Texas Business & Commerce Code - Section 40.003. Definitions
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§ 40.003. DEFINITIONS. (a) In this chapter:
(1) "Contest" means a promotional device in which:
(A) a person is offered, as an inducement to
attend a sales presentation, a chance to win or receive a prize by
complying with specified entry requirements;
(B) the chance to win any prize is determined by
random selection; and
(C) all offered prizes are awarded.
(2) "Contest period" means the duration of a contest
from the beginning date to the ending date.
(3) "Drawing" means a contest in which the recipient
of a prize is determined from all of the entries received.
(4) "Entry form" means a card, letter, entry blank,
token, or similar device that identifies a contestant by:
(A) name;
(B) number, letter, or symbol; or
(C) both name and number, letter, or symbol.
(5) "Gift" means an item of value that is offered,
transferred, or given to a person as an inducement to attend a sales
presentation but that is not offered, transferred, or awarded by
chance through a contest. The term does not include a
manufacturer's rebate or discount available to the public.
(6) "Major prize" means a prize that has an actual unit
cost to the offeror of at least $250.
(7) "Matched contest" means a contest in which:
(A) winning numbers are preselected, printed on
an entry form, and distributed to the public; and
(B) the numbers on the entry form are
subsequently matched with the list of winning numbers at a sales
location to determine prize eligibility.
(8) "Minor prize" means a prize that:
(A) has an actual unit cost to the offeror of less
than $250; and
(B) is transferred to a person who:
(i) attends a sales presentation; and
(ii) is not the winner of a major prize.
(9) "Odds of winning" means a ratio in which:
(A) the numerator equals the actual number of
units of an identified prize to be given away during a contest
period; and
(B) the denominator equals the number of entry
forms distributed or reasonably anticipated to be distributed
during the contest period.
(10) "Offeror" means a person who solicits a person to
attend a sales presentation.
(11) "Person" includes an individual, a corporation, a
firm, and an association.
(12) "Prize" means an item of value that is offered,
awarded, or given to a person through a contest. The term does not
include a manufacturer's rebate or discount available to the
public.
(13) "Sales presentation" means a transaction or
occurrence in which a consumer is solicited to execute a contract
that obligates the consumer to purchase goods or services as
defined by Subchapter E, Chapter 17, including:
(A) a "timeshare interest" as defined by Chapter
221, Property Code; and
(B) a "membership interest" as defined by Chapter
222, Property Code.
(14) "Winning number" includes a letter or other
identifying symbol.
(b) For purposes of Subsection (a)(1)(B), a determination
made by "random selection" does not include the method used by an
offeror to identify any person who will be notified of an offer to
win a prize.
Added by Acts 1997, 75th Leg., ch. 1008, § 4, eff. Sept. 1, 1997.
Section: 39.005 39.006 39.007 39.008 39.009 40.001 40.002 40.003 40.004 40.005 40.006 40.007 40.031 40.032 40.033
Last modified: August 10, 2007
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