Yes, setout is in the scrabble dictionary

...and is worth 7 points by itself.

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Setout Definition

noun

A start or beginning; an outset.
from The American Heritage Dictionary of the English Language, 4th Edition
An arrangement or display.
from The American Heritage Dictionary of the English Language, 4th Edition
An array of food, as on a buffet table; a spread.
from The American Heritage Dictionary of the English Language, 4th Edition
An entertaining event, such as a party.
from The American Heritage Dictionary of the English Language, 4th Edition

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Top Words by points

Points

outset

6

2 letter words with SETOUT

Points

et

2

ut

2

us

2

to

2

te

2

so

2

es

2

oe

2

os

2

3 letter words with SETOUT

Points

out

3

uts

3

ute

3

use

3

est

3

tut

3

tot

3

toe

3

tet

3

tes

3

ose

3

oes

3

sue

3

sou

3

sot

3

set

3

4 letter words with SETOUT

Points

tost

4

utes

4

oust

4

outs

4

tuts

4

tout

4

tots

4

tote

4

suet

4

toes

4

tets

4

test

4

sett

4

stet

4

stot

4

5 letter words with SETOUT

Points

totes

5

touse

5

touts

5

stout

5

6 letter words with SETOUT

Points

outset

6

setout

6

Found 46 words in 0.16349 seconds