reglab/housing_qa huggingface dataset:
SD Codified L § 37-5-16 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment|Section 37-5-16 - Definitions.

37-5-16. Definitions.Terms used in §§37-5-16 to 37-5-18, inclusive, shall only be used for the purposes of §§37-5-16 to 37-5-18, inclusive, and mean:(1)"Retailer of outdoor power equipment," a business that purchases outdoor power equipment for resale including: light industrial lawn and garden equipment, handheld lawn and garden equipment, snow removal equipment, and small engines and other power sources that operate such equipment;(2)"Manufacturer," a person who manufactures or assembles outdoor power equipment and sells outdoor power equipment directly or through a distributor to a retailer of outdoor power equipment and provides a warranty;(3)"Warranty," a commitment by a manufacturer to provide parts and labor for the outdoor power equipment they manufacture that is defective or needs adjustment or repair. Source: SL 2004, ch 255, §1.
SD Codified L § 37-5-17 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment|Section 37-5-17 - Manufacturer of outdoor power equipment required to compensate retailer for warranty work--Amount of compensation.

37-5-17. Manufacturer of outdoor power equipment required to compensate retailer for warranty work--Amount of compensation.Any manufacturer of outdoor power equipment that authorizes the retailer of outdoor power equipment selling such equipment to perform the warranty work shall include reasonable compensation for diagnostic work, as well as repair service, parts, and labor to the retailer. Time allowances for diagnostic and performance of warranty work and service shall be adequate for the work to be performed. The hourly labor rate paid to the retailer for warranty services may not be less than the rate charged by the retailer for like service to nonwarranty customers for nonwarranty service. Reimbursement for parts used in the performance of warranty repair may not be less than the amount paid by the retailer to acquire the parts plus a reasonable allowance for handling, which may not be less than thirty percent. Source: SL 2004, ch 255, §2.
SD Codified L § 37-5-18 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment|Section 37-5-18 - Inapplicability of §§ 37-5-16 and 37-5-17 where only method of sales is through retailer with exclusive trade territory.

37-5-18. Inapplicability of §§37-5-16 and 37-5-17 where only method of sales is through retailer with exclusive trade territory.The provisions of §§37-5-16 and 37-5-17 do not apply if the manufacturer's only method of sales is a contract with the retailer that provides for an exclusive trade territory and requires the retailer to make warranty repairs on such equipment. Source: SL 2004, ch 255, §3.
SD Codified L § 37-5-19 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment|Section 37-5-19 - Civil action for violation of chapter.

37-5-19. Civil action for violation of chapter.Any dealer, as defined in §37-5-12.1 or subdivision 37-5-13(1), whose business or property is injured by a violation of this chapter may bring a civil action to recover all court costs and reasonable attorney's fees in addition to all other remedies of law. Source: SL 2012, ch 197, §1.
SD Codified L § 37-5B-2 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-2 - Jurisdiction.

37-5B-2. Jurisdiction.This chapter applies to any franchise that is offered or sold in this state. A franchise is offered in this state if:(1)An offer to sell is made in this state;(2)The offer originates from within this state; or(3)The offer is directed by the offeror into this state from outside this state and is received where directed.A franchise is sold in this state if the offer to sell is accepted in this state.A franchise is offered or sold in this state if the franchise is offered or sold to a resident of this state and the franchise is to be operated in this state, or, if the franchisee is domiciled in this state when the franchised business is or will be operated in this state. Source: SL 2008, ch 203, §2.
SD Codified L § 37-5B-3 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-3 - Offer or sale not made in state.

37-5B-3. Offer or sale not made in state.An offer to sell is not made in this state solely because the offer appears in a newspaper or other publication of general and regular circulation which had more than two-thirds of its circulation outside this state during the past twelve months or solely because the offer appears in a broadcast or transmission originating outside this state.An offer to sell or to purchase is not made in this state if the offer to sell is made over the internet or similar proprietary or common carrier electronic system if the following conditions are met:(1)The internet offer indicates that the franchise is not being offered to residents of South Dakota;(2)The internet offer is not directed to any person in South Dakota by or on behalf of the franchisor or anyone acting with the franchisor's knowledge; and(3)No franchise is sold in South Dakota by or on behalf of the franchisor until the offering has been filed by notice and the franchise disclosure document has been delivered to the purchaser prior to the sale and in compliance with this chapter.An offer or sale of a franchise is not made in this state if the offer or sale is made to a person not a resident of this state, if the franchise will not be located in this state, and if the offer or sale does not constitute a violation of the laws of the state or foreign jurisdiction in which the offeree or purchaser is present and is not part of an unlawful attempt to evade this chapter. Source: SL 2008, ch 203, §3.
SD Codified L § 37-5B-4 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-4 - Notice filing required.

37-5B-4. Notice filing required.It is unlawful for any person to offer or sell a franchise in this state unless the franchise has properly notice filed under this chapter or is exempt from notice filing pursuant to §§37-5B-12 to 37-5B-15, inclusive. Source: SL 2008, ch 203, §4.
SD Codified L § 37-5B-6 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-6 - Amendments.

37-5B-6. Amendments.The director may require the franchisor to alter or amend the proposed disclosure document in order to assure full and fair disclosure to prospective purchasers. Source: SL 2008, ch 203, §6.
SD Codified L § 37-5B-7 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-7 - Updating disclosure documents.

37-5B-7. Updating disclosure documents.There is no filing required with the division for updating disclosure documents; but disclosure information shall be updated as follows:(1)Any information in the disclosure document shall be current as of the close of the franchisor's most recent fiscal year. After the close of the fiscal year, the franchisor shall, within one hundred twenty days, prepare a revised disclosure document, after which a franchise seller may distribute only the revised document and no other disclosure document;(2)The franchisor shall, within a reasonable time after the close of each quarter of the fiscal year, prepare revisions to be attached to the disclosure document to reflect any material change to the disclosures included, or required to be included, in the disclosure document. Each prospective franchisee shall receive the disclosure document and the quarterly revisions for the most recent period available at the time of disclosure;(3)If applicable, the annual update shall include the franchisor's first quarterly update, either by incorporating the quarterly update information into the disclosure document itself, or through an addendum;(4)When furnishing a disclosure document, the franchise seller shall notify the prospective franchisee of any material changes that the seller knows or should have known occurred in the information contained in any financial performance presentation; and(5)Information that must be audited pursuant to the disclosure requirements need not be audited for quarterly revisions if the franchisor states in immediate conjunction with the information that the information was not audited. Source: SL 2008, ch 203, §7.
SD Codified L § 37-5B-8 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-8 - Start-up financial statements.

37-5B-8. Start-up financial statements.For the purposes of §37-5B-7, a start-up franchise system that does not yet have audited financial statements, may phase-in the use of audited financial statements by providing, at a minimum, the following statements in the times indicated below:(1)The franchisor's first partial or full fiscal year selling franchises: an unaudited opening balance sheet;(2)The franchisor's second fiscal year selling franchises: audited balance sheet opinion as of the end of the first partial or full fiscal year selling franchises; and(3)The franchisor's third and subsequent fiscal years selling franchises: all required financial statements for the previous fiscal year, plus any previously disclosed audited statements that still must be disclosed such as the franchisor's balance sheet for the previous two fiscal year-ends before the disclosure document issuance date and statements of operations, stockholders equity, and cash flows for each of the franchisor's previous three fiscal years. Source: SL 2008, ch 203, §8.
SD Codified L § 37-5B-9 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-9 - Phase-in of financial statements.

 37-5B-9. Phase-in of financial statements.For the purposes of §37-5B-7, a start-up franchisor may phase-in the disclosure of audited financial statements, if the franchisor:(1)Prepares audited financial statements as soon as practicable;(2)Prepares unaudited statements in a format that conforms as closely as possible to audited statements; and(3)Includes one or more years of unaudited financial statements or clearly and conspicuously discloses in the disclosure document that the franchisor has not been in business for three years or more, and cannot include all of the financial statements required in the disclosure document such as the franchisor's balance sheet for the previous two fiscal year-ends before the disclosure document issuance date and statements of operations, stockholders equity, and cash flows for each of the franchisor's previous three fiscal years. Source: SL 2008, ch 203, §9.
SD Codified L § 37-5B-10 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-10 - Negotiation of terms.

37-5B-10. Negotiation of terms.This chapter does not prevent the negotiation of the terms and conditions of a franchise before it is sold. After the initial offer, a franchisor need not amend its disclosure document to negotiate with an offeree, or make supplementary disclosure to that offeree, by reason of a change negotiated in the terms and conditions of a franchise. Source: SL 2008, ch 203, §10.
SD Codified L § 37-5B-11 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-11 - Signed receipt.

37-5B-11. Signed receipt. The person offering or selling any franchise subject to the requirements of §§37-5B-17 and 37-5B-18 shall obtain a receipt, signed by the prospective franchisee, acknowledging that the prospective franchisee has received a copy of the disclosure document prior to the prospective franchisee affixing a signature to any franchise or other agreement and prior to the payment of any consideration by the prospective franchisee. The receipt shall be kept in the possession of the franchise seller, subject to inspection by the director, for a period of three years from the date the receipt is taken. Source: SL 2008, ch 203, §11.
SD Codified L § 37-5B-12 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-12 - Exemptions from chapter.

37-5B-12.Exemptions from chapter.The following are exempt from this chapter:(1)Any franchise relationship covered by the Petroleum Marketing Practices Act, 15 U.S. C. 2801, as of January 1, 2008;(2)Any franchise relationship where there is no written document that describes any material term or aspect of the relationship or arrangement;(3)Any fractional franchise;(4)Any leased department;(5)The total of the required payments, or commitments to make a required payment, to the franchisor or an affiliate that are made any time from before to within six months after commencing operation of the franchisee's business is less than five hundred dollars;(6)Any franchise relationship covering farm machinery, motor vehicles, or recreational vehicles, including snowmobiles, motorcycles, motor homes, mobile homes, and manufactured homes. Source: SL 2008, ch 203, §12.
SD Codified L § 37-5B-13 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-13 - Exemptions from notice filing and obligations to deliver disclosure document.

37-5B-13. Exemptions from notice filing and obligations to deliver disclosure document. The following franchises are subject to this chapter but are exempt from §§37-5B-4 and 37-5B-17, if any of the following conditions are satisfied:(1)The franchisee's initial investment, excluding any financing received from the franchisor or an affiliate, and excluding the cost of unimproved land, totals at least one million dollars and the prospective franchisee signs an acknowledgment verifying the grounds for the exemption. The acknowledgment shall state: The franchise sale is for more than one million dollars, excluding the cost of unimproved land and any financing received from the franchisor or an affiliate;(2)The franchisee (or its parent or any affiliates) is an entity that has been in business for at least five years and has a net worth of at least five million dollars; or(3)The offer or sale of a franchise by a personal representative, sheriff, marshal, receiver, trustee, trustee in bankruptcy, guardian, or conservator on behalf of a person other than the franchisor or the estate of the franchisor; or(4)One or more purchasers of at least a fifty percent ownership interest in the franchise; within sixty days of the sale, has been, for at least two years, an officer, director, general partner, individual with management responsibility for the offer and sale of the franchisor's franchises or the administrator of the franchised network; or within sixty days of the sale, has been, for at least two years, an owner of at least a twenty-five percent interest in the franchise. Source: SL 2008, ch 203, §13.
SD Codified L § 37-5B-14 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-14 - Exemptions from notice filing.

37-5B-14. Exemptions from notice filing.The following franchises are subject to this chapter but are exempt from §37-5B-4 if any of the following conditions are satisfied:(1)The offer or sale to an existing franchisee of an additional franchise that is substantially the same as the franchise that the franchisee has operated for at least two years at the time of the offer or sale; or(2)The offer or sale of a franchise to a bank, saving and loan association, financial organization or life insurance corporation within the meanings given these terms by chapters 43-41B, 52-1, and 58-1. Source: SL 2008, ch 203, §14.
SD Codified L § 37-5B-15 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-15 - Exemptions by director.

37-5B-15. Exemptions by director.The director may by rule or order exclude the offer and sale of a franchise from the requirements of §§37-5B-4 and 37-5B-17 if the filing or disclosure is not necessary or appropriate in the public interest or for the protection of prospective franchisees. Source: SL 2008, ch 203, §15.
SD Codified L § 37-5B-16 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-16 - Thresholds.

37-5B-16. Thresholds.For purposes of the exemptions set forth in subdivision 37-5B-12(5) and subdivisions 37-5B-13(1) and (2), the director may adjust by rule or order the size of the thresholds. Source: SL 2008, ch 203, §16.
SD Codified L § 37-5B-17 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-17 - Delivery of disclosure document.

37-5B-17. Delivery of disclosure document.In connection with the offer or sale of a franchise in this state, unless the transaction is exempted by the provisions of §§37-5B-12 to 37-5B-16, inclusive, it is a prohibited practice and a violation of this chapter for any person, directly or indirectly, to:(1)Fail to furnish a prospective franchisee with a copy of the franchisor's current disclosure document at least fourteen calendar-days before the prospective franchisee signs a binding agreement with, or makes any payment to, the franchisor or an affiliate in connection with the proposed franchise sale;(2)Alter unilaterally and materially the terms and conditions of the basic franchise agreement or any related agreements attached to the disclosure document without furnishing the prospective franchisee with a copy of each revised agreement at least seven calendar-days before the prospective franchisee signs the revised agreement. Any change to an agreement that arises out of negotiations initiated by the prospective franchisee does not trigger this seven calendar-day period; or(3)Fail to include all of the information required in the disclosure document if preparing the disclosure document to be furnished to a prospective franchisee. A franchise seller is liable for a violation of this subdivision if the seller either directly participated in the preparation of the disclosure document or had the authority to control those who did. Source: SL 2008, ch 203, §17.
SD Codified L § 37-5B-18 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-18 - Time of delivery of disclosure document.

37-5B-18. Time of delivery of disclosure document.For purposes of subdivisions 37-5B-17(1) and (2), the franchisor has furnished the disclosure documents by the required date if:(1)A copy of the disclosure document was hand-delivered, faxed, e-mailed, or otherwise delivered to the prospective franchisee by the required date;(2)Directions for accessing the disclosure document on the internet were provided to the prospective franchisee by the required date; or(3)A paper or tangible electronic copy was sent to the address specified by the prospective franchisee by first-class United States mail at least three days before the required date. Source: SL 2008, ch 203, §18.
SD Codified L § 37-5B-19 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-19 - Books and records.

37-5B-19. Books and records.Every franchisor offering or selling a franchise in this state shall maintain complete and accurate books and records of the offers and sales of franchises. The books and records shall include all of the disclosure documents and advertising and correspondence that have been used with franchisees and prospective franchisees including past and present operations manuals, training records, training manuals, copies of executed agreements, and any due diligence records concerning franchisees. The books and records shall be maintained at an office readily accessible to the franchisor for three years. The books and records may be kept on photographic or electronic media but shall be printed if the director requests. Source: SL 2008, ch 203, §19.
SD Codified L § 37-5B-20 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-20 - Burden of proof.

37-5B-20. Burden of proof.In any proceeding under this chapter the burden of proving an exemption is upon the person claiming it. Source: SL 2008, ch 203, §20.
SD Codified L § 37-5B-21 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-21 - Arbitration.

37-5B-21. Arbitration.A written provision in a franchise contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of the contract or transaction, or the refusal to perform the whole or any part thereof, or an agreement in writing to submit to arbitration an existing controversy arising out of the contract, transaction, or refusal, is valid, irrevocable, and enforceable except upon such grounds as exist at law or in equity for the revocation of any contract. However, any condition, stipulation, or provision requiring a franchisee to waive compliance with or relieving a person of a duty or liability imposed by or a right provided by this chapter or a rule or order under this chapter is void. Source: SL 2008, ch 203, §21.
SD Codified L § 37-5B-22 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-22 - Consent to service of process.

37-5B-22. Consent to service of process.Each applicant for notice filing under this chapter, and each franchisor on whose behalf an application for notice filing is filed, except any applicant and franchisor which are domestic South Dakota entities, shall file with the director an irrevocable consent to service of process.The irrevocable consent to service shall be in such form as the director may prescribe. The irrevocable consent to service of process shall appoint the director to be the applicant's or franchisor's agent to receive service of any lawful process in any civil action against the applicant or franchisor or their successor or personal representative, which arises under this chapter or any rule or order thereunder.After the irrevocable consent to service of process has been filed, it has the same force and validity as if served personally on the applicant or franchisor or their successor or personal representative.If any person, including any nonresident of this state and any foreign corporation, or other entity engages in conduct prohibited or made actionable by this chapter, whether or not they have filed a consent to service of process pursuant to this section, and personal jurisdiction over them cannot otherwise be obtained in this state, that conduct shall be considered equivalent to their appointment of the director to be their agent to receive service of any lawful process in any suit against them or their successors or personal representative which grows out of that conduct and which is brought under this chapter, with the same force and validity as if served on them personally.If, under this section, the director is an agent to receive process, service may be made by leaving a copy of the process in the office of the director as follows:(1)The process is not effective unless the plaintiff, who may be the director in an action instituted by the director, forthwith sends notice of the service and a copy of the process by certified mail to the defendant, or forthwith sends notice of the service and a copy of the process to the respondent at their last known address on file with the director; and(2)The plaintiff's affidavit of compliance with this section is filed with the court at the time as the filing of the complaint. Source: SL 2008, ch 203, §22.