2006 New York Code - Fraudulent And Unlawful Practices.

 
    §  687.  Fraudulent  and unlawful practices. 1. It is unlawful for any
  person  to  make  any  untrue  statement  of  a  material  fact  in  any
  application,  notice,  statement,  prospectus  or  report filed with the
  department under this article, or wilfully to omit to state in any  such
  application,  notice,  statement, prospectus or report any material fact
  which is required to be  stated  therein,  or  to  fail  to  notify  the
  department of any material change as required by this article.
    2.  It is unlawful for a person, in connection with the offer, sale or
  purchase of any franchise, to directly or indirectly:
    (a) Employ any device, scheme, or artifice to defraud.
    (b) Make any untrue statement of a material fact or omit  to  state  a
  material  fact  necessary  in  order to make the statements made, in the
  light of the circumstances under which they were made,  not  misleading.
  It  is an affirmative defense to one accused of omitting to state such a
  material fact that said omission was not an intentional act.
    (c) Engage in any act, practice, or course of business which  operates
  or would operate as a fraud or deceit upon any person.
    3.  It  is  unlawful  for  any person to violate any provision of this
  article, or any rule of the department  promulgated  hereunder,  or  any
  condition  to  the  effectiveness  of  the  registration  of an offering
  prospectus or of an exemption from the registration provisions  of  this
  article.
    4.  Any  condition,  stipulation,  or provision purporting to bind any
  person acquiring any franchise to waive compliance with any provision of
  this law, or rule promulgated hereunder, shall be void.
    5. It is unlawful to require a franchisee  to  assent  to  a  release,
  assignment,  novation,  waiver  or estoppel which would relieve a person
  from any duty or liability imposed by this article.