13-15-2 - Definitions.
13-15-2. Definitions.
As used in this chapter:
(1) (a) "Assisted marketing plan" means the sale or lease of any products, equipment,supplies, or services that are sold to the purchaser upon payment of an initial requiredconsideration of $300 or more for the purpose of enabling the purchaser to start a business, and inwhich the seller represents:
(i) that the seller will provide locations or assist the purchaser in finding locations for theuse or operation of vending machines, racks, display cases, or other similar devices, or currencyoperated amusement machines or devices, on premises neither owned nor leased by the purchaseror seller;
(ii) that the seller will purchase any or all products made, produced, fabricated, grown, ormodified by the purchaser, using in whole or in part the supplies, services, or chattels sold to thepurchaser;
(iii) that the seller will provide the purchaser with a guarantee that the purchaser willreceive income from the assisted marketing plan that exceeds the price paid for the assistedmarketing plan, or repurchase any of the products, equipment, supplies, or chattels supplied bythe seller if the purchaser is dissatisfied with the assisted marketing plan; or
(iv) that upon payment by the purchaser of a fee or sum of money, which exceeds $300to the seller, the seller will provide a sales program or marketing program that will enable thepurchaser to derive income from the assisted marketing plan that exceeds the price paid for themarketing plan.
(b) "Assisted marketing plan" does not include:
(i) the sale of an ongoing business when the owner of that business sells and intends tosell only that one assisted marketing plan;
(ii) not-for-profit sale of sales demonstration equipment, materials, or samples for a totalprice of $300 or less; or
(iii) the sale of a package franchise or a product franchise defined by and in compliancewith Federal Trade Commission rules governing franchise and business opportunity ventures.
(c) As used in Subsection (1)(a)(iii) "guarantee" means a written agreement, signed by thepurchaser and seller, disclosing the complete details and any limitations or exceptions of theagreement.
(2) "Business opportunity" means an assisted marketing plan subject to this chapter.
(3) "Division" means the Division of Consumer Protection of the Department ofCommerce.
(4) (a) "Initial required consideration" means the total amount a purchaser is obligated topay under the terms of the assisted marketing plan, either prior to or at the time of delivery of theproducts, equipment, supplies, or services, or within six months of the commencement ofoperation of the assisted marketing plan by the purchaser. If payment is over a period of time,"initial required consideration" means the sum of the down payment and the total monthlypayments.
(b) "Initial required consideration" does not mean the not-for-profit sale of salesdemonstration equipment, materials, or supplies for a total price of less than $300.
(5) "Person" means any natural person, corporation, partnership, organization,association, trust, or any other legal entity.
(6) "Purchaser" means a person who becomes obligated to pay for an assisted marketing
plan.
(7) "Registered trademark" or "service mark" means a trademark, trade name, or servicemark registered with the United States Patent and Trademark Office, or Utah, or the state ofincorporation if a corporation.
(8) "Seller" means a person who sells or offers to sell an assisted marketing plan.
Amended by Chapter 196, 2001 General Session