§ 19-28.1-17 - Fraudulent, deceptive and prohibited practices.
SECTION 19-28.1-17
§ 19-28.1-17 Fraudulent, deceptive andprohibited practices. – In connection with the offer or sale of a franchise it is unlawful for aperson, directly or indirectly, to:
(1) Employ a device, scheme, or artifice to defraud;
(2) Make an untrue statement of material fact or omit tostate a material fact necessary in order to make the statements made, in thelight of the circumstances under which they are made, not misleading;
(3) Engage in an act, practice, or course of business whichoperates or would operate as a fraud or deceit on a person;
(4) Represent to an offeree of a franchise that the filing ofa franchise registration application or the registration of a franchiseconstitutes a finding by the director that a document filed under the Act istrue, complete, and not misleading or that the director has passed upon themerits of the franchise;
(5) Misrepresent that a franchise is registered or exemptedfrom registration under this act;
(6) Violate an order of the director after the personreceives notice that the order was issued;
(7) Fail to notify the director of a material change in theinformation required in a document required to be filed by this Act or a ruleor order under this Act; or
(8) Omit to state a material fact or make or cause to be madean untrue statement of a material fact in any application, notice, or reportfiled with the director under this act.