2013 Kentucky Revised Statutes
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367.815 Liability for false, misleading, or deceptive representations -- Bond or
deposit to insure veracity of statements -- Maintenance of records.
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 business opportunity in an amount equal to the sum of his actual
damages or fifteen hundred dollars ($1,500), whichever is greater, as well as
the cost of the action together with reasonable attorney's fees, as determined
by the court.
(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 a full cash certificate of deposit with a
licensed and insured bank or savings institution located in the
Commonwealth to insure the veracity of all statements contained in the
registration. The amount of the bond or certificate of deposit shall be in an
amount equal to the total amount of the initial payments under all
business opportunity agreements the offeror has entered into in the
Commonwealth during the previous year but in no case shall the amount
be less than seventy-five thousand dollars ($75,000). The bond or
certificate of deposit shall be in the favor of the Attorney General of
(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 obligation arising therefrom may bring an action against the bond
or certificate of deposit to recover damages suffered, provided that the
aggregate liability of the surety or trustee shall be only for the actual
damages and shall not exceed the amount of the bond or trust account.
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 such person has not offered business opportunities in the state
for the last five (5) years.
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 sales. The sale documents shall be maintained on each transaction
for a period of four (4) years after the date of agreement. The offeror shall
make the books and records available to the division upon demand at a
location within the state.
Effective:July 15, 1994.
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 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.
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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