Every person who directly or indirectly controls a person liable under Section 31300 or 31301, every partner in a firm so liable, every principal executive officer or director of a corporation so liable, every person occupying a similar status or performing similar functions, every employee of a person so liable who materially aids in the act or transaction constituting the violation, are also liable jointly and severally with and to the same extent as such person, unless the other person who is so liable had no knowledge of or reasonable grounds to believe in the existence of the facts by reason of which the liability is alleged to exist.
Cal. Corp. Code § 31302
Civil Liability
Known as the Franchise Investment Law
The act spans §§ 31000–31528 (118 sections).
Applied in 10 court decisions — leading case Dollar Systems, Inc. v. Avcar Leasing Systems, Inc. (1989)
Most recently applied in MRFranchise, Inc. & Mike Rafipoor v. P Stratford Insurance Company (November 2024)
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.