Designation of successor sellers
Sec. 13. (a) Notwithstanding section 10 of this chapter, as used in
this section, "seller" means an individual, a person doing business as
a sole proprietor, a firm, a corporation, an association, a limited
liability company, or a partnership:
(1) contracting to provide prepaid or at-need services or
merchandise, or both, to a named individual; and
(2) holding a certificate of authority under this chapter.
(b) A purchaser has the option to designate one (1) or more
successor sellers to provide:
(1) prepaid services or merchandise; or
(2) at-need services or merchandise.
A purchaser who exercises the purchaser's option to designate a
successor seller shall give written notice of the designation to the
currently designated seller, successor seller, and trustee or escrow
agent. Only a purchaser may exercise the option to designate a new
seller. However, the designation is ineffective unless the newly
designated seller consents to the designation.
(c) If a purchaser designates a successor seller, and the successor
seller consents to the designation, not less than thirty (30) days after
receiving notice under subsection (b), the seller who was previously
designated shall:
(1) relinquish and transfer all rights under the contract;
(2) transfer to the successor the contract; and
(3) release from trust or escrow for subsequent deposit to the
successor seller's trust or escrow all property being held as
consideration for the contract, together with an itemized
statement disclosing all services or merchandise delivered as of
the date of transfer.
The seller and the successor sellers shall cooperate to ensure that
there is no forfeiture or loss of a right or benefit under the contract
and that all contract terms are fulfilled. If similar prepaid or at-need
services or merchandise are purchased from one (1) or more sellers,
the contract that is first in time prevails and is valid.
(d) The trustee shall confirm the transfer to the seller, successor
seller, and purchaser by written notice confirming the identity and
value of the property transferred.
(e) It is a violation of this chapter for a seller to knowingly induce
a purchaser to breach an existing contract that provides for prepaid
or at-need services or merchandise.
(f) This section does not abrogate the requirements of IC 25-15-4
concerning contracting for or delivering at-need services and
merchandise.
(g) It is a violation of this chapter for a seller to knowingly:
(1) induce a purchaser who has the right to designate a
successor seller under subsection (b) to:
(A) make a designation of a successor seller;
(B) breach an existing contract for prepaid or at-need
services or merchandise; or
(C) enter into an at-need or prepaid contract calling for the
delivery of similar services or merchandise; or
(2) offer a monetary inducement or the exchange or substitution
of free or discounted services or merchandise in an effort to
induce a purchaser to effect a change in the designation of a
seller of prepaid or at-need services or merchandise.
(h) It is a violation of this chapter for a seller to provide free or
discounted burial rights:
(1) as an inducement or as consideration for the transfer of a
contract; or
(2) in an effort to induce a purchaser to effect a change in the
designation of a seller of prepaid or at-need services or
merchandise.
As added by P.L.200-1991, SEC.1. Amended by P.L.207-1993,
SEC.30; P.L.120-1994, SEC.4; P.L.241-1995, SEC.8; P.L.114-1999,
SEC.10; P.L.76-2000, SEC.2.
Last modified: May 27, 2006