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367.801 Definitions for KRS 367.801 to 367.819 and KRS 367.990.
As used in KRS 367.801 to 367.819 and KRS 367.990, unless the context requires
otherwise:
(1) "Division" means Division of Consumer Protection of the Office of the Attorney
General.
(2) "Person" means natural persons, corporations, trusts, partnerships,
incorporated or unincorporated associations, or any other legal entity.
(3) "Offeror" means a person who is engaged in the business of selling business
opportunities including any subsidiary business which affiliates with the offeror
for goods or services or locations.
(4) "Consumer/investor" means a person who has purchased or is solicited for the
purchase of a business opportunity.
(5) "Business opportunity" means the sale or lease, or offer to sell or lease, of any
products, equipment, supplies, or services for the purpose of enabling the
consumer investor to start a business when:
(a) The offeror obtains an initial required consideration of not less than five
hundred dollars ($500) from the purchase or lease of the business
opportunity or inventory associated therewith; and
(b) The offeror has represented, directly or indirectly, that the
consumer/investor will earn, can earn, or is likely to earn a gross or net
profit in excess of the initial required investment paid by the
consumer/investor for the business opportunity; or
(c) 1.
The offeror has represented that he has knowledge of the relevant
market and that the market demand will enable the
consumer/investor to earn a profit from the business opportunity; or
2.
The offeror has represented that locations will be provided or
assistance will be given directly or indirectly to the
consumer/investor in finding locations for the use or operation of the
business opportunity including, but not limited to, supplying the
consumer/investor with names of locator companies, contracting
with the consumer/investor to provide assistance with or supply
names of or collect a fee on behalf of or for a locator company; or
3.
The offeror has represented that there is a guaranteed market or
that the offeror will buy back or is likely to buy back any product
made, manufactured, produced, fabricated, grown, or bred by the
consumer/investor using, in whole or in part, the products, supplies,
equipment, or services which were initially sold or offered for sale to
the consumer/investor by the offeror.
Effective:July 15, 1994.
History: Amended 1994 Ky. Acts ch. 165, sec. 25; and ch. 329, sec. 1, effective
July 15, 1994. -- Created 1978 Ky. Acts ch. 315, sec. 1, effective 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, which was last enacted by the General Assembly, prevails.
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