17-1769

Chapter 17.--CORPORATIONS
Article 17.--RELIGIOUS, CHARITABLE AND OTHER ORGANIZATIONS

      17-1769.   Same; unlawful acts and practices.The following acts and practices are hereby declaredunlawful as applied to the planning, conduct or execution of anysolicitation or charitable purpose:

      (a)   Operating in violation of, or failing to comply with, any of therequirements of this act;

      (b)   utilizing any deceptive acts or practiceswhether or not any person has in fact been misled. Deceptive acts orpractices include, but are not limited to, the following:

      (1)   The intentional use in any solicitation of exaggeration, innuendoor ambiguity as to a material fact; and

      (2)   the intentional failure to state a material fact, or theintentional concealment, suppression or omission of a material fact in any solicitation;

      (c)   utilizing any unconscionable acts or practices. An unconscionableact or practice violates this act whether it occurs before, during or afterthe solicitation.

      (1)   The unconscionability of an act or practice is a question for the court.

      (2)   In determining whether an act or practice is unconscionable, thecourt shall consider circumstances which the charitable organization orfund raiser knew or had reason to know including, but not limited to, the following:

      (A)   Taking advantage of a person's inability to reasonably protectsuch person's interests because of the person's physical infirmity,ignorance, illiteracy, inability to understand the language of asolicitation or similar factor; and

      (B)   using undue pressure in soliciting;

      (d)   utilizing any representation that implies the contribution is for oron behalf of a charitable organization or utilizing any emblem, device orprinted matter belonging to or associated with a charitable organization,without obtaining authorization in writing from the charitable organization;

      (e)   utilizing a name, symbol or statement so closely related or similarto that used by another charitable organization that the use thereof wouldtend to confuse or mislead a solicited person, whether or not any personhas in fact been misled;

      (f)   misrepresenting or misleading any person in any manner to believethat the person on whose behalf a solicitation or charitable purpose isbeing conducted is a charitable organization;

      (g)   using donations for purposes other than those stated in anorganization's articles of incorporation or current registration statementsfiled with the secretary of state;

      (h)   using donations for purposes other than those stated in solicitations;

      (i)   using donations for other than charitable purposes;

      (j)   misrepresenting or misleading any person in any matter, to believethat any other person or governmental unit sponsors, endorses orapproves such solicitation orcharitable purpose when such other person has not given consent in writingto the use of such person's name for these purposes; and

      (k)   utilizing or exploiting the fact of registrations so as to lead anyperson to believe that such registration in any manner constitutes anendorsement or approval by the state.

      History:   L. 1988, ch. 96, § 11;L. 1990, ch. 84, § 5; July 1.