Texas Business & Commerce Code - Section 41.003. Definitions
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§ 41.003. DEFINITIONS. In this chapter:
(1) "Business opportunity contract" means an
agreement that obligates or is intended to obligate a purchaser to a
seller.
(2) "Buy-back" means a representation that implies
that the purchaser's payment is protected from loss.
(3) "Designee" means a person who:
(A) is selected by a seller as a source of goods
or services to be used by a purchaser in connection with a business
opportunity; and
(B) gives consideration to the seller in
connection with that selection or the disposition of goods or
services to the purchaser.
(4) "Equipment" includes machines, electrical
devices, video and audio devices, molds, display racks, vending
machines, coin-operated game machines, machines that dispense
products, and display units.
(5) "Initial consideration" means the total amount a
purchaser is obligated to pay under a business opportunity contract
before or at the time the equipment, supplies, products, or
services are delivered or within six months after the date the
purchaser begins operation of the business opportunity plan. The
term means the total sale price if the contract states a specific
total sale price for purchase of the business opportunity plan and
the total sale price is to be paid as a down payment and one or more
additional payments. The term does not include the not-for-profit
sale for not more than $500 of sales demonstration materials,
samples, and equipment.
(6) "Marketing program" means advice or training that
is given to the purchaser by the seller or a person recommended by
the seller pertaining to the sale of products, equipment, supplies,
or services and that includes the preparation or provision of:
(A) promotional literature, brochures,
pamphlets, or advertising materials;
(B) training regarding the promotion, operation,
or management of the business opportunity; or
(C) operational, managerial, technical, or
financial guidelines or assistance.
(7) "Product" includes any tangible personal
property.
(8) "Purchaser" means a person who becomes or is
solicited to become obligated on a business opportunity contract.
(9) "Secured investment" is synonymous with
"buy-back" and has the meaning assigned by Subdivision (2).
(10) "Seller" means a principal or agent who sells or
leases or offers to sell or lease a business opportunity.
(11) "Services" includes any assistance, guidance,
direction, work, labor, or other services provided by the seller to
initiate or maintain a business opportunity.
(12) "Supplies" includes materials used to produce,
grow, breed, or make a product or item.
Added by Acts 1997, 75th Leg., ch. 1008, § 5, eff. Sept. 1, 1997.
Section: 40.093 40.094 40.095 40.121 40.122 41.001 41.002 41.003 41.004 41.005 41.006 41.007 41.008 41.009 41.051
Last modified: August 10, 2007
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