§ 24-5-8-2 — Disclosure document; cover sheet; contents

Indiana § 24-5-8-2

• Jurisdiction: Indiana
• Art. 5: CONSUMER SALES
• Ch. 8: Business Opportunity Transactions

Text

(a) At least seventy-two (72) hours before the
time the investor signs a contract, or at least seventy-two (72) hours
before receipt of any consideration by the seller, whichever occurs first,
the seller shall provide the investor a written disclosure document, the
cover sheet of which is entitled in at least ten (10) point bold face
capital letters "DISCLOSURES REQUIRED BY INDIANA LAW".
Under this title, the following statement must appear in at least ten (10)
point type: "The state of Indiana has not reviewed and does not
approve, recommend, endorse, or sponsor any business opportunity.
The information contained in this disclosure has not been verified by
the state. If you have any questions about this investment, see an
attorney before you sign a contract.". Nothing except the title and
statement may appear on the cover sheet.
(b) The disclosure document must also contain the following
information:
(1) The name of the seller, whether the seller is doing business as
an individual, partnership, limited liability company, or
corporation, the names under which the seller has done, is doing,
or intends to do business, and the name of any parent or affiliated
company that will engage in business transactions with the
investor or that will take responsibility for statements made by the
seller.
(2) The names, business addresses, business telephone numbers,
and titles of the seller's officers, directors, trustees, general
partners, general managers, principal executives, and any other
persons charged with responsibility for the seller's business
activities relating to the sale of business opportunities.
(3) The names, business addresses, and business telephone
numbers of all the seller's representatives who are soliciting
business opportunities in Indiana.
(4) The length of time the seller has:
(A) solicited business opportunities; and
(B) solicited business opportunities involving the goods or
services currently being offered to the investor.
(5) A statement of the initial payment to be paid by the investor,
or when not known, a statement of the approximate initial
payment to be paid.
(6) An unexecuted copy of all contracts.
(7) The following financial statements:
(A) A balance sheet of the seller as of the close of its last fiscal
year.
(B) Income statements for each of the seller's last three (3)
fiscal years or for the period of the seller's and any
predecessor's existence, if the seller and any predecessor have
been in existence for less than three (3) years.
(8) A complete and detailed description of any service that the
seller undertakes to perform for the investor.
(9) A complete description of any training offered by the seller,
the length of training, and a detailed itemization of all costs to be
covered by any fee to be charged for the training.
(10) A statement disclosing the names, home addresses, and home
telephone numbers of all persons who have been investors in a
business opportunity offered by the seller within the last two (2)
year period.
(11) A statement listing the name, home address, and home
telephone number of any investor who has requested within the
preceding three (3) year period that the seller return his money.
(12) A statement as to whether the seller or any of its officers,
directors, trustees, general partners, general managers, principal
executives, or representatives has been:
(A) held liable in a civil action for unfair, false, misleading, or
deceptive practices;
(B) convicted of a crime involving fraud, embezzlement,
conversion, or theft during the most recent seven (7) year
period; or
(C) declared bankrupt in any judicial proceeding during the
most recent seven (7) year period.
(13) A statement as to whether the seller or any of its officers,
directors, trustees, general partners, general managers, principal
executives, or representatives has been a party to any legal cause
of action brought by an investor within the most recent seven (7)
year period.
(14) A statement as to whether the seller or any of its officers,
directors, trustees, general partners, general managers, principal
executives, or representatives is currently involved in litigation
alleging unfair, false, misleading, or deceptive practices.
(15) A statement containing the name of the parties, the name of
the court, the cause or docket number of the lawsuit, the date the
suit was filed, and the date the judgment was entered, if
applicable, for each answer to subdivisions (12), (13), and (14).
(16) The following statement: "As required by Indiana law, the
seller has secured a bond issued by _______________ (name and
address of surety), a surety company authorized to do business in
Indiana. Before signing a contract to invest in this business
opportunity, you should check with the surety company to
determine the bond's current status.".
(17) If the seller makes any statement concerning earnings or
range of earnings that may be earned through the business
opportunity, the seller must set forth the following:
"No guarantee of earnings or ranges of earnings can be made.
The number of investors who have earned through this business
opportunity an amount in excess of the amount of their initial
payment is at least ________, which represents ________
percent of the total number of investors in this business
opportunity.".

Legislative History

As added by P.L.134-1984, SEC.1. Amended by P.L.8-1993, SEC.362.