44-1271

44-1271. Definitions

In this article, unless the context otherwise requires:

1. "Consumer" means a person who is solicited by a seller or solicitor.

2. "Licensed associated person of a securities, commodities or investments broker"
means any associated person registered or licensed by the national association of
securities dealers, a self-regulatory organization as defined in the securities exchange
act of 1934 (15 United States Code section 78c) or an official or agency of this state or
of any other state of the United States.

3. "Licensed securities commodities or investments broker, dealer or investment
advisor" means a person licensed or registered as a securities commodities or investments
broker, dealer or investment advisor by the securities and exchange commission, the
national association of securities dealers, a self-regulatory organization as defined in
the securities exchange act of 1934 (15 United States Code section 78c) or an official or
agency of this state or of any other state of the United States.

4. "Manager" means a person who supervises the work of a solicitor.

5. "Merchandise" means objects, wares, goods, commodities, intangibles, real
estate, securities or services.

6. "Person" means:

(a) A natural person or the person's legal representative.

(b) A partnership, a limited liability company, a limited liability partnership or
a domestic or foreign corporation.

(d) An agent, employee, salesman, partner, officer, director, member, stockholder,
associate or trustee.

(e) Any other legal entity or any group associated in fact although not a legal
entity.

7. "Premium" means any gift, bonus, prize, award or other incentive or inducement
to purchase merchandise.

8. "Principal" means an owner or an officer of a corporation or limited liability
company, a general partner of a partnership, a sole proprietor of a sole proprietorship,
a partner of a limited liability partnership, a trustee of a trust and any other
individual who controls, manages or supervises a telephone sales operation.

9. "Prize" means anything offered or purportedly offered and given or purportedly
given to a person by chance. Chance exists if a person is guaranteed to receive an item
and at the time of the offer or purported offer the seller or solicitor does not identify
the specific item that the person will receive.

10. "Prize promotion" means a sweepstakes or other game of chance or an oral or
written express or implied representation that a person has won, has been selected to
receive or may be eligible to receive a prize or purported prize.

11. "Recovery service" means any business or other practice in which a person
represents or implies that the person will recover or assist in recovering for a fee any
amount of money that a consumer has provided to a seller pursuant to a telephone
solicitation.

12. "Seller" means a person who, directly or through a solicitor, does any of the
following:

(a) Initiates telephone calls to provide or arrange to provide merchandise to
consumers in exchange for payment.

(b) Solicits by telephone in response to inquiries from a consumer generated by a
notification or communication sent or delivered to the consumer that represents or
implies that:

(i) The consumer has been specially selected in any manner to receive the
notification or communication or the offer contained in the notification or
communication.

(ii) The consumer will receive a premium if the consumer calls the person.

(iii) If the consumer purchases merchandise from the person, the consumer will also
receive additional or other merchandise, the same as or different from the type of
merchandise purchased, without any additional charge or for a price that the person
represents or implies is less than the regular price of the merchandise.

(iv) The person is offering for sale the services of a recovery service.

(v) The person is offering to make a loan, to arrange or assist in arranging a loan
or to assist in providing information that may lead to obtaining a loan unless no payment
of any kind is made until the loan proceeds are disbursed to the borrower.

(vi) The consumer will receive a credit card if the consumer pays a fee for the
card before receiving the card.

(c) Solicits by telephone in response to inquiries generated by advertisements on
behalf of the person that represent or imply that:

(i) The person is offering to sell the services of a recovery service.

(ii) The person is offering to make a loan, to arrange or assist in arranging a
loan or to assist in providing information that may lead to obtaining a loan unless no
payment of any kind is made until the loan proceeds are disbursed to the borrower.

(iii) The consumer will receive a credit card if the consumer pays a fee for the
card before receiving the card.

13. "Solicitor" means a person, other than a seller or employee of a seller, who
uses a telephone to seek sales or rentals of merchandise on behalf of a seller or uses a
telephone to verify sales or rentals for a seller.

14. "Subscriber" means a person who subscribes to residential telephone service from
a local exchange company and any person who lives or subscribes with that person.

15. "Telephone solicitation" means any voice communication to a telephone number in
this state from a live operator, announcing device or otherwise to offer merchandise for
sale or rent.