As used in this act, the term:
(1) “Business day” means any day other than a Saturday, Sunday, or legal holiday.
(2) “Buying service,” “buying club,” or “club” means any corporation, nonprofit corporation, partnership, unincorporated association, cooperative association, or other business enterprise which is organized with the primary purpose of providing benefits to members from the cooperative purchase of service or merchandise and which desires to effect such purpose through direct solicitation or other business activity in this state.
(3) “Contract” means any contract or agreement by which a person becomes a member of a buying service or club.
(4) “Member” means any person or entity entitled to any of the benefits of a buying service or buying club.
(5) “Prepayment” means any payment for service, merchandise, or membership made before the service is rendered. Money received by a club from a financial institution upon assignment of a contract shall be considered prepayment when and to the extent the member is required to make prepayments to the financial institution pursuant to the contract.