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Texas Business & Commerce Code - Chapter 41 Business Opportunities

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  • Texas Business & Commerce Code Section 41.001 - Short Title
    This chapter may be cited as the Business Opportunity Act. Added by Acts 1997, 75th Leg., ch. 1008, § 5, eff. Sept. 1, 1997. ...
  • Texas Business & Commerce Code Section 41.002 - Construction And Application
    (a) This chapter shall be liberally construed and applied to: (1) protect persons against false, misleading, or deceptive practices in the advertising, offering for sale ...
  • Texas Business & Commerce Code Section 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 ...
  • Texas Business & Commerce Code Section 41.004 - Business Opportunity; Exceptions
    (a) In this chapter, "business opportunity" means a sale or lease for an initial consideration of more than $500 of products, equipment, supplies, or services ...
  • Texas Business & Commerce Code Section 41.005 - Burden Of Proof
    A person who claims to be exempt from this chapter has the burden of proving the exemption. Added by Acts 1997, 75th Leg., ch. 1008, ...
  • Texas Business & Commerce Code Section 41.006 - Rules
    The secretary of state may adopt rules to administer and enforce this chapter. Added by Acts 1997, 75th Leg., ch. 1008, § 5, eff. Sept. ...
  • Texas Business & Commerce Code Section 41.007 - Filing Fee
    The secretary of state may charge a reasonable fee to cover the costs incurred as a result of a filing required by Subchapter B or ...
  • Texas Business & Commerce Code Section 41.008 - Recordkeeping
    (a) A seller shall maintain a complete set of books, records, and accounts of business opportunity sales made by the seller. (b) A document relating ...
  • Texas Business & Commerce Code Section 41.009 - Waiver
    A waiver of this chapter is contrary to public policy and is unenforceable and void. Added by Acts 1997, 75th Leg., ch. 1008, § 5, ...
  • Texas Business & Commerce Code Section 41.051 - Filing Of Disclosure Statement And List Of Sellers
    Before the sale or offer for sale, including advertising, of a business opportunity, the principal seller shall register the business opportunity with the secretary of ...
  • Texas Business & Commerce Code Section 41.052 - Updating Of Information On File
    (a) A disclosure statement on file must be updated through a new filing annually and whenever a material change occurs. (b) The list of individuals ...
  • Texas Business & Commerce Code Section 41.053 - Filing Of Copy Of Bond Or Notification Of Account
    A principal seller who is required to provide a bond or establish a trust account shall contemporaneously file with the secretary of state a copy ...
  • Texas Business & Commerce Code Section 41.054 - Use Of Disclosure Document From Other Regulatory Agency
    Instead of using a disclosure statement required by this chapter in a transaction with a purchaser or for purposes of filing with the secretary of ...
  • Texas Business & Commerce Code Section 41.101 - Bond, Trust Account, Or Letter Of Credit Required
    (a) Before a seller makes a representation described by Section 41.004(a)(1) or otherwise represents that the buyer is assured of making a profit from a ...
  • Texas Business & Commerce Code Section 41.102 - Action Against Bond, Trust Account, Or Letter Of Credit
    (a) A person may bring an action against the bond, trust account, or irrevocable letter of credit obtained or established under Section 41.101 to recover ...
  • Texas Business & Commerce Code Section 41.151 - Disclosure To Purchaser Of Business Opportunity
    A seller must provide a purchaser with a written disclosure statement that meets the requirements of this subchapter. The seller must provide the statement at ...
  • Texas Business & Commerce Code Section 41.152 - Cover Sheet Of Disclosure Statement
    (a) A disclosure statement must have a cover sheet that is entitled, in at least 12-point boldface capital letters, "DISCLOSURES REQUIRED BY TEXAS LAW." The ...
  • Texas Business & Commerce Code Section 41.153 - Contents: Names And Addresses
    A disclosure statement must contain: (1) the name of the seller; (2) the names under which the seller has done, is doing, or intends to ...
  • Texas Business & Commerce Code Section 41.154 - Contents: Sales Periods
    A disclosure statement must state the period the seller has: (1) sold business opportunities; and (2) sold business opportunities involving the products, equipment, supplies, or ...
  • Texas Business & Commerce Code Section 41.155 - Contents: Services Description
    A disclosure statement must contain: (1) a detailed description of the actual services the seller undertakes to perform for the purchaser; and (2) if the ...
  • Texas Business & Commerce Code Section 41.156 - Contents: Financial Statement
    A disclosure statement must contain a copy of a financial statement of the seller that: (1) was prepared according to generally accepted accounting principles within ...
  • Texas Business & Commerce Code Section 41.157 - Contents: Training Description
    If the seller promises training, the disclosure statement must contain a complete description of the training, the length of the training, and the cost of ...
  • Texas Business & Commerce Code Section 41.158 - Contents: Security Description
    If the seller is required to secure a bond or establish a trust account, the disclosure statement must contain the following statement: (1) "As required ...
  • Texas Business & Commerce Code Section 41.159 - Contents: Delivery Date
    If the seller is required to deliver to the purchaser the product, equipment, or supplies necessary to begin substantial operation of the business and states ...
  • Texas Business & Commerce Code Section 41.160 - Contents: Sales Or Earnings Representation
    If the seller makes a statement concerning sales or earnings that may be made through the business opportunity, the disclosure statement must contain a statement ...
  • Texas Business & Commerce Code Section 41.161 - Contents: Legal Action History
    (a) A disclosure statement must contain a statement disclosing which, if any, of the persons described by Section 41.153: (1) has, at any time during ...
  • Texas Business & Commerce Code Section 41.162 - Contents: Bankruptcy
    (a) A disclosure statement must contain a statement disclosing which, if any, of the persons described by Section 41.153 has, at any time during the ...
  • Texas Business & Commerce Code Section 41.163 - Contents: Contract Copy
    A disclosure statement must contain a copy of the business opportunity contract that the seller uses as a matter of course and that will be ...
  • Texas Business & Commerce Code Section 41.201 - Form Of Business Opportunity Contract
    A business opportunity contract must be in writing and include, in 10-point type or in handwriting of an equivalent size, the following: (1) the terms ...
  • Texas Business & Commerce Code Section 41.202 - Delivery Of Copies Of Documents To Purchaser
    A copy of the completed business opportunity contract and any other document the seller requires the purchaser to sign shall be given to the purchaser ...
  • Texas Business & Commerce Code Section 41.203 - Effect Of Assignment Of Business Opportunity Contract
    An assignee of a business opportunity contract or of the seller's rights under the contract is subject to all equities, rights, and defenses of the ...
  • Texas Business & Commerce Code Section 41.251 - Voluntary Termination Of Business Opportunity Registration
    The principal seller of a registered business opportunity may voluntarily terminate the business opportunity's registration with the secretary of state if: (1) the registered business ...
  • Texas Business & Commerce Code Section 41.252 - Involuntary Termination Of Business Opportunity Registration
    (a) The secretary of state may terminate the registration of a business opportunity registered under Section 41.051 if the seller does not comply with the ...
  • Texas Business & Commerce Code Section 41.301 - Prohibited Acts
    A seller may not: (1) employ a representation, device, scheme, or artifice to deceive a purchaser; (2) make an untrue statement of a material fact ...
  • Texas Business & Commerce Code Section 41.302 - Deceptive Trade Practice
    A violation of this chapter is a false, misleading, or deceptive act or practice under Section 17.46, Business & Commerce Code. A public or private ...
  • Texas Business & Commerce Code Section 41.303 - Review And Suit By Attorney General
    (a) The attorney general may review a disclosure statement filed with the secretary of state under Subchapter B. (b) If a disclosure statement fails to ...
  • Last modified: August 10, 2007