37-25A-18. Denial, revocation, or suspension of registration--Grounds.
The director of the Division of Insurance may issue an order denying, suspending or revoking the effectiveness of any registration if the director finds that the order is in the public interest and that:
(1)The registration as of its effective date or as of any earlier date in the case of an order denying effectiveness, or any amendment as of its effective date, or any report is incomplete in any material respect or contains any statement which was, in the light of the circumstances under which it was made, false or misleading with respect to any material fact;
(2)Any provision of this chapter or any rule, order or condition lawfully imposed under this chapter has been willfully violated, in connection with the business opportunity by the person filing the registration; or by the seller, any partner, officer or director of the seller, any person occupying a similar status or performing similar functions, or any person directly or indirectly controlling or controlled by the seller, but only if the person filing the registration is directly or indirectly controlled by or acting for the seller;
(3)The business opportunity registered or sought to be registered is the subject of an administrative order denying, suspending or revoking a registration or a permanent or temporary injunction of any court of competent jurisdiction; but the director:
(a)May not institute a proceeding against an effective registration under this subdivision more than one year from the date of the order or injunction relied on; and
(b)May not enter an order under this subdivision on the basis of an order or injunction entered under any other state act unless that order or injunction was based on facts which would currently constitute a ground for an order under this section;
(4)The seller's enterprise or method of business, or that of the business opportunity, includes or would include activities which are illegal where performed;
(5)The business opportunity or the offering of a business opportunity has worked a fraud upon purchasers or would so operate;
(6)There has been a failure to file any documents or information required by §37-25A-8;
(7)The seller has failed to pay the proper registration fee but the director may enter only a denial order under this subdivision and the director shall vacate any such order if the deficiency is corrected;
(8)The seller's literature or advertising is misleading, incorrect, incomplete or deceptive.
Source: SL 1985, ch 305, §18; SL 2017, ch 231 (Ex. Ord. 17-2), §19, eff. Apr. 13, 2017.
Structure South Dakota Codified Laws
Chapter 25A - Business Opportunities
Section 37-25A-1 - Definitions.
Section 37-25A-2 - Exclusions from definition of business opportunity.
Section 37-25A-3 - Exemptions.
Section 37-25A-4 - Revocation or denial of exemption--Procedure.
Section 37-25A-6 - Offer or sale without knowledge of order revoking or denying exemption.
Section 37-25A-7 - Offer or sale of opportunity not registered or exempt prohibited.
Section 37-25A-8 - Filings required to register opportunity.
Section 37-25A-10 - Fee for registration.
Section 37-25A-11 - Effective date of registration.
Section 37-25A-12 - Term of registration--Renewal statement and fee--Sales report.
Section 37-25A-13 - Rule requiring filing of advertising and literature authorized.
Section 37-25A-14 - Delivery of written disclosure document to purchaser required.
Section 37-25A-15 - Form and content of disclosure statement.
Section 37-25A-16 - Business opportunity contract to be written--Copy to purchaser.
Section 37-25A-17 - Required contract provisions.
Section 37-25A-18 - Denial, revocation, or suspension of registration--Grounds.
Section 37-25A-19 - Limitation of revocation, suspension, or denial proceeding.
Section 37-25A-21 - Prerequisites to entry of stop order.
Section 37-25A-22 - Vacation or modification of orders--Grounds.
Section 37-25A-24 - Period bond required--Notice required prior to lapse.
Section 37-25A-25 - Use or disclosure of information by director restricted.
Section 37-25A-27 - Administration of oaths--Subpoena power--Taking evidence.
Section 37-25A-28 - Enforcement of subpoena.
Section 37-25A-31 - Appeal of director's order.
Section 37-25A-32 - Promulgation of rules and forms.
Section 37-25A-34 - Liability not imposed on acts conforming to rule, form or order.
Section 37-25A-35 - Receipt by director as filing--Records maintained--Public inspection.
Section 37-25A-36 - Interpretive opinions by director--Fee.
Section 37-25A-37 - Sales and offers subject to chapter.
Section 37-25A-38 - Offers to sell made in this state.
Section 37-25A-39 - Offers to sell accepted in this state.
Section 37-25A-40 - Offers to sell not made in this state.
Section 37-25A-41 - Conduct constituting appointment of director as attorney for service of process.
Section 37-25A-42 - Continuances where process served under chapter.
Section 37-25A-46 - Advertising with misleading statements or omissions prohibited.
Section 37-25A-47 - Violations as felonies--Separate offenses.
Section 37-25A-48 - Civil liability for registration violations.
Section 37-25A-49 - Civil liability for representation violations.
Section 37-25A-50 - Action on bond.
Section 37-25A-51 - Liability of person aiding or controlling violator.
Section 37-25A-52 - Limitation of actions to enforce civil liability.
Section 37-25A-53 - Rights and remedies under chapter additional.