59.1-263 - Definitions.
§ 59.1-263. Definitions.
A. For purposes of this chapter, "business opportunity" means the sale ofany products, equipment, supplies or services which are sold to a purchaserupon payment of an initial required consideration exceeding $500 for thepurpose of enabling such purchaser to start a business, and in which theseller:
1. Represents that the seller will provide locations or assist the purchaserin finding locations for the use or operation of vending machines, racks,display cases or other similar devices, or currency-operated amusementmachines or devices, on premises neither owned nor leased by the purchaser orseller; or
2. Represents that it will purchase any or all products made, produced,fabricated, grown, bred or modified by the purchaser using in whole or inpart the supplies, services or chattels sold by the seller to the purchaser;or
3. Guarantees that the purchaser will derive income from the businessopportunity which exceeds the price paid for the business opportunity, orthat the seller will refund all or part of the price paid for the businessopportunity, or repurchase any of the products, equipment, supplies orchattels supplied by the seller, if the purchaser is not satisfied with thebusiness opportunity; or
4. Represents that the seller will provide a sales program or marketingprogram which will enable the purchaser to derive income from the businessopportunity which exceeds the price paid for the business opportunity.
B. Exclusions. - Such definition of "business opportunity" shall notinclude the following:
1. A security as defined by § 13.1-501; or
2. A franchise as defined in subsection A of § 13.1-559 or § 59.1-21.10; or
3. A license granted by a general merchandise retailer which allows thelicensee to sell goods, equipment, supplies, products or services to thegeneral public under the retailer's trademark, trade name or service mark,provided that such general merchandise retailer has been doing business inthe Commonwealth continuously for five years prior to the granting of suchlicense and such general merchandise retailer also sells the same goods,equipment, supplies, products or services directly to the general public; or
4. A newspaper distribution system; or
5. The sale of an on-going business. An "on-going business" as used hereinis one which for at least twelve months previous to the sale: (i) has beenoperated from a specific location, (ii) has been open for business to thegeneral public and (iii) has had all equipment and supplies necessary foroperating the business located at such specific location; or
6. The sale of sales demonstration equipment and materials furnished at costfor use in making sales and not for resale; or
7. A contract or agreement by which a retailer of goods or services isgranted the right to sell goods or services within, or appurtenant to, aretail business establishment as a department or division thereof.
(1979, c. 523; 1985, c. 242.)