S.B. 380

VETOES

(c) When a buyer signs a contract for the sale of a business opportunity, the seller
shall give the buyer a copy of the contract.

14-119.1. 14-119.

(A) THE COMMISSIONER MAY PASS AN ORDER DENYING EFFECTIVENESS TO,
OR SUSPENDING OR REVOKING THE EFFECTIVENESS OF, ANY REGISTRATION IF THE
COMMISSIONER FINDS THAT THE ORDER IS IN THE PUBLIC INTEREST AND THAT:

(1)     (I) THE REGISTRATION AS OF ITS EFFECTIVE DATE, OR AS OF ANY
EARLIER DATE IN THE CASE OF AN ORDER DENYING EFFECTIVENESS, IS
INCOMPLETE IN ANY MATERIAL RESPECT OR CONTAINS ANY STATEMENT MADE
THAT WAS, IN LIGHT OF THE CIRCUMSTANCES UNDER WHICH IT WAS MADE, FALSE
OR MISLEADING WITH RESPECT TO ANY MATERIAL FACT;

(II) AN AMENDMENT AS OF ITS EFFECTIVE DATE IS INCOMPLETE
IN ANY MATERIAL RESPECT OR CONTAINS ANY STATEMENT MADE THAT WAS, IN
LIGHT OF THE CIRCUMSTANCES UNDER WHICH IT WAS MADE, FALSE OR
MISLEADING WITH RESPECT TO ANY MATERIAL FACT; OR

(III) A REPORT IS INCOMPLETE IN ANY MATERIAL RESPECT OR
CONTAINS ANY STATEMENT MADE THAT WAS, IN LIGHT OF THE CIRCUMSTANCES
UNDER WHICH IT WAS MADE, FALSE OR MISLEADING WITH RESPECT TO ANY
MATERIAL FACT;

(2)     ANY PROVISION OF THIS SUBTITLE OR ANY ORDER OR CONDITION
LAWFULLY IMPOSED UNDER THIS SUBTITLE HAS BEEN VIOLATED, IN CONNECTION
WITH THE BUSINESS OPPORTUNITY BY:

(I)      THE PERSON HUNG THE REGISTRATION;

(II)    A SELLER, ANY PARTNER, OFFICER, OR DIRECTOR OF THE
SELLER, OR ANY PERSON OCCUPYING A SIMILAR STATUS OR PERFORMING SIMILAR
FUNCTIONS AS THE SELLER; OR

(III) A PERSON THAT DIRECTLY OR INDIRECTLY CONTROLS OR IS
CONTROLLED BY THE SELLER IF THE PERSON FILING THE REGISTRATION IS
DIRECTLY OR INDIRECTLY CONTROLLED BY OR ACTING FOR THE SELLER;

(3)     EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS SUBSECTION, THE
BUSINESS OPPORTUNITY REGISTERED OR SOUGHT TO BE REGISTERED IS THE
SUBJECT OF AN ORDER DENYING, SUSPENDING, OR REVOKING A REGISTRATION OR
A PERMANENT OR TEMPORARY INJUNCTION OF ANY COURT OF COMPETENT
JURISDICTION;

(4)     THE SELLER'S ENTERPRISE OR METHOD OF BUSINESS, OR THAT OF
THE BUSINESS OPPORTUNITY, INCLUDES OR WOULD INCLUDE ACTIVITIES THAT
ARE ILLEGAL WHERE PERFORMED;

(5)     THE BUSINESS OPPORTUNITY OR THE OFFERING OF A BUSINESS
OPPORTUNITY HAS WORKED OR TENDED TO WORK A FRAUD UPON PURCHASERS
OR WOULD SO OPERATE;

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