Virginia Code 13.1-563: Unlawful offers
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It shall be unlawful for any person, in connection with the sale or offer to sell a franchise in this Commonwealth, directly or indirectly:
Terms Used In Virginia Code 13.1-563
- Commission: means the State Corporation Commission. See Virginia Code 13.1-559
- Franchise: means a written contract or agreement between two or more persons, by which:
1. See Virginia Code 13.1-559
- Franchisee: means a person to whom a franchise is granted or sold. See Virginia Code 13.1-559
- Fraud: Intentional deception resulting in injury to another.
- offer to sell: includes every attempt to offer to dispose of or grant, and every solicitation of an offer to buy, a franchise or an interest in a franchise for value. See Virginia Code 13.1-559
- State: when applied to a part of the United States, includes any of the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, and the United States Virgin Islands. See Virginia Code 1-245
1. To employ any device, scheme, or artifice to defraud;
2. To make any untrue statement of a material fact or to omit to state a material fact necessary in order to avoid misleading the offeree;
3. To engage in any transaction, practice, or course of business that operates or would operate as a fraud or deceit upon the franchisee; or
4. To fail to provide the franchisee a copy of (i) the franchise agreement and (ii) such disclosure document as may be required by rule or order of the Commission.
1972, c. 561; 1978, c. 670; 1991, c. 475; 2009, c. 148.