For the purposes of NRS 422.540 and 422.550:
1. A person shall be deemed to have known that a claim, statement or representation was false if the person knew, or by virtue of his or her position, authority or responsibility had reason to know, of the falsity of the claim, statement or representation.
2. A person shall be deemed to have made or caused to be made a claim, statement or representation if the person:
(a) Had the authority or responsibility to:
(1) Make the claim, statement or representation;
(2) Supervise another who made the claim, statement or representation; or
(3) Authorize the making of the claim, statement or representation,
whether by operation of law, business or professional practice, or office procedure; and
(b) Exercised that authority or responsibility or failed to exercise that authority or responsibility and, as a direct or indirect result, the false claim, statement or representation was made.
(Added to NRS by 1991, 1048; A 1997, 456)