13-34-110 - Enforcement of contracts or agreements -- Rescission based on defective registration statement.

13-34-110. Enforcement of contracts or agreements -- Rescission based ondefective registration statement.
(1) A proprietary school shall be unable to enforce in the courts of this state any contractor agreement relating to postsecondary education services in this state unless, at the time thecontract or agreement was entered into, an effective registration statement was on file with thedivision and made accessible to every applicant at the time of admission to the school.
(2) It is a violation of this chapter if a proprietary school or its agent:
(a) fails to file an effective registration statement;
(b) willfully omits from a registration statement provided under Section 13-34-107 anymaterial statement of fact required by this chapter and applicable regulations; or
(c) includes in a registration statement any material statement of fact that was known, orshould have been known, to the proprietary school to be false, deceptive, inaccurate, ormisleading.
(3) A student who enrolled in a proprietary school, in reliance upon the school'sregistration statement, may rescind the contract or agreement of enrollment and obtain a refundfrom the school of all tuition, fees, and other charges paid to the school if the school or its agentcommitted a violation under Subsection (2).
(4) A violation of this chapter is also a violation of Section 13-11-4.

Enacted by Chapter 222, 2002 General Session