Sec. 36b-62. (Formerly Sec. 36-505). Registration of business opportunities. Consent to service of process.
Sec. 36b-62. (Formerly Sec. 36-505). Registration of business opportunities.
Consent to service of process. (a) Prior to the sale or offer for sale of a business opportunity the seller shall register said business opportunity with the commissioner by: (1)
Filing a copy of the disclosure statement required by section 36b-63; (2) furnishing a
bond in accordance with the provisions of section 36b-64; (3) providing a sworn to and
certified statement containing the information required by section 36b-65; (4) providing
the commissioner in accordance with subsection (b) of this section with an irrevocable
consent appointing the commissioner or the commissioner's successor in office to be
such seller's attorney to receive service of any lawful process in any noncriminal suit,
action or proceeding which arises under sections 36b-60 to 36b-80, inclusive, or any
regulation or order adopted or issued under the provisions of said sections; and (5)
submitting a nonrefundable registration fee of four hundred dollars.
(b) Every seller proposing to sell or offer for sale a business opportunity in this
state or from this state through any person acting on an agency basis as determined by
reference to principles of common law shall file with the commissioner, in such form
as the commissioner by regulation or order prescribes, an irrevocable consent appointing
the commissioner or the commissioner's successor in office to be the seller's attorney
to receive service of any lawful process in any noncriminal suit, action or proceeding
against the seller or the seller's successor executor or administrator which arises under
sections 36b-60 to 36b-80, inclusive, or any regulation or order adopted or issued under
said sections after the consent has been filed, with the same force and validity as if
served personally on the person filing the consent. Service may be made by leaving a
copy of the process in the office of the commissioner, but such service shall not be
effective unless (1) the plaintiff, who may be the commissioner in a suit, action or
proceeding instituted by him or her, forthwith sends notice of the service and a copy of
the process by registered mail, return receipt requested, or by any express delivery carrier
that provides a dated delivery receipt, to the defendant or respondent at the defendant's
or respondent's last address on file with the commissioner, and (2) the plaintiff's affidavit of compliance with this subsection is filed in the case on or before the return day of
the process, if any, or within such further time as the court allows.
(c) When any person, including any nonresident of this state, engages in conduct
prohibited or made actionable by sections 36b-60 to 36b-80, inclusive, or any regulation
or order adopted or issued under said sections, and such person has not filed a consent
to service of process under subsection (b) of this section and personal jurisdiction over
such person cannot otherwise be obtained in this state, that conduct shall be considered
equivalent to such person's appointment of the commissioner or the commissioner's
successor in office to be such person's attorney to receive service of any lawful process
in any noncriminal suit, action or proceeding against such person or such person's successor executor or administrator which grows out of that conduct and which is brought
under said sections or any regulation or order adopted or issued under said sections,
with the same force and validity as if served on such person personally. Service may
be made by leaving a copy of the process in the office of the commissioner, but such
service shall not be effective unless (1) the plaintiff, who may be the commissioner in
a suit, action or proceeding instituted by him or her, forthwith sends notice of the service
and a copy of the process by registered mail, return receipt requested, or by any express
delivery carrier that provides a dated delivery receipt, to the defendant or respondent at
the defendant's or respondent's last known address, and (2) the plaintiff's affidavit of
compliance with this subsection is filed in the case on or before the return day of the
process, if any, or within such further time as the court allows.
(d) The registration of a business opportunity under this section shall become effective on order of the commissioner.
(e) (1) When any business opportunities have been sold or offered for sale without
compliance with the registration provisions of sections 36b-60 to 36b-80, inclusive, the
seller thereof may apply in writing on forms designated by the commissioner for the
postsale registration of such business opportunities.
(2) A seller who seeks to register a business opportunity which has been sold or
offered for sale without compliance with the registration provisions of sections 36b-60
to 36b-80, inclusive, shall submit the following to the commissioner:
(A) The documents, information and registration fee required by subsection (a) of
this section;
(B) A single document, signed and sworn to by an executive officer of the seller,
which contains an explanatory statement and a statement of nonprejudice;
(i) The explanatory statement shall include the following information:
(aa) A statement that business opportunities were sold or offered for sale without
compliance with the registration provisions of sections 36b-60 to 36b-80, inclusive;
(bb) A statement that, to induce each purchaser-investor to whom a business opportunity has been sold in violation of sections 36b-60 to 36b-80, inclusive, to sign the
statement of nonprejudice, the document is being prepared for presentation to that purchaser-investor;
(cc) A full and complete statement of the remedies provided to the purchaser-investor under section 36b-74;
(dd) A statement containing any other material facts relating to the sale or offer for
sale of the unregistered business opportunities; and
(ee) The most recent balance sheet and income statement of the seller.
(ii) The statement of nonprejudice shall provide:
(aa) That the purchaser-investor to whom a business opportunity was sold without
compliance with the registration provisions of sections 36b-60 to 36b-80, inclusive, has
read the explanatory statement;
(bb) That the purchaser-investor to whom a business opportunity was sold without
compliance with the registration provisions of sections 36b-60 to 36b-80, inclusive, is
satisfied that he or she will not be defrauded, damaged or prejudiced by the postsale
registration of the business opportunity; and
(cc) That each purchaser-investor to whom a business opportunity has been sold
without compliance with the registration provisions of sections 36b-60 to 36b-80, inclusive, has not waived any of his or her rights under said sections by signing the statement.
(3) The seller shall file the document containing both the explanatory statement and
the statement of nonprejudice with the commissioner for review before the seller mails
the document to each purchaser-investor to whom an unregistered business opportunity
has been sold. The commissioner may object to the content of the document but shall
in no way pass upon its truthfulness. Following review by the commissioner, the seller
shall send the document by certified mail, return receipt requested, to each purchaser-investor to whom an unregistered business opportunity has been sold and shall submit
copies of all return receipts to the commissioner. The seller shall certify that each purchaser-investor to whom an unregistered business opportunity was sold has signed the
document, and shall return the signed documents to the commissioner. The seller shall
also furnish the commissioner with a list of the names, addresses and telephone numbers
of those purchaser-investors to whom business opportunities have been sold without
compliance with the registration provisions of sections 36b-60 to 36b-80, inclusive, and
the amount of payment furnished by each purchaser-investor for the business opportunity.
(4) If it appears to the commissioner that no person has been defrauded, prejudiced
or damaged by such noncompliance or sale and that no persons will be defrauded, prejudiced or damaged by such postsale registration, the commissioner may permit those
business opportunities to be registered upon the payment of fifty dollars plus the fees
prescribed in section 36b-65. Registration under the provisions of this subsection shall
not affect the prosecution of a violation of any provision of sections 36b-60 to 36b-80,
inclusive.
(P.A. 79-458, S. 3, 19; P.A. 82-52, S. 1; P.A. 83-217, S. 3, 7; P.A. 92-89, S. 13, 20; P.A. 97-22, S. 8; P.A. 01-48, S. 7.)
History: P.A. 82-52 added Subsec. (e) containing provisions for postsale registration; P.A. 83-217 amended Subsec.
(e) to establish specific requirements for postsale registration of a business opportunity; P.A. 92-89 increased the registration
fee in Subsec. (a) from $200 to $400; Sec. 36-505 transferred to Sec. 36b-62 in 1995; P.A. 97-22 made technical changes;
P.A. 01-48 made technical changes for purposes of gender neutrality in Subsecs. (a) to (c) and amended Subsecs. (b) and
(c) by adding references to return receipt requested and express delivery.
Subsec. (c):
Cited. 236 C. 602.