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Arkansas Code Title 4. Business and Commercial Law § 4-99-107. Bond requirement--Promotions--Notice prior to inception

Current as of March 28, 2024 | Updated by Findlaw Staff

(a)(1) A telephonic seller shall maintain a bond issued by a surety company authorized to do business in this state.

(2) The bond shall be in the amount of fifty thousand dollars ($50,000) in favor of the State of Arkansas for the benefit of a person suffering injury or loss by reason of a violation of this chapter, to be paid under the terms of any order of a court of competent jurisdiction obtained by the Attorney General or prosecuting attorney as a result of a violation of this chapter.

(3) A copy of the bond shall be filed with the Secretary of State.

(b)(1) At least ten (10) days before the inception of a promotion offering a premium with an actual market value or advertised value of five hundred dollars ($500) or more, the telephonic seller shall notify the Secretary of State in writing of the details of the promotion, describing the premium, its current market value, the value at which it is advertised or held out to the consumer, the date the premium shall be awarded, and the conditions under which the award shall be made.

(2)(A)(i) The telephonic seller shall maintain an additional bond for the total current market value or advertised value, whichever is greater, of the premiums held out or advertised to be available to a purchaser or recipient.

(ii) A copy of the bond shall be filed with the Secretary of State.

(B) The bond or portion thereof necessary to cover the cost of the award shall be forfeited if the premium is not awarded to a bona fide customer within thirty (30) days of the date disclosed as the time of award or other time required by law.

(C) A person suffering injury or loss by reason of any violation of this chapter shall be paid the proceeds of the bond, or shall be paid under the terms of any order of a court of competent jurisdiction obtained by the Attorney General or prosecuting attorney as a result of any violation of this chapter.

(D) The bond shall be maintained until the seller files with the Secretary of State proof that the premium was awarded.

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Cite this article: FindLaw.com - Arkansas Code Title 4. Business and Commercial Law § 4-99-107. Bond requirement--Promotions--Notice prior to inception - last updated March 28, 2024 | https://codes.findlaw.com/ar/title-4-business-and-commercial-law/ar-code-sect-4-99-107/

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