Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Business opportunity" means the sale or lease of any product, equipment, supply, or service which is sold or leased to enable the purchaser to start a business; and:
(a) The seller represents that the seller will provide locations or assist the purchaser in finding locations, on premises neither owned nor leased by the purchaser or seller, for the use or operation of vending machines, display racks, cases, or similar devices or coin-operated amusement machines or similar devices; or
(b) The seller represents that the seller will purchase any product made, produced, fabricated, assembled, modified, grown, or bred by the purchaser using, in whole or part, any product, equipment, supply, or service sold or leased to the purchaser by the seller; or
(c) The seller guarantees that the purchaser will earn an income greater than or equal to the price paid for the business opportunity; or
(d) The seller represents that if the purchaser pays a fee exceeding three hundred dollars directly or indirectly for the purpose of the seller providing a sales or marketing program, the seller will provide such a program which will enable the purchaser to derive income from the business opportunity which exceeds the price paid for the business opportunity.
(2) "Person" includes an individual, corporation, partnership, joint venture, or any business entity.
(3) "Seller" means a person who sells or leases a business opportunity.
(4) "Purchaser" means a person who buys or leases a business opportunity.
(5) "Director" means the director of financial institutions.
(6) "Guarantee" means an undertaking by the seller to refund all or a portion of the purchase price paid for the business opportunity.
[1994 c 92 § 4; 1981 c 155 § 2.]