SECTIONS 31300-31306 - California Statutes

CORPORATIONS CODE

SECTION 31300-31306

31300. Any person who offers or sells a franchise in violation of
Section 31101, 31110, 31119, 31200, or 31202, or in violation of any
provision of this division that provides an exemption from the
provisions of Chapter 2 (commencing with Section 31110) of Part 2 or
any portions of Part 2, shall be liable to the franchisee or
subfranchisor, who may sue for damages caused thereby, and if the
violation is willful, the franchisee may also sue for rescission,
unless, in the case of a violation of Section 31200 or 31202, the
defendant proves that the plaintiff knew the facts concerning the
untruth or omission, or that the defendant exercised reasonable care
and did not know, or, if he or she had exercised reasonable care,
would not have known, of the untruth or omission.

31301. Any person who violates Section 31201 shall be liable to any
person (not knowing or having cause to believe that such statement
was false or misleading) who, while relying upon such statement shall
have purchased a franchise, for damages, unless the defendant proves
that the plaintiff knew the facts concerning the untruth or omission
or that the defendant exercised reasonable care and did not know,
(or if he had exercised reasonable care would not have known) of the
untruth or omission.

31302. Every person who directly or indirectly controls a person
liable under Section 31300 or 31301, every partner in a firm so
liable, every principal executive officer or director of a
corporation so liable, every person occupying a similar status or
performing similar functions, every employee of a person so liable
who materially aids in the act or transaction constituting the
violation, are also liable jointly and severally with and to the same
extent as such person, unless the other person who is so liable had
no knowledge of or reasonable grounds to believe in the existence of
the facts by reason of which the liability is alleged to exist.

31302.5. (a) Any person who violates Section 31220 may be sued in
the superior court in the county in which the defendant resides or
where a franchise affected by the violation does business, for
temporary and permanent injunctive relief and for damages, if any,
and the costs of suit, including reasonable attorneys' fees. A
plaintiff shall not be required to allege or prove that actual
damages have been suffered in order to obtain injunctive relief.
(b) No action shall be maintained to enforce any liability created
under Section 31220 unless brought before the expiration of two
years after the violation upon which it is based or the expiration of
one year after the discovery by the plaintiff of the facts
constituting such violation, whichever occurs first.

31303. No action shall be maintained to enforce any liability
created under Section 31300 unless brought before the expiration of
four years after the act or transaction constituting the violation,
the expiration of one year after the discovery by the plaintiff of
the fact constituting the violation, or 90 days after delivery to the
franchisee of a written notice disclosing any violation of Section
31110 or 31200, which notice shall be approved as to form by the
commissioner, whichever shall first expire.

31304. No action shall be maintained to enforce any liability
created under Section 31301 unless brought before the expiration of
two years after the violation upon which it is based, expiration of
one year after the discovery by the plaintiff of the facts
constituting such violation, or 90 days after delivery to the
franchisee of a written notice disclosing any violation of Section
31201 or 31202 which notice shall be approved as to form by the
commissioner, whichever shall first expire.

31305. Every cause of action under this chapter survives the death
of any person who might have been a plaintiff or defendant.

31306. Except as explicitly provided in this chapter, no civil
liability in favor of any private party shall arise against any
person by implication from or as a result of the violation of any
provision of this law or any rule or order hereunder. Nothing in this
chapter shall limit any liability which may exist by virtue of any
other statute or under common law if this law were not in effect.