reglab/statecodes huggingface dataset:
2023 Iowa Code › Title XIII - COMMERCE › Chapter 549 - MUSIC LICENSING FEES › Section 549.6 - Investigations.

549.6 Investigations.
This chapter shall not be construed to prohibit a performing rights society from conducting investigations to determine the existence of music use by a proprietor or informing a proprietor of the proprietor’s obligations under the federal copyright law, 17 U.S.C. §101 et seq.
96 Acts, ch 1155, §6
2023 Iowa Code › Title XIII - COMMERCE › Chapter 549 - MUSIC LICENSING FEES › Section 549.8 - Remedies cumulative.

549.8 Remedies cumulative.
The rights, remedies, and prohibitions contained in this chapter shall be in addition to and cumulative of any other right, remedy, or prohibition accorded by common law or state or federal law. This chapter shall not be construed to deny, abrogate, or impair any such common law or statutory right, remedy, or prohibition.
96 Acts, ch 1155, §8
2023 Iowa Code › Title XIII - COMMERCE › Chapter 549 - MUSIC LICENSING FEES › Section 549.9 - Exceptions.

549.9 Exceptions.
This chapter shall not apply to a contract between a performing rights society or a copyright owner and a broadcaster licensed by the federal communications commission, or to a contract with a cable operator, programmer, or other transmission service. This chapter shall not apply to a nondramatic musical or similar work performed in synchronization with an audio or visual film or tape. This chapter shall also not apply to the gathering of information to determine compliance with or activities related to the enforcement of section 714.15.
96 Acts, ch 1155, §9
2023 Iowa Code › Title XIII - COMMERCE › Chapter 550 - TRADE SECRETS › Section 550.2 - Definitions.

550.2 Definitions.
As used in this chapter, unless the context otherwise requires:
1. “Improper means” means theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage, including but not limited to espionage through an electronic device.
2. “Knows” or “knowledge” means that a person has actual knowledge of information or a circumstance or that the person has reason to know of the information or circumstance.
3. “Misappropriation” means doing any of the following:
a. Acquisition of a trade secret by a person who knows that the trade secret is acquired by improper means.
b. Disclosure or use of a trade secret by a person who uses improper means to acquire the trade secret.
c. Disclosure or use of a trade secret by a person who at the time of disclosure or use, knows that the trade secret is derived from or through a person who had utilized improper means to acquire the trade secret.
d. Disclosure or use of a trade secret by a person who at the time of disclosure or use knows that the trade secret is acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use.
e. Disclosure or use of a trade secret by a person who at the time of disclosure or use knows that the trade secret is derived from or through a person who owes a duty to maintain the trade secret’s secrecy or limit its use.
f. Disclosure or use of a trade secret by a person who, before a material change in the person’s position, knows that the information is a trade secret and that the trade secret has been acquired by accident or mistake.
4. “Trade secret” means information, including but not limited to a formula, pattern, compilation, program, device, method, technique, or process that is both of the following:
a. Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by a person able to obtain economic value from its disclosure or use.
b. Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
90 Acts, ch 1201, §2; 91 Acts, ch 35, §1
Referred to in §716.6B
2023 Iowa Code › Title XIII - COMMERCE › Chapter 550 - TRADE SECRETS › Section 550.3 - Injunctive relief.

550.3 Injunctive relief.
1. The owner of a trade secret may petition the district court to enjoin an actual or threatened misappropriation. Upon application to the district court, an injunction shall be terminated when the trade secret has ceased to exist. However, the injunction may be continued for an additional reasonable period of time in order to eliminate a commercial advantage that otherwise would be derived from the misappropriation.
2. In exceptional circumstances, an injunction may condition future use of a trade secret upon payment of a reasonable royalty. The payment of a royalty shall continue for a period no longer than the period for which use of the trade secret may be prohibited. Exceptional circumstances include, but are not limited to, a material and prejudicial change of position of the person prior to acquiring knowledge of a misappropriation that renders a prohibitive injunction inequitable.
3. In appropriate circumstances, affirmative acts to protect a trade secret may be compelled by court order.
90 Acts, ch 1201, §3
2023 Iowa Code › Title XIII - COMMERCE › Chapter 550 - TRADE SECRETS › Section 550.4 - Damages.

550.4 Damages.
1. Except to the extent that a material and prejudicial change of a person’s position occurs prior to acquiring knowledge of a misappropriation and renders a monetary recovery inequitable, an owner of a trade secret is entitled to recover damages for the misappropriation. Damages may include the actual loss caused by the misappropriation, and the unjust enrichment caused by the misappropriation which is not taken into account in computing the actual loss. In lieu of damages measured by any other methods, the damages caused by misappropriation may be measured by imposition of liability for a reasonable royalty for a person’s unauthorized disclosure or use of a trade secret.
2. If a person commits a willful and malicious misappropriation, the court may award exemplary damages in an amount not exceeding twice the award made under subsection 1.
90 Acts, ch 1201, §4
2023 Iowa Code › Title XIII - COMMERCE › Chapter 550 - TRADE SECRETS › Section 550.5 - Defense — consent of disclosure.

550.5 Defense — consent of disclosure.
In an action for injunctive relief or damages against a person under this chapter, it shall be a complete defense that the person disclosing a trade secret made the disclosure with the implied or express consent of the owner of the trade secret.
90 Acts, ch 1201, §5
2023 Iowa Code › Title XIII - COMMERCE › Chapter 550 - TRADE SECRETS › Section 550.6 - Attorney fees.

550.6 Attorney fees.
The court may award actual and reasonable attorney fees to the prevailing party in an action under this chapter if any of the following is applicable:
1. A claim of misappropriation is made in bad faith.
2. A motion to terminate an injunction is made or resisted in bad faith.
3. A person acts willfully and maliciously in the misappropriation.
90 Acts, ch 1201, §6
2023 Iowa Code › Title XIII - COMMERCE › Chapter 550 - TRADE SECRETS › Section 550.7 - Preservation of secrecy.

550.7 Preservation of secrecy.
In an action brought under this chapter, a court shall preserve the secrecy of an alleged trade secret by reasonable means, including but not limited to granting protective orders in connection with discovery proceedings, holding in-camera hearings, sealing the records of the action, and ordering a person involved in the litigation not to disclose an alleged trade secret without prior court approval.
90 Acts, ch 1201, §7
2023 Iowa Code › Title XIII - COMMERCE › Chapter 550 - TRADE SECRETS › Section 550.8 - Statute of limitations.

550.8 Statute of limitations.
An action for misappropriation under this chapter must be brought within three years after the misappropriation is discovered or should have been discovered by the exercise of reasonable diligence. For purposes of this section, a continuing misappropriation constitutes a single claim.
90 Acts, ch 1201, §8
2023 Iowa Code › Title XIII - COMMERCE › Chapter 551 - UNFAIR DISCRIMINATION › Section 551.1 - Unfair discrimination in sales.

551.1 Unfair discrimination in sales.
Any person, firm, company, association, or corporation, foreign or domestic, doing business in the state, and engaged in the production, manufacture, sale, or distribution of any commodity of commerce or commercial services excepting those, the rate of which is now subject to control of cities or other governmental agency, that shall, for the purpose of destroying the business of a competitor in any locality or creating a monopoly, discriminate between different sections, localities, communities or cities of this state, by selling such commodity or commercial services excepting those, the rate of which is now subject to control of cities or other governmental agency at a lower price or rate in one section, locality, community or city than such commodity or commercial services excepting those, the rate of which is now subject to control of cities or other governmental agency is sold for by said person, firm, association, company, or corporation, in another section, locality, community or city, after making due allowance in case of telephone service for the difference in the cost of furnishing service in different localities, and in the case of commodities and commercial services other than telephone service, for the difference, if any, in the grade or quality, and in the actual cost of transportation from the point of production or purchase, if a raw product, or from the point of manufacture, if a manufactured product, to a place of sale, storage, or distribution shall be deemed guilty of unfair discrimination, which is hereby prohibited and declared to be unlawful; provided, however, that prices made to meet competition in such section, locality, community or city shall not be in violation of this section.
[S13, §5028-b; C24, 27, 31, 35, 39, §9885; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §551.1]
Referred to in §551.4, 551.5, 551.6, 551.7, 551.8, 551.9
2023 Iowa Code › Title XIII - COMMERCE › Chapter 551 - UNFAIR DISCRIMINATION › Section 551.2 - Unfair discrimination in purchases.

551.2 Unfair discrimination in purchases.
Any person, firm, association, company, or corporation, foreign or domestic, doing business in the state, and engaged in the business of purchasing for manufacture, storage, sale, or distribution, any commodity of commerce that shall, for the purpose of destroying the business of a competitor or creating a monopoly, discriminate between different sections, localities, communities or cities, in this state, by purchasing such commodity at a higher rate or price in one section, locality, community or city, than is paid for such commodity by such party in another section, locality, community or city, after making due allowance for the difference, if any, in the grade or quality, and in the actual cost of transportation from the point of purchase to the point of manufacture, sale, distribution, or storage, shall be deemed guilty of unfair discrimination, which is hereby prohibited and declared to be unlawful; provided, however, that prices made to meet competition in such section, locality, community or city shall not be in violation of this section.
[S13, §5028-b; C24, 27, 31, 35, 39, §9886; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §551.2]
Referred to in §551.4, 551.5, 551.6, 551.7, 551.8, 551.9
2023 Iowa Code › Title XIII - COMMERCE › Chapter 551 - UNFAIR DISCRIMINATION › Section 551.4 - Penalty.

551.4 Penalty.
Any person, firm, company, association, or corporation violating any of the provisions of sections 551.1 and 551.2, and any officer, agent, or receiver of any firm, company, association, or corporation, or any member of the same, or any individual violating any of such provisions shall be guilty of a serious misdemeanor.
[S13, §5028-c; C24, 27, 31, 35, 39, §9888; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §551.4]
Referred to in §551.6
2023 Iowa Code › Title XIII - COMMERCE › Chapter 551 - UNFAIR DISCRIMINATION › Section 551.5 - Contracts or agreements.

551.5 Contracts or agreements.
All contracts or agreements made in violation of any of the provisions of sections 551.1 and 551.2 shall be void.
[S13, §5028-d; C24, 27, 31, 35, 39, §9889; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §551.5]
Referred to in §551.6
2023 Iowa Code › Title XIII - COMMERCE › Chapter 551 - UNFAIR DISCRIMINATION › Section 551.6 - Enforcement.

551.6 Enforcement.
It shall be the duty of the county attorneys, in their counties, and the attorney general, to enforce the provisions of sections 551.1, 551.2, 551.4, and 551.5, by appropriate actions in courts of competent jurisdiction.
[S13, §5028-e; C24, 27, 31, 35, 39, §9890; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §551.6]
2021 Acts, ch 76, §134
2023 Iowa Code › Title XIII - COMMERCE › Chapter 551 - UNFAIR DISCRIMINATION › Section 551.7 - Complaint — to whom made.

551.7 Complaint — to whom made.
If complaint shall be made to the secretary of state that any corporation authorized to do business in this state is guilty of unfair discrimination, within the terms of sections 551.1 and 551.2, it shall be the duty of the secretary of state to refer the matter to the attorney general who may, if the facts justify it in the attorney general’s judgment, institute proceedings in the courts against such corporation.
[S13, §5028-f; C24, 27, 31, 35, 39, §9891; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §551.7]
2023 Iowa Code › Title XIII - COMMERCE › Chapter 551 - UNFAIR DISCRIMINATION › Section 551.8 - Revocation of permit.

551.8 Revocation of permit.
If any corporation, foreign or domestic, authorized to do business in this state, is found guilty of unfair discrimination, within the terms of sections 551.1 and 551.2, it shall be the duty of the secretary of state to immediately revoke the permit of such corporation to do business in this state.
[S13, §5028-g; C24, 27, 31, 35, 39, §9892; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §551.8]
2023 Iowa Code › Title XIII - COMMERCE › Chapter 551 - UNFAIR DISCRIMINATION › Section 551.9 - Corporation to be enjoined.

551.9 Corporation to be enjoined.
If after revocation of its permit such corporation, or any other corporation not having a permit and found guilty of having violated any of the provisions of sections 551.1 and 551.2, shall continue or attempt to do business in this state, it shall be the duty of the attorney general, by a proper suit in the name of the state of Iowa, to enjoin such corporation from transacting all business of every kind and character in said state.
[S13, §5028-h; C24, 27, 31, 35, 39, §9893; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §551.9]
2023 Iowa Code › Title XIII - COMMERCE › Chapter 551 - UNFAIR DISCRIMINATION › Section 551.10 - Cumulative remedies.

551.10 Cumulative remedies.
Nothing in this chapter shall be construed as repealing any other Act, or part of an Act, but the remedies herein provided shall be cumulative to all other remedies provided by law.
[S13, §5028-i; C24, 27, 31, 35, 39, §9894; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §551.10]
2013 Acts, ch 30, §139
2023 Iowa Code › Title XIII - COMMERCE › Chapter 551 - UNFAIR DISCRIMINATION › Section 551.11 - Exceptions.

551.11 Exceptions.
The provisions of this chapter shall not apply to any contract or agreement relating to any sale made to the state, its departments, commissions, agencies, boards and its governmental subdivisions.
[C71, 73, 75, 77, 79, 81, §551.11]
2023 Iowa Code › Title XIII - COMMERCE › Chapter 551A - BUSINESS OPPORTUNITY PROMOTIONS › Section 551A.2 - Scope.

551A.2 Scope.
1. The provisions of this chapter concerning sales and offers to sell apply to persons who sell or offer to sell a business opportunity when any of the following apply:
a. An offer to sell is made in this state.
b. An offer to purchase is made and accepted in this state.
c. The purchaser is domiciled in this state and the business opportunity is or will be operated in this state.
2. For the purpose of this section, an offer to sell is made in this state, whether or not either party is then present in this state, when either of the following apply:
a. The offer originates from this state.
b. The offer is directed by the offeror to this state and received at the place to which the offer is directed or at a post office in this state in the case of a mailed offer.
3. An offer to sell is not made in this state under either of the following circumstances:
a. If the offer appears in a bona fide newspaper or other publication of general circulation which is not published in this state, or which is published in this state but has had more than two-thirds of its circulation outside this state during the past twelve months.
b. If the offer is made on a radio or television program originating outside this state which is received in this state.
4. For the purpose of this section, an offer to sell is accepted in this state when both of the following occur:
a. The acceptance is communicated to the offeror in this state.
b. The acceptance has not previously been communicated to the offeror, orally, or in writing, outside this state. For the purpose of this section the acceptance is communicated to the offeror in this state, whether or not either party is then present in this state, when the offeree directs it to the offeror in this state reasonably believing the offeror to be in this state, and the acceptance is received at the place to which it is directed or at a post office in this state in the case of a mailed acceptance.
91 Acts, ch 205, §10
CS91, §523B.13
94 Acts, ch 1031, §22; 2004 Acts, ch 1104, §29, 30
C2005, §551A.2
2023 Iowa Code › Title XIII - COMMERCE › Chapter 551A - BUSINESS OPPORTUNITY PROMOTIONS › Section 551A.4 - Exemptions from requirements — burden of proof.

551A.4 Exemptions from requirements — burden of proof.
1. The following business opportunities are exempt from the requirements of section 551A.3:
a. The offer or sale of a business opportunity if the purchaser is a bank, federally chartered savings and loan association, trust company, insurance company, credit union, or investment company as defined by the federal Investment Company Act of 1940, 15 U.S.C. §80a-1 et seq., a pension or profit-sharing trust, or other financial institution or institutional buyer, or a broker-dealer registered pursuant to chapter 502, whether the purchaser is acting for itself or in a fiduciary capacity.
b. (1) An offer or sale of a business opportunity which is a franchise, provided that the seller delivers to each purchaser at the earlier of the first personal meeting between the seller and the purchaser, or fourteen days prior to the earlier of the execution by a purchaser of a contract imposing a binding legal obligation on the purchaser or the payment by a purchaser of any consideration in connection with the offer or sale of the business opportunity, one of the following disclosure documents:
(a) A uniform franchise offering circular prepared in accordance with the guidelines adopted by the North American securities administrators association, inc.
(b) A disclosure document prepared pursuant to the federal trade commission rule entitled “Disclosure requirements and prohibitions concerning franchising and business opportunity ventures”,
16 C.F.R. pt. 436
or any successor regulation.
(2) For the purposes of this paragraph “b”, a “personal meeting” means a face-to-face meeting between the purchaser and the seller or their representatives, which is held for the purpose of discussing the offer or sale of a business opportunity.
c. The offer or sale of a business opportunity for which the cash payment made by a purchaser does not exceed five hundred dollars and the payment is made for the not-for-profit sale of sales demonstration equipment, material, or samples, or the payment is made for product inventory sold to the purchaser at a bona fide wholesale price.
2. In an administrative, civil, or criminal proceeding related to this chapter, the burden of proving an exemption, an exception from a definition, or an exclusion from this chapter is upon the person claiming it.
[81 Acts, ch 171, §3]
C83, §523B.3
91 Acts, ch 205, §3; 98 Acts, ch 1189, §15, 16; 99 Acts, ch 90, §2, 3; 2004 Acts, ch 1104, §21, 30
C2005, §551A.4
2005 Acts, ch 56, §2; 2012 Acts, ch 1017, §152; 2012 Acts, ch 1023, §157; 2014 Acts, ch 1092, §192; 2015 Acts, ch 30, §173
2023 Iowa Code › Title XIII - COMMERCE › Chapter 551A - BUSINESS OPPORTUNITY PROMOTIONS › Section 551A.5 - Waiver of rights.

551A.5 Waiver of rights.
A waiver of this chapter by a purchaser prior to or at the time of sale is contrary to public policy and is void and unenforceable. An attempt by a seller to have a purchaser waive any rights given in this chapter is a violation of this chapter.
[81 Acts, ch 171, §9]
C83, §523B.9
2004 Acts, ch 1104, §30
C2005, §551A.5
2023 Iowa Code › Title XIII - COMMERCE › Chapter 551A - BUSINESS OPPORTUNITY PROMOTIONS › Section 551A.6 - Cancellation of contract.

551A.6 Cancellation of contract.
The purchaser has the right to cancel a contract with a seller for a business opportunity for any reason at any time within three business days of the date the purchaser signs the contract or the date the contract is accepted by the seller whichever is later. The notice of the right to cancel, the seller’s obligation to provide the purchaser with cancellation forms, and the procedures to be followed when a contract is canceled shall be the same as the procedures in chapter 555A for door-to-door sales.
[81 Acts, ch 171, §6]
C83, §523B.6
2004 Acts, ch 1104, §30
C2005, §551A.6
Referred to in §551A.3
2023 Iowa Code › Title XIII - COMMERCE › Chapter 551A - BUSINESS OPPORTUNITY PROMOTIONS › Section 551A.7 - Service of process — irrevocable consent.

551A.7 Service of process — irrevocable consent.
A seller shall file an irrevocable consent with the secretary of state. The seller shall file the irrevocable consent prior to executing a business opportunity contract or engaging in the sale of a business opportunity in this state. The irrevocable consent shall appoint the secretary of state to be the seller’s attorney to receive service of any lawful process in a noncriminal suit, action, or proceeding against the seller or the seller’s successor, executor, or administrator which arises under this chapter after the irrevocable consent has been filed. The irrevocable consent shall have the same force and validity as if the seller were served service of process personally.
2004 Acts, ch 1104, §20, 30
Referred to in §551A.3
2023 Iowa Code › Title XIII - COMMERCE › Chapter 551A - BUSINESS OPPORTUNITY PROMOTIONS › Section 551A.8 - Liability — remedies.

551A.8 Liability — remedies.
1. A person who violates the requirements for disclosure or for the contents of a business opportunity contract pursuant to section 551A.3 is liable to the purchaser in an action for rescission of the contract, or for recovery of all money or other valuable consideration paid for the business opportunity, and for actual damages together with interest as determined pursuant to section 668.13 from the date of sale, reasonable attorney fees, and court costs.
2. Every person who directly or indirectly controls a party liable under this section, every partner in a partnership so liable, every principal executive officer or director of a corporation so liable, every person occupying a similar status in, or performing similar functions for, and every employee of, a party so liable who materially aids in the act or transaction constituting the violation is also liable jointly and severally with and to the same extent as the party, unless the person liable as a result of the person’s relationship with the liable party as defined under this section proves that the person did not know, and in the exercise of reasonable care could not have known of the existence of the facts giving rise to the alleged liability. Among the persons held liable, a party paying more than the party’s percentage share of damages may recover judgment for contribution upon motion to the court or in a separate action.
3. An action shall not be maintained under this section unless commenced within three years after the act or transaction constituting the violation, or within one year after the discovery of the facts constituting the violation, whichever period later expires.
4. In addition to any remedies provided by law, a person injured by a violation of this chapter may bring a civil action and recover damages or obtain other appropriate relief including injunctive or other equitable relief. If the person is the prevailing party, the person shall be awarded court costs, reasonable attorney fees, and expert fees which shall be taxed as part of the costs of the action.
[81 Acts, ch 171, §7]
C83, §523B.7
91 Acts, ch 205, §6; 98 Acts, ch 1189, §17; 2004 Acts, ch 1104, §22 – 24, 30
C2005, §551A.8
2017 Acts, ch 54, §76
2023 Iowa Code › Title XIII - COMMERCE › Chapter 551A - BUSINESS OPPORTUNITY PROMOTIONS › Section 551A.9 - Fraudulent practices.

551A.9 Fraudulent practices.
1. Misleading statements. A person shall not make or cause to be made a misleading statement in a disclosure document required pursuant to section 551A.3 or in a proceeding under this chapter. The statement shall be deemed to be misleading if any of the following apply:
a. At the time and in the light of the circumstances under which it is made, the statement is false or misleading in a material respect.
b. An omission of a material fact is necessary in order to make the statement made, in the light of the circumstances under which it is made, not misleading.
2. Advertising. A seller shall not, in connection with the offer or sale of a business opportunity in this state, publish, circulate, or use advertising which contains an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading.
3. Misrepresentations, omissions, and misleading conduct. A seller of a business opportunity shall not do any of the following:
a. Misrepresent, by failure to disclose or otherwise, the known required total investment for such business opportunity.
b. Misrepresent or fail to disclose efforts to sell or establish more business opportunities than it is reasonable to expect the market or market area for the particular business opportunity to sustain.
c. Misrepresent the quantity or the quality of the products to be sold or distributed through the business opportunity.
d. Misrepresent the training and management assistance available to the purchaser.
e. Misrepresent the amount of profits, net or gross, which the purchaser can expect from the operation of the business opportunity.
f. Misrepresent, by failure to disclose or otherwise, the termination, transfer, or renewal provision of a business opportunity contract.
g. Falsely claim or imply that a primary marketer or trademark of products or services sponsors or participates directly or indirectly in the business opportunity.
h. Assign a so-called exclusive territory encompassing the same area to more than one purchaser.
i. Provide vending locations for which written authorizations have not been granted by the property owners or lessees.
j. Provide merchandise, machines, or displays of a brand or kind substantially different from or inferior to those promised by the seller.
k. Fail to provide the purchaser a written contract.
l. Misrepresent the ability of a person or entity providing services to provide locations or assist the purchaser in finding locations expected to have a positive impact on the success of the business opportunity.
m. Misrepresent or omit to state a material fact or create a false or misleading impression in the sale of a business opportunity.
91 Acts, ch 205, §9
CS91, §523B.12
98 Acts, ch 1189, §20; 2004 Acts, ch 1104, §26 – 28, 30
C2005, §551A.9
2005 Acts, ch 19, §116
Referred to in §551A.10
2023 Iowa Code › Title XIII - COMMERCE › Chapter 551A - BUSINESS OPPORTUNITY PROMOTIONS › Section 551A.10 - Penalties.

551A.10 Penalties.
1. A seller who willfully violates the requirements for disclosure or for the contents of a business opportunity contract pursuant to section 551A.3, who provides misleading advertising as provided in section 551A.9, who willfully violates a rule under this chapter, or who willfully violates an order of which the person has notice, upon conviction, is guilty of a class “D” felony. Otherwise, a person who violates a rule adopted or order issued under this chapter is, upon conviction, guilty of an aggravated misdemeanor. Each of the acts specified constitutes a separate offense and a prosecution or conviction for any one of such offenses does not bar prosecution or conviction for any other offense.
2. A violation of this chapter is an unlawful practice pursuant to section 714.16.
3. A seller who willfully uses any device or scheme to defraud a person in connection with an advertisement, offer to sell or lease, sale, or lease of a business opportunity, or who willfully violates any other provision of this chapter, except as provided in subsection 1, is, upon conviction, guilty of a fraudulent practice as provided in chapter 714.
[81 Acts, ch 171, §11]
C83, §523B.11
91 Acts, ch 205, §8; 98 Acts, ch 1189, §19; 2004 Acts, ch 1104, §25, 30
C2005, §551A.10
2013 Acts, ch 38, §1
2023 Iowa Code › Title XIII - COMMERCE › Chapter 552 - PHYSICAL EXERCISE CLUBS › Section 552.1 - Definitions.

552.1 Definitions.
As used in this chapter, unless the context otherwise requires:
1. “Contract price” means the total price paid or to be paid, including service charges or membership fees, which entitles the buyer either directly or indirectly to membership in a physical exercise club or to the use of the services or facilities of a physical exercise club.
2. “Finance charge” means “finance charge” as defined in section 537.1301, subsection 21.
3. “Physical exercise club” means a person offering services or facilities, or both, for the preservation, maintenance, encouragement, or development of physical fitness or well-being in return for the payment of a fee entitling the buyer to the use of the services or facilities. The term includes but is not limited to persons offering services and facilities known as “health clubs”, “health spas”, “sports and health clubs”, “tennis clubs”, “racquetball courts”, “golf clubs”, “gymnasiums”, “figure salons”, “health studios”, “weight control studios”, and persons operating establishments whose primary purpose is the teaching of a particular form of self-defense or martial arts, such as judo, karate, or kung fu. “Physical exercise club” does not include:
a. A person or establishment which does not charge a membership fee and from which a buyer may only purchase or become obligated to purchase the use of services or facilities to be rendered for a period of not more than thirty days, and which does not collect more than thirty days in advance for the rendering of the services.
b. Except for purposes of sections 552.4, 552.7, 552.13, 552.14, and 552.16, a nonprofit organization organized and operating as a nonprofit organization.
c. An entity primarily engaged in physical rehabilitation activities related to an individual’s injury or disease.
d. A private club owned and operated by its members.
e. Except for purposes of sections 552.4, 552.7, 552.13, and 552.14, a facility operated by the state or any of its political subdivisions.
f. A facility owned and operated on a not-for-profit basis by a person or a contractor of a person that is operated solely for the purpose of serving employees of the person, whether currently employed or retired, and family members of employees.
4. “Physical exercise club contract” means an agreement by which a buyer is entitled to membership in a physical exercise club or use of the services or facilities of a physical exercise club.
5. “Prepayment” means any partial or full payment for services or the use of facilities made before the services are actually made available by the physical exercise club or the facility is fully opened for business as described in section 552.16, subsection 3.
88 Acts, ch 1221, §1; 98 Acts, ch 1044, §1
Referred to in §552.12
2023 Iowa Code › Title XIII - COMMERCE › Chapter 552 - PHYSICAL EXERCISE CLUBS › Section 552.2 - Purpose.

552.2 Purpose.
The purpose of this chapter is to safeguard the public against fraud, deceit, and financial hardship and to foster and encourage competition, fair dealing, and prosperity in the field of physical exercise club operations and services by prohibiting or restricting practices by which the public has been injured in connection with contracts for and the marketing of physical exercise club services.
88 Acts, ch 1221, §2
2023 Iowa Code › Title XIII - COMMERCE › Chapter 552 - PHYSICAL EXERCISE CLUBS › Section 552.4 - Contracts for physical exercise club services — right of cancellation.

552.4 Contracts for physical exercise club services — right of cancellation.
1. A physical exercise club contract shall provide that the contract may be canceled within three business days after the date of receipt by the buyer of a copy of the signed contract. Cancellation shall be by written notice delivered to the seller at an address which shall be specified in the contract. Cancellation is complete upon mailing of the notice of cancellation. After receipt of the cancellation, the physical exercise club may request the return of contract forms, membership cards, and all other documents and evidence of membership previously delivered to the buyer. The buyer is entitled to a refund of the entire consideration paid for the contract, if any, less twenty dollars.
2. A physical exercise club contract shall in plain terms disclose whether the physical exercise club will allow the buyer to cancel the contract in the event of the death or disability of the buyer.
88 Acts, ch 1221, §4; 2021 Acts, ch 76, §150
Referred to in §552.1, 552.16
2023 Iowa Code › Title XIII - COMMERCE › Chapter 552 - PHYSICAL EXERCISE CLUBS › Section 552.5 - Contract — statement of buyer’s rights — form.

552.5 Contract — statement of buyer’s rights — form.
1. a. A physical exercise club contract shall be in writing and signed by the buyer. The contract shall state in at least ten point boldface type:
NOTICE TO BUYER: Do not sign this contract until you read it. Do not sign this contract if it contains blank spaces.
b. A copy of the physical exercise club contract shall be delivered to the buyer at the time the contract is signed.
2. a. A physical exercise club contract shall designate the date on which the buyer actually signs the contract and shall contain a statement of the buyer’s rights which complies with this subsection. The statement shall appear in the contract under the conspicuous caption “BUYER’S RIGHT TO CANCEL”, and shall read as follows:
................................................
(enter date of transaction)
You may cancel this transaction within three business days from the above date.
If you cancel, any payments made by you under the contract, less twenty dollars, and any negotiable instrument executed by you will be returned within forty-five days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled. After you cancel, the physical exercise club may request the return of all contracts, membership cards, and other documents or evidence of membership.
To cancel this transaction, send, or deliver a signed and dated copy of this cancellation notice or any other written notice by certified or registered mail to ................................ (name of seller), at ................................ (address of seller’s place of business) not later than midnight of ........................ (date).
I hereby cancel this transaction.
........................................
(Date)
....................................
(Buyer’s signature)
b. The full text of this statement shall be in ten point boldface type.
88 Acts, ch 1221, §5; 2012 Acts, ch 1023, §157
2023 Iowa Code › Title XIII - COMMERCE › Chapter 552 - PHYSICAL EXERCISE CLUBS › Section 552.6 - Delivery of physical exercise club rules.

552.6 Delivery of physical exercise club rules.
A physical exercise club contract shall include a complete statement of the rules of the physical exercise club, or an acknowledgment in a conspicuous form that the buyer has received a copy of the rules. Physical exercise club rules shall include, but are not limited to, the hours of operation.
88 Acts, ch 1221, §6
2023 Iowa Code › Title XIII - COMMERCE › Chapter 552 - PHYSICAL EXERCISE CLUBS › Section 552.7 - Buyer’s cancellation.

552.7 Buyer’s cancellation.
If a buyer cancels a physical exercise club contract pursuant to the three-day cancellation provision, the physical exercise club shall send the buyer a written confirmation of cancellation, together with the buyer’s refund and any negotiable instruments executed by the buyer, within forty-five days after receipt by the physical exercise club of the buyer’s cancellation notice. If the physical exercise club fails to send the written confirmation to the buyer within forty-five days after receiving a timely cancellation, the physical exercise club is deemed to have accepted the cancellation.
88 Acts, ch 1221, §7
Referred to in §552.1
2023 Iowa Code › Title XIII - COMMERCE › Chapter 552 - PHYSICAL EXERCISE CLUBS › Section 552.8 - Duration of contract — renewal.

552.8 Duration of contract — renewal.
A physical exercise club contract shall not have a duration longer than thirty-six months. If a physical exercise club offers a contract of more than twelve months duration, it shall also offer a twelve-month contract. A physical exercise club contract shall not contain an automatic renewal clause.
88 Acts, ch 1221, §8
2023 Iowa Code › Title XIII - COMMERCE › Chapter 552 - PHYSICAL EXERCISE CLUBS › Section 552.9 - Notice of membership plans, prices, and right of cancellation.

552.9 Notice of membership plans, prices, and right of cancellation.
The physical exercise club shall orally inform the buyer prior to the buyer’s entering into a physical exercise club contract of the three-day cancellation provision and provide the buyer with a written list of all membership plans and their respective prices.
88 Acts, ch 1221, §9
2023 Iowa Code › Title XIII - COMMERCE › Chapter 552 - PHYSICAL EXERCISE CLUBS › Section 552.10 - Statement regarding assignability of buyer’s obligation.

552.10 Statement regarding assignability of buyer’s obligation.
If the buyer’s obligation is in a form that may be assigned, the contract shall state in boldface type on the front page of the contract that the contract may be discounted and sold to third parties to whom the buyer will become obligated to make full payment.
88 Acts, ch 1221, §10
2023 Iowa Code › Title XIII - COMMERCE › Chapter 552 - PHYSICAL EXERCISE CLUBS › Section 552.11 - Buyer’s rights upon assignment.

552.11 Buyer’s rights upon assignment.
1. A physical exercise club contract is not assignable by the physical exercise club without written notice of the assignment mailed to the buyer at the buyer’s address as stated in the contract. The notice shall identify the contract, state the name and address of the assignee, the amount payable by the buyer and the number, amounts, and due dates of any payments, and shall contain a conspicuous notice to the buyer of the provisions of subsection 2.
2. If the physical exercise club assigns the buyer’s obligation, the buyer has thirty days from the date of the mailing of the notice of the assignment within which to notify the assignee in writing of any claims or defenses the buyer may have against the physical exercise club. If written notification of the claims or defenses is not received by the assignee within the thirty-day period, the assignee has the right to enforce the contract free of any claims or defenses the buyer may have against the physical exercise club.
88 Acts, ch 1221, §11
2023 Iowa Code › Title XIII - COMMERCE › Chapter 552 - PHYSICAL EXERCISE CLUBS › Section 552.12 - Listing of equipment and services.

552.12 Listing of equipment and services.
1. A physical exercise club, which accepts prepayments as defined in section 552.1, subsection 5, shall compile a written list which shall be available to a buyer upon request showing:
a. The equipment by kind and quantity that is or will be made available.
b. Each service which the physical exercise club intends to have available for use by the buyers.
2. Subject to section 552.16, subsection 3, a physical exercise club that accepts prepayments shall not be considered fully open for business until all of the equipment and services so listed are actually available for use by the buyers.
88 Acts, ch 1221, §12; 2012 Acts, ch 1023, §157
2023 Iowa Code › Title XIII - COMMERCE › Chapter 552 - PHYSICAL EXERCISE CLUBS › Section 552.13 - Remedies — violations.

552.13 Remedies — violations.
1. If a physical exercise club violates a provision of this chapter, the buyer may cancel the physical exercise club contract. The buyer also has a right of action against the physical exercise club for recovery of the amount the buyer paid to the physical exercise club under the contract. In addition to any judgment awarded to the buyer, the court may allow reasonable attorney’s fees.
2. A violation of any of the provisions of this chapter shall be deemed an unlawful practice under section 714.16, subsection 2, paragraph “a”.
3. Unless displaced by the particular provisions of this chapter, the principles of law and equity supplement the provisions of this chapter.
88 Acts, ch 1221, §13
Referred to in §552.1
2023 Iowa Code › Title XIII - COMMERCE › Chapter 552 - PHYSICAL EXERCISE CLUBS › Section 552.14 - Prohibited activities.

552.14 Prohibited activities.
1. It is unlawful for a physical exercise club to make any misrepresentation to current members, prospective buyers, or buyers of physical exercise club contracts regarding:
a. Qualifications of staff.
b. Availability, quality, or extent of facilities or services.
c. Results obtained through exercise, dieting, or weight control programs.
d. Membership rights.
e. The period that a special offer or discount will be available.
2. It is unlawful for a physical exercise club to fail or refuse to establish the escrow account required by section 552.16.
3. It is unlawful for a physical exercise club to advertise, state, or represent that it is approved by the state or that it has complied with this chapter.
88 Acts, ch 1221, §14; 2000 Acts, ch 1021, §1
Referred to in §552.1
2023 Iowa Code › Title XIII - COMMERCE › Chapter 552 - PHYSICAL EXERCISE CLUBS › Section 552.17 - Consumer credit sales.

552.17 Consumer credit sales.
1. A physical exercise club contract where a finance charge is made or where payment is required or permitted by agreement to be made in more than four periodic payments, excluding a down payment, is a consumer credit sale within the meaning of section 537.1301, subsection 13, and is subject to chapter 537. If any periodic payment, other than the down payment under an agreement requiring or permitting two or more periodic payments, is more than twice the amount of any other periodic payment other than the down payment, a transaction is “payable in installments” within the meaning of section 537.1301, subsection 34.
2. The provisions of this chapter providing rights and protections to buyers are in addition to the provisions of chapter 537.
88 Acts, ch 1221, §17; 2021 Acts, ch 76, §150
2023 Iowa Code › Title XIII - COMMERCE › Chapter 552 - PHYSICAL EXERCISE CLUBS › Section 552.19 - Immunity.

552.19 Immunity.
Notwithstanding chapter 669, there is no liability on behalf of the state of Iowa, the attorney general, or the employees of the attorney general, for damages for failure to execute, or for negligently executing, the duties or authority conferred upon them by this chapter, or the rules adopted pursuant to this chapter.
88 Acts, ch 1221, §19
2023 Iowa Code › Title XIII - COMMERCE › Chapter 552A - BUYING CLUB MEMBERSHIPS › Section 552A.1 - Definitions.

552A.1 Definitions.
As used in this chapter, unless the context otherwise requires:
1. “Buying club” means a corporation, partnership, unincorporated association, or other business enterprise which sells or offers for sale to the public generally memberships or certificates of membership.
2. “Contract” means the agreement by which a person acquires a membership in a buying club.
3. “Membership” means certificates, memberships, shares, bonds, contracts, stocks, or agreements of any kind or character issued upon any plan offered generally to the public entitling the holder to purchase merchandise, materials, equipment, or service, either from the issuer or another person designated by the issuer, either under a franchise or otherwise, whether it be at a discount, at cost plus a percentage, at cost plus a fixed amount, at a fixed price, or on any other similar basis.
93 Acts, ch 60, §1
2023 Iowa Code › Title XIII - COMMERCE › Chapter 552A - BUYING CLUB MEMBERSHIPS › Section 552A.2 - Exemptions.

552A.2 Exemptions.
This chapter does not apply to any of the following:
1. Building and loan associations, state or national banks, insurance companies and associations, and mutual or cooperative telephone companies organized under chapter 491 which have been determined to be exempt from taxation under section 501(c)(12) of the Internal Revenue Code.
2. Corporations and cooperative associations subject to regulation under chapter 497, 498, or 499.
3. The sale of membership camping contracts by persons or entities registered or exempt under chapter 557B.
4. The sale of physical exercise club contracts by persons or entities registered under chapter 552.
5. Corporations, partnerships, unincorporated associations, or other business enterprises which sell or offer for sale memberships to an individual or to a family unit for consideration of no more than fifty dollars for a one-year period. Consideration for this purpose includes but is not limited to the amount of any required purchase under the terms of the contract.
6. a. The sale of goods or services by corporations, partnerships, unincorporated associations, or other business enterprises which sell products to direct sellers as defined by section 3508 of the Internal Revenue Code, where the initial contract establishing the relationship with the direct seller is terminable at will by either party, and where the corporation, partnership, unincorporated association, or other business enterprise offers to repurchase the products at reasonable commercial terms.
b. For purposes of this subsection, “reasonable commercial terms” includes the repurchase of all unencumbered products which are in an unused, commercially resalable condition within one year from the direct seller’s date of purchase. The repurchase shall be at a price not less than ninety percent of the original net cost to the direct seller of the products being returned. “Original net cost” means the amount actually paid by the direct seller for the products, less any consideration received by the direct seller for the purchase of the products being returned. Products which are no longer marketed by a program shall be deemed resalable if the products are otherwise in an unused, commercially resalable condition and are returned to the seller within one year from the direct seller’s date of purchase, provided, however, that products which are no longer marketed by a program shall not be deemed resalable if the products are sold to direct sellers as nonreturnable, discontinued, seasonal, or special promotion items and the nonreturnable nature of the product was clearly disclosed to the direct seller prior to purchase.
93 Acts, ch 60, §2; 2012 Acts, ch 1023, §157
Referred to in §557B.14