§514E-11.1  Deceptive trade practices. 
It shall constitute an unfair or deceptive practice, within the meaning of
chapter 480, for any developer, acquisition agent, or sales agent of time share
units or plans to:



(1)  Use any promotional device, including but not
limited to entertainment, prizes, gifts, food and drinks, games, or other
inducements without fully disclosing that the device is being used for the
purpose of soliciting sales of time share interests;



(2)  Offer a prospective purchaser a prize or gift, in
writing, as part of any time share advertising or sales promotion plan, if to
claim the prize or gift, the prospective purchaser must attend a sales
presentation, unless the written disclosure described in section 514E-11(3) is
furnished to the prospective purchaser at the time the prospective purchaser is
notified of the prize or gift; provided that the written disclosure is written
or printed in a size equal to at least ten-point bold type;



(3)  Fail to inform each purchaser orally and in writing,
at the time the purchaser signs the contract, of the purchaser's seven-day
right to cancel or void the contract to purchase a time share interest in a
time share plan or unit;



(4)  Misrepresent in any manner the purchaser's right
to cancel or void any contract to purchase a time share interest in a time
share plan or unit;



(5)  Include in any contract or document provisions
purporting to waive any right or benefit to which the purchaser is entitled
under this chapter;



(6)  Fail or refuse to honor any valid notice of
cancellation of the contract by the purchaser and, within fifteen business days
after receipt of such notice, fail or refuse to refund all payments made under
the contract or sale; or fail or refuse to cancel and return any negotiable
instrument executed by the purchaser in connection with the contract or sale
and take any appropriate action to terminate promptly any mortgage, lien, or
other security interest created in connection with the transaction;



(7)  Fail to include above the signature line of any
sales contract or, if no sales contract is used, above the signature line of
any agreement with the purchaser, in conspicuous bold type and capital letters,
the following:  "Any purchaser has, under the law, a seven-day right of
rescission of any time sharing sales contract";



(8)  Misrepresent the amount of time or period of time
the time share unit will be available to any purchaser;



(9)  Misrepresent or deceptively represent the
location or locations of the offered time share unit;



(10)  Misrepresent the size, nature, extent, qualities,
or characteristics of the offered time share units;



(11)  Misrepresent the nature or extent of any services
incident to the time share unit;



(12)  Misrepresent the conditions under which a
purchaser may exchange the purchaser's occupancy rights to a time share unit in
one location for occupancy rights to a time share unit in another location;



(13)  Fail to orally disclose during the initial oral
contact with a prospective purchaser that any promised entertainment, prizes,
gifts, food and drinks, games, or other inducements are being offered for the
purpose of soliciting sales of time share interests in time share units or
plans; or



(14)  Fail to include in promotional literature and
other printed or written material a disclosure that the product or activity
involves time share.  The director may by rule prescribe the nature of the
disclosure.  This paragraph shall not apply to a sign or banner, except as
provided in section 514E-11(11). [L 1981, c 81, pt of §1; am L 1984, c 165, §2;
am L 1985, c 114, §4; gen ch 1985; am L 2001, c 18, §1; am L 2005, c 81, §2]