§ 24-5-8-5 — Representations of business opportunity; copy to investor, contents

Indiana § 24-5-8-5

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

Text

(a) If the seller represents that the business
opportunity provides earning potential of any kind, the seller shall have
data to substantiate the claims of earning potential and shall give to the
investor at the first in person communication by the seller a copy of this
data or a copy of any statement of estimated or projected earning
potential prepared for presentation to prospective investors, together
with an explanation of the statement. A mathematical computation of
the number of sales multiplied by the amount of profit per sale to reach
a projected earnings figure is not sufficient data to substantiate an
earnings potential claim for the purposes of this section.
(b) The earning potential data given to the investor by a seller,
except a substantial seller, must disclose:
(1) the length of time the seller has been soliciting the particular
business opportunity;
(2) the number of investors in the particular business opportunity
that were solicited by the seller and known to the seller to have
made at least the same sales, earnings, or profits as those
represented;
(3) the percentage the number in subdivision (2) represents of the
total number of investors in the particular business opportunity
that were solicited by the seller; and
(4) the current address of any person named by the seller as
having profited from the particular business opportunity, a
description of the circumstances under which the profit was
earned, and a description of any interest held by the named person
in the business opportunity being offered to the investor.

Legislative History

As added by P.L.134-1984, SEC.1. Amended by P.L.252-1987, SEC.3.