13-15-5. Disclosure statement furnished to buyer -- Contents.
All the information required under Section 13-15-4 shall be contained in a single
disclosure statement or prospectus which shall be provided to any prospective purchaser at least
ten business days prior to the earlier of:
(1) the execution by prospective purchaser of any agreement imposing a binding legal
obligation on such prospective purchaser by which the seller knows or should know, in
connection with the sale or proposed sale of the "assisted marketing plan"; or
(2) the payment by a prospective purchaser, by which the seller knows or should know of
any consideration in connection with the sale or proposed sale of the "assisted market plan." The
disclosure statement or prospectus shall not contain any material or information other than that
required under Section 13-15-4. However, the seller may give prospective purchasers
nondeceptive information other than that contained in the disclosure statement or prospectus if it
does not contradict the information required to appear in the disclosure statement or prospectus.
A cover sheet attached to the disclosure statement or prospectus shall conspicuously state the
name of the seller, the date of issuance of the disclosure statement or prospectus, and a notice
printed in not less than 12 point upper and lower case boldface type as follows:
INFORMATION FOR PURCHASE OF A MARKETING PLAN:
To protect you, the State Division of Consumer Protection has required your seller to give
you this information. The State Division of Consumer Protection has not verified this
information as to its accuracy. The notice may contain additional precautions deemed necessary
and pertinent. The seller, in lieu of the information requested by Section 13-15-4, may file with
the commission and provide to prospective purchasers certified disclosure documents authorized
for use by the Federal Trade Commission pursuant to Title 16, Chapter I, Subchapter d, Trade
Regulation Rules, Part 436, "Disclosure Requirements and Prohibitions Concerning Franchising
and Business Opportunity Ventures."
Amended by Chapter 92, 1987 General Session
Download Code Section Zipped WordPerfect 13_15_000500.ZIP 10,996 Bytes
Sections in this Chapter|Chapters in this Title|All Titles|Legislative Home Page
Last revised: Thursday, May 01, 2008