IC 24-5-8
Chapter 8. Business Opportunity Transactions
IC 24-5-8-1 Definitions
Sec. 1. As used in this chapter:
"Business opportunity" means an investment that:
(1) involves the sale or lease or offer to sell or lease any goods
or services to an investor that are to be used by the investor in
beginning or operating a business;
(2) involves an initial payment by the investor of more than five
hundred dollars ($500) and an initial cash payment of less than
fifty thousand dollars ($50,000); and
(3) involves a solicitation of investors in which the seller
represents that:
(A) the investor may or will earn an amount in excess of the
initial payment as a result of the investment;
(B) a market exists for any goods to be made or services to
be rendered by the investor;
(C) the seller may buy from the investor any goods to be
made or services to be rendered by the investor;
(D) the seller or a person referred by the seller to the
investor may or will sell, lease, or distribute the goods made
or services rendered by the investor; or
(E) the seller may or will pay to the investor the difference
between the initial payment and the investor's earnings from
the investment.
"Business opportunity" does not include an investment that
involves:
(1) the sale of a franchise as defined by IC 23-2-2.5-1 or
IC 23-2-2.7-5;
(2) the sale of any assets (other than inventory) of an ongoing
business by the owner of the business;
(3) the not-for-profit sale of sales demonstration equipment,
materials, or samples for a total price of five hundred dollars
($500) or less; or
(4) the sale of all or substantially all of the assets of an ongoing
business.
"Contract" means any agreement relating to a business
opportunity.
"Goods" means any merchandise, equipment, product, supply, or
material.
"Initial cash payment" means that portion of the initial payment
that the investor is obligated to pay to the seller before or at the time
of delivery of goods or services. The term does not include any
amount financed by the seller, any amount for which financing is to
be obtained by the seller, any amount that the seller assists in
financing, or any amount required by the seller to be deposited as
security for the performance by an investor of the operation of the
business or that secures an extension of credit.
"Initial payment" means the total amount an investor is obligated
to pay under the terms of the contract before or at the time of
delivery of the goods or services to the investor or within six (6)
months of the date that the investor commences operation of the
business. If the contract states a total price for the business
opportunity and provides that the total price is to be paid partially as
an initial cash payment and the remainder in specific monthly
payments, the term means the total price. The term does not include
any amount required by the seller to be deposited as security for the
performance by an investor of the operation of the business or that
secures an extension of credit.
"Investor" means a person who is solicited to become obligated or
does become obligated on a contract.
"Offer" includes every attempt to dispose of a business
opportunity or an interest in a business opportunity for value.
"Person" means a human being, corporation, limited liability
company, partnership, unincorporated association, trust, or
governmental entity.
"Sale" includes every contract to sell or dispose of a business
opportunity or an interest in a business opportunity for value.
"Seller" means a person, or his agent, who sells or leases or offers
to sell or lease a business opportunity.
"Service" means any assistance, guidance, direction, work, labor,
or such other act as may be provided by the seller in the initiation or
maintenance of a business.
"Substantial seller" means a seller who has a net worth on a
consolidated basis, according to current financial statements certified
by an independent certified public accountant, of:
(1) at least five million dollars ($5,000,000); or
(2) at least one million dollars ($1,000,000) if the seller is at
least eighty percent (80%) owned by a corporation that has a net
worth on a consolidated basis, according to current financial
statements certified by an independent certified public
accountant, of at least five million dollars ($5,000,000). As added by P.L.134-1984, SEC.1. Amended by P.L.239-1985,
SEC.2; P.L.12-1986, SEC.10; P.L.252-1987, SEC.1; P.L.8-1993,
SEC.361.
IC 24-5-8-1.5 Substantial sellers; application of certain sections
Sec. 1.5. Sections 2, 3, 4, 13, 15, and 19 of this chapter do not
apply to a substantial seller. As added by P.L.252-1987, SEC.2.
IC 24-5-8-2 Disclosure document; cover sheet; contents
Sec. 2. (a) At least seventy-two (72) hours before the time the
investor signs a contract, or at least seventy-two (72) hours before
receipt of any consideration by the seller, whichever occurs first, the
seller shall provide the investor a written disclosure document, the
cover sheet of which is entitled in at least ten (10) point bold face
capital letters "DISCLOSURES REQUIRED BY INDIANA LAW".
Under this title, the following statement must appear in at least ten
(10) point type: "The state of Indiana has not reviewed and does not
approve, recommend, endorse, or sponsor any business opportunity.
The information contained in this disclosure has not been verified by
the state. If you have any questions about this investment, see an
attorney before you sign a contract.". Nothing except the title and
statement may appear on the cover sheet.
(b) The disclosure document must also contain the following
information:
(1) The name of the seller, whether the seller is doing business
as an individual, partnership, limited liability company, or
corporation, the names under which the seller has done, is
doing, or intends to do business, and the name of any parent or
affiliated company that will engage in business transactions
with the investor or that will take responsibility for statements
made by the seller.
(2) The names, business addresses, business telephone numbers,
and titles of the seller's officers, directors, trustees, general
partners, general managers, principal executives, and any other
persons charged with responsibility for the seller's business
activities relating to the sale of business opportunities.
(3) The names, business addresses, and business telephone
numbers of all the seller's representatives who are soliciting
business opportunities in Indiana.
(4) The length of time the seller has:
(A) solicited business opportunities; and
(B) solicited business opportunities involving the goods or
services currently being offered to the investor.
(5) A statement of the initial payment to be paid by the investor,
or when not known, a statement of the approximate initial
payment to be paid.
(6) An unexecuted copy of all contracts.
(7) The following financial statements:
(A) A balance sheet of the seller as of the close of its last
fiscal year.
(B) Income statements for each of the seller's last three (3)
fiscal years or for the period of the seller's and any
predecessor's existence, if the seller and any predecessor
have been in existence for less than three (3) years.
(8) A complete and detailed description of any service that the
seller undertakes to perform for the investor.
(9) A complete description of any training offered by the seller,
the length of training, and a detailed itemization of all costs to
be covered by any fee to be charged for the training.
(10) A statement disclosing the names, home addresses, and
home telephone numbers of all persons who have been investors
in a business opportunity offered by the seller within the last
two (2) year period.
(11) A statement listing the name, home address, and home
telephone number of any investor who has requested within the
preceding three (3) year period that the seller return his money.
(12) A statement as to whether the seller or any of its officers,
directors, trustees, general partners, general managers, principal
executives, or representatives has been:
(A) held liable in a civil action for unfair, false, misleading,
or deceptive practices;
(B) convicted of a crime involving fraud, embezzlement,
conversion, or theft during the most recent seven (7) year
period; or
(C) declared bankrupt in any judicial proceeding during the
most recent seven (7) year period.
(13) A statement as to whether the seller or any of its officers,
directors, trustees, general partners, general managers, principal
executives, or representatives has been a party to any legal
cause of action brought by an investor within the most recent
seven (7) year period.
(14) A statement as to whether the seller or any of its officers,
directors, trustees, general partners, general managers, principal
executives, or representatives is currently involved in litigation
alleging unfair, false, misleading, or deceptive practices.
(15) A statement containing the name of the parties, the name
of the court, the cause or docket number of the lawsuit, the date
the suit was filed, and the date the judgment was entered, if
applicable, for each answer to subdivisions (12), (13), and (14).
(16) The following statement: "As required by Indiana law, the
seller has secured a bond issued by _______________ (name
and address of surety), a surety company authorized to do
business in Indiana. Before signing a contract to invest in this
business opportunity, you should check with the surety
company to determine the bond's current status.".
(17) If the seller makes any statement concerning earnings or
range of earnings that may be earned through the business
opportunity, the seller must set forth the following:
"No guarantee of earnings or ranges of earnings can be
made. The number of investors who have earned through
this business opportunity an amount in excess of the amount
of their initial payment is at least ________, which
represents ________ percent of the total number of investors
in this business opportunity.". As added by P.L.134-1984, SEC.1. Amended by P.L.8-1993,
SEC.362.
IC 24-5-8-3 Surety bonds; requirements; waiver
Sec. 3. (a) A seller shall obtain a surety bond issued by a surety
company authorized to do business in Indiana. The amount of the
bond must be at least twenty (20) times the initial payment required
for the business opportunity, but not less than seventy-five thousand
dollars ($75,000). The bond must be in favor of the state for the use
and benefit of investors.
(b) The attorney general may waive the bonding requirement
under subsection (a) and accept in lieu of the bond an irrevocable
letter of credit for an equivalent amount issued in the favor of the
state. As added by P.L.134-1984, SEC.1. Amended by P.L.12-1986,
SEC.11.
IC 24-5-8-4 Requirements before advertising; amendment of filings; renewal
fee; record of filings
Sec. 4. (a) Before placing any advertisement or making any other
representations to any investor in Indiana, the seller shall:
(1) file a copy of the disclosure statement required by section 2
of this chapter and the bond required by section 3 of this
chapter with the consumer protection division of the office of
the attorney general; and
(2) pay an initial filing fee of fifty dollars ($50).
(b) The seller shall amend these filings when any material change
in the information occurs and shall pay a fee of ten dollars ($10) for
filing the amendment.
(c) If the seller continues to solicit business opportunities in
Indiana, he shall pay annually a renewal fee of ten dollars ($10) on
or before the anniversary date of the initial filing for the particular
business opportunity.
(d) The director of the consumer protection division of the office
of the attorney general or his designate shall maintain a record of all
filings made under this chapter and shall assign a registration number
to each of them. The seller shall be advised in writing of the assigned
number. Any advertisements, pamphlets, brochures, or any other
materials used in the solicitation of a business opportunity must
include the assigned registration number in the following manner:
"C.P.D. Reg. No. ____ .". As added by P.L.134-1984, SEC.1.
IC 24-5-8-5 Representations of business opportunity; copy to investor, contents
Sec. 5. (a) If the seller represents that the business opportunity
provides earning potential of any kind, the seller shall have data to
substantiate the claims of earning potential and shall give to the
investor at the first in person communication by the seller a copy of
this data or a copy of any statement of estimated or projected earning
potential prepared for presentation to prospective investors, together
with an explanation of the statement. A mathematical computation
of the number of sales multiplied by the amount of profit per sale to
reach a projected earnings figure is not sufficient data to substantiate
an earnings potential claim for the purposes of this section.
(b) The earning potential data given to the investor by a seller,
except a substantial seller, must disclose:
(1) the length of time the seller has been soliciting the particular
business opportunity;
(2) the number of investors in the particular business
opportunity that were solicited by the seller and known to the
seller to have made at least the same sales, earnings, or profits
as those represented;
(3) the percentage the number in subdivision (2) represents of
the total number of investors in the particular business
opportunity that were solicited by the seller; and
(4) the current address of any person named by the seller as
having profited from the particular business opportunity, a
description of the circumstances under which the profit was
earned, and a description of any interest held by the named
person in the business opportunity being offered to the investor. As added by P.L.134-1984, SEC.1. Amended by P.L.252-1987,
SEC.3.
IC 24-5-8-6 Contracts; contents
Sec. 6. (a) The seller shall put every contract in writing and shall
give the investor a copy of the contract at the time the investor signs
the contract.
(b) The seller shall include in every contract the following:
(1) The seller's business address and the name and business
address of the seller's agent in this state authorized to receive
service of process.
(2) The terms and conditions of payment.
(3) A detailed description of any services that the seller
undertakes to perform for the investor.
(4) A detailed description of any training that the seller
undertakes to provide to the investor.
(5) The approximate delivery date of any goods the seller is to
deliver to the investor.
(6) A statement of the investor's right to cancel that must:
(A) appear under the conspicuous caption, "INVESTOR'S
RIGHT TO CANCEL WITHIN 30 DAYS"; and
(B) contain the following statement in no smaller type than
the body portion of the contract: "THE INVESTOR IN THIS
BUSINESS OPPORTUNITY HAS THE RIGHT TO
CANCEL THIS CONTRACT FOR ANY REASON AT
ANY TIME BEFORE MIDNIGHT OF THE 30TH
CALENDAR DAY AFTER THIS CONTRACT IS
ENTERED INTO. YOU MAY CANCEL THIS
CONTRACT BY MAILING A NOTICE THAT YOU DO
NOT WANT THE BUSINESS OPPORTUNITY TO THE
SELLER BEFORE __________, 20__ AT 12:00
MIDNIGHT AT _______________.".
(c) Subsection (b)(6) does not apply to a contract entered into by
a substantial seller, unless required by the consumer protection
division of the office of the attorney general for good cause shown
after notice. As added by P.L.134-1984, SEC.1. Amended by P.L.252-1987,
SEC.4; P.L.2-2005, SEC.62.
IC 24-5-8-7 Books, records, and accounts; documents
Sec. 7. (a) Every seller shall keep and maintain a complete set of
books, records, and accounts of business opportunity transactions
made by the seller.
(b) The seller shall keep all documents relating to each contract
entered into by the seller for four (4) years after the date of the
contract. As added by P.L.134-1984, SEC.1.
IC 24-5-8-8 Validity of waiver of provisions by investor
Sec. 8. Any waiver by an investor of the provisions of this chapter
is deemed contrary to public policy and is void and unenforceable. As added by P.L.134-1984, SEC.1.
IC 24-5-8-9 Attempts to have investor waive rights
Sec. 9. A seller may not attempt to have an investor waive rights
given to the investor by this chapter. As added by P.L.134-1984, SEC.1.
IC 24-5-8-10 Cutting off right or defense of investor against seller
Sec. 10. A seller may not require the investor to execute any note
that will cut off a right or defense that the investor or a third party
may have against the seller. As added by P.L.134-1984, SEC.1.
IC 24-5-8-11 Initial cash payment
Sec. 11. A seller may not require an initial cash payment that
exceeds twenty percent (20%) of the initial payment. As added by P.L.134-1984, SEC.1.
IC 24-5-8-12 Escrow accounts
Sec. 12. A seller may not require a payment before the delivery of
any goods that exceeds twenty percent (20%) of the initial payment
unless the amount in excess of the twenty percent (20%) payment is
placed in an escrow account which provides that the money can not
be released until:
(1) the investor notifies the escrow agent in writing of the
receipt of the goods; or
(2) the seller presents to the escrow agent a bill of lading that
proves shipment of the goods as required by the contract.
Notification of receipt by the investor to the escrow agent may not be
unreasonably withheld. As added by P.L.134-1984, SEC.1.
IC 24-5-8-13 Reference to compliance with chapter in advertisement
Sec. 13. A seller may not make any reference to its compliance
with this chapter in any advertisement or other contact with an
investor other than by setting forth the registration number as
provided in section 4 of this chapter. As added by P.L.134-1984, SEC.1.
IC 24-5-8-14 Use of commercial symbols
Sec. 14. A seller may not use the trademark, service mark, trade
name, logotype, advertising, or other commercial symbol of any
business that does not either control the ownership interest in the
seller or accept responsibility for all representations made by the
seller in regard to the business opportunity, unless it is clear from the
circumstances that the owner of the commercial symbol is not
involved in the business opportunity. As added by P.L.134-1984, SEC.1.
IC 24-5-8-15 Cancellation of contract for seller's failure to comply
Sec. 15. If a seller fails to comply with section 2 of this chapter,
the investor may cancel any contract by notifying the seller in any
manner. As added by P.L.134-1984, SEC.1.
IC 24-5-8-16 Voiding contracts
Sec. 16. (a) If a seller:
(1) uses any untrue, misleading, or deceptive statements in a
business opportunity transaction;
(2) fails to deliver the goods or services necessary to begin
substantial operation of the business within forty-five (45) days
of the delivery date stated in the contract; or
(3) fails to comply with section 6 of this chapter;
the investor may void the contract within one (1) year of the date of
the contract by giving written notice to the seller and is entitled to a
return from the seller of all consideration paid to the seller.
(b) Upon receipt by the investor of the consideration paid to the
seller, the investor shall make available to the seller, at a reasonable
time and place, the goods received by the investor. However, the
investor is not entitled to unjust enrichment by exercising the rights
provided by this section. As added by P.L.134-1984, SEC.1.
IC 24-5-8-17 Recovery of actual damages for seller's failure to comply with
chapter or breach of contract
Sec. 17. Notwithstanding any other section of this chapter, a
person who is damaged by a seller's failure to comply with this
chapter or by a seller's breach of a contract may:
(1) bring an action for recovery of his actual damage including
attorney fees; and
(2) bring an action against the bond required by section 3 of this
chapter;
to recover an amount equal to his actual damages. However, the
liability of the seller under this section may not exceed the amount
of the bond. As added by P.L.134-1984, SEC.1.
IC 24-5-8-18 Injunction
Sec. 18. Upon complaint by any person that a seller has failed to
comply with this chapter, the circuit or superior court of the county
of residence of the complainant may enjoin the seller from further
violations. As added by P.L.134-1984, SEC.1.
IC 24-5-8-19 Failure to comply; Class D felony
Sec. 19. A person who fails to comply with section 4 of this
chapter commits a Class D felony. As added by P.L.134-1984, SEC.1.
IC 24-5-8-20 Failure to comply; deceptive act
Sec. 20. A person who fails to comply with any provision of this
chapter commits a deceptive act that is actionable by the attorney
general under IC 24-5-0.5-4(c) and is subject to the penalties
enumerated in IC 24-5-0.5. As added by P.L.134-1984, SEC.1.
IC 24-5-8-21 Construction
Sec. 21. Nothing in this chapter shall be construed as relieving a
person from complying with IC 23-2-2.5, IC 23-2-2.7, and IC 23-19. As added by P.L.134-1984, SEC.1. Amended by P.L.27-2007,
SEC.24.
IC 24-5-8
Chapter 8. Business Opportunity Transactions
IC 24-5-8-1 Definitions
Sec. 1. As used in this chapter:
"Business opportunity" means an investment that:
(1) involves the sale or lease or offer to sell or lease any goods
or services to an investor that are to be used by the investor in
beginning or operating a business;
(2) involves an initial payment by the investor of more than five
hundred dollars ($500) and an initial cash payment of less than
fifty thousand dollars ($50,000); and
(3) involves a solicitation of investors in which the seller
represents that:
(A) the investor may or will earn an amount in excess of the
initial payment as a result of the investment;
(B) a market exists for any goods to be made or services to
be rendered by the investor;
(C) the seller may buy from the investor any goods to be
made or services to be rendered by the investor;
(D) the seller or a person referred by the seller to the
investor may or will sell, lease, or distribute the goods made
or services rendered by the investor; or
(E) the seller may or will pay to the investor the difference
between the initial payment and the investor's earnings from
the investment.
"Business opportunity" does not include an investment that
involves:
(1) the sale of a franchise as defined by IC 23-2-2.5-1 or
IC 23-2-2.7-5;
(2) the sale of any assets (other than inventory) of an ongoing
business by the owner of the business;
(3) the not-for-profit sale of sales demonstration equipment,
materials, or samples for a total price of five hundred dollars
($500) or less; or
(4) the sale of all or substantially all of the assets of an ongoing
business.
"Contract" means any agreement relating to a business
opportunity.
"Goods" means any merchandise, equipment, product, supply, or
material.
"Initial cash payment" means that portion of the initial payment
that the investor is obligated to pay to the seller before or at the time
of delivery of goods or services. The term does not include any
amount financed by the seller, any amount for which financing is to
be obtained by the seller, any amount that the seller assists in
financing, or any amount required by the seller to be deposited as
security for the performance by an investor of the operation of the
business or that secures an extension of credit.
"Initial payment" means the total amount an investor is obligated
to pay under the terms of the contract before or at the time of
delivery of the goods or services to the investor or within six (6)
months of the date that the investor commences operation of the
business. If the contract states a total price for the business
opportunity and provides that the total price is to be paid partially as
an initial cash payment and the remainder in specific monthly
payments, the term means the total price. The term does not include
any amount required by the seller to be deposited as security for the
performance by an investor of the operation of the business or that
secures an extension of credit.
"Investor" means a person who is solicited to become obligated or
does become obligated on a contract.
"Offer" includes every attempt to dispose of a business
opportunity or an interest in a business opportunity for value.
"Person" means a human being, corporation, limited liability
company, partnership, unincorporated association, trust, or
governmental entity.
"Sale" includes every contract to sell or dispose of a business
opportunity or an interest in a business opportunity for value.
"Seller" means a person, or his agent, who sells or leases or offers
to sell or lease a business opportunity.
"Service" means any assistance, guidance, direction, work, labor,
or such other act as may be provided by the seller in the initiation or
maintenance of a business.
"Substantial seller" means a seller who has a net worth on a
consolidated basis, according to current financial statements certified
by an independent certified public accountant, of:
(1) at least five million dollars ($5,000,000); or
(2) at least one million dollars ($1,000,000) if the seller is at
least eighty percent (80%) owned by a corporation that has a net
worth on a consolidated basis, according to current financial
statements certified by an independent certified public
accountant, of at least five million dollars ($5,000,000). As added by P.L.134-1984, SEC.1. Amended by P.L.239-1985,
SEC.2; P.L.12-1986, SEC.10; P.L.252-1987, SEC.1; P.L.8-1993,
SEC.361.
IC 24-5-8-1.5 Substantial sellers; application of certain sections
Sec. 1.5. Sections 2, 3, 4, 13, 15, and 19 of this chapter do not
apply to a substantial seller. As added by P.L.252-1987, SEC.2.
IC 24-5-8-2 Disclosure document; cover sheet; contents
Sec. 2. (a) At least seventy-two (72) hours before the time the
investor signs a contract, or at least seventy-two (72) hours before
receipt of any consideration by the seller, whichever occurs first, the
seller shall provide the investor a written disclosure document, the
cover sheet of which is entitled in at least ten (10) point bold face
capital letters "DISCLOSURES REQUIRED BY INDIANA LAW".
Under this title, the following statement must appear in at least ten
(10) point type: "The state of Indiana has not reviewed and does not
approve, recommend, endorse, or sponsor any business opportunity.
The information contained in this disclosure has not been verified by
the state. If you have any questions about this investment, see an
attorney before you sign a contract.". Nothing except the title and
statement may appear on the cover sheet.
(b) The disclosure document must also contain the following
information:
(1) The name of the seller, whether the seller is doing business
as an individual, partnership, limited liability company, or
corporation, the names under which the seller has done, is
doing, or intends to do business, and the name of any parent or
affiliated company that will engage in business transactions
with the investor or that will take responsibility for statements
made by the seller.
(2) The names, business addresses, business telephone numbers,
and titles of the seller's officers, directors, trustees, general
partners, general managers, principal executives, and any other
persons charged with responsibility for the seller's business
activities relating to the sale of business opportunities.
(3) The names, business addresses, and business telephone
numbers of all the seller's representatives who are soliciting
business opportunities in Indiana.
(4) The length of time the seller has:
(A) solicited business opportunities; and
(B) solicited business opportunities involving the goods or
services currently being offered to the investor.
(5) A statement of the initial payment to be paid by the investor,
or when not known, a statement of the approximate initial
payment to be paid.
(6) An unexecuted copy of all contracts.
(7) The following financial statements:
(A) A balance sheet of the seller as of the close of its last
fiscal year.
(B) Income statements for each of the seller's last three (3)
fiscal years or for the period of the seller's and any
predecessor's existence, if the seller and any predecessor
have been in existence for less than three (3) years.
(8) A complete and detailed description of any service that the
seller undertakes to perform for the investor.
(9) A complete description of any training offered by the seller,
the length of training, and a detailed itemization of all costs to
be covered by any fee to be charged for the training.
(10) A statement disclosing the names, home addresses, and
home telephone numbers of all persons who have been investors
in a business opportunity offered by the seller within the last
two (2) year period.
(11) A statement listing the name, home address, and home
telephone number of any investor who has requested within the
preceding three (3) year period that the seller return his money.
(12) A statement as to whether the seller or any of its officers,
directors, trustees, general partners, general managers, principal
executives, or representatives has been:
(A) held liable in a civil action for unfair, false, misleading,
or deceptive practices;
(B) convicted of a crime involving fraud, embezzlement,
conversion, or theft during the most recent seven (7) year
period; or
(C) declared bankrupt in any judicial proceeding during the
most recent seven (7) year period.
(13) A statement as to whether the seller or any of its officers,
directors, trustees, general partners, general managers, principal
executives, or representatives has been a party to any legal
cause of action brought by an investor within the most recent
seven (7) year period.
(14) A statement as to whether the seller or any of its officers,
directors, trustees, general partners, general managers, principal
executives, or representatives is currently involved in litigation
alleging unfair, false, misleading, or deceptive practices.
(15) A statement containing the name of the parties, the name
of the court, the cause or docket number of the lawsuit, the date
the suit was filed, and the date the judgment was entered, if
applicable, for each answer to subdivisions (12), (13), and (14).
(16) The following statement: "As required by Indiana law, the
seller has secured a bond issued by _______________ (name
and address of surety), a surety company authorized to do
business in Indiana. Before signing a contract to invest in this
business opportunity, you should check with the surety
company to determine the bond's current status.".
(17) If the seller makes any statement concerning earnings or
range of earnings that may be earned through the business
opportunity, the seller must set forth the following:
"No guarantee of earnings or ranges of earnings can be
made. The number of investors who have earned through
this business opportunity an amount in excess of the amount
of their initial payment is at least ________, which
represents ________ percent of the total number of investors
in this business opportunity.". As added by P.L.134-1984, SEC.1. Amended by P.L.8-1993,
SEC.362.
IC 24-5-8-3 Surety bonds; requirements; waiver
Sec. 3. (a) A seller shall obtain a surety bond issued by a surety
company authorized to do business in Indiana. The amount of the
bond must be at least twenty (20) times the initial payment required
for the business opportunity, but not less than seventy-five thousand
dollars ($75,000). The bond must be in favor of the state for the use
and benefit of investors.
(b) The attorney general may waive the bonding requirement
under subsection (a) and accept in lieu of the bond an irrevocable
letter of credit for an equivalent amount issued in the favor of the
state. As added by P.L.134-1984, SEC.1. Amended by P.L.12-1986,
SEC.11.
IC 24-5-8-4 Requirements before advertising; amendment of filings; renewal
fee; record of filings
Sec. 4. (a) Before placing any advertisement or making any other
representations to any investor in Indiana, the seller shall:
(1) file a copy of the disclosure statement required by section 2
of this chapter and the bond required by section 3 of this
chapter with the consumer protection division of the office of
the attorney general; and
(2) pay an initial filing fee of fifty dollars ($50).
(b) The seller shall amend these filings when any material change
in the information occurs and shall pay a fee of ten dollars ($10) for
filing the amendment.
(c) If the seller continues to solicit business opportunities in
Indiana, he shall pay annually a renewal fee of ten dollars ($10) on
or before the anniversary date of the initial filing for the particular
business opportunity.
(d) The director of the consumer protection division of the office
of the attorney general or his designate shall maintain a record of all
filings made under this chapter and shall assign a registration number
to each of them. The seller shall be advised in writing of the assigned
number. Any advertisements, pamphlets, brochures, or any other
materials used in the solicitation of a business opportunity must
include the assigned registration number in the following manner:
"C.P.D. Reg. No. ____ .". As added by P.L.134-1984, SEC.1.
IC 24-5-8-5 Representations of business opportunity; copy to investor, contents
Sec. 5. (a) If the seller represents that the business opportunity
provides earning potential of any kind, the seller shall have data to
substantiate the claims of earning potential and shall give to the
investor at the first in person communication by the seller a copy of
this data or a copy of any statement of estimated or projected earning
potential prepared for presentation to prospective investors, together
with an explanation of the statement. A mathematical computation
of the number of sales multiplied by the amount of profit per sale to
reach a projected earnings figure is not sufficient data to substantiate
an earnings potential claim for the purposes of this section.
(b) The earning potential data given to the investor by a seller,
except a substantial seller, must disclose:
(1) the length of time the seller has been soliciting the particular
business opportunity;
(2) the number of investors in the particular business
opportunity that were solicited by the seller and known to the
seller to have made at least the same sales, earnings, or profits
as those represented;
(3) the percentage the number in subdivision (2) represents of
the total number of investors in the particular business
opportunity that were solicited by the seller; and
(4) the current address of any person named by the seller as
having profited from the particular business opportunity, a
description of the circumstances under which the profit was
earned, and a description of any interest held by the named
person in the business opportunity being offered to the investor. As added by P.L.134-1984, SEC.1. Amended by P.L.252-1987,
SEC.3.
IC 24-5-8-6 Contracts; contents
Sec. 6. (a) The seller shall put every contract in writing and shall
give the investor a copy of the contract at the time the investor signs
the contract.
(b) The seller shall include in every contract the following:
(1) The seller's business address and the name and business
address of the seller's agent in this state authorized to receive
service of process.
(2) The terms and conditions of payment.
(3) A detailed description of any services that the seller
undertakes to perform for the investor.
(4) A detailed description of any training that the seller
undertakes to provide to the investor.
(5) The approximate delivery date of any goods the seller is to
deliver to the investor.
(6) A statement of the investor's right to cancel that must:
(A) appear under the conspicuous caption, "INVESTOR'S
RIGHT TO CANCEL WITHIN 30 DAYS"; and
(B) contain the following statement in no smaller type than
the body portion of the contract: "THE INVESTOR IN THIS
BUSINESS OPPORTUNITY HAS THE RIGHT TO
CANCEL THIS CONTRACT FOR ANY REASON AT
ANY TIME BEFORE MIDNIGHT OF THE 30TH
CALENDAR DAY AFTER THIS CONTRACT IS
ENTERED INTO. YOU MAY CANCEL THIS
CONTRACT BY MAILING A NOTICE THAT YOU DO
NOT WANT THE BUSINESS OPPORTUNITY TO THE
SELLER BEFORE __________, 20__ AT 12:00
MIDNIGHT AT _______________.".
(c) Subsection (b)(6) does not apply to a contract entered into by
a substantial seller, unless required by the consumer protection
division of the office of the attorney general for good cause shown
after notice. As added by P.L.134-1984, SEC.1. Amended by P.L.252-1987,
SEC.4; P.L.2-2005, SEC.62.
IC 24-5-8-7 Books, records, and accounts; documents
Sec. 7. (a) Every seller shall keep and maintain a complete set of
books, records, and accounts of business opportunity transactions
made by the seller.
(b) The seller shall keep all documents relating to each contract
entered into by the seller for four (4) years after the date of the
contract. As added by P.L.134-1984, SEC.1.
IC 24-5-8-8 Validity of waiver of provisions by investor
Sec. 8. Any waiver by an investor of the provisions of this chapter
is deemed contrary to public policy and is void and unenforceable. As added by P.L.134-1984, SEC.1.
IC 24-5-8-9 Attempts to have investor waive rights
Sec. 9. A seller may not attempt to have an investor waive rights
given to the investor by this chapter. As added by P.L.134-1984, SEC.1.
IC 24-5-8-10 Cutting off right or defense of investor against seller
Sec. 10. A seller may not require the investor to execute any note
that will cut off a right or defense that the investor or a third party
may have against the seller. As added by P.L.134-1984, SEC.1.
IC 24-5-8-11 Initial cash payment
Sec. 11. A seller may not require an initial cash payment that
exceeds twenty percent (20%) of the initial payment. As added by P.L.134-1984, SEC.1.
IC 24-5-8-12 Escrow accounts
Sec. 12. A seller may not require a payment before the delivery of
any goods that exceeds twenty percent (20%) of the initial payment
unless the amount in excess of the twenty percent (20%) payment is
placed in an escrow account which provides that the money can not
be released until:
(1) the investor notifies the escrow agent in writing of the
receipt of the goods; or
(2) the seller presents to the escrow agent a bill of lading that
proves shipment of the goods as required by the contract.
Notification of receipt by the investor to the escrow agent may not be
unreasonably withheld. As added by P.L.134-1984, SEC.1.
IC 24-5-8-13 Reference to compliance with chapter in advertisement
Sec. 13. A seller may not make any reference to its compliance
with this chapter in any advertisement or other contact with an
investor other than by setting forth the registration number as
provided in section 4 of this chapter. As added by P.L.134-1984, SEC.1.
IC 24-5-8-14 Use of commercial symbols
Sec. 14. A seller may not use the trademark, service mark, trade
name, logotype, advertising, or other commercial symbol of any
business that does not either control the ownership interest in the
seller or accept responsibility for all representations made by the
seller in regard to the business opportunity, unless it is clear from the
circumstances that the owner of the commercial symbol is not
involved in the business opportunity. As added by P.L.134-1984, SEC.1.
IC 24-5-8-15 Cancellation of contract for seller's failure to comply
Sec. 15. If a seller fails to comply with section 2 of this chapter,
the investor may cancel any contract by notifying the seller in any
manner. As added by P.L.134-1984, SEC.1.
IC 24-5-8-16 Voiding contracts
Sec. 16. (a) If a seller:
(1) uses any untrue, misleading, or deceptive statements in a
business opportunity transaction;
(2) fails to deliver the goods or services necessary to begin
substantial operation of the business within forty-five (45) days
of the delivery date stated in the contract; or
(3) fails to comply with section 6 of this chapter;
the investor may void the contract within one (1) year of the date of
the contract by giving written notice to the seller and is entitled to a
return from the seller of all consideration paid to the seller.
(b) Upon receipt by the investor of the consideration paid to the
seller, the investor shall make available to the seller, at a reasonable
time and place, the goods received by the investor. However, the
investor is not entitled to unjust enrichment by exercising the rights
provided by this section. As added by P.L.134-1984, SEC.1.
IC 24-5-8-17 Recovery of actual damages for seller's failure to comply with
chapter or breach of contract
Sec. 17. Notwithstanding any other section of this chapter, a
person who is damaged by a seller's failure to comply with this
chapter or by a seller's breach of a contract may:
(1) bring an action for recovery of his actual damage including
attorney fees; and
(2) bring an action against the bond required by section 3 of this
chapter;
to recover an amount equal to his actual damages. However, the
liability of the seller under this section may not exceed the amount
of the bond. As added by P.L.134-1984, SEC.1.
IC 24-5-8-18 Injunction
Sec. 18. Upon complaint by any person that a seller has failed to
comply with this chapter, the circuit or superior court of the county
of residence of the complainant may enjoin the seller from further
violations. As added by P.L.134-1984, SEC.1.
IC 24-5-8-19 Failure to comply; Class D felony
Sec. 19. A person who fails to comply with section 4 of this
chapter commits a Class D felony. As added by P.L.134-1984, SEC.1.
IC 24-5-8-20 Failure to comply; deceptive act
Sec. 20. A person who fails to comply with any provision of this
chapter commits a deceptive act that is actionable by the attorney
general under IC 24-5-0.5-4(c) and is subject to the penalties
enumerated in IC 24-5-0.5. As added by P.L.134-1984, SEC.1.
IC 24-5-8-21 Construction
Sec. 21. Nothing in this chapter shall be construed as relieving a
person from complying with IC 23-2-2.5, IC 23-2-2.7, and IC 23-19. As added by P.L.134-1984, SEC.1. Amended by P.L.27-2007,
SEC.24.
IC 24-5-8
Chapter 8. Business Opportunity Transactions
IC 24-5-8-1 Definitions
Sec. 1. As used in this chapter:
"Business opportunity" means an investment that:
(1) involves the sale or lease or offer to sell or lease any goods
or services to an investor that are to be used by the investor in
beginning or operating a business;
(2) involves an initial payment by the investor of more than five
hundred dollars ($500) and an initial cash payment of less than
fifty thousand dollars ($50,000); and
(3) involves a solicitation of investors in which the seller
represents that:
(A) the investor may or will earn an amount in excess of the
initial payment as a result of the investment;
(B) a market exists for any goods to be made or services to
be rendered by the investor;
(C) the seller may buy from the investor any goods to be
made or services to be rendered by the investor;
(D) the seller or a person referred by the seller to the
investor may or will sell, lease, or distribute the goods made
or services rendered by the investor; or
(E) the seller may or will pay to the investor the difference
between the initial payment and the investor's earnings from
the investment.
"Business opportunity" does not include an investment that
involves:
(1) the sale of a franchise as defined by IC 23-2-2.5-1 or
IC 23-2-2.7-5;
(2) the sale of any assets (other than inventory) of an ongoing
business by the owner of the business;
(3) the not-for-profit sale of sales demonstration equipment,
materials, or samples for a total price of five hundred dollars
($500) or less; or
(4) the sale of all or substantially all of the assets of an ongoing
business.
"Contract" means any agreement relating to a business
opportunity.
"Goods" means any merchandise, equipment, product, supply, or
material.
"Initial cash payment" means that portion of the initial payment
that the investor is obligated to pay to the seller before or at the time
of delivery of goods or services. The term does not include any
amount financed by the seller, any amount for which financing is to
be obtained by the seller, any amount that the seller assists in
financing, or any amount required by the seller to be deposited as
security for the performance by an investor of the operation of the
business or that secures an extension of credit.
"Initial payment" means the total amount an investor is obligated
to pay under the terms of the contract before or at the time of
delivery of the goods or services to the investor or within six (6)
months of the date that the investor commences operation of the
business. If the contract states a total price for the business
opportunity and provides that the total price is to be paid partially as
an initial cash payment and the remainder in specific monthly
payments, the term means the total price. The term does not include
any amount required by the seller to be deposited as security for the
performance by an investor of the operation of the business or that
secures an extension of credit.
"Investor" means a person who is solicited to become obligated or
does become obligated on a contract.
"Offer" includes every attempt to dispose of a business
opportunity or an interest in a business opportunity for value.
"Person" means a human being, corporation, limited liability
company, partnership, unincorporated association, trust, or
governmental entity.
"Sale" includes every contract to sell or dispose of a business
opportunity or an interest in a business opportunity for value.
"Seller" means a person, or his agent, who sells or leases or offers
to sell or lease a business opportunity.
"Service" means any assistance, guidance, direction, work, labor,
or such other act as may be provided by the seller in the initiation or
maintenance of a business.
"Substantial seller" means a seller who has a net worth on a
consolidated basis, according to current financial statements certified
by an independent certified public accountant, of:
(1) at least five million dollars ($5,000,000); or
(2) at least one million dollars ($1,000,000) if the seller is at
least eighty percent (80%) owned by a corporation that has a net
worth on a consolidated basis, according to current financial
statements certified by an independent certified public
accountant, of at least five million dollars ($5,000,000). As added by P.L.134-1984, SEC.1. Amended by P.L.239-1985,
SEC.2; P.L.12-1986, SEC.10; P.L.252-1987, SEC.1; P.L.8-1993,
SEC.361.
IC 24-5-8-1.5 Substantial sellers; application of certain sections
Sec. 1.5. Sections 2, 3, 4, 13, 15, and 19 of this chapter do not
apply to a substantial seller. As added by P.L.252-1987, SEC.2.
IC 24-5-8-2 Disclosure document; cover sheet; contents
Sec. 2. (a) At least seventy-two (72) hours before the time the
investor signs a contract, or at least seventy-two (72) hours before
receipt of any consideration by the seller, whichever occurs first, the
seller shall provide the investor a written disclosure document, the
cover sheet of which is entitled in at least ten (10) point bold face
capital letters "DISCLOSURES REQUIRED BY INDIANA LAW".
Under this title, the following statement must appear in at least ten
(10) point type: "The state of Indiana has not reviewed and does not
approve, recommend, endorse, or sponsor any business opportunity.
The information contained in this disclosure has not been verified by
the state. If you have any questions about this investment, see an
attorney before you sign a contract.". Nothing except the title and
statement may appear on the cover sheet.
(b) The disclosure document must also contain the following
information:
(1) The name of the seller, whether the seller is doing business
as an individual, partnership, limited liability company, or
corporation, the names under which the seller has done, is
doing, or intends to do business, and the name of any parent or
affiliated company that will engage in business transactions
with the investor or that will take responsibility for statements
made by the seller.
(2) The names, business addresses, business telephone numbers,
and titles of the seller's officers, directors, trustees, general
partners, general managers, principal executives, and any other
persons charged with responsibility for the seller's business
activities relating to the sale of business opportunities.
(3) The names, business addresses, and business telephone
numbers of all the seller's representatives who are soliciting
business opportunities in Indiana.
(4) The length of time the seller has:
(A) solicited business opportunities; and
(B) solicited business opportunities involving the goods or
services currently being offered to the investor.
(5) A statement of the initial payment to be paid by the investor,
or when not known, a statement of the approximate initial
payment to be paid.
(6) An unexecuted copy of all contracts.
(7) The following financial statements:
(A) A balance sheet of the seller as of the close of its last
fiscal year.
(B) Income statements for each of the seller's last three (3)
fiscal years or for the period of the seller's and any
predecessor's existence, if the seller and any predecessor
have been in existence for less than three (3) years.
(8) A complete and detailed description of any service that the
seller undertakes to perform for the investor.
(9) A complete description of any training offered by the seller,
the length of training, and a detailed itemization of all costs to
be covered by any fee to be charged for the training.
(10) A statement disclosing the names, home addresses, and
home telephone numbers of all persons who have been investors
in a business opportunity offered by the seller within the last
two (2) year period.
(11) A statement listing the name, home address, and home
telephone number of any investor who has requested within the
preceding three (3) year period that the seller return his money.
(12) A statement as to whether the seller or any of its officers,
directors, trustees, general partners, general managers, principal
executives, or representatives has been:
(A) held liable in a civil action for unfair, false, misleading,
or deceptive practices;
(B) convicted of a crime involving fraud, embezzlement,
conversion, or theft during the most recent seven (7) year
period; or
(C) declared bankrupt in any judicial proceeding during the
most recent seven (7) year period.
(13) A statement as to whether the seller or any of its officers,
directors, trustees, general partners, general managers, principal
executives, or representatives has been a party to any legal
cause of action brought by an investor within the most recent
seven (7) year period.
(14) A statement as to whether the seller or any of its officers,
directors, trustees, general partners, general managers, principal
executives, or representatives is currently involved in litigation
alleging unfair, false, misleading, or deceptive practices.
(15) A statement containing the name of the parties, the name
of the court, the cause or docket number of the lawsuit, the date
the suit was filed, and the date the judgment was entered, if
applicable, for each answer to subdivisions (12), (13), and (14).
(16) The following statement: "As required by Indiana law, the
seller has secured a bond issued by _______________ (name
and address of surety), a surety company authorized to do
business in Indiana. Before signing a contract to invest in this
business opportunity, you should check with the surety
company to determine the bond's current status.".
(17) If the seller makes any statement concerning earnings or
range of earnings that may be earned through the business
opportunity, the seller must set forth the following:
"No guarantee of earnings or ranges of earnings can be
made. The number of investors who have earned through
this business opportunity an amount in excess of the amount
of their initial payment is at least ________, which
represents ________ percent of the total number of investors
in this business opportunity.". As added by P.L.134-1984, SEC.1. Amended by P.L.8-1993,
SEC.362.
IC 24-5-8-3 Surety bonds; requirements; waiver
Sec. 3. (a) A seller shall obtain a surety bond issued by a surety
company authorized to do business in Indiana. The amount of the
bond must be at least twenty (20) times the initial payment required
for the business opportunity, but not less than seventy-five thousand
dollars ($75,000). The bond must be in favor of the state for the use
and benefit of investors.
(b) The attorney general may waive the bonding requirement
under subsection (a) and accept in lieu of the bond an irrevocable
letter of credit for an equivalent amount issued in the favor of the
state. As added by P.L.134-1984, SEC.1. Amended by P.L.12-1986,
SEC.11.
IC 24-5-8-4 Requirements before advertising; amendment of filings; renewal
fee; record of filings
Sec. 4. (a) Before placing any advertisement or making any other
representations to any investor in Indiana, the seller shall:
(1) file a copy of the disclosure statement required by section 2
of this chapter and the bond required by section 3 of this
chapter with the consumer protection division of the office of
the attorney general; and
(2) pay an initial filing fee of fifty dollars ($50).
(b) The seller shall amend these filings when any material change
in the information occurs and shall pay a fee of ten dollars ($10) for
filing the amendment.
(c) If the seller continues to solicit business opportunities in
Indiana, he shall pay annually a renewal fee of ten dollars ($10) on
or before the anniversary date of the initial filing for the particular
business opportunity.
(d) The director of the consumer protection division of the office
of the attorney general or his designate shall maintain a record of all
filings made under this chapter and shall assign a registration number
to each of them. The seller shall be advised in writing of the assigned
number. Any advertisements, pamphlets, brochures, or any other
materials used in the solicitation of a business opportunity must
include the assigned registration number in the following manner:
"C.P.D. Reg. No. ____ .". As added by P.L.134-1984, SEC.1.
IC 24-5-8-5 Representations of business opportunity; copy to investor, contents
Sec. 5. (a) If the seller represents that the business opportunity
provides earning potential of any kind, the seller shall have data to
substantiate the claims of earning potential and shall give to the
investor at the first in person communication by the seller a copy of
this data or a copy of any statement of estimated or projected earning
potential prepared for presentation to prospective investors, together
with an explanation of the statement. A mathematical computation
of the number of sales multiplied by the amount of profit per sale to
reach a projected earnings figure is not sufficient data to substantiate
an earnings potential claim for the purposes of this section.
(b) The earning potential data given to the investor by a seller,
except a substantial seller, must disclose:
(1) the length of time the seller has been soliciting the particular
business opportunity;
(2) the number of investors in the particular business
opportunity that were solicited by the seller and known to the
seller to have made at least the same sales, earnings, or profits
as those represented;
(3) the percentage the number in subdivision (2) represents of
the total number of investors in the particular business
opportunity that were solicited by the seller; and
(4) the current address of any person named by the seller as
having profited from the particular business opportunity, a
description of the circumstances under which the profit was
earned, and a description of any interest held by the named
person in the business opportunity being offered to the investor. As added by P.L.134-1984, SEC.1. Amended by P.L.252-1987,
SEC.3.
IC 24-5-8-6 Contracts; contents
Sec. 6. (a) The seller shall put every contract in writing and shall
give the investor a copy of the contract at the time the investor signs
the contract.
(b) The seller shall include in every contract the following:
(1) The seller's business address and the name and business
address of the seller's agent in this state authorized to receive
service of process.
(2) The terms and conditions of payment.
(3) A detailed description of any services that the seller
undertakes to perform for the investor.
(4) A detailed description of any training that the seller
undertakes to provide to the investor.
(5) The approximate delivery date of any goods the seller is to
deliver to the investor.
(6) A statement of the investor's right to cancel that must:
(A) appear under the conspicuous caption, "INVESTOR'S
RIGHT TO CANCEL WITHIN 30 DAYS"; and
(B) contain the following statement in no smaller type than
the body portion of the contract: "THE INVESTOR IN THIS
BUSINESS OPPORTUNITY HAS THE RIGHT TO
CANCEL THIS CONTRACT FOR ANY REASON AT
ANY TIME BEFORE MIDNIGHT OF THE 30TH
CALENDAR DAY AFTER THIS CONTRACT IS
ENTERED INTO. YOU MAY CANCEL THIS
CONTRACT BY MAILING A NOTICE THAT YOU DO
NOT WANT THE BUSINESS OPPORTUNITY TO THE
SELLER BEFORE __________, 20__ AT 12:00
MIDNIGHT AT _______________.".
(c) Subsection (b)(6) does not apply to a contract entered into by
a substantial seller, unless required by the consumer protection
division of the office of the attorney general for good cause shown
after notice. As added by P.L.134-1984, SEC.1. Amended by P.L.252-1987,
SEC.4; P.L.2-2005, SEC.62.
IC 24-5-8-7 Books, records, and accounts; documents
Sec. 7. (a) Every seller shall keep and maintain a complete set of
books, records, and accounts of business opportunity transactions
made by the seller.
(b) The seller shall keep all documents relating to each contract
entered into by the seller for four (4) years after the date of the
contract. As added by P.L.134-1984, SEC.1.
IC 24-5-8-8 Validity of waiver of provisions by investor
Sec. 8. Any waiver by an investor of the provisions of this chapter
is deemed contrary to public policy and is void and unenforceable. As added by P.L.134-1984, SEC.1.
IC 24-5-8-9 Attempts to have investor waive rights
Sec. 9. A seller may not attempt to have an investor waive rights
given to the investor by this chapter. As added by P.L.134-1984, SEC.1.
IC 24-5-8-10 Cutting off right or defense of investor against seller
Sec. 10. A seller may not require the investor to execute any note
that will cut off a right or defense that the investor or a third party
may have against the seller. As added by P.L.134-1984, SEC.1.
IC 24-5-8-11 Initial cash payment
Sec. 11. A seller may not require an initial cash payment that
exceeds twenty percent (20%) of the initial payment. As added by P.L.134-1984, SEC.1.
IC 24-5-8-12 Escrow accounts
Sec. 12. A seller may not require a payment before the delivery of
any goods that exceeds twenty percent (20%) of the initial payment
unless the amount in excess of the twenty percent (20%) payment is
placed in an escrow account which provides that the money can not
be released until:
(1) the investor notifies the escrow agent in writing of the
receipt of the goods; or
(2) the seller presents to the escrow agent a bill of lading that
proves shipment of the goods as required by the contract.
Notification of receipt by the investor to the escrow agent may not be
unreasonably withheld. As added by P.L.134-1984, SEC.1.
IC 24-5-8-13 Reference to compliance with chapter in advertisement
Sec. 13. A seller may not make any reference to its compliance
with this chapter in any advertisement or other contact with an
investor other than by setting forth the registration number as
provided in section 4 of this chapter. As added by P.L.134-1984, SEC.1.
IC 24-5-8-14 Use of commercial symbols
Sec. 14. A seller may not use the trademark, service mark, trade
name, logotype, advertising, or other commercial symbol of any
business that does not either control the ownership interest in the
seller or accept responsibility for all representations made by the
seller in regard to the business opportunity, unless it is clear from the
circumstances that the owner of the commercial symbol is not
involved in the business opportunity. As added by P.L.134-1984, SEC.1.
IC 24-5-8-15 Cancellation of contract for seller's failure to comply
Sec. 15. If a seller fails to comply with section 2 of this chapter,
the investor may cancel any contract by notifying the seller in any
manner. As added by P.L.134-1984, SEC.1.
IC 24-5-8-16 Voiding contracts
Sec. 16. (a) If a seller:
(1) uses any untrue, misleading, or deceptive statements in a
business opportunity transaction;
(2) fails to deliver the goods or services necessary to begin
substantial operation of the business within forty-five (45) days
of the delivery date stated in the contract; or
(3) fails to comply with section 6 of this chapter;
the investor may void the contract within one (1) year of the date of
the contract by giving written notice to the seller and is entitled to a
return from the seller of all consideration paid to the seller.
(b) Upon receipt by the investor of the consideration paid to the
seller, the investor shall make available to the seller, at a reasonable
time and place, the goods received by the investor. However, the
investor is not entitled to unjust enrichment by exercising the rights
provided by this section. As added by P.L.134-1984, SEC.1.
IC 24-5-8-17 Recovery of actual damages for seller's failure to comply with
chapter or breach of contract
Sec. 17. Notwithstanding any other section of this chapter, a
person who is damaged by a seller's failure to comply with this
chapter or by a seller's breach of a contract may:
(1) bring an action for recovery of his actual damage including
attorney fees; and
(2) bring an action against the bond required by section 3 of this
chapter;
to recover an amount equal to his actual damages. However, the
liability of the seller under this section may not exceed the amount
of the bond. As added by P.L.134-1984, SEC.1.
IC 24-5-8-18 Injunction
Sec. 18. Upon complaint by any person that a seller has failed to
comply with this chapter, the circuit or superior court of the county
of residence of the complainant may enjoin the seller from further
violations. As added by P.L.134-1984, SEC.1.
IC 24-5-8-19 Failure to comply; Class D felony
Sec. 19. A person who fails to comply with section 4 of this
chapter commits a Class D felony. As added by P.L.134-1984, SEC.1.
IC 24-5-8-20 Failure to comply; deceptive act
Sec. 20. A person who fails to comply with any provision of this
chapter commits a deceptive act that is actionable by the attorney
general under IC 24-5-0.5-4(c) and is subject to the penalties
enumerated in IC 24-5-0.5. As added by P.L.134-1984, SEC.1.
IC 24-5-8-21 Construction
Sec. 21. Nothing in this chapter shall be construed as relieving a
person from complying with IC 23-2-2.5, IC 23-2-2.7, and IC 23-19. As added by P.L.134-1984, SEC.1. Amended by P.L.27-2007,
SEC.24.
