Any person who violates Section 31201 shall be liable to any person (not knowing or having cause to believe that such statement was false or misleading) who, while relying upon such statement shall have purchased a franchise, for damages, unless the defendant proves that the plaintiff knew the facts concerning the untruth or omission or that the defendant exercised reasonable care and did not know, (or if he had exercised reasonable care would not have known) of the untruth or omission.
Cal. Corp. Code § 31301
Civil Liability
Known as the Franchise Investment Law
The act spans §§ 31000–31528 (118 sections).
Applied in 3 court decisions — leading case Chin v. Advanced Fresh Concepts Franchise Corp. (2011)
Most recently applied in 460 F. App'x 664 - Samica Enterprises LLC v. Mail Boxes Etc., Inc. (December 2011)
Added by Stats. 1970, Ch. 1400.
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.