§ 66-94. Definition. - North Carolina Statutes

Article19.

Business OpportunitySales.

§ 66‑94.  Definition.

For purposes of this Article,"business opportunity" means the sale or lease of any products,equipment, supplies or services for the purpose of enabling the purchaser tostart a business, and in which the seller represents:

(1)        That the seller willprovide locations or assist the purchaser in finding locations for the use oroperation of vending machines, racks, display cases or other similar devices,or currency‑operated amusement machines or devices, on premises neitherowned nor leased by the purchaser or seller; or

(2)        That it may, in theordinary course of business, purchase any or all products made, produced,fabricated, grown, bred or modified by the purchaser using in whole or in partthe supplies, services or chattels sold to the purchaser; or

(3)        The sellerguarantees that the purchaser will derive income from the business opportunitywhich exceeds the price paid for the business opportunity; or that the sellerwill refund all or part of the price paid for the business opportunity, orrepurchase any of the products, equipment, supplies or chattels supplied by theseller, if the purchaser is unsatisfied with the business opportunity and paysto the seller an initial, required consideration which exceeds two hundreddollars ($200.00); or

(4)        That it will providea sales program or marketing program which will enable the purchaser to deriveincome from the business opportunity which exceeds the price paid for thebusiness opportunity, provided that this subsection shall not apply to the saleof a marketing program made in conjunction with the licensing of a federallyregistered trademark or a federally registered service mark, or when thepurchaser pays less than two hundred dollars ($200.00).

Provided, that "businessopportunity" does not include the sale of an on‑going business whenthe owner of that business sells and intends to sell only that one businessopportunity; nor does it include the not‑for‑profit sale of salesdemonstration equipment, materials, or samples, for a total price of twohundred dollars ($200.00) or less.  (1977, c. 884, s. 1; 1981, c.817, s. 1; 1983, c. 421, s. 2; 1991, c. 74, s. 1.)