13-15-2. Definitions.
As used in this chapter:
(1) (a) "Assisted marketing plan" means the sale or lease of any products, equipment,
supplies, or services that are sold to the purchaser upon payment of an initial required
consideration of $300 or more for the purpose of enabling the purchaser to start a business, and in
which the seller represents:
(i) that the seller will provide locations or assist the purchaser in finding locations for the
use or operation of vending machines, racks, display cases, or other similar devices, or currency
operated amusement machines or devices, on premises neither owned nor leased by the purchaser
or seller;
(ii) that the seller will purchase any or all products made, produced, fabricated, grown, or
modified by the purchaser, using in whole or in part the supplies, services, or chattels sold to the
purchaser;
(iii) that the seller will provide the purchaser with a guarantee that the purchaser will
receive income from the assisted marketing plan that exceeds the price paid for the assisted
marketing plan, or repurchase any of the products, equipment, supplies, or chattels supplied by
the seller if the purchaser is dissatisfied with the assisted marketing plan; or
(iv) that upon payment by the purchaser of a fee or sum of money, which exceeds $300
to the seller, the seller will provide a sales program or marketing program that will enable the
purchaser to derive income from the assisted marketing plan that exceeds the price paid for the
marketing plan.
(b) "Assisted marketing plan" does not include:
(i) the sale of an ongoing business when the owner of that business sells and intends to
sell only that one assisted marketing plan;
(ii) not-for-profit sale of sales demonstration equipment, materials, or samples for a total
price of $300 or less; or
(iii) the sale of a package franchise or a product franchise defined by and in compliance
with Federal Trade Commission rules governing franchise and business opportunity ventures.
(c) As used in Subsection (1)(a)(iii) "guarantee" means a written agreement, signed by the
purchaser and seller, disclosing the complete details and any limitations or exceptions of the
agreement.
(2) "Business opportunity" means an assisted marketing plan subject to this chapter.
(3) "Division" means the Division of Consumer Protection of the Department of
Commerce.
(4) (a) "Initial required consideration" means the total amount a purchaser is obligated to
pay under the terms of the assisted marketing plan, either prior to or at the time of delivery of the
products, equipment, supplies, or services, or within six months of the commencement of
operation of the assisted marketing plan by the purchaser. If payment is over a period of time,
"initial required consideration" means the sum of the down payment and the total monthly
payments.
(b) "Initial required consideration" does not mean the not-for-profit sale of sales
demonstration equipment, materials, or supplies for a total price of less than $300.
(5) "Person" means any natural person, corporation, partnership, organization,
association, trust, or any other legal entity.
(6) "Purchaser" means a person who becomes obligated to pay for an assisted marketing
plan.
(7) "Registered trademark" or "service mark" means a trademark, trade name, or service
mark registered with the United States Patent and Trademark Office, or Utah, or the state of
incorporation if a corporation.
(8) "Seller" means a person who sells or offers to sell an assisted marketing plan.
Amended by Chapter 196, 2001 General Session
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Last revised: Thursday, May 01, 2008