Texas Business and Commerce Code 51.002 – General Definitions
Terms Used In Texas Business and Commerce Code 51.002
- Contract: A legal written agreement that becomes binding when signed.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Personal property: All property that is not real property.
In this chapter:
(1) “Business opportunity contract” means an agreement that obligates or is intended to obligate a purchaser to a seller.
(2) “Buy-back” or “secured investment” means a representation that implies a purchaser’s payment is protected from loss.
(3) “Equipment” includes electrical devices, video and audio devices, molds, display units, including display racks, and machines, including coin-operated game machines and vending and other machines that dispense products.
(4) “Initial consideration” means the total amount a purchaser is obligated to pay under a business opportunity contract before or at the time products, equipment, supplies, or services are delivered or within six months after the date the purchaser begins operation of the business opportunity plan. The term means the total sale price if the contract states a specific total sale price for purchase of the business opportunity plan and the total sale price is to be paid as a down payment and one or more additional payments. The term does not include the not-for-profit sale of sales demonstration materials, samples, or equipment for not more than $500.
(5) “Marketing program” means advice or training that a seller or a person recommended by a seller gives to a purchaser regarding the sale of products, equipment, supplies, or services. The term includes the preparation or provision of:
(A) a brochure, pamphlet, or advertising material, including promotional literature;
(B) training regarding the promotion, operation, or management of a business opportunity; or
(C) operational, managerial, technical, or financial guidelines or assistance.
(6) “Product” includes tangible personal property.
(7) “Purchaser” means a person who becomes or is solicited to become obligated under a business opportunity contract.
(8) “Seller” means a principal or agent who sells or leases or offers to sell or lease a business opportunity.
(9) “Services” includes any assistance, guidance, direction, work, labor, or other services provided by a seller to initiate or maintain a business opportunity.
(10) “Supplies” includes materials used to make, produce, grow, or breed a product or item.