Maryland Code, BUSINESS REGULATION 14-115

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Terms Used In Maryland Code, BUSINESS REGULATION 14-115

Contract: A legal written agreement that becomes binding when signed.
Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
Person: includes an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity. See
state: means :

(1) a state, possession, territory, or commonwealth of the United States; or

(2) the District of Columbia. See
Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. ^{Source: OCC}
Trustee: A person or institution holding and administering property in trust.

(a) If a seller guarantees that a buyer will derive from a business opportunity income that will exceed the price paid for the business opportunity or represents that the seller will refund all or part of the price paid or repurchase the products, equipment, or supplies sold or leased by the seller if the buyer is not satisfied with the business opportunity, the seller shall:

(1) get a surety bond in favor of the State from a surety company authorized to do business in the State; or

(2) establish a trust account in favor of the State with an insured bank or savings institution in the State.

(b) The amount of the bond or trust account shall be at least $50,000.

(i) a violation of this subtitle; or

(ii) the seller’s breach of the contract for the sale of a business opportunity.

(2) The surety or trustee is liable only for actual damages up to the amount of the bond or trust account.

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