§ 687 — Fraudulent and unlawful practices

New York § 687

• Jurisdiction: New York
• Law GBS: General Business
• Art. 33: Franchises

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§ 687. Fraudulent and unlawful practices. 1. It is unlawful for any\nperson to make any untrue statement of a material fact in any\napplication, notice, statement, prospectus or report filed with the\ndepartment under this article, or wilfully to omit to state in any such\napplication, notice, statement, prospectus or report any material fact\nwhich is required to be stated therein, or to fail to notify the\ndepartment of any material change as required by this article.\n 2. It is unlawful for a person, in connection with the offer, sale or\npurchase of any franchise, to directly or indirectly:\n (a) Employ any device, scheme, or artifice to defraud.\n (b) Make any untrue statement of a material fact or omit to state a\nmaterial fact necessary in order to make the statements made, in the\nlight of the circumstances under which they were made, not misleading.\nIt is an affirmative defense to one accused of omitting to state such a\nmaterial fact that said omission was not an intentional act.\n (c) Engage in any act, practice, or course of business which operates\nor would operate as a fraud or deceit upon any person.\n 3. It is unlawful for any person to violate any provision of this\narticle, or any rule of the department promulgated hereunder, or any\ncondition to the effectiveness of the registration of an offering\nprospectus or of an exemption from the registration provisions of this\narticle.\n 4. Any condition, stipulation, or provision purporting to bind any\nperson acquiring any franchise to waive compliance with any provision of\nthis law, or rule promulgated hereunder, shall be void.\n 5. It is unlawful to require a franchisee to assent to a release,\nassignment, novation, waiver or estoppel which would relieve a person\nfrom any duty or liability imposed by this article.\n