Section 523G.1 – Short title.

523G.1 Short title. This chapter shall be known and may be cited as the “Invention Development Services Act”. 92 Acts, ch 1114, §2

Section 523G.10

523G.10 Repealed by 98 Acts, ch 1119, §6.

Section 523G.11

523G.11 Repealed by 98 Acts, ch 1119, §6.

Section 523G.2 – Purpose of the chapter.

523G.2 Purpose of the chapter. The general assembly declares that the purpose of this chapter is to safeguard the public against fraud, deceit, imposition, and financial hardship, and to foster and encourage competition, fair dealing, and prosperity in the field of invention development services by prohibiting or restricting deceptive practices, misleading advertising, onerous contract terms, […]

Section 523G.3 – Definitions.

523G.3 Definitions. As used in this chapter, unless the context otherwise requires: 1. “Business record” means a record maintained by an invention developer relating to invention development services, including but not limited to contracts, files, accounts, books, papers, photographs, and audio or visual tapes. 2. “Commissioner” means the commissioner of insurance or a person designated […]

Section 523G.4 – Initial disclosures.

523G.4 Initial disclosures. 1. If an invention developer contemplates entering into a contract or if the invention developer contemplates performance of a phase covered in a contract, the invention developer shall notify the customer by a written statement. The invention developer shall deliver to the customer the written notice together with a copy of each […]

Section 523G.5 – Contracts.

523G.5 Contracts. 1. A contract shall set forth information required in this section in at least ten point type. 2. The contract shall describe fully and in detail the services that the invention developer contracts to perform for the customer. 3. The contract shall state the following information: a. If the invention developer contracts to […]

Section 523G.6 – Evidence of financial responsibility.

523G.6 Evidence of financial responsibility. 1. An invention developer shall maintain as security evidence of financial responsibility as approved by the commissioner. The security shall be either a bond or cash deposit in an amount which is equal to the greater of either ten percent of the invention developer’s gross income from the invention development […]

Section 523G.7 – Negotiable instruments.

523G.7 Negotiable instruments. An invention developer shall not take a negotiable instrument from a customer as part of a contract, unless the negotiable instrument is a check constituting evidence of the customer’s obligation. A person in possession of a negotiable instrument is not a holder in due course as defined in section 554.3302, if the […]

Section 523G.8 – Records and correspondence.

523G.8 Records and correspondence. An invention developer shall maintain all records and correspondence relating to performance of each invention development contract for not less than three years after expiration of the contract. 92 Acts, ch 1114, §9 Referred to in §523G.5

Section 523G.9 – Compliance with other laws, violations and penalties.

523G.9 Compliance with other laws, violations and penalties. 1. The provisions of this chapter are not exclusive and do not relieve persons or a contract from compliance with other applicable law. 2. A contract which fails to comply with the applicable provisions of this chapter is unenforceable against the customer as contrary to public policy, […]