMER IN NEVADA:

YOU have the right to receive repairs from a business that is REGISTERED with the Department of Motor Vehicles that will ensure the proper repair of your vehicle. (NRS 597.490)

YOU have the right to receive a WRITTEN ESTIMATE of charges for repairs made to your vehicle which exceed $50. (NRS 597.510)

YOU have the right to read and understand all documents and warranties BEFORE YOU SIGN THEM. (NRS 597.490)

YOU have the right to INSPECT ALL REPLACED PARTS and accessories that are covered by a warranty and for which a charge is made. (NRS 597.550)

YOU have the right to request that all replaced parts and accessories that are not covered by a warranty BE RETURNED TO YOU AT THE TIME OF SERVICE. (NRS 597.550)

YOU have the right to require authorization BEFORE any additional repairs are made to your vehicle if the charges for those repairs exceed 20% of the original estimate or $100, whichever is less. (NRS 597.520)

YOU have the right to receive a COMPLETED STATEMENT OF CHARGES for repairs made to your vehicle. (NRS 597.5705)

YOU have the right to a FAIR RESOLUTION of any dispute that develops concerning the repair of your vehicle. (NRS 597.490)

FOR MORE INFORMATION PLEASE CONTACT:

THE DEPARTMENT OF BUSINESS AND INDUSTRY

CONSUMER AFFAIRS DIVISION

IN CLARK COUNTY: (702) 486-7355

ALL OTHER AREAS TOLL-FREE: 1-800-326-5202

2. Each body shop shall display conspicuously in those areas of its place of business frequented by persons seeking repairs on motor vehicles a sign, not less than 22 inches by 28 inches in size, setting forth in boldface letters the following:

STATE OF NEVADA

LICENSED BODY SHOP

THIS BODY SHOP IS LICENSED BY THE DEPARTMENT OF MOTOR VEHICLES

NEVADA AUTOMOTIVE REPAIR CUSTOMER BILL OF RIGHTS

AS A CUSTOMER IN NEVADA:

YOU have the right to receive repairs from a business that is LICENSED with the Department of Motor Vehicles that will ensure the proper repair of your vehicle. (NRS 597.490)

YOU have the right to receive a WRITTEN ESTIMATE of charges for repairs made to your vehicle which exceed $50. (NRS 597.510)

YOU have the right to read and understand all documents and warranties BEFORE YOU SIGN THEM. (NRS 597.490)

YOU have the right to INSPECT ALL REPLACED PARTS and accessories that are covered by a warranty and for which a charge is made. (NRS 597.550)

YOU have the right to request that all replaced parts and accessories that are not covered by a warranty BE RETURNED TO YOU AT THE TIME OF SERVICE. (NRS 597.550)

YOU have the right to receive a COMPLETED STATEMENT OF CHARGES for repairs made to your vehicle. (NRS 597.5705)

YOU have the right to a FAIR RESOLUTION of any dispute that develops concerning the repair of your vehicle. (NRS 597.490)

FOR MORE INFORMATION PLEASE CONTACT:

THE DEPARTMENT OF BUSINESS AND INDUSTRY

CONSUMER AFFAIRS DIVISION

IN CLARK COUNTY: (702) 486-7355

ALL OTHER AREAS TOLL-FREE: 1-800-326-5202

3. The sign required pursuant to the provisions of subsection 1 or 2 must include a replica of the great seal of the State of Nevada. The seal must be 2 inches in diameter and be centered on the face of the sign directly above the words “STATE OF NEVADA.”

4. Any person who violates the provisions of this section is guilty of a misdemeanor.

(Added to NRS by 1975, 639; A 1999, 1893; 2001, 2630; 2007, 221, 3418)

NRS 597.500 Duties of body shop or garageman on acceptance of vehicle for repair. Whenever any body shop or garageman accepts or assumes control of a motor vehicle for the purpose of making or completing any repair, the body shop or garageman shall comply with the provisions of NRS 597.510 to 597.5706, inclusive.

(Added to NRS by 1975, 637; A 2007, 223, 3420)

NRS 597.510 Estimate of costs required for certain repairs.

1. Except as otherwise provided in NRS 597.530, a person requesting or authorizing the repair of a motor vehicle that is more than $50 must be furnished an estimate or statement signed by the person making the estimate or statement on behalf of the body shop or garageman, indicating the total charge for the performance of the work necessary to accomplish the repair, including the charge for labor and all parts and accessories necessary to perform the work.

2. If the estimate is for the purpose of diagnosing a malfunction, the estimate must include the cost of:

(a) Diagnosis and disassembly; and

(b) Reassembly, if the person does not authorize the repair.

3. The provisions of this section do not require a body shop or garageman to reassemble a motor vehicle if he determines that the reassembly of the motor vehicle would render the vehicle unsafe to operate.

(Added to NRS by 1975, 637; A 1999, 1895; 2007, 223)

NRS 597.520 Notice of additional charges over estimate required in certain cases. Except as otherwise provided in NRS 597.530, if it is determined that additional charges are required to perform the repair authorized, and those additional charges exceed, by 20 percent or $100, whichever is less, the amount set forth in the estimate or statement required to be furnished pursuant to the provisions of NRS 597.510, the body shop or garageman shall notify the owner and insurer of the motor vehicle of the amount of those additional charges.

(Added to NRS by 1975, 637; A 1999, 1895; 2007, 224)

NRS 597.530 Waiver of estimate of costs or notice of additional charges; execution of waiver. The person authorizing the repairs may waive the estimate or statement required pursuant to the provisions of NRS 597.510 or the notification required by NRS 597.520 by executing a written waiver of that requirement or notification. The waiver must be executed by the person authorizing the repairs at the time he authorizes those repairs.

(Added to NRS by 1975, 638; A 1999, 1895)

NRS 597.535 Duty of body shop and garage to repair vehicle in accordance with manufacturer’s specifications and estimate of costs required for repair. If a body shop or garage performs repairs on a motor vehicle, the body shop or garage shall perform the repairs in accordance with any specifications of the manufacturer of the motor vehicle and the written estimate or statement of the cost of the repairs that is most recently agreed upon by the body shop or garage and the person authorizing repairs.

(Added to NRS by 2007, 220)

NRS 597.540 Duties of owner and insurer upon receipt of notice of additional charges.

1. An owner and the insurer of a motor vehicle who have been notified of additional charges pursuant to NRS 597.520 shall:

(a) Authorize the performance of the repair at the additional expense; or

(b) Without delay, and upon payment of the authorized charges, take possession of the motor vehicle.

2. Until the election provided for in subsection 1 has been made, the body shop or garageman shall not undertake any repair which would involve such additional charges.

3. If the owner or insurer of the motor vehicle elects to take possession of the motor vehicle but fails to take possession within a 24-hour period after the election, the body shop or garageman may charge for storage of the vehicle.

(Added to NRS by 1975, 638; A 2007, 224)

NRS 597.550 Replaced parts to be delivered to person authorizing repairs if requested; exception.

1. Whenever the repair work performed on a motor vehicle requires the replacement of any parts or accessories, the body shop or garageman shall, at the request of the person authorizing the repairs or any person entitled to possession of the motor vehicle, deliver to the person all parts and accessories replaced as a result of the work done.

2. The provisions of subsection 1 do not apply to parts or accessories which must be returned to a manufacturer or distributor under a warranty arrangement or which are subject to exchange, but the customer on request is entitled to be shown the warranty parts for which a charge is made.

(Added to NRS by 1975, 638; A 2007, 224)

NRS 597.560 Records to be retained by body shop or garageman. The body shop or garageman shall retain copies of any estimate, statement or waiver required by NRS 597.510 to 597.5706, inclusive, as an ordinary business record of the body shop or garage, for a period of not less than 1 year after the date the estimate, statement or waiver is signed.

(Added to NRS by 1975, 639; A 2007, 224, 3420)

NRS 597.570 Compliance with NRS 597.510 to 597.5706, inclusive; enforcement of liens and contracts. In every instance where charges are made for the repair of a motor vehicle by a garageman, the garageman making the repairs shall comply with the provisions of NRS 597.510 to 597.5706, inclusive. A garageman is not entitled to detain a motor vehicle by virtue of any common law or statutory lien, or otherwise enforce such a lien, or to sue on any contract for repairs made by him, unless he has complied with the requirements of NRS 597.510 to 597.5706, inclusive.

(Added to NRS by 1975, 639; A 2007, 224, 3420)

NRS 597.5701 Certain acts deemed to be deceptive trade practice. A person shall be deemed to be engaged in a “deceptive trade practice” if, in the course of his business or occupation, he:

1. Engages in any deceptive trade practice, as defined in NRS 598.0915 to 598.0925, inclusive, that involves the repair of a motor vehicle; or

2. Engages in any other acts prescribed by the Commissioner by regulation as a deceptive trade practice.

(Added to NRS by 2007, 3416)

NRS 597.5702 Revolving account for Bureau of Consumer Protection: Creation; use; deposits; claims.

1. There is hereby created a revolving account for the Bureau of Consumer Protection in the Office of the Attorney General in the sum of $7,500, which must be used for the payment of expenses relating to conducting an undercover investigation of a person who is allegedly engaging in a deceptive trade practice or violating the provisions of NRS 597.480 to 597.590, inclusive.

2. The Consumer’s Advocate appointed pursuant to NRS 228.320 shall deposit the money in the revolving account in a bank or credit union qualified to receive deposits of public money as provided by law, and the deposit must be secured by a depository bond satisfactory to the State Board of Examiners.

3. The Consumer’s Advocate or his designee may:

(a) Sign all checks drawn upon the revolving account; and

(b) Make withdrawals of cash from the revolving account.

4. Payments made from the revolving account must be promptly reimbursed from the legislative appropriation, if any, to the Consumer’s Advocate for the expenses relating to conducting an undercover investigation of a person who is allegedly engaging in a deceptive trade practice or violating the provisions of NRS 597.480 to 597.590, inclusive. The claim for reimbursement must be processed and paid as other claims against the State are paid.

5. The Consumer’s Advocate shall:

(a) Approve any disbursement from the revolving account; and

(b) Maintain records of any such disbursement.

(Added to NRS by 2007, 3416)

NRS 597.5703 Commissioner or Director authorized to request undercover investigation of alleged deceptive trade practice; Bureau of Consumer Protection authorized to conduct such investigation.

1. The Commissioner or the Director of the Department of Motor Vehicles may request an undercover investigation of a person who is allegedly engaging in a deceptive trade practice or violating the provisions of NRS 597.480 to 597.590, inclusive.

2. The Bureau of Consumer Protection in the Office of the Attorney General may conduct an undercover investigation of a person who is allegedly engaging in a deceptive trade practice or violating the provisions of NRS 597.480 to 597.590, inclusive, on its own motion or upon a request received pursuant to subsection 1. Nothing in this subsection requires the Bureau to conduct an undercover investigation.

(Added to NRS by 2007, 3416)

NRS 597.5704 Administrative fine for engaging in deceptive trade practice; deposit and use of money collected as administrative fine.

1. In addition to any other penalty, the Commissioner may impose an administrative fine of not more than $10,000 against any person who engages in a deceptive trade practice. The Commissioner shall provide to any person so fined an opportunity for a hearing pursuant to the provisions of NRS 233B.121.

2. The Commissioner may negotiate the recovery of losses by a person aggrieved by a deceptive trade practice from the garageman who or body shop that engaged in the practice in lieu of imposing an administrative fine, and may mediate any disputes between customers and garagemen or body shops.

3. All administrative fines collected by the Commissioner pursuant to this section must be deposited with the State Treasurer to the credit of the State Highway Fund.

4. Except as otherwise provided in this subsection, the administrative remedy provided in this section is not exclusive and is intended to supplement existing law. The Commissioner may not impose a fine pursuant to this section against any person who engages in a deceptive trade practice if a fine has previously been imposed against that person pursuant to NRS 598.0903 to 598.0999, inclusive, for the same act. The provisions of this section do not deprive a person injured by a deceptive trade practice from resorting to any other legal remedy.

(Added to NRS by 2007, 3417)

NRS 597.5705 Statement of charges required for repair of vehicle; violation constitutes misdemeanor; statement required for enforcement of lien.

1. If charges are made for the repair of a motor vehicle, the garageman or body shop making the charges shall present to the person authorizing repairs or the person entitled to possession of the motor vehicle a statement of the charges setting forth the following information:

(a) The name and signature of the person authorizing repairs;

(b) A statement of the total charges;

(c) An itemization and description of all parts used to repair the motor vehicle indicating the charges made for labor; and

(d) A description of all other charges.

2. Any person violating this section is guilty of a misdemeanor.

3. In the case of a motor vehicle registered in this State, no lien for labor or materials provided under NRS 108.265 to 108.367, inclusive, may be enforced by sale or otherwise unless a statement as described in subsection 1 has been given by delivery in person or by certified mail to the last known address of the registered and the legal owner of the motor vehicle. In all other cases, the notice must be made to the last known address of the registered owner and any other person known to have or to claim an interest in the motor vehicle.

(Added to NRS by 2007, 3417)

NRS 597.5706 Submission of annual report by Commissioner to Legislative Commission.

1. On or before January 1 of each year, the Commissioner shall prepare a report concerning garages, garagemen and body shops. The report must include:

(a) The number of complaints relating to garages, garagemen and body shops:

(1) Made to and acted upon by the Consumer Affairs Division during the year for which the report is prepared; and

(2) Provided to the Department of Motor Vehicles from the Consumer Affairs Division for the year for which the report is prepared and the number of those complaints acted upon by the Department of Motor Vehicles during that year;

(b) The number of investigations conducted during that year by the Consumer Affairs Division and the Department of Motor Vehicles relating to garages, garagemen and body shops;

(c) The outcome of each investigation specified in paragraph (b) and the extent to which any information relating to each investigation is subject to disclosure to the members of the public;

(d) A discussion of the progress made during that year concerning the joint efforts of the Consumer Affairs Division and the Department of Motor Vehicles relating to the complaints and investigations included in the report pursuant to paragraphs (a) and (b); and

(e) A discussion of the progress made by the Consumer Affairs Division in enhancing its electronic communications with the Department of Motor Vehicles.

2. On or before January 1 of each even-numbered year, the Commissioner shall submit the report required pursuant to subsection 1 to the Legislative Commission. On or before January 1 of each odd-numbered year, the Commissioner shall submit the report to the Director of the Legislative Counsel Bureau for transmittal to:

(a) The Senate Standing Committee on Transportation and Homeland Security; and

(b) The Assembly Standing Committee on Transportation.

3. As used in this section, “Consumer Affairs Division” means the Consumer Affairs Division of the Department of Business and Industry.

(Added to NRS by 2007, 3417)

NRS 597.580 Violations: Injunctive relief. The Attorney General or any district attorney may bring an action in any court of competent jurisdiction in the name of the State of Nevada on the complaint of the Commissioner or of any person allegedly aggrieved by such violation to enjoin any violation of the provisions of NRS 597.510 to 597.5706, inclusive.

(Added to NRS by 1975, 639; A 2007, 224, 3420)

NRS 597.590 Violations: Civil penalties. Except as otherwise provided in NRS 597.5704, any person who knowingly violates any provision of NRS 597.500 to 597.5706, inclusive, is liable, in addition to any other penalty or remedy which may be provided by law, to a civil penalty of not more than $500 for each offense, which may be recovered by civil action on complaint of the Commissioner, the Director of the Department of Business and Industry or the district attorney.

(Added to NRS by 1975, 639; A 1977, 307; 1985, 2260; 1993, 1800; 2007, 225, 3420)

Repairs to Conform to Express Warranties

NRS 597.600 Definitions. As used in NRS 597.600 to 597.688, inclusive, unless the context otherwise requires:

1. “Buyer” means:

(a) A person who purchases or contracts to purchase, other than for purposes of resale, a motor vehicle normally used for personal, family or household purposes.

(b) Any person to whom the motor vehicle is transferred during the time a manufacturer’s express warranty applicable to the motor vehicle is in effect.

2. Except as otherwise provided in this subsection, “motor vehicle” has the meaning ascribed to it in NRS 482.075. The term does not include motor homes or off-road vehicles except for the purposes of NRS 597.680.

(Added to NRS by 1983, 610; A 1985, 2026; 1995, 2366; 2005, 1249)

NRS 597.610 Report of defect in motor vehicle; duty of manufacturer. If a new motor vehicle does not conform to all of the manufacturer’s applicable express warranties and the buyer reports the nonconformity in writing to the manufacturer:

1. Before the expiration of the manufacturer’s express warranties; or

2. No later than 1 year after the date the motor vehicle is delivered to the original buyer,

Ê whichever occurs earlier, the manufacturer, its agent or its authorized dealer shall make such repairs as are necessary to conform the vehicle to the express warranties without regard to whether the repairs will be made after the expiration of the express warranty or the time described in subsection 2.

(Added to NRS by 1983, 610)—(Substituted in revision for NRS 598.756)

NRS 597.620 Submission of claim to manufacturer for replacement or refund according to designated procedure. If the manufacturer has established or designated a procedure for settling disputes informally which substantially complies with the provisions of Title 16 of the Code of Federal Regulations, Part 703, a buyer must first submit his claim for replacement of the motor vehicle or for refund of the purchase price under that procedure before bringing any action under NRS 597.630.

(Added to NRS by 1983, 612)—(Substituted in revision for NRS 598.761)

NRS 597.630 Duties of manufacturer if motor vehicle cannot be conformed to express warranties.

1. If, after a reasonable number of attempts, the manufacturer, or its agent or authorized dealer is unable to conform the motor vehicle to any applicable express warranty by repair or correction and the defect or condition causing the nonconformity substantially impairs the use and value of the motor vehicle to the buyer and is not the result of abuse, neglect or unauthorized modifications or alterations of the motor vehicle, the manufacturer shall:

(a) Replace the motor vehicle with a comparable motor vehicle of the same model and having the same features as the replaced vehicle, or if such a vehicle cannot be delivered to the buyer within a reasonable time, then a comparable motor vehicle substantially similar to the replaced vehicle; or

(b) Accept return of the motor vehicle from the buyer and refund to him the full purchase price including all sales taxes, license fees, registration fees and other similar governmental charges, less a reasonable allowance for his use of the vehicle. A reasonable allowance for use is that amount directly attributable to use by the buyer before his first report of the nonconformity to the manufacturer, agent or dealer and during any subsequent period when the vehicle is not out of service for repairs. Refunds must be made to the buyer, and lienholder if any, as their interests may appear.

2. It is presumed that a reasonable number of attempts have been undertaken to conform a motor vehicle to the applicable express warranties where:

(a) The same nonconformity has been subject to repair four or more times by the manufacturer, or its agent or authorized dealer within the time the express warranty is in effect or within 1 year following the date the motor vehicle is delivered to the original buyer, whichever occurs earlier, but the nonconformity continues to exist; or

(b) The motor vehicle is out of service for repairs for a cumulative total of 30 or more calendar days within the time the express warranty is in effect or within 1 year following the date the motor vehicle is delivered to the original buyer, whichever occurs earlier, except that if the necessary repairs cannot be made for reasons which are beyond the control of the manufacturer or its agent or authorized dealer, the number of days required to give rise to the presumption must be appropriately extended.

(Added to NRS by 1983, 611)—(Substituted in revision for NRS 598.766)

NRS 597.640 Tolling of period for express warranties. For the purposes of NRS 597.600 to 597.670, inclusive, the running of the time an express warranty is in effect or of any other period of time described in those sections is tolled for the time during which services to repair the motor vehicle are not reasonably available to the buyer because of a war, invasion or strike, or because of a fire, flood or other natural disaster.

(Added to NRS by 1983, 611)—(Substituted in revision for NRS 598.771)

NRS 597.650 Commencement of action by buyer. Any action brought pursuant to NRS 597.600 to 597.630, inclusive, must be commenced within 18 months after the date of the original delivery of the motor vehicle to the buyer.

(Added to NRS by 1983, 612)—(Substituted in revision for NRS 598.776)

NRS 597.660 Waiver of rights by buyer prohibited. Any provision in any agreement between the manufacturer or its agent or authorized dealer and the buyer which provides that the buyer agrees to waive or forego any rights or remedies afforded by NRS 597.600 to 597.630, inclusive, is void.

(Added to NRS by 1983, 612)—(Substituted in revision for NRS 598.781)

NRS 597.670 Effect on other rights and remedies of buyer. The provisions of NRS 597.600 to 597.630, inclusive, do not limit any other right or remedy which the buyer may have by law or by agreement.

(Added to NRS by 1983, 612)—(Substituted in revision for NRS 598.786)

NRS 597.675 Notification of manufacturer regarding change in residential address. Any person entitled by the terms of a manufacturer’s express warranty to enforce its obligations is responsible for notifying the manufacturer of any change in his residential address.

(Added to NRS by 1995, 2366)

NRS 597.680 Reimbursement by manufacturer for cost of repairs to conform vehicle to express warranties. The manufacturer shall reimburse its agent or authorized dealer for the cost of repairs made to a motor vehicle to conform it to the manufacturer’s express warranties. The reimbursement must be paid at the rate usually billed by the agent or dealer to the general public for similar repairs.

(Added to NRS by 1985, 2026)—(Substituted in revision for NRS 598.791)

NRS 597.682 Lemon Law Buyback: General duties regarding retitling, notice and disclosures.

1. A manufacturer, or its agent or authorized dealer, who reacquires a motor vehicle pursuant NRS 597.630 that was registered in this State, or any other state, the District of Columbia or any territory or possession of the United States, or who assists a lienholder in reacquiring such a motor vehicle, shall, before selling, leasing or transferring ownership of the motor vehicle in this State or exporting the motor vehicle to another state for sale, lease or transfer:

(a) Cause the motor vehicle to be retitled in the name of the manufacturer;

(b) Request the Department of Motor Vehicles to inscribe the certificate of ownership for the motor vehicle with the notation “Lemon Law Buyback”; and

2. Any manufacturer who reacquires, or assists a dealer or lienholder in reacquiring, a motor vehicle in response to a request by the buyer or lessee that the motor vehicle be replaced or accepted for a refund because the motor vehicle did not conform to express warranties shall, before the sale, lease or other transfer of the motor vehicle, execute and deliver to the subsequent transferee a notice and obtain the transferee’s written acknowledgment of the notice in accordance with NRS 597.684.

3. Any person, including any dealer, who acquires a motor vehicle for resale and knows that the motor vehicle was reacquired by the manufacturer of the motor vehicle pursuant to NRS 597.630 shall, before the sale, lease or other transfer, execute and deliver to the subsequent transferee a notice and obtain the transferee’s written acknowledgment of the notice in accordance with NRS 597.684.

4. Any person, including any manufacturer or dealer, who sells, leases or transfers ownership of a motor vehicle when the certificate of ownership for the motor vehicle is inscribed with the notation “Lemon Law Buyback” shall, before the sale, lease, or ownership transfer of the motor vehicle, submit to the transferee a written disclosure signed by the transferee stating that:

THIS VEHICLE WAS REPURCHASED BY ITS MANUFACTURER BECAUSE OF A DEFECT IN THE VEHICLE PURSUANT TO CONSUMER WARRANTY LAWS. THE TITLE TO THIS VEHICLE HAS BEEN PERMANENTLY INSCRIBED WITH THE NOTATION “LEMON LAW BUYBACK.”

5. The requirements for disclosure set forth in subsections 1, 2 and 3 are in addition to any other notice requirements for consumers and do not relieve any person, including any dealer or manufacturer, from complying with any other applicable law.

6. The decal required pursuant to subsection 1 must be affixed to the left front doorframe of the motor vehicle or, if the motor vehicle does not have a left front doorframe, in a location designated by the Department of Motor Vehicles. The decal must specify that the certificate of title to the motor vehicle has been permanently inscribed with the notation “Lemon Law Buyback.” A person shall not knowingly remove or alter any decal affixed to a motor vehicle pursuant to this subsection, regardless of whether the motor vehicle is licensed pursuant to this chapter.

(Added to NRS by 2005, 1246)

NRS 597.684 Lemon Law Buyback: Form of notice.

1. The notice required pursuant to subsections 1, 2 and 3 of NRS 597.682 must be prepared by the manufacturer of the reacquired motor vehicle and specify:

(a) The year, make, model and vehicle identification number of the motor vehicle.

(b) Whether the certificate of title for the motor vehicle has been inscribed with the notation “Lemon Law Buyback.”

(d) The repairs, if any, made to the motor vehicle in an attempt to correct each nonconformity reported by the original buyer or lessee.

2. The notice must be included on a form 8 1/2 x 11 inches in size and printed in a size equal to at least 10-point black type on a white background. The form must only contain the following information and be completed by the manufacturer:

WARRANTY BUYBACK NOTICE

(Check One)

/__/ This vehicle was repurchased by the vehicle’s manufacturer after the last retail owner or lessee requested its repurchase because of the problems listed below.

/__/ THIS VEHICLE WAS REPURCHASED BY ITS MANUFACTURER BECAUSE OF A DEFECT IN THE VEHICLE PURSUANT TO CONSUMER WARRANTY LAWS. THE TITLE TO THIS VEHICLE HAS BEEN PERMANENTLY INSCRIBED WITH THE NOTATION “LEMON LAW BUYBACK.” Under Nevada law, the manufacturer must warrant to you, for 1 year, that the vehicle is free of the problems listed below.

V.I.N.

Year

Make

Model

Problem(s) Reported by Original Owner

Repairs Made, if any, to Correct Reported Problem(s)

Signature of Manufacturer Date

..................................................................

Signature of Dealers Date

..................................................................

Signature of Retail Buyer or Lessee Date

..................................................................

(Added to NRS by 2005, 1247)

NRS 597.686 Lemon Law Buyback: Prohibition against certain nondisclosure agreements.

1. A manufacturer, importer, distributor, dealer or lienholder who reacquires or assists in reacquiring a motor vehicle, whether by judgment, decree, arbitration award, settlement agreement or voluntary agreement, shall not:

(a) Require, as a condition of the reacquisition of the motor vehicle, a buyer or lessee who is a resident of this State to agree to refrain from disclosing the problems with the motor vehicle experienced by the buyer or lessee or the nonfinancial terms of the reacquisition.

(b) Include, in any release or other agreement, whether prepared by the manufacturer, importer, distributor, dealer or lienholder, for signature by the buyer or lessee, a confidentiality clause, gag clause or similar clause prohibiting the buyer or lessee from disclosing information to any other person concerning the problems with the motor vehicle or the nonfinancial terms of the reacquisition of the motor vehicle by the manufacturer, importer, distributor, dealer or lienholder.

2. Any confidentiality clause, gag clause or similar clause included in the release or other agreement in violation of this section is void.

3. The provisions of this section do not prohibit the inclusion within the release or other agreement any confidentiality clause, gag clause or similar clause regarding the financial terms of the reacquisition of the motor vehicle.

(Added to NRS by 2005, 1248)

NRS 597.688 Lemon Law Buyback: Civil action. A person who incurs an injury or damages as the proximate result of a violation of the provisions of NRS 597.682, 597.684 or 597.686 may commence an action in a court of competent jurisdiction for the recovery of his actual damages, costs and reasonable attorney’s fees and for any punitive damages that the facts may warrant.

(Added to NRS 2005, 1249)

Miscellaneous Provisions

NRS 597.690 Manufacturer required to remedy defects in vehicle related to safety without charge.

1. Every manufacturer of a vehicle who furnishes notification to the registered owner of the vehicle of any defect in the vehicle related to vehicle safety shall, notwithstanding the limitations of any warranty relating to such vehicle, correct such defect at the manufacturer’s expense and without charge to the registered owner of the vehicle if the vehicle is returned to any vehicle dealer franchised by the manufacturer to market the vehicle, or, at the election of the manufacturer, reimburse the registered owner for the actual cost of making such correction.

2. This section does not require a vehicle dealer to make the required correction if the manufacturer has failed to make available to the dealer the parts needed to make the correction.

(Added to NRS by 1973, 675)—(Substituted in revision for NRS 598.796)

NRS 597.710 Unlawful to place certain transparent material upon windshield or side or rear window of motor vehicle for compensation; exception. It is unlawful for a person, for compensation, to place, install, affix or apply upon the windshield or side or rear window of a motor vehicle any transparent material which alters the color or reduces the light transmission of the windshield or side or rear window unless he displays conspicuously in those areas of his place of business frequented by persons seeking such services a sign, not less than 22 inches by 28 inches in size, setting forth in boldface letters the following:

STATE LAW PROHIBITS THE PLACEMENT OF ANY MATERIAL ON A WINDSHIELD OR SIDE OR REAR WINDOW WHICH ALTERS THE COLOR OR REDUCES THE LIGHT TRANSMISSION OF THE WINDSHIELD OR ANY SIDE OR REAR WINDOW OF A MOTOR VEHICLE, EXCEPT THAT THIS PROHIBITION DOES NOT APPLY TO:

1. A WINDOW THAT IS TO THE IMMEDIATE RIGHT OR LEFT OF THE DRIVER IF THE WINDOW IS:

(A) NONREFLECTIVE; AND

(B) HAS A TOTAL LIGHT TRANSMISSION THROUGH THE COMBINATION, IF ANY, OF TRANSPARENT MATERIAL AND SAFETY GLAZING OF NOT LESS THAN 35 PERCENT WITH A TOLERANCE OF 7 PERCENT.

2. A SIDE WINDOW THAT IS TO THE REAR OF THE DRIVER, OR A REAR WINDOW, IF THE VEHICLE HAS OUTSIDE MIRRORS ON EACH SIDE THAT ARE LOCATED SO AS TO REFLECT TO THE DRIVER A VIEW OF THE HIGHWAY THROUGH EACH MIRROR FOR A DISTANCE OF NOT LESS THAN 200 FEET TO THE REAR OF THE VEHICLE.

3. ANY TRANSPARENT MATERIAL THAT IS INSTALLED, AFFIXED OR APPLIED TO THE TOPMOST PORTION OF THE WINDSHIELD IF:

(A) THE BOTTOM EDGE OF THE MATERIAL IS NOT LESS THAN 29 INCHES ABOVE THE UNDEPRESSED DRIVER’S SEAT WHEN MEASURED FROM A POINT 5 INCHES IN FRONT OF THE BOTTOM OF THE BACKREST WITH THE DRIVER’S SEAT IN ITS REARMOST AND LOWERMOST POSITION WITH THE VEHICLE ON A LEVEL SURFACE; AND

(B) THE MATERIAL IS NOT RED OR AMBER IN COLOR.

(Added to NRS by 1993, 2434)

WORKS OF ART

NRS 597.720 Definitions. As used in NRS 597.720 to 597.760, inclusive, unless the context otherwise requires:

1. “Artist” means a person who creates a work of art.

2. “Reproduction” means a copy, in any medium, of a work of art, that is represented as the work of art as created by the artist.

3. “Work of art” means any original creation of visual or graphic art in any medium including painting, drawing, photographic print or sculpture of a limited edition of not more than 300 copies. The term does not include:

(a) Sequential imagery such as that in motion pictures.

(b) Work prepared under contract for commercial use by the purchaser.

(d) Work submitted for publication at no charge.

(Added to NRS by 1989, 192)—(Substituted in revision for NRS 598.970)

NRS 597.730 Right to claim or disclaim authorship. An artist may:

1. Claim authorship of his work of art. The right to claim authorship includes the right of the artist to have his name appear on or with his work of art.

2. Disclaim authorship of his work of art if necessary to protect his reputation from damage. It is presumed necessary for an artist to protect his reputation from damage if his work of art is displayed, published or reproduced in this state, without his consent, in a defaced, mutilated or altered form and damage to his reputation is reasonably foreseeable.

(Added to NRS by 1989, 193)—(Substituted in revision for NRS 598.972)

NRS 597.740 Restrictions on publication and public display; civil remedy; defacement, mutilation or alteration of work.

1. Except as otherwise provided in subsection 3, if damage to the reputation of an artist is reasonably foreseeable, a person shall not, without the consent of that artist, publish or display in public, in this state, the artist’s work of art or a reproduction of the artist’s work of art, in a defaced, mutilated or altered form and represent it as the work of the artist.

2. An artist who is injured by a violation of subsection 1 may bring an action for damages, together with reasonable attorney’s fees and the costs of the action as are authorized under NRS 18.110.

3. Defacement, mutilation or alteration of a work of art which is caused by the passage of time or the inherent nature of the materials used in the creation of the work of art does not give an artist the right to disclaim authorship pursuant to NRS 597.730 or a cause of action under subsection 2, unless the defacement, mutilation or alteration of the work of art is the result of negligent conservation. For the purposes of this subsection, “conservation” means those acts taken to preserve and protect a work of art or to slow its deterioration.

4. A change in a work of art that is an ordinary result of a medium of reproduction does not constitute defacement, mutilation or alteration.

(Added to NRS by 1989, 193)—(Substituted in revision for NRS 598.974)

NRS 597.750 Waiver of rights. An artist may waive, in writing, his rights under NRS 597.720 to 597.760, inclusive.

(Added to NRS by 1989, 193)—(Substituted in revision for NRS 598.976)

NRS 597.760 Transfer of ownership or right of reproduction.

1. When ownership of a work of art is transferred from the artist who created it or his heirs, the right of reproduction remains with the artist or his heirs until it passes into the public domain by act or operation of law or is expressly transferred in writing.

2. When an exclusive or nonexclusive right of reproduction is transferred by the owner of such right, it must be presumed that ownership of the physical work of art remains with the owner of the work of art unless it is expressly transferred in writing with the right of reproduction.

3. For the purposes of this section “right of reproduction” means the right to reproduce, display and distribute copies of a work of art. The term includes the right to prepare variations of the original work of art.

(Added to NRS by 1989, 193)—(Substituted in revision for NRS 598.978)

RIGHT OF PUBLICITY

NRS 597.770 Definitions. As used in NRS 597.770 to 597.810, inclusive:

1. “Commercial use” includes the use of the name, voice, signature, photograph or likeness of a person on or in any product, merchandise or goods or for the purposes of advertising, selling or soliciting the purchase of any product, merchandise, goods or service.

2. “Governmental agency” means the Commission on Tourism and a governmental entity in a county whose population is 100,000 or more that has as a statutory purpose, power or duty the promotion of travel or tourism in this state and that employs photographers full-time or by contract to take pictures to promote travel and tourism, portray historical events or commemorate persons or physical sites that are significant in the history of the state.

3. “Person” means a natural person.

(Added to NRS by 1989, 1608; A 1995, 1645)

NRS 597.780 Scope. The provisions of NRS 597.770 to 597.810, inclusive, apply to any commercial use within this state of a living or deceased person’s name, voice, signature, photograph or likeness regardless of the person’s domicile.

(Added to NRS by 1989, 1610)—(Substituted in revision for NRS 598.982)

NRS 597.790 Existence and term of right; written consent required for commercial use; exceptions.

1. There is a right of publicity in the name, voice, signature, photograph or likeness of every person. The right endures for a term consisting of the life of the person and 50 years after his death, regardless of whether the person commercially exploits the right during his lifetime.

2. Any commercial use by another of the name, voice, signature, photograph or likeness of a person requires the written consent of that person or his successor in interest unless:

(a) The use is contained in material which is commercially sponsored but the use is not directly connected with the commercial sponsorship;

(b) The use is an attempt to portray, imitate, simulate or impersonate a person in a live performance;

(d) The use is an attempt to portray, imitate, simulate or impersonate a person in a play, book, magazine article, newspaper article, musical composition, film, or a radio, television or other audio or visual program, except where the use is directly connected with commercial sponsorship;

(e) The use is in connection with an original work of art except that multiple editions of such a work of art require consent;

(f) The use is in connection with an advertisement or commercial announcement for a use permitted by this subsection; or

(g) The use is in connection with the efforts of a governmental agency to promote travel and tourism in this state, portray historical events or commemorate persons or physical sites that are significant in the history of this state, except where the use is directly connected with commercial sponsorship.

Ê For the purposes of this subsection, the issue of whether a use is directly connected with commercial sponsorship is a question of fact, to be determined by the trier of fact in an action brought pursuant to NRS 597.810.

3. If a governmental agency intends to have photographs taken at a public event for use pursuant to paragraph (g) of subsection 2, the governmental agency shall, if practicable, announce or otherwise inform the public, or request the sponsor of the event to announce or otherwise inform the public, that photographs may be taken that can be used in materials for the promotion of travel and tourism in this state without permission from the person photographed.

(Added to NRS by 1989, 1608; A 1995, 1646)

NRS 597.800 Transferability of right; commercial use upon death; rights of successors in interest; registration of claim; fee.

1. The right of publicity established by NRS 597.790 is freely transferable, in whole or in part, by contract, license, gift, conveyance, assignment, devise or testamentary trust by a person or his successor in interest.

2. If a deceased person has not transferred his rights as provided by subsection 1, and he has no surviving beneficiary or successor in interest upon his death, the commercial use of his name, voice, signature, photograph or likeness does not require consent.

3. A successor in interest or a licensee of a deceased person may file in the Office of the Secretary of State, on a form prescribed by the Secretary of State and upon the payment of a filing fee of $25, a verified application for registration of his claim. The application must include:

(a) The legal and professional name of the deceased person;

(b) The date of death of the deceased person;

(d) The basis of the claim; and

(e) A description of the rights claimed.

4. A successor in interest or a licensee of a deceased person may not assert any right against any unauthorized commercial use of the deceased person’s name, voice, signature, photograph or likeness that begins before the filing of an application to register his claim.

5. A person, firm or corporation seeking to use the name, voice, signature, photograph or likeness of a deceased person for commercial purposes must first make a reasonable effort, in good faith, to discover the identity of any person who qualifies as a successor in interest to the deceased person. A person claiming to be a successor in interest to a deceased person must, within 6 months after the date he becomes aware or should reasonably have become aware of an unauthorized commercial use of the deceased person’s name, voice, signature, photograph or likeness, register a claim with the Secretary of State pursuant to subsection 3. Failure to register shall be deemed a waiver of any right of publicity.

6. The Secretary of State may microfilm or reproduce by other techniques any document filed pursuant to this section and thereafter destroy the original of the document. The microfilm or other reproduction is admissible in any court of record. The Secretary of State may destroy the microfilm or other reproduction 50 years after the death of the person whose identity is the subject of the claim.

7. A claim registered pursuant to this section is a public record.

(Added to NRS by 1989, 1609)—(Substituted in revision for NRS 598.986)

NRS 597.810 Remedies for unauthorized commercial use; liability of owner or employee of medium used for advertising.

1. Any commercial use of the name, voice, signature, photograph or likeness of another by a person, firm or corporation without first having obtained written consent for the use is subject to:

(a) Injunctive relief to prevent or restrain the unauthorized use; and

(b) An action at law for any injuries sustained by reason of the unauthorized use. In such a suit, the plaintiff may recover:

(1) Actual damages, but not less than $750; and

(2) Exemplary or punitive damages, if the trier of fact finds that the defendant knowingly made use of the name, voice, signature, photograph or likeness of another person without the consent required by NRS 597.790.

2. No owner or employee of any medium used for advertising is liable pursuant to this section for any unauthorized commercial use of a person’s name, voice, signature, photograph or likeness unless it is established that the owner or employee had actual knowledge of the unauthorized use.

(Added to NRS by 1989, 1609)—(Substituted in revision for NRS 598.988)

DEVICES FOR AUTOMATIC DIALING AND ANNOUNCING

NRS 597.812 “Device for automatic dialing and announcing” defined. As used in NRS 597.812 to 597.818, inclusive, “device for automatic dialing and announcing” means any equipment that:

1. Incorporates a storage capability of telephone numbers to be called and utilizes a random or sequential number generator producing telephone numbers to be called; and

2. Is used exclusively, working alone or in conjunction with other equipment, to disseminate a prerecorded message to the telephone number called to solicit a person at the telephone number called to purchase goods or services.

(Added to NRS by 1999, 3331)

NRS 597.814 Use prohibited; exceptions; restrictions.

1. Except as otherwise provided in subsection 3 and NRS 597.816, a person shall not use a device for automatic dialing and announcing to disseminate a prerecorded message in a telephone call unless, before the message is disseminated, a recorded or unrecorded natural voice:

(a) Informs the person who answers the telephone call of the nature of the call, including, without limitation, the fact that a device for automatic dialing and announcing will be used to disseminate the message if the person who answers the call remains on the line; and

(b) Provides to the person who answers the telephone call the name, address and telephone number of the business or organization, if any, being represented by the caller.

2. A person shall not operate a device for automatic dialing and announcing to place:

(a) A call that is received by a telephone located in this State during the period between 8 p.m. and 9 a.m.; or

(b) A call-back or second call to the same telephone number if a person at the telephone number terminated the original call.

3. This section does not prohibit the use of a device for automatic dialing and announcing to dial the number of and play a recorded message to a person with whom the person using the device or another person affiliated with the person using the device has a preexisting business relationship.

(Added to NRS by 1989, 79; A 1999, 3332; 2003, 2874)

NRS 597.816 Additional exceptions to prohibition of use. The provisions of NRS 597.814 do not prohibit the use of a device for automatic dialing and announcing by any person exclusively on behalf of:

1. A school or school district to contact the parents or guardians of a pupil regarding the attendance of the pupil or regarding other business of the school or school district.

2. A nonprofit organization.

3. A video service provider that provides cable television or other video services to contact its customers regarding a previously arranged installation of such services at the premises of the customer.

4. A public utility to contact its customers regarding a previously arranged installation of utility services at the premises of the customer.

5. A facility that processes or stores petroleum, volatile petroleum products, natural gas, liquefied petroleum gas, combustible chemicals, explosives, high-level radioactive waste or other dangerous substances to advise local residents, public service agencies and news media of an actual or potential life-threatening emergency.

6. A state or local governmental agency, or a private entity operating under contract with and at the direction of such an agency, to provide:

(a) Information relating to public safety;

(b) Information relating to a police or fire emergency; or

7. A candidate for public office, committee advocating the passage or defeat of a ballot question, political party, committee sponsored by a political party or a committee for political action.

(Added to NRS by 1999, 3331; A 2007, 1392)

NRS 597.818 Penalty.

1. A person who violates any provision of NRS 597.814 is guilty of a misdemeanor.

2. If a person is found guilty or guilty but mentally ill of, or has pleaded guilty, guilty but mentally ill or nolo contendere to, violating any provision of NRS 597.814, his telephone service to which a device for automatic dialing and announcing has been connected must be suspended for a period determined by the court.

(Added to NRS by 1999, 3332; A 2007, 1467)

MISCELLANEOUS PROVISIONS

NRS 597.820 Profiteering in articles on which there is sales tax; penalty.

1. No person, dealer, firm, agency, partnership, corporation, service station, garage, or business concern of any kind, wholesale or retail, shall add to the selling price of any article of merchandise, commodity, service or utility, motor part or accessory, tire, gasoline or other motor fuel or lubricating liquid, or any article whatsoever upon which there is or hereafter may be a sales tax, either federal or state, when sold, offered or exposed for sale, trade or barter in this State, more than the actual amount of such sales tax in the smallest unit under which any of such articles is offered for sale or sold; provided, that where such sales tax in case of units of any such merchandise or articles amounts to less than 1 cent, 1 cent and no more may be added to the price of the unit when sold.

2. A violation of the provisions of subsection 1 shall be a misdemeanor.

[Part 1:175:1933; 1931 NCL § 6821] + [Part 2:175:1933; 1931 NCL § 6821.01]—(NRS A 1967, 620)—(Substituted in revision for NRS 598.010)

NRS 597.830 Unlawful additions to entertainment or amusement tax; penalty.

1. If a federal or state tax is imposed on an admission to or on a ticket sold for a public entertainment or amusement of any kind in this state, it shall be unlawful to add to the price of the admission or ticket more than the actual amount of the tax.

2. A violation of the provisions of subsection 1 shall be a misdemeanor.

[Part 1:175:1933; 1931 NCL § 6821] + [Part 2:175:1933; 1931 NCL § 6821.01]—(NRS A 1967, 620)—(Substituted in revision for NRS 598.020)

NRS 597.840 Unlawful retention of deposit for longer than agreed time; penalty.

1. A person shall not hold a deposit for the purchase of an item longer than the time specified in a contract between the purchaser and the seller if the purchaser is entitled to the return of the deposit.

2. A person who violates the provisions of subsection 1 shall be punished by a fine of not more than the amount of the deposit multiplied by the number of working days the deposit was retained after return was due.

(Added to NRS by 1985, 2255)—(Substituted in revision for NRS 598.025)

NRS 597.850 Shoplifting: Merchant may request person on premises to keep merchandise in full view; detention of suspect; immunity of merchant from liability; display of notice.

1. As used in this section and in NRS 597.860 and 597.870:

(a) “Merchandise” means any personal property, capable of manual delivery, displayed, held or offered for sale by a merchant.

(b) “Merchant” means an owner or operator, and the agent, consignee, employee, lessee, or officer of an owner or operator, of any merchant’s premises.

2. Any merchant may request any person on his premises to place or keep in full view any merchandise the person may have removed, or which the merchant has reason to believe he may have removed, from its place of display or elsewhere, whether for examination, purchase or for any other purpose. No merchant is criminally or civilly liable on account of having made such a request.

3. Any merchant who has reason to believe that merchandise has been wrongfully taken by a person and that he can recover the merchandise by taking the person into custody and detaining him may, for the purpose of attempting to effect such recovery or for the purpose of informing a peace officer of the circumstances of such detention, take the person into custody and detain him, on the premises, in a reasonable manner and for a reasonable length of time. A merchant is presumed to have reason to believe that merchandise has been wrongfully taken by a person and that he can recover the merchandise by taking the person into custody and detaining him if the merchant observed the person concealing merchandise while on the premises. Such taking into custody and detention by a merchant does not render the merchant criminally or civilly liable for false arrest, false imprisonment, slander or unlawful detention unless the taking into custody and detention are unreasonable under all the circumstances.

4. No merchant is entitled to the immunity from liability provided for in this section unless there is displayed in a conspicuous place on his premises a notice in boldface type clearly legible and in substantially the following form:

Any merchant or his agent who has reason to believe that merchandise has been wrongfully taken by a person may detain such person on the premises of the merchant for the purpose of recovering the property or notifying a peace officer. An adult or the parents or legal guardian of a minor, who steals merchandise is civilly liable for its value and additional damages. NRS 597.850, 597.860 and 597.870.

(Added to NRS by 1959, 407; A 1961, 357; 1963, 504; 1969, 1528; 1973, 376, 1476; 1985, 468; 1993, 1798; 1997, 22; 1999, 96; 2005, 1093)

NRS 597.860 Shoplifting: Civil liability of adult who steals merchandise from or damages property on merchant’s premises.

1. An adult who steals merchandise from, or damages property on, a merchant’s premises is civilly liable for the retail value of the merchandise or the fair market value of the other property, plus damages of not less than $100 nor more than $250, costs of suit and reasonable attorney’s fees. An action may be brought even if there has been no criminal conviction for the theft or damage.

2. An action under this section may be brought as a small claim in a Justice Court if the total amount sought does not exceed the statutory limit for such a claim.

(Added to NRS by 1973, 376; A 1985, 796; 1993, 77)—(Substituted in revision for NRS 598.033)

NRS 597.870 Shoplifting: Civil liability of parent or guardian of minor who steals merchandise from or damages property on merchant’s premises.

1. The parent or legal guardian, as the case may be, of a minor who steals merchandise from, or damages property on, a merchant’s premises is civilly liable for:

(a) The retail value of the merchandise; and

(b) The fair market value of the damaged property,

Ê plus damages of not less than $100 nor more than $250, costs of suit and reasonable attorney’s fees. An action may be brought even if there has been no criminal conviction for the theft or damage. Recovery under this section may be had in addition to, and is not limited by, any other provision of law which limits the liability of a parent or legal guardian for the tortious conduct of a minor.

2. An action under this section may be brought as a small claim in a Justice Court if the total amount sought does not exceed the statutory limit for such a claim.

(Added to NRS by 1973, 376; A 1985, 796; 1993, 78)—(Substituted in revision for NRS 598.035)

NRS 597.880 Sale and advertising of master keys for motor vehicles limited; penalty.

1. As used in this section, “master motor vehicle key set” means a key or keys that may be used to operate more than one motor vehicle.

2. A person shall not sell a master motor vehicle key set to any person except automobile dealers, automobile repairmen, locksmiths and peace officers of the State of Nevada.

3. A person shall not advertise the sale of a master motor vehicle key set except in trade journals of automobile dealers, automobile repairmen and locksmiths.

4. Any person who violates the provisions of subsection 2 or 3 is guilty of a misdemeanor.

(Added to NRS by 1967, 142; A 1985, 347)—(Substituted in revision for NRS 598.040)

NRS 597.890 Advertising that climate of facility for storage of personal property is controlled: Requirements; penalty; civil liability.

1. The owner of a facility for the storage of personal property or a person acting on his behalf shall not advertise that the facility is “climate controlled” unless the advertisement specifies the range of the minimum and maximum temperature and humidity within which the facility is maintained.

2. If an owner or a person acting on his behalf fails to indicate the range of temperature and humidity of a facility in any advertisement that refers to it as being “climate controlled” or fails to maintain the temperature and humidity of the facility within the advertised range, the owner is guilty of a misdemeanor and is liable to the occupant for any damages that are caused to the occupant’s personal property as a result of extremes in temperature or humidity, notwithstanding any contrary provision in the rental agreement.

3. As used in this section, the terms “facility,” “occupant,” “owner,” “personal property” and “rental agreement” have the meanings ascribed to them respectively in NRS 108.4733 to 108.4745, inclusive.

(Added to NRS by 1991, 2164)—(Substituted in revision for NRS 598.045)

NRS 597.900 Sale of imitation Indian arts and crafts not clearly labeled as imitation prohibited.

1. As used in this section:

(a) “Imitation Indian arts or crafts articles” means those made by machine, or made either wholly or partially out of synthetic or artificial materials, or articles which are not made by Indian labor or workmanship.

(b) “Indian” means a person who is enrolled or who is a lineal descendant of one enrolled upon an enrollment listing of the Bureau of Indian Affairs, or upon the enrollment listing of a recognized Indian tribe, domiciled in the United States.

2. A person shall not distribute, sell or offer for sale in this state any imitation Indian art or craft articles unless the articles are at all times clearly and legibly designated as imitation.

3. Only those articles bearing a registered trademark or label of authentic Indian labor or workmanship may be deemed authentic Indian arts or crafts articles.

4. Any person violating the provisions of this section is guilty of a misdemeanor.

(Added to NRS by 1967, 765; A 1985, 347)—(Substituted in revision for NRS 598.050)

NRS 597.910 Sales of rifles and shotguns to residents of Nevada and contiguous states in accordance with federal law.

1. Residents of the State of Nevada may purchase rifles and shotguns in states contiguous to Nevada if:

(a) Such residents conform to the applicable provisions of the federal firearms control law (18 U.S.C. §§ 921 et seq.) and any regulation promulgated thereunder.

(b) Such residents conform to the provisions of law applicable to such a purchase in Nevada and in the state where the purchase is made.

2. Residents of a state contiguous to the State of Nevada may purchase rifles and shotguns in Nevada if:

(a) Such residents conform to the applicable provisions of the federal firearms control law (18 U.S.C. §§ 921 et seq.) and any regulation promulgated thereunder.

(b) Such residents conform to the provisions of law applicable to such purchase in Nevada and in the state where such persons reside.

(Added to NRS by 1969, 730)—(Substituted in revision for NRS 598.060)

NRS 597.915 Informal merchants: Prohibited acts; penalty; evidence of legal acquisition of new product.

1. An informal merchant shall not offer for sale or knowingly allow the sale of any new product that he knows or reasonably should have known is stolen, has been recalled by the manufacturer, has been adulterated, has not been maintained at the proper temperature, has an expiration date that has passed, has been discarded by the manufacturer or a retailer, is an inferior product if he does not clearly indicate such inferiority, or has any other defect that makes the product ineffective for the use for which it is purchased or that makes the product below the quality expected by the consumer.

2. An informal merchant who violates the provisions of subsection 1 shall be punished:

(a) If the sale of the product does not cause substantial bodily harm to another person, for a gross misdemeanor.

(b) If the sale of the product causes substantial bodily harm to another person, for a category C felony as provided in NRS 193.130.

3. Upon request of a peace officer, an informal merchant shall provide reliable evidence of the legal acquisition of a new product that the merchant is offering for sale. If it is determined that the product was stolen and the informal merchant fails to provide such evidence, an inference is created that the informal merchant knew or should have known that the product was stolen.

4. As used in this section:

(a) “Informal market” means:

(1) A gathering at which:

(I) Two or more persons offer personal property for sale or exchange;

(II) A fee is charged for the sale or exchange of personal property; or

(III) A fee is charged for admission to the area in which personal property is offered for sale or exchange; or

(2) A place at which personal property is offered or displayed for sale or exchange on more than six occasions in a period of 12 months,

Ê whether held in a building, under cover or in the open air.

(b) “Informal merchant” means a person who does not have an established retail store in the county and who transports an inventory of goods to an informal market and displays the goods for sale, offers them for sale at retail or sells them at retail.

(c) “New product” means any tangible good which has never been used or which is in its original, unopened package or container.

(d) “Stolen” means taken unlawfully from or without the permission of the owner, whether or not the person who took the item is or has been prosecuted or convicted for the taking of the item.

(Added to NRS by 1999, 2543)

NRS 597.940 Restrictions on recording of account number of credit card as condition to accepting check or draft; restrictions on recording of telephone number as condition to accepting credit card.

1. Except as otherwise provided in this subsection, a business shall not, without the customer’s consent, record the account number of any of a customer’s credit cards on the customer’s check or draft as a condition of accepting that check or draft. This subsection does not prohibit:

(a) The business from requiring the customer to produce reasonable forms of positive identification other than a credit card, including, without limitation:

(1) A driver’s license;

(2) An identification card issued by the Department of Motor Vehicles; or

(3) A consular identification card,

Ê as a condition of accepting a check or draft.

(b) The business from requesting the customer to display a credit card as an indicia of creditworthiness or financial responsibility, if the only information recorded by the business concerning the credit card is the type of credit card displayed, the issuer of the card and the date the card expires.

(c) The business from requesting the customer to record the account number of his credit card on the check or draft with which payment on the credit card account is being made.

(d) The business from requesting the production of or recording of the account number of a credit card as a condition of cashing a check or draft if:

(1) The business has agreed with the issuer of the credit card to cash the checks or drafts as a service to the cardholders of the issuer;

(2) The issuer has agreed to guarantee any such check or draft so cashed; and

(3) The cardholder has given actual, apparent or implied authority for the use of his account number for this purpose.

2. Except as otherwise provided in this subsection, a business shall not, without the customer’s consent, record a customer’s telephone number on the credit card sales slip as a condition of accepting his credit card. This subsection does not:

(a) Prohibit the recordation of personal identifying information required for a special purpose incidental to the use of the credit card, such as the delivery, shipping, servicing or installation of the purchased merchandise.

(b) Apply to a transaction in which the customer receives a cash advance against his credit card or to a transaction involving the use of preprinted spaces for personal identifying information that the business accepting the credit card has a contractual obligation to record in order to complete the transaction.

(c) Apply to a transaction in which the customer’s purchase is made by the use of a device that electronically authorizes the use of the credit card and processes information relating thereto.

3. As used in this section, unless the context otherwise requires:

(a) “Consular identification card” means an identification card issued by a consulate of a foreign government, which consulate is located within the State of Nevada.

(b) “Credit card” has the meaning ascribed to it in NRS 205.630.

(c) “Identification card issued by the Department of Motor Vehicles” means an identification card of the type described in NRS 483.810 to 483.890, inclusive.

(Added to NRS by 1991, 1418; A 2003, 1936)

NRS 597.945 Restrictions on printing expiration date or account number of credit card or debit card on receipt.

1. Except as otherwise provided in this section, if a person accepts credit cards or debit cards for the transaction of business, the person shall not do any of the following:

(a) Print the expiration date of the credit card or debit card on any receipt provided to the cardholder.

(b) Print more than the last five digits of the account number of the credit card or debit card on any receipt provided to the cardholder.

2. This section:

(a) Applies only to receipts that are electronically printed.

(b) Does not apply to transactions in which the only means of recording the credit card or debit card number is:

(1) By handwriting the credit card or debit card number; or

(2) By imprinting or copying the credit card or debit card.

3. If any cash register or other machine or device that electronically prints receipts for credit card or debit card transactions was first put into use before October 1, 2003, the provisions of this section do not apply to any transaction that occurs with regard to that cash register or other machine or device before January 1, 2008.

4. As used in this section:

(a) “Credit card” means any instrument or device, whether known as a credit card, credit plate or by any other name, issued with or without fee by an issuer for the use of the cardholder in obtaining money, property, goods, services or anything else of value on credit.

(b) “Debit card” means any instrument or device, whether known as a debit card or by any other name, that is issued with or without a fee by an issuer for the use of the cardholder in obtaining money, property, goods, services or anything else of value, subject to the issuer removing money from the checking account or savings account of the cardholder.

(Added to NRS by 2003, 1358)

NRS 597.950 Unsolicited merchandise deemed unconditional gift to recipient; liability of sender; exceptions.

1. Any person who receives unsolicited goods, wares or merchandise offered for sale, but not actually ordered or requested by him orally or in writing, is entitled to consider those goods, wares or merchandise an unconditional gift, and he may use or dispose of them as he sees fit without obligation on his part to the sender.

2. The sender of unsolicited goods, wares or merchandise must pay actual and reasonable expenses incurred by the recipient:

(a) In returning the goods, wares or merchandise to the sender; or

(b) In resisting attempts by the sender to collect payment for the goods, wares or merchandise.

3. The sender of unsolicited goods, wares or merchandise is liable to the recipient for any impairment of the credit of the recipient caused by attempts by the sender to collect payment for the goods, wares or merchandise.

4. The provisions of subsections 1, 2 and 3 do not apply to the following:

(a) Where delivery of goods, wares or merchandise is by mistake in response to an order to the sender for other goods, wares or merchandise.

(b) Where delivery is made by mistake to someone other than a person who ordered goods, wares or merchandise from the sender.

(c) Where the sender has sent a substitute or substitutes in response to an order for certain goods, wares or merchandise.

(d) Where someone has ordered a gift for another from the sender, and the goods, wares or merchandise were sent directly to the recipient of the gift.

(e) Where delivery of goods, wares or merchandise is made by mistake to a member of a subscription-type plan (such as a book club or record club) operated by the sender.

(Added to NRS by 1971, 383; A 1979, 188)—(Substituted in revision for NRS 598.090)

NRS 597.960 Collection of fee for dishonored check accepted as payment for goods or services.

1. A seller, or his agent, may collect a fee of not more than $25 for each check which was accepted by the seller as payment for goods or services and, upon presentment to the drawee, was not honored because the drawer stopped payment on the check, the drawer does not have an account with the drawee or the drawer does not have sufficient funds in his account or credit with the drawee to cover the amount of the check.

2. As used in this section:

(a) “Check” includes a draft or other negotiable order for the payment of money on demand which is drawn on a bank or other financial institution.

(b) “Drawee” means the person ordered in the check to make payment.

(Added to NRS by 1995, 342)

NRS 597.970 Restrictions on transfer of personal information through electronic transmission. [Effective October 1, 2008.]

1. A business in this State shall not transfer any personal information of a customer through an electronic transmission other than a facsimile to a person outside of the secure system of the business unless the business uses encryption to ensure the security of electronic transmission.

2. As used in this section:

(a) “Encryption” has the meaning ascribed to it in NRS 205.4742.

(b) “Personal information” has the meaning ascribed to it in NRS 603A.040.

(Added to NRS by 2005, 2506, effective October 1, 2008)