State Codes and Statutes

Statutes > Missouri > T26 > C407 > 407_400

Definitions.

407.400. As used in sections 407.400 to 407.420:

(1) "Franchise" means a written or oral arrangement for a definite orindefinite period, in which a person grants to another person a license touse a trade name, trademark, service mark, or related characteristic, andin which there is a community of interest in the marketing of goods orservices at wholesale, retail, by lease, agreement, or otherwise, includingbut not limited to a commercial relationship of definite duration orcontinuing indefinite duration, between a "wholesaler", such wholesalerbeing a person as defined in this section, licensed pursuant to theprovisions of chapter 311, RSMo, to sell at wholesale, intoxicating liquor,as defined in section 311.020, RSMo, to retailers, duly licensed in thisstate, and a "supplier", being a person engaged in the business as amanufacturer, distiller, rectifier or out-of-state solicitor whose brandsof intoxicating liquor are distributed through duly licensed wholesalers inthis state, and wherein a wholesaler is granted the right to offer, sell,and distribute within this state or any designated area thereof such of thesupplier's brands of intoxicating liquor, or all of them, as may bespecified; except that, the term "franchise" shall not apply to personsengaged in sales from warehouses or like places of storage, other thanwholesalers as above described, leased departments of retail stores, placesof original manufacture, nor shall the term "franchise" apply to acommercial relationship that does not contemplate the establishment ormaintenance of a place of business within the state of Missouri. As usedherein "place of business" means a fixed, geographical location at whichgoods, products or services are displayed or demonstrated for sale;

(2) The term "goods" includes any personal property, real property,or any combination thereof;

(3) The term "other property" includes a franchise, licensedistributorship, or other similar right, privilege, or interest;

(4) The term "person" includes an individual, corporation, trust,estate, partnership, unincorporated association, or any other legal orcommercial entity;

(5) The term "pyramid sales scheme" includes any plan or operationfor the sale or distribution of goods, services or other property wherein aperson for a consideration acquires the opportunity to receive a pecuniarybenefit, which is not primarily contingent on the volume or quantity ofgoods, services, or other property sold or distributed or to be sold ordistributed to persons for purposes of resale to consumers, and is basedupon the inducement of additional persons, by himself or herself or others,regardless of number, to participate in the same plan or operation; and

(6) The term "sale or distribution" includes the acts of leasing,renting or consigning.

(L. 1974 H.B. 1132 § 1, A.L. 1975 H.B. 810 § 1, A.L. 1998 H.B. 957 & 1063)

*No continuity with § 407.400 as repealed by L. 1963 S.B. 2 § 10-102, effective 7-1-99.

(1978) Amendment changing definition of franchise to include wholesalers and suppliers or distillers of spirituous liquors during passage of bill did not violate constitutional requirements that bill contain no more than one subject and that it be clearly expressed in the title, and that bill was so amended in its passage as to change its original purpose. Brown-Forman Distillers Corp. v. McHenry (Mo.), 556 S.W.2d 194.

(1980) Sale of club memberships not exempt from statute prohibiting pyramid sales schemes on basis that operation was contingent on volume or quantity of goods, services, or other property sold or distributed or to be sold or distributed to persons for purpose of resale where what was sold was place on club chart, with opportunity to move to higher position. State ex rel. Ashcroft v. Wahl (A.), 600 S.W.2d 175.

(1980) General intent of the legislature in the enactment of statutes prohibiting pyramid sales schemes, is to buttress a strong public policy against pyramid sales schemes involving cover or disguise of some seemingly legitimate commercial transaction. State ex rel. Ashcroft v. Wahl (A.), 600 S.W.2d 175.

(1986) A "community of interest" is found, for purposes of this section, where either (1) the franchisor benefits from the franchisee's marketing of the franchisor's product or service, or (2) the franchisee benefits from the franchisor's marketing of the product or service. C&J Delivery, Inc. v. Emery Air Freight Corp., 647 F.Supp. 867 (E.D.Mo.).

State Codes and Statutes

Statutes > Missouri > T26 > C407 > 407_400

Definitions.

407.400. As used in sections 407.400 to 407.420:

(1) "Franchise" means a written or oral arrangement for a definite orindefinite period, in which a person grants to another person a license touse a trade name, trademark, service mark, or related characteristic, andin which there is a community of interest in the marketing of goods orservices at wholesale, retail, by lease, agreement, or otherwise, includingbut not limited to a commercial relationship of definite duration orcontinuing indefinite duration, between a "wholesaler", such wholesalerbeing a person as defined in this section, licensed pursuant to theprovisions of chapter 311, RSMo, to sell at wholesale, intoxicating liquor,as defined in section 311.020, RSMo, to retailers, duly licensed in thisstate, and a "supplier", being a person engaged in the business as amanufacturer, distiller, rectifier or out-of-state solicitor whose brandsof intoxicating liquor are distributed through duly licensed wholesalers inthis state, and wherein a wholesaler is granted the right to offer, sell,and distribute within this state or any designated area thereof such of thesupplier's brands of intoxicating liquor, or all of them, as may bespecified; except that, the term "franchise" shall not apply to personsengaged in sales from warehouses or like places of storage, other thanwholesalers as above described, leased departments of retail stores, placesof original manufacture, nor shall the term "franchise" apply to acommercial relationship that does not contemplate the establishment ormaintenance of a place of business within the state of Missouri. As usedherein "place of business" means a fixed, geographical location at whichgoods, products or services are displayed or demonstrated for sale;

(2) The term "goods" includes any personal property, real property,or any combination thereof;

(3) The term "other property" includes a franchise, licensedistributorship, or other similar right, privilege, or interest;

(4) The term "person" includes an individual, corporation, trust,estate, partnership, unincorporated association, or any other legal orcommercial entity;

(5) The term "pyramid sales scheme" includes any plan or operationfor the sale or distribution of goods, services or other property wherein aperson for a consideration acquires the opportunity to receive a pecuniarybenefit, which is not primarily contingent on the volume or quantity ofgoods, services, or other property sold or distributed or to be sold ordistributed to persons for purposes of resale to consumers, and is basedupon the inducement of additional persons, by himself or herself or others,regardless of number, to participate in the same plan or operation; and

(6) The term "sale or distribution" includes the acts of leasing,renting or consigning.

(L. 1974 H.B. 1132 § 1, A.L. 1975 H.B. 810 § 1, A.L. 1998 H.B. 957 & 1063)

*No continuity with § 407.400 as repealed by L. 1963 S.B. 2 § 10-102, effective 7-1-99.

(1978) Amendment changing definition of franchise to include wholesalers and suppliers or distillers of spirituous liquors during passage of bill did not violate constitutional requirements that bill contain no more than one subject and that it be clearly expressed in the title, and that bill was so amended in its passage as to change its original purpose. Brown-Forman Distillers Corp. v. McHenry (Mo.), 556 S.W.2d 194.

(1980) Sale of club memberships not exempt from statute prohibiting pyramid sales schemes on basis that operation was contingent on volume or quantity of goods, services, or other property sold or distributed or to be sold or distributed to persons for purpose of resale where what was sold was place on club chart, with opportunity to move to higher position. State ex rel. Ashcroft v. Wahl (A.), 600 S.W.2d 175.

(1980) General intent of the legislature in the enactment of statutes prohibiting pyramid sales schemes, is to buttress a strong public policy against pyramid sales schemes involving cover or disguise of some seemingly legitimate commercial transaction. State ex rel. Ashcroft v. Wahl (A.), 600 S.W.2d 175.

(1986) A "community of interest" is found, for purposes of this section, where either (1) the franchisor benefits from the franchisee's marketing of the franchisor's product or service, or (2) the franchisee benefits from the franchisor's marketing of the product or service. C&J Delivery, Inc. v. Emery Air Freight Corp., 647 F.Supp. 867 (E.D.Mo.).


State Codes and Statutes

State Codes and Statutes

Statutes > Missouri > T26 > C407 > 407_400

Definitions.

407.400. As used in sections 407.400 to 407.420:

(1) "Franchise" means a written or oral arrangement for a definite orindefinite period, in which a person grants to another person a license touse a trade name, trademark, service mark, or related characteristic, andin which there is a community of interest in the marketing of goods orservices at wholesale, retail, by lease, agreement, or otherwise, includingbut not limited to a commercial relationship of definite duration orcontinuing indefinite duration, between a "wholesaler", such wholesalerbeing a person as defined in this section, licensed pursuant to theprovisions of chapter 311, RSMo, to sell at wholesale, intoxicating liquor,as defined in section 311.020, RSMo, to retailers, duly licensed in thisstate, and a "supplier", being a person engaged in the business as amanufacturer, distiller, rectifier or out-of-state solicitor whose brandsof intoxicating liquor are distributed through duly licensed wholesalers inthis state, and wherein a wholesaler is granted the right to offer, sell,and distribute within this state or any designated area thereof such of thesupplier's brands of intoxicating liquor, or all of them, as may bespecified; except that, the term "franchise" shall not apply to personsengaged in sales from warehouses or like places of storage, other thanwholesalers as above described, leased departments of retail stores, placesof original manufacture, nor shall the term "franchise" apply to acommercial relationship that does not contemplate the establishment ormaintenance of a place of business within the state of Missouri. As usedherein "place of business" means a fixed, geographical location at whichgoods, products or services are displayed or demonstrated for sale;

(2) The term "goods" includes any personal property, real property,or any combination thereof;

(3) The term "other property" includes a franchise, licensedistributorship, or other similar right, privilege, or interest;

(4) The term "person" includes an individual, corporation, trust,estate, partnership, unincorporated association, or any other legal orcommercial entity;

(5) The term "pyramid sales scheme" includes any plan or operationfor the sale or distribution of goods, services or other property wherein aperson for a consideration acquires the opportunity to receive a pecuniarybenefit, which is not primarily contingent on the volume or quantity ofgoods, services, or other property sold or distributed or to be sold ordistributed to persons for purposes of resale to consumers, and is basedupon the inducement of additional persons, by himself or herself or others,regardless of number, to participate in the same plan or operation; and

(6) The term "sale or distribution" includes the acts of leasing,renting or consigning.

(L. 1974 H.B. 1132 § 1, A.L. 1975 H.B. 810 § 1, A.L. 1998 H.B. 957 & 1063)

*No continuity with § 407.400 as repealed by L. 1963 S.B. 2 § 10-102, effective 7-1-99.

(1978) Amendment changing definition of franchise to include wholesalers and suppliers or distillers of spirituous liquors during passage of bill did not violate constitutional requirements that bill contain no more than one subject and that it be clearly expressed in the title, and that bill was so amended in its passage as to change its original purpose. Brown-Forman Distillers Corp. v. McHenry (Mo.), 556 S.W.2d 194.

(1980) Sale of club memberships not exempt from statute prohibiting pyramid sales schemes on basis that operation was contingent on volume or quantity of goods, services, or other property sold or distributed or to be sold or distributed to persons for purpose of resale where what was sold was place on club chart, with opportunity to move to higher position. State ex rel. Ashcroft v. Wahl (A.), 600 S.W.2d 175.

(1980) General intent of the legislature in the enactment of statutes prohibiting pyramid sales schemes, is to buttress a strong public policy against pyramid sales schemes involving cover or disguise of some seemingly legitimate commercial transaction. State ex rel. Ashcroft v. Wahl (A.), 600 S.W.2d 175.

(1986) A "community of interest" is found, for purposes of this section, where either (1) the franchisor benefits from the franchisee's marketing of the franchisor's product or service, or (2) the franchisee benefits from the franchisor's marketing of the product or service. C&J Delivery, Inc. v. Emery Air Freight Corp., 647 F.Supp. 867 (E.D.Mo.).