§ 5-61-4 - Filing, information required.
SECTION 5-61-4
§ 5-61-4 Filing, information required.– Each filing pursuant to § 5-61-3 shall contain the following information:
(1) The name or names of the seller, including the name underwhich the seller is doing or intends to do business, if different from the nameof the seller, and the name of any parent or affiliated organization:
(i) That will engage in business transactions with purchasersrelating to sales solicited by the seller; or
(ii) That accepts responsibility for statements made by oracts of the seller relating to sales solicited by the seller.
(2) The seller's business form and place of organization and,if the seller is a corporation, a copy of its articles of incorporation andbylaws and amendments, or, if a partnership, a copy of the partnershipagreement or if operating under a fictitious business name, the location wherethe fictitious name is registered. All the same information shall be includedfor any parent or affiliated organization disclosed pursuant to subdivision (1)of this section.
(3) The complete street address or addresses of alllocations, designating the principal location from which the telephonic sellerwill be conducting business. If the principal business location of the selleris not in this state, then the seller shall also designate which of itslocations within the state is its main location in the state.
(4) A listing of all telephone numbers to be used by theseller and the address where each telephone using each of these telephonenumbers is located.
(5) The name of, and the office held by, the seller'sofficers, directors, trustees, general and limited partners, sole proprietor,and owners, and the names of those persons who have management responsibilitiesin connection with the seller's business activities.
(6) The complete address of the principal residence, the dateand place of birth, and the driver's license number and state of issuance ofeach of the persons whose names are disclosed pursuant to subdivision (5) ofthis section.
(7) The name and principal residence address of each personthe telephonic seller leaves in charge at each location from which the sellerdoes business in this state, as defined in § 5-61-1, and the businesslocation for which each of these persons is or will be in charge.
(8) A statement, meeting the requirements of this subdivisionas to any person identified pursuant to subdivision (5) or (7) of this sectionwho:
(i) Has been convicted of a felony or misdemeanor involvingan alleged violation of this section, or fraud, theft, embezzlement, fraudulentconversion or misappropriation of property.
(B) For purposes of this paragraph, a plea of nolo contendereis a conviction;
(ii) Has had entered against him or her a final judgment ororder in a civil or administrative action, including a stipulated judgment ororder, if the complaint or petition in the civil or administrative actionalleged acts constituting a violation of this section, fraud, theft,embezzlement, fraudulent conversion, or misappropriation of property, the useof untrue or misleading representations in an attempt to sell or dispose ofreal or personal property, or the use of unfair, unlawful or deceptive businesspractices;
(iii) Is subject to any currently effective injunction orrestrictive court order relating to business activity as the result of anaction brought by a federal, state, or local public agency or unit including,but not limited to, an action affecting any vocational license;
(iv) Has at any time during the previous seven (7) tax yearsfiled in bankruptcy, been adjudged a bankrupt, been reorganized due toinsolvency, or been a principal director, officer, trustee, general or limitedpartner or had management responsibilities of any other corporation,partnership, joint venture, or business entity, that has filed or wasadjudicated or reorganized during or within one year after the period that theperson held that position.
(B) For the purposes of paragraphs (i), (ii) and (iii) ofthis subdivision, the statement required by this subdivision shall identify theperson, the court or administrative agency rendering the conviction, judgmentor order, the docket number of the matter, the date of the conviction, judgmentor order, and the name of the governmental agency, if any, that brought theaction resulting in the conviction, judgment or order. For the purposes of thisparagraph, the statement required by this subdivision includes the name andlocation of the person filing in bankruptcy, adjudged a bankrupt or reorganizeddue to insolvency, and includes the date thereof, the court, which exercisedjurisdiction and the docket number of the matter.
(9) A list of names including date of birth and place ofbirth and principal residence addresses of salespersons who solicit on behalfof the telephonic seller and the names the salespersons use while soliciting.
(10) A copy of all sales information and literature(including, but not limited to, scripts, outlines, instructions, andinformation regarding how to conduct telephonic sales, sample introductions,sample closings, product information, and contest or premium-award information)provided by the telephonic seller to salespersons or of which the sellerinforms the salespersons, and a copy of all written materials the seller sendsto any prospective or actual purchaser.
(11) If the telephonic seller represents or implies ordirects salespersons to represent or imply, to purchasers that the purchaserwill receive certain specific items or one or more items from among bonuses,prizes, or otherwise, the filing includes the following:
(i) A list of the items offered.
(ii) The value or worth of each item described to prospectivepurchasers and the basis for the valuation.
(iii) The price paid by the telephonic seller to its supplierfor each of these items and the name, address, and telephone number of eachitem's supplier.
(iv) If the purchaser is to receive fewer than all of theitems described by the seller, the filing shall include the following:
(A) The manner in which the telephonic seller decides whichitem or items a particular prospective purchaser is to receive;
(B) The odds a single prospective purchaser has of receivingeach described item;
(C) The name and address of each recipient who has, duringthe preceding 12 months (or if the seller has not been in business that long,during the period the telephonic seller has been in business) received the itemhaving the greatest value and the item with the smallest odds of being received.
(v) All rules, regulations, terms, and conditions aprospective purchaser must meet in order to receive the item.
(12) If the telephonic seller is offering to sell any metal,stone, or mineral, the filing shall include the following:
(i) The name, address and telephone number of each of theseller's suppliers and a description of each metal, stone, or mineral providedby the supplier.
(ii) If possession of any metal, stone, or mineral is to beretained by the seller or will not be transferred to the purchaser until thepurchaser has paid in full, the filing shall include the following:
(A) The address of each location where the metal, stone, ormineral will be kept;
(B) If not kept on premises owned by the seller or at anaddress or addresses set forth in compliance with subparagraph (C) of thisparagraph, the name of the owner of the business at which the metal, stone, ormineral will be kept;
(C) A copy of any contract or other document which evidencesthe seller's right to store the metal, stone, or mineral at the address oraddresses designated pursuant to subparagraph (A) of this paragraph.
(iii) If the seller is not selling the metal, stone, ormineral from its own inventory, but instead purchases the metal, stone, ormineral to fill orders taken from purchases, the filing shall include copies ofall contracts or other documents evidencing the seller's ability to call uponsuppliers to fill the seller's orders.
(iv) If the seller represents to purchasers that the sellerhas insurance or a surety bond of any type relating to a purchaser's purchaseof any metal, stone, or mineral from the seller, the filing shall include acomplete copy of all these insurance policies and bonds.
(v) If the seller makes any representation as to the earningor profit potential of purchases of any metal, stone, or mineral, the filingshall include data to substantiate the claims made. If the representationrelates to previous sales made by the seller or a related entity,substantiating data shall be based on the experiences of at least fifty percent(50%) of the persons who have purchased the particular metal, stone, or mineralfrom the seller or related entity during the preceding six months (or if theseller or related entity has not been in business that long, during the periodthe seller or related entity has been in business) and includes the raw dataupon which the representation is based, including, but not limited to, all ofthe following:
(A) The length of time the seller or related entity has beenselling the particular metal, stone or mineral being offered;
(B) The number of purchasers from the seller or relatedentity known to the seller or related entity to have made at least the sameearnings or profit as those represented;
(C) The percentage that the number disclosed pursuant tosubdivision (B) represents of the total number of purchasers from the seller orrelated entity of the particular metal, stone, or mineral.
(13) If the telephonic seller is offering to sell an interestin oil, gas, or mineral fields, wells or exploration sites, the filing shallinclude disclosure of the following:
(i) The seller's ownership interest, if any, in each field,well or site being offered for sale;
(ii) The total number of interests to be sold in each field,well, or site being offered for sale;
(iii) If, in selling an interest in any particular field,well, or site, reference is made to an investigation of these fields, wells, orsites by the seller or anyone else, the filing shall include the following:
(A) The name, business address, telephone number andprofessional credentials of the person or persons who made the investigation;
(B) A copy of the report and documents relating to theinvestigation prepared by the person or persons.
(iv) If the seller makes any representation as to the earningor profit potential of purchases of any interest in these fields, wells, orsites, the filing shall include data to substantiate the claims made. If therepresentation relates to previous sales made by the seller or related entity,then substantiating data shall be based on the experiences of at least fiftypercent (50%) of the purchasers of the particular interests from the seller orthe related entity during the preceding six months (or if the seller has notbeen in business that long, during the period the seller or related entity hasbeen in business) and shall include the raw data upon which the representationis based, including, but not limited to, all of the following:
(A) The length of time the seller or related entity has beenselling the particular interests in the fields, wells, or sites being offered;
(B) The number of purchasers of the particular interests fromthe seller or related entity known to the seller to have made, at least thesame earnings as those represented;
(C) The percentage the number disclosed pursuant tosubparagraph (B) of this paragraph represents of the total number of purchasersof the particular interests from the seller or related entity.