§ 19-28.1-18 Enforcement. – (a) The director may by order deny a franchise registration application orsuspend or revoke the effectiveness of registration of a franchise if:
(1) The franchisor failed to comply with a provision of thisact or a rule, order or condition of the director under this act;
(2) The registration application is incomplete or inaccuratein any material respect;
(3) The registration application includes a false ormisleading statement of a material fact or omits to state a material factrequired to be stated or necessary to make a required statement not misleading;
(4) The sale of the franchise would constitute amisrepresentation, deceit or fraud upon an offeree;
(5) A person is engaging in, has engaged in or is about toengage in a false, fraudulent or deceptive practice or a device, scheme, orartifice to defraud in connection with the offer or sale of the franchise;
(6) A partner, officer or director of the franchisor or aperson who occupies a similar status or performs similar functions or a personwho directly or indirectly controls or is controlled by the franchisor is orhas been found guilty or liable in a proceeding required to be described in theregistration application and the involvement of the person creates anunreasonable risk to franchisees or offerees;
(7) An advertisement prohibited by the act has been used inconnection with the offer or sale of a franchise;
(8) The franchisor's enterprise or method of businessincludes activities that are illegal where performed; or
(9) The financial condition of the franchisor impairs orwould impair the ability of the franchisor to fulfill obligations under thefranchise agreement.
(b) The director may by order deny, suspend or revoke anexemption under § 19-28.1-6 on any of the grounds described in subsection(a).
(c) When it appears to the director that any person hasviolated or is about to violate a provision of this act or a rule or orderunder this Act, the director may do any or all of the following:
(1) Issue an order directing the person to cease and desistfrom continuing the act or practice;
(2) Bring an action in a court of competent jurisdiction toenjoin the act or practice and to enforce compliance with this act or a rule ororder under this act. Upon a proper showing, the court may grant a permanent orpreliminary injunction, restraining order or writ of mandate. The court maygrant appropriate ancillary relief, including appointment of a receiver orconservator for the defendant or the defendant's assets. The court may exerciseall powers necessary or appropriate for these purposes. The court may notrequire the director to post a bond; or
(3) Bring an action on behalf of the state in any court ofcompetent jurisdiction against any officer, director, trustee, manager or agentof the franchisor or against a franchisor to recover a penalty in a sum not toexceed fifty thousand dollars ($50,000) per violation of this Act. The actionmust be brought within four (4) years after the commission of the act orpractice on which it is based.
(d) The director may impose an administrative assessmentagainst a person named in an order issued under § 19-28.1-18(a) or (c) or19-28.1-19. The amount of the administrative assessment may not exceed fivethousand dollars ($5,000) for each act or omission that constitutes a basis forissuing the order. The administrative assessment may only be imposed:
(1) Following an opportunity for a hearing under §19-28.1-25 if the notice delivered to all named persons includes notice of thedirector's authority to impose an administrative assessment under this section,or
(2) As part of an order issued under § 19-28.1-18(a) or(b) or 19-28.1-19, if the order is stipulated to by each person subject to theadministrative assessment.
(e) When the director prevails in an action under this act,he or she is entitled to recover the costs, expenses and experts fees incurredincident to the action.
(f) In connection with an action or proceeding under thissection the director may exercise any of the powers specified in §19-28.1-26.
§ 19-28.1-18 Enforcement. – (a) The director may by order deny a franchise registration application orsuspend or revoke the effectiveness of registration of a franchise if:
(1) The franchisor failed to comply with a provision of thisact or a rule, order or condition of the director under this act;
(2) The registration application is incomplete or inaccuratein any material respect;
(3) The registration application includes a false ormisleading statement of a material fact or omits to state a material factrequired to be stated or necessary to make a required statement not misleading;
(4) The sale of the franchise would constitute amisrepresentation, deceit or fraud upon an offeree;
(5) A person is engaging in, has engaged in or is about toengage in a false, fraudulent or deceptive practice or a device, scheme, orartifice to defraud in connection with the offer or sale of the franchise;
(6) A partner, officer or director of the franchisor or aperson who occupies a similar status or performs similar functions or a personwho directly or indirectly controls or is controlled by the franchisor is orhas been found guilty or liable in a proceeding required to be described in theregistration application and the involvement of the person creates anunreasonable risk to franchisees or offerees;
(7) An advertisement prohibited by the act has been used inconnection with the offer or sale of a franchise;
(8) The franchisor's enterprise or method of businessincludes activities that are illegal where performed; or
(9) The financial condition of the franchisor impairs orwould impair the ability of the franchisor to fulfill obligations under thefranchise agreement.
(b) The director may by order deny, suspend or revoke anexemption under § 19-28.1-6 on any of the grounds described in subsection(a).
(c) When it appears to the director that any person hasviolated or is about to violate a provision of this act or a rule or orderunder this Act, the director may do any or all of the following:
(1) Issue an order directing the person to cease and desistfrom continuing the act or practice;
(2) Bring an action in a court of competent jurisdiction toenjoin the act or practice and to enforce compliance with this act or a rule ororder under this act. Upon a proper showing, the court may grant a permanent orpreliminary injunction, restraining order or writ of mandate. The court maygrant appropriate ancillary relief, including appointment of a receiver orconservator for the defendant or the defendant's assets. The court may exerciseall powers necessary or appropriate for these purposes. The court may notrequire the director to post a bond; or
(3) Bring an action on behalf of the state in any court ofcompetent jurisdiction against any officer, director, trustee, manager or agentof the franchisor or against a franchisor to recover a penalty in a sum not toexceed fifty thousand dollars ($50,000) per violation of this Act. The actionmust be brought within four (4) years after the commission of the act orpractice on which it is based.
(d) The director may impose an administrative assessmentagainst a person named in an order issued under § 19-28.1-18(a) or (c) or19-28.1-19. The amount of the administrative assessment may not exceed fivethousand dollars ($5,000) for each act or omission that constitutes a basis forissuing the order. The administrative assessment may only be imposed:
(1) Following an opportunity for a hearing under §19-28.1-25 if the notice delivered to all named persons includes notice of thedirector's authority to impose an administrative assessment under this section,or
(2) As part of an order issued under § 19-28.1-18(a) or(b) or 19-28.1-19, if the order is stipulated to by each person subject to theadministrative assessment.
(e) When the director prevails in an action under this act,he or she is entitled to recover the costs, expenses and experts fees incurredincident to the action.
(f) In connection with an action or proceeding under thissection the director may exercise any of the powers specified in §19-28.1-26.
§ 19-28.1-18 Enforcement. – (a) The director may by order deny a franchise registration application orsuspend or revoke the effectiveness of registration of a franchise if:
(1) The franchisor failed to comply with a provision of thisact or a rule, order or condition of the director under this act;
(2) The registration application is incomplete or inaccuratein any material respect;
(3) The registration application includes a false ormisleading statement of a material fact or omits to state a material factrequired to be stated or necessary to make a required statement not misleading;
(4) The sale of the franchise would constitute amisrepresentation, deceit or fraud upon an offeree;
(5) A person is engaging in, has engaged in or is about toengage in a false, fraudulent or deceptive practice or a device, scheme, orartifice to defraud in connection with the offer or sale of the franchise;
(6) A partner, officer or director of the franchisor or aperson who occupies a similar status or performs similar functions or a personwho directly or indirectly controls or is controlled by the franchisor is orhas been found guilty or liable in a proceeding required to be described in theregistration application and the involvement of the person creates anunreasonable risk to franchisees or offerees;
(7) An advertisement prohibited by the act has been used inconnection with the offer or sale of a franchise;
(8) The franchisor's enterprise or method of businessincludes activities that are illegal where performed; or
(9) The financial condition of the franchisor impairs orwould impair the ability of the franchisor to fulfill obligations under thefranchise agreement.
(b) The director may by order deny, suspend or revoke anexemption under § 19-28.1-6 on any of the grounds described in subsection(a).
(c) When it appears to the director that any person hasviolated or is about to violate a provision of this act or a rule or orderunder this Act, the director may do any or all of the following:
(1) Issue an order directing the person to cease and desistfrom continuing the act or practice;
(2) Bring an action in a court of competent jurisdiction toenjoin the act or practice and to enforce compliance with this act or a rule ororder under this act. Upon a proper showing, the court may grant a permanent orpreliminary injunction, restraining order or writ of mandate. The court maygrant appropriate ancillary relief, including appointment of a receiver orconservator for the defendant or the defendant's assets. The court may exerciseall powers necessary or appropriate for these purposes. The court may notrequire the director to post a bond; or
(3) Bring an action on behalf of the state in any court ofcompetent jurisdiction against any officer, director, trustee, manager or agentof the franchisor or against a franchisor to recover a penalty in a sum not toexceed fifty thousand dollars ($50,000) per violation of this Act. The actionmust be brought within four (4) years after the commission of the act orpractice on which it is based.
(d) The director may impose an administrative assessmentagainst a person named in an order issued under § 19-28.1-18(a) or (c) or19-28.1-19. The amount of the administrative assessment may not exceed fivethousand dollars ($5,000) for each act or omission that constitutes a basis forissuing the order. The administrative assessment may only be imposed:
(1) Following an opportunity for a hearing under §19-28.1-25 if the notice delivered to all named persons includes notice of thedirector's authority to impose an administrative assessment under this section,or
(2) As part of an order issued under § 19-28.1-18(a) or(b) or 19-28.1-19, if the order is stipulated to by each person subject to theadministrative assessment.
(e) When the director prevails in an action under this act,he or she is entitled to recover the costs, expenses and experts fees incurredincident to the action.
(f) In connection with an action or proceeding under thissection the director may exercise any of the powers specified in §19-28.1-26.
