§ 19-28.1-17. Fraudulent, deceptive and prohibited practices.
In connection with the offer or sale of a franchise it is unlawful for a person, directly or indirectly, to:
(1) Employ a device, scheme, or artifice to defraud;
(2) Make an untrue statement of material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading;
(3) Engage in an act, practice, or course of business that operates or would operate as a fraud or deceit on a person;
(4) Represent to an offeree of a franchise that the filing of a franchise registration application or the registration of a franchise constitutes a finding by the director that a document filed under the act is true, complete, and not misleading or that the director has passed upon the merits of the franchise;
(5) Misrepresent that a franchise is registered or exempted from registration under this act;
(6) Violate an order of the director after the person receives notice that the order was issued;
(7) Fail to notify the director of a material change in the information required in a document required to be filed by this act or a rule or order under this act; or
(8) Omit to state a material fact, or make or cause to be made an untrue statement of a material fact, in any application, notice, or report filed with the director under this act.
History of Section.P.L. 1993, ch. 395, § 2.
Structure Rhode Island General Laws
Title 19 - Financial Institutions
Chapter 19-28.1 - Franchise Investment Act
Section 19-28.1-1. - Short title.
Section 19-28.1-2. - Legislative intent.
Section 19-28.1-3. - Definitions.
Section 19-28.1-4. - Scope and applicability.
Section 19-28.1-5. - Registration of franchises.
Section 19-28.1-6. - Exemption from registration.
Section 19-28.1-7. - Out-of-state exemption.
Section 19-28.1-8. - Delivery requirements.
Section 19-28.1-9. - General registration provisions.
Section 19-28.1-10. - Negotiated changes permitted.
Section 19-28.1-11. - Change in information.
Section 19-28.1-12. - Advertising.
Section 19-28.1-13. - Books and records.
Section 19-28.1-14. - Jurisdiction and venue.
Section 19-28.1-15. - Waivers void.
Section 19-28.1-16. - Franchisee’s right to associate.
Section 19-28.1-17. - Fraudulent, deceptive and prohibited practices.
Section 19-28.1-18. - Enforcement.
Section 19-28.1-19. - Summary action.
Section 19-28.1-20. - Criminal prosecution.
Section 19-28.1-21. - Private civil actions.
Section 19-28.1-22. - Period of limitation.
Section 19-28.1-23. - No other civil liability.
Section 19-28.1-24. - Burden of proof.
Section 19-28.1-25. - Hearings and judicial review.
Section 19-28.1-26. - Powers of director.
Section 19-28.1-27. - Rules, orders, forms and interpretive opinions.
Section 19-28.1-28. - Service of process.
Section 19-28.1-30. - Appropriation.
Section 19-28.1-31. - Cooperation with other agencies or organizations.
Section 19-28.1-32. - Filing of documents.