2190

LAWS OF MARYLAND

Ch. 626

(M) "SALE" OR "SELL", EXCEPT AS PROVIDED IN § 404(A)
OF THIS SUBTITLE, INCLUDES EVERY CONTRACT OF SALE OF,
CONTRACT TO SELL, LEASE, OR DISPOSITION OF A BUSINESS
OPPORTUNITY.

(N) "SELLER" MEANS A PERSON WHO AGREES TO SELL A
BUSINESS OPPORTUNITY.

(O) "VIOLATOR" INCLUDES ANY PERSON WHO VIOLATES ANY
PROVISION OF THIS SUBTITLE AND, BY CONTEXT, ALSO MAY INCLUDE
A PERSON WHOM THE COMMISSIONER HAS REASONABLE CAUSE TO
BELIEVE HAS VIOLATED ANY PROVISION OF THIS SUBTITLE.

402.

(A) (1) THE GENERAL ASSEMBLY OF MARYLAND FINDS AND
DECLARES THAT THE SALE OF BUSINESS OPPORTUNITIES IS AN
INCREASINGLY COMMON AREA OF INVESTMENT PROBLEMS AND
DECEPTIVE PRACTICES IN THIS STATE.

(2) (B) THE GENERAL ASSEMBLY ALSO RECOGNIZES
THAT NO SUBSTANTIAL LAWS, EITHER FEDERAL, STATE, OR LOCAL,
EXIST PRESENTLY WHICH SPECIFICALLY REGULATE AND PREVENT THE
DECEPTIVE PRACTICES IN THIS AREA.

(B) IT IS THE INTENT OF THIS SUBTITLE TO PROVIDE
PURCHASERS AND PROSPECTIVE PURCHASERS THE MOST PERTINENT
INFORMATION AS TO BUSINESS OPPORTUNITIES TO BE SOLD, TO SET
CERTAIN MINIMUM STATEWIDE STANDARDS FOR THE PROTECTION OF
PURCHASERS, AND TO PROTECT PURCHASERS AND SELLERS WITH
REGARD TO THE FORMATION OF THEIR BUSINESS RELATIONSHIPS.

403.

(A)  THIS SUBTITLE APPLIES TO ANY PERSON WHO SELLS OR
OFFERS TO SELL A BUSINESS OPPORTUNITY IF:

(1)  THE OFFEREE OR PURCHASER IS A MARYLAND
RESIDENT;

(2)  THE BUSINESS OPPORTUNITY CONTEMPLATED BY THE
OFFER OR SALE WILL BE OR IS OPERATED IN MARYLAND;

(3)  THE OFFER TO SELL IS MADE IN THIS STATE; OR

(4)  THE OFFER TO BUY IS ACCEPTED IN THIS STATE.

(B)  FOR THE PURPOSE OF THIS SUBTITLE, AN OFFER TO SELL
OR TO BUY IS MADE IN THIS STATE, WHETHER OR NOT EITHER PARTY
IS THEN PRESENT IN THIS STATE, IF THE OFFER:

(1)  ORIGINATES FROM THIS STATE; OR

(2)  IS DIRECTED BY THE OFFEROR TO THIS STATE AND
RECEIVED AT THE PLACE TO WHICH IT IS DIRECTED OR, IN THE
CASE OF A MAILED OFFER, AT ANY POST OFFICE IN THIS STATE.