§ 552a-2

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 491which have been determined to be exempt from taxation under section 501(c)(12) of theInternal 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 considerationof no more than fifty dollars for a one-year period. Consideration for this purpose includesbut 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

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 definedby section 3508 of the Internal Revenue Code, where the initial contract establishing therelationship with the direct seller is terminable at will by either party, and where thecorporation, partnership, unincorporated association, or other business enterprise offers torepurchase 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 resalablecondition within one year from the direct seller’s date of purchase. The repurchase shallbe at a price not less than ninety percent of the original net cost to the direct seller of theproducts being returned. 'Original net cost' means the amount actually paid by the directseller for the products, less any consideration received by the direct seller for the purchaseof the products being returned. Products which are no longer marketed by a program shallbe deemed resalable if the products are

s, less any consideration received by the direct seller for the purchaseof the products being returned. Products which are no longer marketed by a program shallbe deemed resalable if the products are otherwise in an unused, commercially resalablecondition and are returned to the seller within one year from the direct seller’s date ofpurchase, provided, however, that products which are no longer marketed by a programshall 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 theproduct was clearly disclosed to the direct seller prior to purchase. 93 Acts, ch 60, §2; 2012 Acts, ch 1023, §157Referred to in §557B.14 Sat Dec 23 01:48:44 2023 Iowa Code 2024, Section 552A.2 (17, 0)