Home Table of Contents

§ 14-101. Definitions

West's Annotated Code of MarylandBusiness Regulation

West's Annotated Code of Maryland
Business Regulation (Refs & Annos)
Title 14. Business Opportunities, Franchises, and Multilevel Distribution Companies (Refs & Annos)
Subtitle 1. Business Opportunities (Refs & Annos)
MD Code, Business Regulation, § 14-101
§ 14-101. Definitions
Currentness
(a) In this subtitle the following words have the meanings indicated.
(b) “Business opportunity” means an arrangement between a buyer and seller in which:
(1) the seller or a person recommended or referred by the seller provides to the buyer products, equipment, supplies, or services that enable the buyer to start a business;
(2) the buyer is required to pay the seller or a person recommended or referred by the seller $300 or more during the period beginning any time before commencing operations and ending 6 months after commencing operations of the business; and
(3) the seller represents, directly or indirectly, orally or in writing, that:
(i) the seller or a person recommended or referred by the seller will help the buyer in finding locations for the use or operation of vending machines, racks, display cases, or other similar devices on premises that are not owned or leased by the buyer or seller;
(ii) the seller or a person recommended or referred by the seller will help the buyer in finding outlets or accounts for the buyer's products or services;
(iii) the seller or a person specified by the seller will buy products made, produced, fabricated, grown, bred, or modified by the buyer;
(iv) the seller guarantees that the buyer will receive from the business income an amount that exceeds the price paid to the seller;
(v) if the buyer is not satisfied with the business, the seller will refund all or part of the price paid to the seller, or repurchase any of the products, equipment, or supplies provided by the seller or a person recommended or referred by the seller; or
(vi) the seller will provide a marketing plan.
(c) “Buyer” means a person who buys or leases products, equipment, supplies, or services in connection with a business opportunity.
(d) “Commissioner” means the Securities Commissioner in the Office of the Attorney General.
(e) “Marketing plan” means advice or training that a seller or a person recommended or referred by the seller provides to the buyer, relating to the sale of any products, equipment, supplies, or services, and the advice or training includes preparing or providing:
(1) promotional literature, brochures, pamphlets, or advertising materials;
(2) training regarding the promotion, operation, or management of the business opportunity; or
(3) operational, managerial, or financial guidelines or assistance.
(f) “Seller” means a person who sells or leases products, equipment, supplies, or services in connection with a business opportunity.

Credits

Added by Acts 1992, c. 4, § 2. Amended by Acts 1996, c. 517, § 1, eff. Oct. 1, 1996.
Formerly Art. 56, § 401.
MD Code, Business Regulation, § 14-101, MD BUS REG § 14-101
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document