2009 Kentucky Revised Statutes CHAPTER 367 CONSUMER PROTECTION 367.815 Liability for false, misleading, or deceptive representations -- Bond or deposit to insure veracity of statements -- Maintenance of records.
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367.815 Liability for false, misleading, or deceptive representations -- Bond or
deposit to insure veracity of statements -- Maintenance of records.
(1) Any person who offers a business opportunity and makes representations that are
false, misleading, or deceptive shall be liable to the consumer/investor of such <br>business opportunity in an amount equal to the sum of his actual damages or fifteen <br>hundred dollars ($1,500), whichever is greater, as well as the cost of the action <br>together with reasonable attorney's fees, as determined by the court.
(2) (a) All persons registering pursuant to KRS 367.805 shall either furnish a bond by
a surety company authorized to do business in the Commonwealth or establish <br>a full cash certificate of deposit with a licensed and insured bank or savings <br>institution located in the Commonwealth to insure the veracity of all <br>statements contained in the registration. The amount of the bond or certificate <br>of deposit shall be in an amount equal to the total amount of the initial <br>payments under all business opportunity agreements the offeror has entered <br>into in the Commonwealth during the previous year but in no case shall the <br>amount be less than seventy-five thousand dollars ($75,000). The bond or <br>certificate of deposit shall be in the favor of the Attorney General of <br>Kentucky.
(b) Any person who is damaged by any violation of KRS 367.801 to 367.819, or
by the offeror's breach of contract for the business opportunity sale, or of any <br>obligation arising therefrom may bring an action against the bond or <br>certificate of deposit to recover damages suffered, provided that the aggregate <br>liability of the surety or trustee shall be only for the actual damages and shall <br>not exceed the amount of the bond or trust account.
(3) A person who has furnished a bond described in subsection (2) of this section may
petition the division for release of the bond by submitting a verified statement that <br>such person has not offered business opportunities in the state for the last five (5) <br>years.
(4) Any offeror of a business opportunity who has offered or sold in this state shall
maintain a complete set of books, records, and accounts of its business opportunity <br>sales. The sale documents shall be maintained on each transaction for a period of <br>four (4) years after the date of agreement. The offeror shall make the books and <br>records available to the division upon demand at a location within the state.
Effective: July 15, 1994. <br>History: Amended 1994 Ky. Acts ch. 165, sec. 29, effective July 15, 1994; and ch. 329,
sec. 5, effective July 15, 1994. -- Created 1978 Ky. Acts ch. 315, sec. 8, effective <br>June 17, 1978.
Legislative Research Commission Note (7/15/94). This section was amended by 1994
Ky. Acts chs. 165 and 329 which are in conflict. Under KRS 446.250, Acts ch. 329, <br>which was last enacted by the General Assembly, prevails.
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