13-15-5 - Disclosure statement furnished to buyer -- Contents.
13-15-5. Disclosure statement furnished to buyer -- Contents.
All the information required under Section 13-15-4 shall be contained in a singledisclosure statement or prospectus which shall be provided to any prospective purchaser at least10 business days prior to the earlier of:
(1) the execution by prospective purchaser of any agreement imposing a binding legalobligation on such prospective purchaser by which the seller knows or should know, inconnection with the sale or proposed sale of the "assisted marketing plan"; or
(2) the payment by a prospective purchaser, by which the seller knows or should know ofany consideration in connection with the sale or proposed sale of the "assisted market plan." Thedisclosure statement or prospectus may not contain any material or information other than thatrequired under Section 13-15-4. However, the seller may give prospective purchasersnondeceptive information other than that contained in the disclosure statement or prospectus if itdoes not contradict the information required to appear in the disclosure statement or prospectus. A cover sheet attached to the disclosure statement or prospectus shall conspicuously state thename of the seller, the date of issuance of the disclosure statement or prospectus, and a noticeprinted in not less than 12 point upper and lower case boldface type as follows:
To protect you, the State Division of Consumer Protection has required your seller to giveyou this information. The State Division of Consumer Protection has not verified thisinformation as to its accuracy. The notice may contain additional precautions deemed necessaryand pertinent. The seller, in lieu of the information requested by Section 13-15-4, may file withthe commission and provide to prospective purchasers certified disclosure documents authorizedfor use by the Federal Trade Commission pursuant to Title 16, Chapter I, Subchapter d, TradeRegulation Rules, Part 436, "Disclosure Requirements and Prohibitions Concerning Franchisingand Business Opportunity Ventures."
Amended by Chapter 378, 2010 General Session