BUSINESS AND COMMERCE CODE CHAPTER 51. BUSINESS OPPORTUNITIES
BUSINESS AND COMMERCE CODE TITLE 4. BUSINESS OPPORTUNITIES AND AGREEMENTS
CHAPTER 51. BUSINESS OPPORTUNITIES SUBCHAPTER A. GENERAL PROVISIONS
Sec. 51.001.AASHORT TITLE.AAThis chapter may be cited as the Business Opportunity Act. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.002.AAGENERAL DEFINITIONS.AAIn this chapter: (1)AA"Business opportunity contract" means an
agreement that obligates or is intended to obligate a purchaser to a seller. (2)AA"Buy-back" or "secured investment" means a
representation that implies a purchaser 's payment is protected from loss. (3)AA"Equipment" includes electrical devices, video
and audio devices, molds, display units, including display racks, and machines, including coin-operated game machines and vending and other machines that dispense products. (4)AA"Initial consideration" means the total amount a purchaser is obligated to pay under a business opportunity contract before or at the time products, equipment, supplies, or services are delivered or within six months after the date the purchaser begins operation of the business opportunity plan.AAThe term means the total sale price if the contract states a specific total sale price for purchase of the business opportunity plan and the total sale price is to be paid as a down payment and one or more additional payments.AAThe term does not include the not-for-profit sale of sales demonstration materials, samples, or equipment for not more than $500. (5)AA"Marketing program" means advice or training that a seller or a person recommended by a seller gives to a purchaser regarding the sale of products, equipment, supplies, or
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services.AAThe term includes the preparation or provision of: (A)AAa brochure, pamphlet, or advertising
material, including promotional literature; (B)AAtraining regarding the promotion, operation, or management of a business opportunity; or (C)AAoperational, financial guidelines or assistance. (6)AA"Product" includes tangible personal property. (7)AA"Purchaser" solicited contract. (8)AA"Seller" means a principal or agent who sells or leases or offers to sell or lease a business opportunity. (9)AA"Services" includes any assistance, guidance, to become means a person a who becomes or is managerial, technical, or
obligated
under
business
opportunity
direction, work, labor, or other services provided by a seller to initiate or maintain a business opportunity. (10)AA"Supplies" includes materials used to make,
produce, grow, or breed a product or item. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.003.AADEFINITION OF BUSINESS OPPORTUNITY.A (a)AAIn this chapter, "business opportunity" means a sale or lease for an initial consideration of more than $500 of products, equipment, supplies, or services that will be used by or for the purchaser to begin a business in which the seller represents that: (1)AAthe purchaser will earn or is likely to earn a profit in excess of the amount of the initial consideration the purchaser paid; and (2)AAthe seller will: (A)AAprovide a location or assist the purchaser in finding a location for the use or operation of the products,
equipment, supplies, or services on premises that are not owned or leased by the purchaser or seller; (B)AAprovide program; or a sales, production, or marketing
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(C)AAbuy back or is likely to buy back products, equipment, or supplies purchased or products made, produced, grown, or bred by the purchaser using wholly or partly the products,
equipment, supplies, or services that the seller initially sold or leased or offered for sale or lease to the purchaser. (b)AAIn include: (1)AAthe sale or lease of an established and ongoing business or enterprise that has actively conducted business before the sale or lease, whether composed of one or more than one this chapter, "business opportunity" does not
component business or enterprise, if the sale or lease represents an isolated transaction or series of transactions involving a bona fide change of ownership or control of the business or enterprise or liquidation of the business or enterprise; (2)AAa sale by a retailer of goods or services under a contract or other agreement to sell the inventory of one or more ongoing leased departments to a purchaser who is granted the right to sell the goods or services within or adjoining a retail business establishment as a department or division of the retail business establishment; (3)AAa transaction that is: (A)AAregulated by the Texas Department of
Licensing and Regulation, the Texas Department of Insurance, the Texas Real Estate Commission, or the director of the Motor Vehicle Division of the Texas Department of Transportation; and (B)AAengaged in by a person licensed by one of those agencies; (4)AAa real estate syndication; (5)AAa sale or lease to a business enterprise that also sells or leases products, equipment, or supplies or performs
services: (A)AAthat are not supplied by the seller; and (B)AAthat the purchaser does not use with the
seller 's products, equipment, supplies, or services; (6)AAthe offer or sale of a franchise as described by the Petroleum Marketing Practices Act (15 U.S.C. Section 2801 et seq.) and its subsequent amendments;
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(7)AAthe offer or sale of a business opportunity if the seller: (A)AAhas a net worth of $25 million or more
according to the seller 's audited balance sheet as of a date not earlier than the 13th month before the date of the transaction; or (B)AAis person who: (i)AAin writing unconditionally guarantees performance by the person offering the business opportunity plan; and (ii)AAhas a net worth of more than $25 at least 80 percent owned by another
million according to the person 's most recent audited balance sheet as of a date not earlier than the 13th month before the date of the transaction; or (8)AAan arrangement defined as a franchise by 16 C.F.R. Section 436.2(a) and its subsequent amendments if: (A)AAthe franchisor complies in all material
respects in this state with 16 C.F.R. Part 436 and each order or other action of the Federal Trade Commission; and (B)AAbefore offering for sale or selling a
franchise in this state, a person files with the secretary of state a notice containing: (i)AAthe name of the franchisor; (ii)AAthe intends to transact business; and (iii)AAthe address. (c)AAThe secretary of state shall prescribe the form of the notice described by Subsection (b)(8)(B). Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009. franchisor 's principal business name under which the franchisor
Sec.
51.004.AALIBERAL
CONSTRUCTION
AND
APPLICATION.A
(a)AAThis chapter shall be liberally construed and applied to: (1)AAprotect persons against false, misleading, or
deceptive practices in the advertising, offering for sale or lease,
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or sale or lease of business opportunities; and (2)AAprovide secure that protection. (b)AAIn construing this chapter, a court to the extent efficient and economical procedures to
possible shall follow the interpretations given by the Federal Trade Commission and the federal courts to Section 5(a)(1), Federal Trade Commission Act (15 U.S.C. Section 45(a)(1)), and 16 C.F.R. Part 436 and their subsequent amendments. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.005.AABURDEN OF PROOF.AAA person who claims to be exempt from this chapter has the burden of proving the exemption. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.006.AAWAIVER.AAA waiver of this chapter is contrary to public policy and void. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.007.AAMAINTENANCE OF RECORDS.A (a)AAA seller shall maintain a complete set of books, records, and accounts of business opportunity sales made by the seller. (b)AAA document relating to a business opportunity sold or leased shall be maintained until the fourth anniversary of the date of the business opportunity contract. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.008.AAFILING FEE. The secretary of state may charge a reasonable fee to cover the costs incurred as a result of a filing required by Subchapter B or Section 51.003 or 51.251.
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Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.009.AARULES. The secretary of state may adopt rules to administer and enforce this chapter. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
SUBCHAPTER B. REGISTRATION OF BUSINESS OPPORTUNITY Sec. 51.051.AAFILING OF DISCLOSURE STATEMENTS AND LIST OF SELLERS.AABefore a sale or offer for sale, including advertising, of a business opportunity, the principal seller must register the business opportunity with the secretary of state by filing: (1)AAa copy of the disclosure statement required by Subchapter D, except as provided by Section 51.053; and (2)AAa list of the name and resident address of any individual who sells or will sell the business opportunity for the principal seller. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.052.AAUPDATING OF INFORMATION ON FILE.A (a)AAA copy of a disclosure statement filed under Section 51.051 must be
updated through a new filing: (1)AAannually; and (2)AAwhen a material change occurs. (b)AAThe list filed under Section 51.051(2) must be updated through a new filing every six months. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec.
51.053.AAFILING
OF
DISCLOSURE
DOCUMENT
FROM
OTHER
REGULATORY AGENCY.AAInstead of filing with the secretary of state a
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copy of a disclosure statement, a seller may file a copy of a similar document required by the State Securities Board, Securities and Exchange Commission, or Federal Trade Commission that contains all the information required to be disclosed by this chapter. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec.
51.054.AAFILING
OF
COPY
OF
BOND
OR
NOTIFICATION
OF
ACCOUNT.AAA principal seller who is required to obtain a bond or establish a trust account under Subchapter C shall
contemporaneously file with the secretary of state a copy of: (1)AAthe bond; or (2)AAthe formal notification by the depository that the trust account is established. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
SUBCHAPTER C. Sec.
BOND, TRUST ACCOUNT, OR LETTER OF CREDIT TRUST ACCOUNT, OR LETTER OF CREDIT
51.101.AABOND,
REQUIRED.A (a)AABefore a seller makes a representation described by Section 51.003(a)(1) or otherwise represents that the purchaser is assured of making a profit from a business opportunity, the
principal seller must: (1)AAobtain a surety bond from a surety company
authorized to transact business in this state; (2)AAestablish a trust account; or (3)AAobtain an irrevocable letter of credit. (b)AAThe bond, trust account, or irrevocable letter of credit must be: (1)AAin an amount of $25,000 or more; and (2)AAin favor of this state. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
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Sec. 51.102.AAACTION AGAINST BOND, TRUST ACCOUNT, OR LETTER OF CREDIT.A (a)AAA person may bring an action against the bond, trust account, or irrevocable letter of credit obtained or
established under Section 51.101 to recover actual damages for: (1)AAa violation of this chapter; or (2)AAthe seller 's breach of: (A)AAthe business opportunity contract; or (B)AAan opportunity sale. (b)AAThe aggregate liability of the surety, trustee, or obligation arising from a business
issuer in an action under Subsection (a) may not exceed the amount of the bond, trust account, or irrevocable letter of credit. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
SUBCHAPTER D. Sec.
DISCLOSURE STATEMENT TO PURCHASER OF BUSINESS
51.151.AADISCLOSURE
OPPORTUNITY.A (a)AAExcept as provided by Section 51.164, a seller must provide a purchaser with a written disclosure statement that meets the requirements of this subchapter. (b)AAThe seller must provide the disclosure statement at
least 10 business days before the earlier of the date: (1)AAthe contract; or (2)AAthe seller receives any consideration. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009. purchaser signs a business opportunity
Sec. 51.152.AACOVER SHEET OF DISCLOSURE STATEMENT.A (a)AAA disclosure statement must have a cover sheet titled, in at least 12-point boldface capital letters, "DISCLOSURES REQUIRED BY TEXAS LAW."AAThe following statement must appear below the title in at least 10-point boldface type:AA"The State of Texas has not reviewed and does not endorse, approve, recommend, or sponsor any business opportunity.AAThe information contained in this disclosure has not
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been verified by the state.AAIf you have any questions about this investment, agreement." (b)AAOnly the title and required statement may appear on the cover sheet. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009. see an attorney before you sign a contract or
Sec. 51.153.AACONTENTS:AANAMES AND ADDRESSES.AAA disclosure statement must contain: (1)AAthe name of the seller; (2)AAeach name under which the seller has transacted, is transacting, or intends to transact business; (3)AAthe name of any parent or affiliated company that will engage in a business transaction with the purchaser or that takes responsibility for statements made by the seller; and (4)AAthe names, addresses, and titles of: (A)AAthe seller 's officers, directors, trustees, general partners, general managers, and principal executives; (B)AAshareholders owning more than 20 percent of the shares of the seller; and (C)AAany seller 's business other persons to responsible the sale of for the
activities
relating
business
opportunities. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec.
51.154.AACONTENTS:AASALES
PERIODS.AAA
disclosure
statement must: (1)AAspecify the period during which the seller has sold business opportunities; and (2)AAspecify the period during which the seller has sold business opportunities involving the products, equipment,
supplies, or services the seller is offering to the purchaser. Amended by:
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Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec.
51.155.AACONTENTS:AASERVICES
DESCRIPTION.AAA
disclosure statement must contain: (1)AAa detailed description of the actual services the seller undertakes to perform for the purchaser; and (2)AAif the seller promises to perform services in
connection with the placement of products, equipment, or supplies at a location: (A)AAthe full nature of those services; and (B)AAthe nature of any agreements to be made with the owners or managers of that location. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec.
51.156.AACONTENTS:AAUPDATED
FINANCIAL
STATEMENT.AAA
disclosure statement must contain a copy of a financial statement of the seller that: (1)AAwas prepared according to generally accepted
accounting principles within the previous 13 months; and (2)AAhas been updated to reflect any material change in the seller 's financial condition. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec.
51.157.AACONTENTS:AATRAINING
DESCRIPTION.AAIf
the
seller promises training, the disclosure statement must contain a complete description of the training, including: (1)AAthe length of the training; and (2)AAany costs of the training that the purchaser will be required to incur, including travel and lodging expenses. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
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Sec.
51.158.AACONTENTS:AASECURITY
DESCRIPTION.AAIf
the
seller is required to obtain a bond or establish a trust account, the disclosure statement must contain one of the following
statements, as applicable: (1)AA"As required by Texas law, the seller has secured a bond issued by ______, a surety company authorized to do business in this state.AABefore signing a contract to purchase this business opportunity, you should confirm the bond 's status with the surety company."; or (2)AA"As required by Texas law, the seller has
established a trust account with ______. Before signing a contract to purchase this business opportunity, you should confirm with the bank or savings institution the current status of the trust
account." Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec.
51.159.AACONTENTS:AADELIVERY
DATE;
CANCELLATION
OF
CONTRACT.AAIf the seller is required to deliver to the purchaser the product, equipment, or supplies necessary to begin substantial operation of the business and states a definite or approximate delivery date for the product, equipment, or supplies, the
disclosure statement must contain the following statement:AA"If the seller fails to deliver the product, equipment, or supplies necessary to begin substantial operation of the business within 45 days of the delivery date stated in your contract, you may notify the seller in writing and cancel your contract." Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec.
51.160.AACONTENTS:AASALES
OR
EARNINGS
REPRESENTATION.AAIf the seller makes a statement concerning sales or earnings that may be made through the business opportunity, the disclosure statement must contain a statement disclosing:
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(1)AAthe opportunities
total
number
of
purchasers equipment,
of
business or
involving
the
product,
supplies,
services being offered who to the seller 's knowledge have, not earlier than the third year before the date of the disclosure
statement, actually achieved sales of or received earnings in the amount or range specified; and (2)AAthe total number of purchasers who, not earlier than the third year before the date of the disclosure statement, purchased business opportunities involving the product, equipment, supplies, or services being offered. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec.
51.161.AACONTENTS:AALEGAL
ACTION
HISTORY.A
(a)AAA
disclosure statement must contain a statement disclosing any person described by Section 51.153 who: (1)AAhas, during the previous seven fiscal years: (A)AAbeen convicted of a felony, or pleaded nolo contendere to a felony charge, involving fraud, embezzlement,
fraudulent conversion, or misappropriation of property; or (B)AAbeen held liable in a civil action resulting in a final judgment, or has settled out of court a civil action, involving: (i)AAallegations of fraud, embezzlement,
fraudulent conversion, or misappropriation of property; (ii)AAthe use of untrue or misleading
representations in an attempt to sell or dispose of property; or (iii)AAthe deceptive business practices; (2)AAis a party to a civil action involving: (A)AAallegations of fraud, embezzlement, use of unfair, unlawful, or
fraudulent conversion, or misappropriation of property; (B)AAthe use of untrue or misleading
representations in an attempt to sell or dispose of property; or (C)AAthe use of business practices; or unfair, unlawful, or deceptive
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(3)AAis subject to an injunction or restrictive order relating to business activity as a result of an action brought by a public agency or department. (b)AAA statement required by Subsection (a) must include: (1)AAthe identity and location of any court or agency; (2)AAthe date of any entry of a plea of nolo contendere, conviction, judgment, or decision; (3)AAany penalty imposed; (4)AAany damages assessed; (5)AAthe terms of any settlement or order; and (6)AAthe ruling. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009. date, nature, and issuer of any order or
Sec.
51.162.AACONTENTS:AABANKRUPTCY
OR
REORGANIZATION.A
(a)AAA disclosure statement must contain a statement disclosing any person described by Section 51.153 who has, during the previous seven fiscal years: (1)AAfiled in bankruptcy; (2)AAbeen adjudged bankrupt; (3)AAbeen reorganized because of insolvency; or (4)AAbeen a principal, director, executive officer, or partner of any other person that, during or not later than the first anniversary of the end of the period the person held the position in relation to the other person, filed in bankruptcy, was adjudged bankrupt, or was reorganized because of insolvency. (b)AAA statement required by Subsection (a)(4) must include: (1)AAthe name and location of the person who filed in bankruptcy, was adjudged bankrupt, or was reorganized; (2)AAthe reorganization; and (3)AAany other material fact relating to the filing, adjudication, or reorganization. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, date of the filing, adjudication, or
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2009.
Sec.
51.163.AACONTENTS:AACONTRACT
COPY.AAA
disclosure
statement must contain a copy of the business opportunity contract that the seller uses as a matter of course and that will be
presented to the purchaser at closing. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec.
51.164.AAUSE
OF
DISCLOSURE
DOCUMENT
FROM
OTHER
REGULATORY AGENCY.AAInstead of providing a disclosure statement to a purchaser under this subchapter, a seller may provide a copy of a similar document required by the State Securities Board, Securities and Exchange Commission, or Federal Trade Commission that contains all the information required to be disclosed by this chapter. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
SUBCHAPTER E. Sec. 51.201.AAFORM
BUSINESS OPPORTUNITY CONTRACT OF BUSINESS OPPORTUNITY CONTRACT.AAA
business opportunity contract must be in writing and include, in 10-point type or in handwriting of an equivalent size, the
following: (1)AAthe terms of payment, including the initial
consideration, down payment, and additional payments required; (2)AAa detailed description of the acts or services the seller undertakes to perform for the purchaser; (3)AAthe seller 's principal business address; (4)AAthe name and address of the seller 's agent in this state authorized to receive service of process; (5)AAthe delivery date or, if the contract provides for staggered delivery times to the purchaser, the approximate delivery date of the products, equipment, or supplies the seller is to: (A)AAdeliver to the purchaser 's home or business address; or
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(B)AAplace at a location owned or managed by a person other than the purchaser; and (6)AAa complete description of the nature of the
buy-back or security arrangement if the seller has represented orally or in writing when selling, leasing, soliciting, or offering a business opportunity that there is a buy-back or that the initial consideration is secured. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec.
51.202.AADELIVERY
OF
COPIES
OF
DOCUMENTS
TO
PURCHASER.AAA copy of the completed business opportunity contract and any other document the seller requires the purchaser to sign shall be given to the purchaser at the time the purchaser signs the contract. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.203.AAEFFECT OF ASSIGNMENT OF BUSINESS OPPORTUNITY CONTRACT.AAAn assignee of a business opportunity contract or of the seller 's rights under the contract is subject to all equities, rights, and defenses of the purchaser against the seller. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
SUBCHAPTER F.
TERMINATION OF BUSINESS OPPORTUNITY REGISTRATION
Sec. 51.251.AAVOLUNTARY TERMINATION OF BUSINESS OPPORTUNITY REGISTRATION.AAThe principal seller of a registered business
opportunity may voluntarily terminate the business opportunity 's registration with the secretary of state if: (1)AAthe registered business opportunity will no longer be offered in this state; (2)AAthe registered business opportunity has changed to the extent that it no longer meets the definition of a business
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opportunity under Section 51.003(a); (3)AAthe registered business opportunity has become
exempt under Section 51.003(b); or (4)AAthe principal seller offering the registered
business opportunity ceases to exist as a legal entity. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec. OPPORTUNITY
51.252.AAINVOLUNTARY REGISTRATION.A
TERMINATION secretary
OF of
BUSINESS state may
(a)AAThe
terminate the registration of a business opportunity registered under Section 51.051 if the seller does not comply with Section 51.052. (b)AAThe secretary of state must give the business
opportunity registrant notice of the delinquency not later than the 31st day before the date of termination of the business opportunity registration under Subsection (a). (c)AAThe notice of delinquency must be given by certified mail addressed to the registered agent or the principal place of business of the business opportunity registrant noted in the latest filing made under this chapter. (d)AAThe secretary of state may adopt rules governing: (1)AAthe termination of a delinquent registration; (2)AAthe effective date of the termination; and (3)AAthe grace period, if any. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
SUBCHAPTER G.
ENFORCEMENT
Sec. 51.301.AAPROHIBITED ACTS.AAA seller may not: (1)AAemploy a representation, device, scheme, or
artifice to deceive a purchaser; (2)AAmake an untrue statement of a material fact or omit to state a material fact in connection with the documents and
information required to be provided to the secretary of state or
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purchaser; (3)AArepresent that the business opportunity provides or will provide income or earning potential unless the seller: (A)AAhas documented data to substantiate the
representation of income or earning potential; and (B)AAdiscloses the data to the purchaser when the representation is made; or (4)AAmake a claim or representation that is
inconsistent with the information required to be disclosed by this chapter in: (A)AAadvertising or other promotional material; or (B)AAan oral sales presentation, solicitation, or discussion between the seller and the purchaser. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec.
51.302.AADECEPTIVE
TRADE
PRACTICE;
REMEDIES.A
(a)
A
violation of this chapter is a false, misleading, or deceptive act or practice under Section 17.46. (b)AAA public or private right or remedy prescribed by
Chapter 17 may be used to enforce this chapter. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.303.AAREVIEW AND SUIT BY ATTORNEY GENERAL.A (a)AAThe attorney general may review the copy of a disclosure statement filed with the secretary of state under Subchapter B. (b)AAIf the disclosure statement fails to comply with this chapter, the attorney general may: (1)AAnotify the secretary of state and the seller in writing of the deficiency; and (2)AAfile suit to enjoin the seller from transacting business until the failure to comply has been corrected. (c)AAIf the attorney general notifies the secretary of state
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under Subsection (b), the secretary of state shall: (1)AAattach a copy of the notice to the front of the disclosure statement; and (2)AAon inquiry of the status of the disclosure
statement, disclose that a statement has been filed but that the attorney general has questioned the correctness of the statement. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 2.01, eff. April 1, 2009.
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