South Dakota Codified Laws 37-5B-25. Fraud–Class 6 felony
No person may, directly or indirectly, in connection with the offer or sale of a franchise willfully:
(1) Make an untrue statement of material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading;
Attorney's Note
Under the South Dakota Laws, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| Class 6 felony | up to 2 years | up to $4,000 |
Terms Used In South Dakota Codified Laws 37-5B-25
- Fraud: Intentional deception resulting in injury to another.
- Person: includes natural persons, partnerships, associations, cooperative corporations, limited liability companies, and corporations. See South Dakota Codified Laws 2-14-2
(2) Engage in an act, practice, or course of business which operates or would operate as a fraud or deceit on a person;
(3) Represent to a prospective franchisee that the notice filing of a franchise application constitutes a finding by the director that a disclosure document filed under this chapter is true, complete, and not misleading or that the director has passed upon the merits of the disclosure document and the franchise;
(4) Violate an order of the director after the person receives notice that the order was issued;
(5) Misrepresent that a franchise is notice filed or exempted from notice filing under this chapter; and
(6) Omit to state a material fact or make or cause to be made an untrue statement of a material fact in any application, notice, or report filed with the director under this chapter.
A violation of this section is a Class 6 felony.
Source: SL 2008, ch 203, § 25.