KRS § 367.816 — KY Code / Title XXIX / Chapter 367 / Section 367.816
367.816 Agreement or arrangement for a business opportunity -- Requirements -- Effect of noncompliance -- Nonwaiverability
Status: in_force

367.816 Agreement or arrangement for a business opportunity -- Requirements --

Effect of noncompliance -- Nonwaiverability.

(1) Every agreement or arrangement for a business opportunity shall be in writing.

Copies of the completed agreement and all other documents the offeror requires the

consumer/investor to sign shall be given to the consumer/investor at the time they

are signed.

(2) Each business opportunity agreement shall set forth in easily legible form all of the

following:

(a) The terms and conditions of all payments including the amount owed and a

complete schedule for total payment;

(b) A detailed description of the acts or services the offeror or its affiliate

undertake to perform for the consumer/investor;

(c) The offeror's name, telephone number, principal business address, by street

and number, and the name and address of its agent in this state authorized to

receive service of process;

(d) Whether the offeror is doing business as a corporation, partnership, or

otherwise, and the state of its incorporation or organization;

(e) The estimated delivery dates of each installment and whether the items are to

be delivered to the consumer/investor or are to be placed by the offeror at

locations owned or managed by persons other than the consumer/investor;

(f) If applicable, the terms of the "buy-back" or "security" obligation of the

offeror pursuant to KRS 367.801(5)(c)3.

(g) The name and address of each supplier of the items the offeror is to deliver to

the consumer/investor; and

(h) The following statement in the form below in no smaller than ten (10) point

boldface print:

STATEMENT OF CONSUMER INVESTOR RIGHTS

1. You have thirty (30) business days in which you may cancel this

contract for any reason.

2. To cancel, you must mail or deliver a written notice to (Seller's name

and street address) before (last date to mail or deliver notice). If mailed,

the notice must be postmarked by the above date. If you deliver the

notice, it must be delivered by the end of the normal business day on the

above date.

3. We must promptly refund your payments, and within five (5) business

days after you receive your refund, you must allow us to pick up

anything we provided to you under this contract.

4. If we or our affiliates mislead you by what we say, or if we violate the

Kentucky Business Opportunities Law, you may cancel this contract. To

cancel, you must give written notice to us within one (1) year of the date

of the contract.

5. If you cancel under this provision, you are entitled to a prompt refund of

all amounts you have paid, less the value of items we delivered that you

do not return.

6. If we do not deliver items promised within thirty (30) days of the

delivery date in your contract except for reasons beyond our control, you

may cancel this contract and receive an immediate refund of amounts

paid, less the value of items you do not return.

(3) The offeror shall not take a negotiable instrument as evidence of the

consumer's/investor's obligation unless the instrument on its face abrogates holder

in due course status for its holder.

(4) The payment schedule in the agreement shall not require payment of more than

twenty percent (20%) of the initial payment before delivery to the

consumer/investor of the items to be supplied by the offeror, unless sums in excess

of the twenty percent (20%) are placed in escrow until the consumer/investor

advises the escrow agent in writing of the delivery of the items, or until the offeror

presents the escrow agent with a bill of lading that proves timely delivery of the

items. The consumer/investor shall not unreasonably withhold notice of delivery.

(5) A successor or assignee of the offeror's interest or rights in the agreement is subject

to all equities, rights, and defenses of the consumer/investor against the offeror.

(6) Until the offeror has complied with this section, the buyer may cancel the purchase

of a business opportunity by notifying the offeror in any manner and by any means

of his intention to cancel.

(7) Any waiver by the consumer/investor of a business opportunity of the rights

provided in this section is null and void and will not operate to relieve the offeror of

any obligation placed upon him by KRS 367.801 to 367.819.