It is unlawful for any person to offer or sell a franchise in this state by means of any written or oral communication not enumerated in Section 31200 which includes an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading.
Cal. Corp. Code § 31201
Fraudulent Practices
Known as the Franchise Investment Law
The act spans §§ 31000–31528 (118 sections).
Applied in 9 court decisions — leading case 3 Cal. App. 4th 1262 - Dameshghi v. Texaco Refining & Marketing, Inc. (1992)
Most recently applied in California Ex Rel. California Corporations Commissioner v. Man Soo Yun (In Re Man Soo Yun) (August 2012)
Added by Stats. 1970, Ch. 1400.
How often courts cite this section
Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.