409.1000. Business opportunities--definitions. - Missouri Statutes

Business opportunities--definitions.

409.1000. 1. For the purposes of sections 409.1000 to 409.1006,"business opportunity" means the sale or lease of any product, equipment,supplies or services which are sold or leased to a purchaser to enable thepurchaser to start a business for which the purchaser is required to pay aninitial fee or sum of money in excess of five hundred dollars to theseller, and in which the seller represents:

(1) That the seller or a person or entity affiliated with, orreferred by, the seller will provide locations, or assist the purchaser infinding 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 purchaseror the sellers;

(2) That the promoter or its affiliate or designee will refund all ora substantial part of the purchaser's initial payment if the purchaser isunsuccessful or dissatisfied with the business opportunity;

(3) That the seller guarantees in writing that the purchaser willderive income from the business opportunity which exceeds the price paid orrent charged for the business opportunity or that the seller will refundall or part of the price paid or rent charged for the business opportunityor will repurchase any of the products, equipment, supplies or chattelssupplied by the seller, if the purchaser is not satisfied with the businessopportunity; or

(4) That the business opportunity is free from risk or certain toproduce profits, which representation may arise from all of the assurancestaken as a whole.

2. For purposes of subsection 1 of this section the term "assist thepurchaser in finding locations" includes, but is not limited to, supplyingthe purchaser with names of locator companies, contracting with thepurchaser to provide assistance or supply names or collecting a fee onbehalf of or for a locator company.

3. For purposes of sections 409.1000 to 409.1006, "businessopportunity" does not include:

(1) The sale of ongoing businesses when the owner of those businessessells and intends to sell only those business opportunities so long asthose business opportunities to be sold are no more than five in number; or

(2) The not-for-profit sale of sales demonstration equipment,materials or samples for a price that does not exceed five hundred dollarsor any sales training course offered by the seller, the cost of which doesnot exceed five hundred dollars.

4. For purposes of sections 409.1000 to 409.1006, "purchaser" shallinclude a lessee and "seller" shall include a lessor.

(L. 2000 S.B. 896 § 407.2000)