Section 14-229 - Fraud or deceit; untrue statements or omissions of material fact. - Maryland Statutes

§ 14-229. Fraud or deceit; untrue statements or omissions of material fact.
 

(a)  Prohibited acts.- In connection with an offer to sell or sale of a franchise, a person, directly or indirectly, may not: 

(1) employ a device, scheme, or artifice to defraud; 

(2) make an untrue statement of a material fact or omit to state a material fact necessary in order to make the statement made, in light of the circumstances under which it is made, not misleading; or 

(3) engage in an act, practice, or course of business that operates or would operate as a fraud or deceit on another person. 

(b)  Penalty.- A person who willfully sells a franchise knowingly violating this section is guilty of a felony and, on conviction, is subject for each violation to a fine not exceeding $10,000 or imprisonment not exceeding 5 years or both. 
 

[An. Code 1957, art. 56, §§ 347, 365A; 1992, ch. 4, § 2; ch. 26, § 4.]