2009 Rhode Island Code
Title 19 - Financial institutions
CHAPTER 19-28.1 - Franchise Investment Act
§ 19-28.1-17 - Fraudulent, deceptive and prohibited practices.

SECTION 19-28.1-17

   § 19-28.1-17  Fraudulent, deceptive and prohibited practices. – In connection with the offer or sale of a franchise it is unlawful for a person, directly or indirectly, to:

   (1) Employ a device, scheme, or artifice to defraud;

   (2) Make an untrue statement of 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 are made, not misleading;

   (3) Engage in an act, practice, or course of business which operates or would operate as a fraud or deceit on a person;

   (4) Represent to an offeree of a franchise that the filing of a franchise registration application or the registration of a franchise constitutes a finding by the director that a document filed under the Act is true, complete, and not misleading or that the director has passed upon the merits of the franchise;

   (5) Misrepresent that a franchise is registered or exempted from registration under this act;

   (6) Violate an order of the director after the person receives notice that the order was issued;

   (7) Fail to notify the director of a material change in the information required in a document required to be filed by this Act or a rule or order under this Act; or

   (8) Omit to state a material fact or make or cause to be made an untrue statement of a material fact in any application, notice, or report filed with the director under this act.