This part shall not apply to:

(1) Any buyers club in which the total consideration paid by each buyer in any manner whatsoever under the contract for discount buying services does not exceed fifty dollars ($50.00) over the expected life of the contract;

Terms Used In Tennessee Code 47-18-506

  • Attorney general: means the attorney general and reporter, or the attorney general and reporter's designee. See Tennessee Code 47-18-501
  • club: means any person, corporation, partnership, unincorporated association, or other business enterprise operating for profit within the state of Tennessee, the primary purpose of which is to provide benefits to members from the cooperative purchase of services or merchandise. See Tennessee Code 47-18-501
  • Contract: A legal written agreement that becomes binding when signed.
  • Contract: means any oral or written agreement by which one becomes a member of a club. See Tennessee Code 47-18-501
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Person: means a natural person, consumer, individual, governmental agency, partnership, corporation, trust, estate, incorporated or unincorporated association, and any other legal or commercial entity however organized. See Tennessee Code 47-18-2102
  • Prepayment: means any payment greater than fifty dollars ($50. See Tennessee Code 47-18-501
(2) Any buyers club in which persons receive discount buyer services incidentally as part of a package of services provided to or available to such individuals on account of their membership in such organization, which is not organized for the profit of any person or corporation or which does not have as one (1) of its primary purposes or businesses the provision of discount buying services; and
(3) Any buyers club which files with the attorney general a declaration, executed under penalty of perjury by the owner or manager of such club, stating that the club does not require or, in the ordinary course of business, receive prepayment.
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