CHAPTER 51. BUSINESS OPPORTUNITIES
BUSINESS AND COMMERCE CODE
TITLE 4. BUSINESS OPPORTUNITIES AND AGREEMENTS
CHAPTER 51. BUSINESS OPPORTUNITIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 51.001. SHORT TITLE. This chapter may be cited as the
Business Opportunity Act.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.002. GENERAL DEFINITIONS. In this chapter:
(1) "Business opportunity contract" means an agreement that
obligates or is intended to obligate a purchaser to a seller.
(2) "Buy-back" or "secured investment" means a representation
that implies a purchaser's payment is protected from loss.
(3) "Equipment" includes electrical devices, video and audio
devices, molds, display units, including display racks, and
machines, including coin-operated game machines and vending and
other machines that dispense products.
(4) "Initial consideration" means the total amount a purchaser
is obligated to pay under a business opportunity contract before
or at the time products, equipment, supplies, or services are
delivered or within six months after the date the purchaser
begins operation of the business opportunity plan. The term
means the total sale price if the contract states a specific
total sale price for purchase of the business opportunity plan
and the total sale price is to be paid as a down payment and one
or more additional payments. The term does not include the
not-for-profit sale of sales demonstration materials, samples, or
equipment for not more than $500.
(5) "Marketing program" means advice or training that a seller
or a person recommended by a seller gives to a purchaser
regarding the sale of products, equipment, supplies, or services.
The term includes the preparation or provision of:
(A) a brochure, pamphlet, or advertising material, including
promotional literature;
(B) training regarding the promotion, operation, or management
of a business opportunity; or
(C) operational, managerial, technical, or financial guidelines
or assistance.
(6) "Product" includes tangible personal property.
(7) "Purchaser" means a person who becomes or is solicited to
become obligated under a business opportunity contract.
(8) "Seller" means a principal or agent who sells or leases or
offers to sell or lease a business opportunity.
(9) "Services" includes any assistance, guidance, direction,
work, labor, or other services provided by a seller to initiate
or maintain a business opportunity.
(10) "Supplies" includes materials used to make, produce, grow,
or breed a product or item.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.003. DEFINITION OF BUSINESS OPPORTUNITY. (a) In this
chapter, "business opportunity" means a sale or lease for an
initial consideration of more than $500 of products, equipment,
supplies, or services that will be used by or for the purchaser
to begin a business in which the seller represents that:
(1) the purchaser will earn or is likely to earn a profit in
excess of the amount of the initial consideration the purchaser
paid; and
(2) the seller will:
(A) provide a location or assist the purchaser in finding a
location for the use or operation of the products, equipment,
supplies, or services on premises that are not owned or leased by
the purchaser or seller;
(B) provide a sales, production, or marketing program; or
(C) buy back or is likely to buy back products, equipment, or
supplies purchased or products made, produced, grown, or bred by
the purchaser using wholly or partly the products, equipment,
supplies, or services that the seller initially sold or leased or
offered for sale or lease to the purchaser.
(b) In this chapter, "business opportunity" does not include:
(1) the sale or lease of an established and ongoing business or
enterprise that has actively conducted business before the sale
or lease, whether composed of one or more than one component
business or enterprise, if the sale or lease represents an
isolated transaction or series of transactions involving a bona
fide change of ownership or control of the business or enterprise
or liquidation of the business or enterprise;
(2) a sale by a retailer of goods or services under a contract
or other agreement to sell the inventory of one or more ongoing
leased departments to a purchaser who is granted the right to
sell the goods or services within or adjoining a retail business
establishment as a department or division of the retail business
establishment;
(3) a transaction that is:
(A) regulated by the Texas Department of Licensing and
Regulation, the Texas Department of Insurance, the Texas Real
Estate Commission, or the director of the Motor Vehicle Division
of the Texas Department of Motor Vehicles; and
(B) engaged in by a person licensed by one of those agencies;
(4) a real estate syndication;
(5) a sale or lease to a business enterprise that also sells or
leases products, equipment, or supplies or performs services:
(A) that are not supplied by the seller; and
(B) that the purchaser does not use with the seller's products,
equipment, supplies, or services;
(6) the offer or sale of a franchise as described by the
Petroleum Marketing Practices Act (15 U.S.C. Section 2801 et
seq.) and its subsequent amendments;
(7) the offer or sale of a business opportunity if the seller:
(A) has a net worth of $25 million or more according to the
seller's audited balance sheet as of a date not earlier than the
13th month before the date of the transaction; or
(B) is at least 80 percent owned by another person who:
(i) in writing unconditionally guarantees performance by the
person offering the business opportunity plan; and
(ii) has a net worth of more than $25 million according to the
person's most recent audited balance sheet as of a date not
earlier than the 13th month before the date of the transaction;
or
(8) an arrangement defined as a franchise by 16 C.F.R. Part 436
and its subsequent amendments if:
(A) the franchisor complies in all material respects in this
state with 16 C.F.R. Part 436 and each order or other action of
the Federal Trade Commission; and
(B) before offering for sale or selling a franchise in this
state, a person files with the secretary of state a notice
containing:
(i) the name of the franchisor;
(ii) the name under which the franchisor intends to transact
business; and
(iii) the franchisor's principal business address.
(c) The secretary of state shall prescribe the form of the
notice described by Subsection (b)(8)(B).
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Acts 2009, 81st Leg., R.S., Ch.
548, Sec. 1, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch.
933, Sec. 3A.01, eff. September 1, 2009.
Sec. 51.004. LIBERAL CONSTRUCTION AND APPLICATION. (a) This
chapter shall be liberally construed and applied to:
(1) protect persons against false, misleading, or deceptive
practices in the advertising, offering for sale or lease, or sale
or lease of business opportunities; and
(2) provide efficient and economical procedures to secure that
protection.
(b) In construing this chapter, a court to the extent possible
shall follow the interpretations given by the Federal Trade
Commission and the federal courts to Section 5(a)(1), Federal
Trade Commission Act (15 U.S.C. Section 45(a)(1)), and 16 C.F.R.
Part 436 and their subsequent amendments.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.005. BURDEN OF PROOF. A person who claims to be exempt
from this chapter has the burden of proving the exemption.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.006. WAIVER. A waiver of this chapter is contrary to
public policy and void.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.007. MAINTENANCE OF RECORDS. (a) A seller shall
maintain a complete set of books, records, and accounts of
business opportunity sales made by the seller.
(b) A document relating to a business opportunity sold or leased
shall be maintained until the fourth anniversary of the date of
the business opportunity contract.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.008. FILING FEE. The secretary of state may charge a
reasonable fee to cover the costs incurred as a result of a
filing required by Subchapter B or Section 51.003 or 51.251.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.009. RULES. The secretary of state may adopt rules to
administer and enforce this chapter.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
SUBCHAPTER B. REGISTRATION OF BUSINESS OPPORTUNITY
Sec. 51.051. FILING OF DISCLOSURE STATEMENTS AND LIST OF
SELLERS. Before a sale or offer for sale, including advertising,
of a business opportunity, the principal seller must register the
business opportunity with the secretary of state by filing:
(1) a copy of the disclosure statement required by Subchapter D,
except as provided by Section 51.053; and
(2) a list of the name and resident address of any individual
who sells or will sell the business opportunity for the principal
seller.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.052. UPDATING OF INFORMATION ON FILE. (a) A copy of a
disclosure statement filed under Section 51.051 must be updated
through a new filing:
(1) annually; and
(2) when a material change occurs.
(b) The list filed under Section 51.051(2) must be updated
through a new filing every six months.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.053. FILING OF DISCLOSURE DOCUMENT FROM OTHER REGULATORY
AGENCY. Instead of filing with the secretary of state a copy of
a disclosure statement, a seller may file a copy of a similar
document required by the State Securities Board, Securities and
Exchange Commission, or Federal Trade Commission that contains
all the information required to be disclosed by this chapter.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.054. FILING OF COPY OF BOND OR NOTIFICATION OF ACCOUNT.
A principal seller who is required to obtain a bond or establish
a trust account under Subchapter C shall contemporaneously file
with the secretary of state a copy of:
(1) the bond; or
(2) the formal notification by the depository that the trust
account is established.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
SUBCHAPTER C. BOND, TRUST ACCOUNT, OR LETTER OF CREDIT
Sec. 51.101. BOND, TRUST ACCOUNT, OR LETTER OF CREDIT REQUIRED.
(a) Before a seller makes a representation described by Section
51.003(a)(1) or otherwise represents that the purchaser is
assured of making a profit from a business opportunity, the
principal seller must:
(1) obtain a surety bond from a surety company authorized to
transact business in this state;
(2) establish a trust account; or
(3) obtain an irrevocable letter of credit.
(b) The bond, trust account, or irrevocable letter of credit
must be:
(1) in an amount of $25,000 or more; and
(2) in favor of this state.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.102. ACTION AGAINST BOND, TRUST ACCOUNT, OR LETTER OF
CREDIT. (a) A person may bring an action against the bond,
trust account, or irrevocable letter of credit obtained or
established under Section 51.101 to recover actual damages for:
(1) a violation of this chapter; or
(2) the seller's breach of:
(A) the business opportunity contract; or
(B) an obligation arising from a business opportunity sale.
(b) The aggregate liability of the surety, trustee, or issuer in
an action under Subsection (a) may not exceed the amount of the
bond, trust account, or irrevocable letter of credit.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
SUBCHAPTER D. DISCLOSURE STATEMENT
Sec. 51.151. DISCLOSURE TO PURCHASER OF BUSINESS OPPORTUNITY.
(a) Except as provided by Section 51.164, a seller must provide
a purchaser with a written disclosure statement that meets the
requirements of this subchapter.
(b) The seller must provide the disclosure statement at least 10
business days before the earlier of the date:
(1) the purchaser signs a business opportunity contract; or
(2) the seller receives any consideration.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.152. COVER SHEET OF DISCLOSURE STATEMENT. (a) A
disclosure statement must have a cover sheet titled, in at least
12-point boldface capital letters, "DISCLOSURES REQUIRED BY TEXAS
LAW." The following statement must appear below the title in at
least 10-point boldface type: "The State of Texas has not
reviewed and does not endorse, approve, recommend, or sponsor any
business opportunity. The information contained in this
disclosure has not been verified by the state. If you have any
questions about this investment, see an attorney before you sign
a contract or agreement."
(b) Only the title and required statement may appear on the
cover sheet.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.153. CONTENTS: NAMES AND ADDRESSES. A disclosure
statement must contain:
(1) the name of the seller;
(2) each name under which the seller has transacted, is
transacting, or intends to transact business;
(3) the name of any parent or affiliated company that will
engage in a business transaction with the purchaser or that takes
responsibility for statements made by the seller; and
(4) the names, addresses, and titles of:
(A) the seller's officers, directors, trustees, general
partners, general managers, and principal executives;
(B) shareholders owning more than 20 percent of the shares of
the seller; and
(C) any other persons responsible for the seller's business
activities relating to the sale of business opportunities.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.154. CONTENTS: SALES PERIODS. A disclosure statement
must:
(1) specify the period during which the seller has sold business
opportunities; and
(2) specify the period during which the seller has sold business
opportunities involving the products, equipment, supplies, or
services the seller is offering to the purchaser.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.155. CONTENTS: SERVICES DESCRIPTION. A disclosure
statement must contain:
(1) a detailed description of the actual services the seller
undertakes to perform for the purchaser; and
(2) if the seller promises to perform services in connection
with the placement of products, equipment, or supplies at a
location:
(A) the full nature of those services; and
(B) the nature of any agreements to be made with the owners or
managers of that location.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.156. CONTENTS: UPDATED FINANCIAL STATEMENT. A
disclosure statement must contain a copy of a financial statement
of the seller that:
(1) was prepared according to generally accepted accounting
principles within the previous 13 months; and
(2) has been updated to reflect any material change in the
seller's financial condition.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.157. CONTENTS: TRAINING DESCRIPTION. If the seller
promises training, the disclosure statement must contain a
complete description of the training, including:
(1) the length of the training; and
(2) any costs of the training that the purchaser will be
required to incur, including travel and lodging expenses.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.158. CONTENTS: SECURITY DESCRIPTION. If the seller is
required to obtain a bond or establish a trust account, the
disclosure statement must contain one of the following
statements, as applicable:
(1) "As required by Texas law, the seller has secured a bond
issued by ______, a surety company authorized to do business in
this state. Before signing a contract to purchase this business
opportunity, you should confirm the bond's status with the surety
company."; or
(2) "As required by Texas law, the seller has established a
trust account with ______. Before signing a contract to purchase
this business opportunity, you should confirm with the bank or
savings institution the current status of the trust account."
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.159. CONTENTS: DELIVERY DATE; CANCELLATION OF CONTRACT.
If the seller is required to deliver to the purchaser the
product, equipment, or supplies necessary to begin substantial
operation of the business and states a definite or approximate
delivery date for the product, equipment, or supplies, the
disclosure statement must contain the following statement: "If
the seller fails to deliver the product, equipment, or supplies
necessary to begin substantial operation of the business within
45 days of the delivery date stated in your contract, you may
notify the seller in writing and cancel your contract."
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.160. CONTENTS: SALES OR EARNINGS REPRESENTATION. If
the seller makes a statement concerning sales or earnings that
may be made through the business opportunity, the disclosure
statement must contain a statement disclosing:
(1) the total number of purchasers of business opportunities
involving the product, equipment, supplies, or services being
offered who to the seller's knowledge have, not earlier than the
third year before the date of the disclosure statement, actually
achieved sales of or received earnings in the amount or range
specified; and
(2) the total number of purchasers who, not earlier than the
third year before the date of the disclosure statement, purchased
business opportunities involving the product, equipment,
supplies, or services being offered.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.161. CONTENTS: LEGAL ACTION HISTORY. (a) A disclosure
statement must contain a statement disclosing any person
described by Section 51.153 who:
(1) has, during the previous seven fiscal years:
(A) been convicted of a felony, or pleaded nolo contendere to a
felony charge, involving fraud, embezzlement, fraudulent
conversion, or misappropriation of property; or
(B) been held liable in a civil action resulting in a final
judgment, or has settled out of court a civil action, involving:
(i) allegations of fraud, embezzlement, fraudulent conversion,
or misappropriation of property;
(ii) the use of untrue or misleading representations in an
attempt to sell or dispose of property; or
(iii) the use of unfair, unlawful, or deceptive business
practices;
(2) is a party to a civil action involving:
(A) allegations of fraud, embezzlement, fraudulent conversion,
or misappropriation of property;
(B) the use of untrue or misleading representations in an
attempt to sell or dispose of property; or
(C) the use of unfair, unlawful, or deceptive business
practices; or
(3) is subject to an injunction or restrictive order relating to
business activity as a result of an action brought by a public
agency or department.
(b) A statement required by Subsection (a) must include:
(1) the identity and location of any court or agency;
(2) the date of any entry of a plea of nolo contendere,
conviction, judgment, or decision;
(3) any penalty imposed;
(4) any damages assessed;
(5) the terms of any settlement or order; and
(6) the date, nature, and issuer of any order or ruling.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.162. CONTENTS: BANKRUPTCY OR REORGANIZATION. (a) A
disclosure statement must contain a statement disclosing any
person described by Section 51.153 who has, during the previous
seven fiscal years:
(1) filed in bankruptcy;
(2) been adjudged bankrupt;
(3) been reorganized because of insolvency; or
(4) been a principal, director, executive officer, or partner of
any other person that, during or not later than the first
anniversary of the end of the period the person held the position
in relation to the other person, filed in bankruptcy, was
adjudged bankrupt, or was reorganized because of insolvency.
(b) A statement required by Subsection (a)(4) must include:
(1) the name and location of the person who filed in bankruptcy,
was adjudged bankrupt, or was reorganized;
(2) the date of the filing, adjudication, or reorganization; and
(3) any other material fact relating to the filing,
adjudication, or reorganization.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.163. CONTENTS: CONTRACT COPY. A disclosure statement
must contain a copy of the business opportunity contract that the
seller uses as a matter of course and that will be presented to
the purchaser at closing.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.164. USE OF DISCLOSURE DOCUMENT FROM OTHER REGULATORY
AGENCY. Instead of providing a disclosure statement to a
purchaser under this subchapter, a seller may provide a copy of a
similar document required by the State Securities Board,
Securities and Exchange Commission, or Federal Trade Commission
that contains all the information required to be disclosed by
this chapter.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
SUBCHAPTER E. BUSINESS OPPORTUNITY CONTRACT
Sec. 51.201. FORM OF BUSINESS OPPORTUNITY CONTRACT. A business
opportunity contract must be in writing and include, in 10-point
type or in handwriting of an equivalent size, the following:
(1) the terms of payment, including the initial consideration,
down payment, and additional payments required;
(2) a detailed description of the acts or services the seller
undertakes to perform for the purchaser;
(3) the seller's principal business address;
(4) the name and address of the seller's agent in this state
authorized to receive service of process;
(5) the delivery date or, if the contract provides for staggered
delivery times to the purchaser, the approximate delivery date of
the products, equipment, or supplies the seller is to:
(A) deliver to the purchaser's home or business address; or
(B) place at a location owned or managed by a person other than
the purchaser; and
(6) a complete description of the nature of the buy-back or
security arrangement if the seller has represented orally or in
writing when selling, leasing, soliciting, or offering a business
opportunity that there is a buy-back or that the initial
consideration is secured.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.202. DELIVERY OF COPIES OF DOCUMENTS TO PURCHASER. A
copy of the completed business opportunity contract and any other
document the seller requires the purchaser to sign shall be given
to the purchaser at the time the purchaser signs the contract.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.203. EFFECT OF ASSIGNMENT OF BUSINESS OPPORTUNITY
CONTRACT. An assignee of a business opportunity contract or of
the seller's rights under the contract is subject to all
equities, rights, and defenses of the purchaser against the
seller.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
SUBCHAPTER F. TERMINATION OF BUSINESS OPPORTUNITY REGISTRATION
Sec. 51.251. VOLUNTARY TERMINATION OF BUSINESS OPPORTUNITY
REGISTRATION. The principal seller of a registered business
opportunity may voluntarily terminate the business opportunity's
registration with the secretary of state if:
(1) the registered business opportunity will no longer be
offered in this state;
(2) the registered business opportunity has changed to the
extent that it no longer meets the definition of a business
opportunity under Section 51.003(a);
(3) the registered business opportunity has become exempt under
Section 51.003(b); or
(4) the principal seller offering the registered business
opportunity ceases to exist as a legal entity.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.252. INVOLUNTARY TERMINATION OF BUSINESS OPPORTUNITY
REGISTRATION. (a) The secretary of state may terminate the
registration of a business opportunity registered under Section
51.051 if the seller does not comply with Section 51.052.
(b) The secretary of state must give the business opportunity
registrant notice of the delinquency not later than the 31st day
before the date of termination of the business opportunity
registration under Subsection (a).
(c) The notice of delinquency must be given by certified mail
addressed to the registered agent or the principal place of
business of the business opportunity registrant noted in the
latest filing made under this chapter.
(d) The secretary of state may adopt rules governing:
(1) the termination of a delinquent registration;
(2) the effective date of the termination; and
(3) the grace period, if any.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
SUBCHAPTER G. ENFORCEMENT
Sec. 51.301. PROHIBITED ACTS. A seller may not:
(1) employ a representation, device, scheme, or artifice to
deceive a purchaser;
(2) make an untrue statement of a material fact or omit to state
a material fact in connection with the documents and information
required to be provided to the secretary of state or purchaser;
(3) represent that the business opportunity provides or will
provide income or earning potential unless the seller:
(A) has documented data to substantiate the representation of
income or earning potential; and
(B) discloses the data to the purchaser when the representation
is made; or
(4) make a claim or representation that is inconsistent with the
information required to be disclosed by this chapter in:
(A) advertising or other promotional material; or
(B) an oral sales presentation, solicitation, or discussion
between the seller and the purchaser.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.302. DECEPTIVE TRADE PRACTICE; REMEDIES. (a) A
violation of this chapter is a false, misleading, or deceptive
act or practice under Section 17.46.
(b) A public or private right or remedy prescribed by Chapter 17
may be used to enforce this chapter.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 51.303. REVIEW AND SUIT BY ATTORNEY GENERAL. (a) The
attorney general may review the copy of a disclosure statement
filed with the secretary of state under Subchapter B.
(b) If the disclosure statement fails to comply with this
chapter, the attorney general may:
(1) notify the secretary of state and the seller in writing of
the deficiency; and
(2) file suit to enjoin the seller from transacting business
until the failure to comply has been corrected.
(c) If the attorney general notifies the secretary of state
under Subsection (b), the secretary of state shall:
(1) attach a copy of the notice to the front of the disclosure
statement; and
(2) on inquiry of the status of the disclosure statement,
disclose that a statement has been filed but that the attorney
general has questioned the correctness of the statement.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.