37-5B-25. Fraud--Class 6 felony.
No person may, directly or indirectly, in connection with the offer or sale of a franchise willfully:
(1)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;
(2)Engage in an act, practice, or course of business which operates or would operate as a fraud or deceit on a person;
(3)Represent to a prospective franchisee that the notice filing of a franchise application constitutes a finding by the director that a disclosure document filed under this chapter is true, complete, and not misleading or that the director has passed upon the merits of the disclosure document and the franchise;
(4)Violate an order of the director after the person receives notice that the order was issued;
(5)Misrepresent that a franchise is notice filed or exempted from notice filing under this chapter; and
(6)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 chapter.
A violation of this section is a Class 6 felony.
Source: SL 2008, ch 203, ยง25.
Structure South Dakota Codified Laws
Chapter 05B - Franchise Investment
Section 37-5B-1 - Definitions.
Section 37-5B-2 - Jurisdiction.
Section 37-5B-3 - Offer or sale not made in state.
Section 37-5B-4 - Notice filing required.
Section 37-5B-5 - Notice filing provisions.
Section 37-5B-7 - Updating disclosure documents.
Section 37-5B-8 - Start-up financial statements.
Section 37-5B-9 - Phase-in of financial statements.
Section 37-5B-10 - Negotiation of terms.
Section 37-5B-11 - Signed receipt.
Section 37-5B-12 - Exemptions from chapter.
Section 37-5B-13 - Exemptions from notice filing and obligations to deliver disclosure document.
Section 37-5B-14 - Exemptions from notice filing.
Section 37-5B-15 - Exemptions by director.
Section 37-5B-16 - Thresholds.
Section 37-5B-17 - Delivery of disclosure document.
Section 37-5B-18 - Time of delivery of disclosure document.
Section 37-5B-19 - Books and records.
Section 37-5B-20 - Burden of proof.
Section 37-5B-21 - Arbitration.
Section 37-5B-22 - Consent to service of process.
Section 37-5B-23 - Advertisement.
Section 37-5B-24 - Fraud--Class 4 felony.
Section 37-5B-25 - Fraud--Class 6 felony.
Section 37-5B-26 - Prohibited practices.
Section 37-5B-27 - Director approval not permitted.
Section 37-5B-28 - Administration.
Section 37-5B-29 - Promulgation of rules.
Section 37-5B-31 - Filed documents.
Section 37-5B-32 - Records of filings and orders.
Section 37-5B-33 - Public and nonpublic records.
Section 37-5B-34 - Copies of notice filings and orders.
Section 37-5B-35 - Investigations.
Section 37-5B-36 - Request for information.
Section 37-5B-37 - Subpoena powers.
Section 37-5B-39 - Unauthorized use of information--Misdemeanor.
Section 37-5B-40 - Cooperation with other agencies.
Section 37-5B-41 - Cease and desist orders.
Section 37-5B-42 - Order to show cause.
Section 37-5B-43 - Civil penalty.
Section 37-5B-44 - Order or request for hearing.
Section 37-5B-45 - Effect of order without hearing.
Section 37-5B-46 - Affirmance, modification, or vacation of order.
Section 37-5B-47 - Civil action by attorney general.
Section 37-5B-48 - Injunctive relief.
Section 37-5B-49 - Civil damages or rescission.
Section 37-5B-50 - Limitation of actions.
Section 37-5B-51 - Pending actions and actions based on prior conduct.