A. Any transfer by a discount buying organization of its duty or obligation to provide services to buyers under its contracts for discount buying services to another individual, corporation or other business entity as a result of which a buyer has available substantially fewer goods and services constitutes a complete defense to an action for further enforcement of or collection on such a contract for discount buying services which may be asserted by any buyer who did not consent in writing, after a full and fair disclosure of the categories of goods and services to be provided by the new discount buying organization, to such transfer of the duty or obligation of performance and entitles such a nonconsenting individual to rescind the contract and obtain a pro rata refund from the transferor.

Terms Used In Arizona Laws 44-1797.15

  • Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
  • Contract: A legal written agreement that becomes binding when signed.
  • 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.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • organization: means a person, corporation, unincorporated association or other organization that, for a consideration, provides or purports to provide its clients or the clients or members of any other discount buying organization with the ability to purchase goods or services at discount prices, except that such organization does not include:

    (a) A discount buying organization in which the total consideration paid by each client or member in any manner whatsoever for the purchase of discount buying services from such organization does not exceed a one-time fee of fifty dollars or an annual fee of fifty dollars to be paid on a yearly basis. See Arizona Laws 44-1797

  • Pro rata refund: means the actual amount paid for the discount buying services excluding interest, less the product of the actual amount paid for the discount buying services excluding interest multiplied by a fraction, the numerator of which is the number of months the person was a member of the discount buying organization and the denominator of which is thirty. See Arizona Laws 44-1797
  • Writing: includes printing. See Arizona Laws 1-215

B. For the purposes of this section, "substantially fewer goods and services" is defined to be less than seventy-five per cent of the lines of merchandise, catalogs or types of services available than at the time the buyer entered into the contract with the discount buying organization.

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