2019 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.
Universal Citation:
KY Rev Stat § 367.815 (2019)
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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)
(2)
(3)
(4)
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
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
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.
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