2009 Kentucky Revised Statutes CHAPTER 367 CONSUMER PROTECTION 367.816 Agreement or arrangement for a business opportunity -- Requirements -- Effect of noncompliance -- Nonwaiverability.
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367.816 Agreement or arrangement for a business opportunity -- Requirements --
Effect of noncompliance -- Nonwaiverability.
(1) Every agreement or arrangement for a business opportunity shall be in writing.
Copies of the completed agreement and all other documents the offeror requires the <br>consumer/investor to sign shall be given to the consumer/investor at the time they <br>are signed.
(2) Each business opportunity agreement shall set forth in easily legible form all of the
following: <br>(a) The terms and conditions of all payments including the amount owed and a
complete schedule for total payment;
(b) A detailed description of the acts or services the offeror or its affiliate
undertake to perform for the consumer/investor;
(c) The offeror's name, telephone number, principal business address, by street
and number, and the name and address of its agent in this state authorized to <br>receive service of process;
(d) Whether the offeror is doing business as a corporation, partnership, or
otherwise, and the state of its incorporation or organization;
(e) The estimated delivery dates of each installment and whether the items are to
be delivered to the consumer/investor or are to be placed by the offeror at <br>locations owned or managed by persons other than the consumer/investor;
(f) If applicable, the terms of the "buy-back" or "security" obligation of the
offeror pursuant to KRS 367.801(5)(c)3.
(g) The name and address of each supplier of the items the offeror is to deliver to
the consumer/investor; and
(h) The following statement in the form below in no smaller than ten (10) point
boldface print:
STATEMENT OF CONSUMER INVESTOR RIGHTS
1.
You have thirty (30) business days in which you may cancel this <br>contract for any reason.
2.
To cancel, you must mail or deliver a written notice to (Seller's name <br>and street address) before (last date to mail or deliver notice). If mailed, <br>the notice must be postmarked by the above date. If you deliver the <br>notice, it must be delivered by the end of the normal business day on the <br>above date.
3.
We must promptly refund your payments, and within five (5) business <br>days after you receive your refund, you must allow us to pick up <br>anything we provided to you under this contract.
4.
If we or our affiliates mislead you by what we say, or if we violate the <br>Kentucky Business Opportunities Law, you may cancel this contract. To <br>cancel, you must give written notice to us within one (1) year of the date <br>of the contract.
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5.
If you cancel under this provision, you are entitled to a prompt refund of <br>all amounts you have paid, less the value of items we delivered that you <br>do not return.
6.
If we do not deliver items promised within thirty (30) days of the <br>delivery date in your contract except for reasons beyond our control, you <br>may cancel this contract and receive an immediate refund of amounts <br>paid, less the value of items you do not return.
(3) The offeror shall not take a negotiable instrument as evidence of the
consumer's/investor's obligation unless the instrument on its face abrogates holder <br>in due course status for its holder.
(4) The payment schedule in the agreement shall not require payment of more than
twenty percent (20%) of the initial payment before delivery to the <br>consumer/investor of the items to be supplied by the offeror, unless sums in excess <br>of the twenty percent (20%) are placed in escrow until the consumer/investor <br>advises the escrow agent in writing of the delivery of the items, or until the offeror <br>presents the escrow agent with a bill of lading that proves timely delivery of the <br>items. The consumer/investor shall not unreasonably withhold notice of delivery.
(5) A successor or assignee of the offeror's interest or rights in the agreement is subject
to all equities, rights, and defenses of the consumer/investor against the offeror.
(6) Until the offeror has complied with this section, the buyer may cancel the purchase
of a business opportunity by notifying the offeror in any manner and by any means <br>of his intention to cancel.
(7) Any waiver by the consumer/investor of a business opportunity of the rights
provided in this section is null and void and will not operate to relieve the offeror of <br>any obligation placed upon him by KRS 367.801 to 367.819.
Effective: July 15, 1994 <br>History: Created 1994 Ky. Acts ch. 329, sec. 6, effective July 15, 1994.
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