37-25A-2. Exclusions from definition of business opportunity.
For the purposes of this chapter, the term, business opportunity, does not include:
(1)Any offer or sale of an on-going business operated by the seller and sold in its entirety;
(2)Any offer or sale of a business opportunity to an on-going business if the seller provides products, equipment, supplies, or services which are substantially similar to the products, equipment, supplies or services sold by the purchaser in connection with the purchaser's on-going business;
(3)Any offer or sale of a business opportunity which has notice filed or is exempt from notice filing pursuant to §§37-5B-1 to 37-5B-50, inclusive, or any offer or sale of a business opportunity that is excluded from the definition of business opportunity as set forth in 16 C.F.R. Part 437 as of January 1, 2008;
(4)Any offer or sale of a business opportunity registered pursuant to chapter 47-31B;
(5)Any offer or sale of a business opportunity involving a marketing plan made in conjunction with the licensing of a federally registered trademark or federally registered service mark if the seller had a minimum net worth of one million dollars as determined by the seller's most recent audited financial statement, prepared within thirteen months of the first offer in this state. Net worth may be determined on a consolidated basis if the seller is at least eighty percent owned by one person and that person expressly guarantees the obligations of the seller with regard to the offer or sale of any business opportunity claimed to be excluded under this subdivision;
(6)Any offer or sale of a business opportunity by a personal representative, sheriff, marshal, receiver, trustee in bankruptcy, guardian, or conservator or a judicial offer or sale of a business opportunity.
Source: SL 1985, ch 305, §2; SL 1989, ch 30, §64; SL 2004, ch 278, §63; SL 2008, ch 203, §56.
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.