Section 51:1821 - DefinitionsAs used in this Chapter, the following terms and phrases have the meaning ascribed to them unless the context requires otherwise:
(1) "Business opportunity" means the sale or lease for an initial required consideration exceeding three hundred dollars of any goods or services which are transferred to a purchaser for the purpose of enabling the purchaser to start a business, and in which the seller or agent: (a) Represents that the seller or an entity to which it will refer the purchaser, will provide or assist the purchaser in finding business locations on premises neither owned nor leased by the purchaser or seller for the use or operation of vending machines, racks, display cases, currency-operated amusement machines, or other similar devices; or(b) Represents that the seller, or any entity to which it will refer the purchaser, will purchase any or all products to be sold, made, produced, fabricated, assembled, grown, bred, or modified by the purchaser using in whole or in part the supplies, services, or goods sold to the purchaser by the seller; or(c) Guarantees that the purchaser is to derive income from the business opportunity which exceeds the price paid for the business opportunity, or that the seller is to refund all or part of the price paid for the business opportunity, or repurchase any of the products, equipment, supplies, or goods supplied by the seller, if the purchaser is unsatisfied with the business opportunity; or(d) Represents that for a fee exceeding three hundred dollars the seller will provide a sales plan or marketing program which will enable the purchaser to derive income from the business opportunity which exceeds the price paid for the business opportunity. This provision shall not apply to the sale or lease of a sales plan or marketing program made in conjunction with the licensing of a registered trademark or service mark."Business opportunity" does not include the sale of an ongoing business when the owner of that business sells and intends to sell only that one business, and does not include the sale, not for profit, of sales demonstration equipment, materials, or samples for a total price of five hundred dollars or less.
(2) "Initial required consideration" includes consideration required by express condition or practical necessity, or for which the buyer or lessee becomes obligated before the commencement of the business, or during the following one hundred eighty days.(3) "Seller" means a person or entity which sells or leases, or offers to sell or to lease a business opportunity.(4) "Agent" means a person who solicits prospective purchasers or negotiates on behalf of a seller.(5) "Department" means the Department of Justice.Added by Acts 1981, No. 814, §1; Acts 1988, No. 625, §6.Added by Acts 1981, No. 814, §1; Acts 1988, No. 625, §6.