Business Opportunity Sales Act

The act regulates the sale of business opportunities — arrangements in which a seller offers a buyer the means to start a business — and it does so through a registration-and-disclosure scheme administered by a state securities-type regulator. Sellers must register offerings, provide prospective buyers with a disclosure document, use written contracts containing prescribed terms, and satisfy a minimum net worth requirement, with certain transactions exempted from these obligations. The administrator may adopt rules, investigate, issue orders, and deny, suspend, or revoke registrations or exemptions subject to judicial review; fraud, misleading statements, and deceptive advertising are prohibited, and violations carry criminal penalties alongside private civil remedies that reach those who aid and abet and that cannot be waived by agreement.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.