§ 8-503. Inducements

   (a) Compensation for referral. -- As an inducement to make a home improvement contract, a person may not promise or offer to pay to an owner any compensation or reward for obtaining or placing home improvement business with others.

(b) Gifts as inducements. -- A contractor or salesperson may not offer, give, or pay to an owner a gift, bonus award, merchandise, trading stamps, or cash loan as an inducement to make a home improvement contract.

(c) Tangible items for advertising. -- To advertise or to promote sales, a contractor or salesperson may give to a prospective customer a tangible item if:

   (1) the cost to the contractor or salesperson does not exceed $ 25;

   (2) the gift is not contingent on making a home improvement contract; and

   (3) the customer does not receive more than 1 item for 1 transaction.

HISTORY: An. Code 1957, art. 56, § 264; 1992, ch. 4, § 2.