Washington · statute · Wash. Rev. Code ch. 19.110 · 24 active provisions
The legislature finds and declares that the widespread and unregulated sale of business opportunities has become a common area of investment problems and deceptive practices in the state of Washington. As a result, the provisions of this chapter are necessary to counteract the potential negative impact of the sale of b…
Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.(1) "Business opportunity" means the sale or lease of any product, equipment, supply, or service which is sold or leased to enable the purchaser to start a business; and:(a) The seller represents that the seller…
(1) An offer to sell or offer to lease a business opportunity occurs in Washington when:(a) The offer is made in Washington; or(b) The purchaser resides in Washington at the time of the offer and the business opportunity is or will be located, in whole or in part, in the state of Washington; or(c) The offer originates…
Nothing in this chapter applies to:(1) A radio station, television station, publisher, printer, or distributor of a newspaper, magazine, billboard, or other advertising medium which accepts advertising in good faith without knowledge of its violation of any provision of this chapter;(2) A franchise subject to the provi…
(1) Any person who proposes to sell or lease a business opportunity must register prior to advertising, soliciting, or making any offer, sale, or lease in this state.(2) Any person proposing to sell or lease a business opportunity must apply for registration by filing with the director:(a) A copy of the disclosure docu…
The director shall charge and collect the fees specified by this section. All fees are nonrefundable and shall be deposited in the state treasury.(1) The registration fee is two hundred dollars.(2) The renewal fee is one hundred twenty-five dollars.(3) The amendment fee is thirty dollars.
The seller shall provide the purchaser a written disclosure document at least forty-eight hours before the purchaser signs a business opportunity contract. The cover sheet of the disclosure document shall be entitled: "DISCLOSURES REQUIRED BY THE STATE OF WASHINGTON." The following statement shall appear under the titl…
(1) Any person who violates RCW 19.110.050 or 19.110.070 is guilty of a gross misdemeanor.(2) Any person who knowingly violates RCW 19.110.050 or 19.110.070 is guilty of a class B felony punishable according to chapter 9A.20 RCW.(3) No indictment or information for a felony may be returned under this chapter more than…
The director may, by rule or order:(1) Accept any disclosure document filed with agencies of the United States or any other state; or(2) Accept any disclosure document compiled in accordance with any rule or regulation of any agency of the United States or any other state; or(3) Waive disclosure of information which is…
Every person who proposes to sell or lease a business opportunity in this state through any person acting on an agency basis in the common law sense shall file with the director, in such form as the director by rule prescribes, an irrevocable consent appointing the director or the director's successor in office to be t…
(1) If the seller makes any guarantee described in RCW 19.110.020(1)(c), the seller shall have a surety bond issued by a surety company authorized to do business in Washington or a trust account with a licensed and insured bank or savings institution located in the state of Washington. The trustee shall be acceptable t…
(1) Every business opportunity contract shall be in writing and shall be dated and signed by the purchaser.(2) The seller shall provide the purchaser with a copy of the completed contract at the time the purchaser signs the contract.(3) The seller may not receive any consideration before the purchaser signs a business…
(1) It is unlawful for any person to:(a) Make any untrue or misleading statement of a material fact or to omit to state a material fact in connection with the offer, sale, or lease of any business opportunity in the state; or(b) Employ any device, scheme, or artifice to defraud; or(c) Engage in any act, practice, or co…
Any seller who violates any provision of this chapter is liable to the purchaser. The purchaser may sue for actual damages, or an injunction, or rescission, or other relief.In addition, the purchaser may sue for costs of suit, including a reasonable attorney's fee. The court may increase the amount of damages awarded u…
The director may make public or private investigations within or outside the state of Washington to determine whether any person has violated or is about to violate any provision of this chapter or any rule or order issued under this chapter. The director, or any officer designated by the director, may administer oaths…
(1) The director or authorized assistants may apply for and obtain a superior court order approving and authorizing a subpoena in advance of its issuance. The application may be made in the county where the subpoenaed person resides or is found, or the county where the subpoenaed documents, records, or evidence are loc…
(1) The director may order any person to cease and desist from an act or practice if it appears that the person is violating or is about to violate any provision of this chapter or any rule or order issued under this chapter.(2) Reasonable notice of and opportunity for a hearing shall be given. The director may issue a…
(1)(a) The attorney general, in the name of the state or the director, or the proper prosecuting attorney may bring an action to enjoin any person from violating any provision of this chapter. Upon proper showing, the superior court shall grant a permanent or temporary injunction, restraining order, or writ of mandamus…
Any violation of this chapter is declared to be an unfair act or practice or unfair method of competition in the conduct of trade or commerce for the purpose of application of the Consumer Protection Act, chapter 19.86 RCW.
The director may make, amend, and repeal rules, forms, and orders as necessary to carry out the provisions of this chapter. The director may honor requests for interpretive opinions.
The director shall appoint a competent person to administer this chapter. The director shall delegate to an administrator such powers, subject to the authority of the director, as may be necessary to carry out the provisions of this chapter. The administrator will hold office at the pleasure of the director.
The provisions of this chapter are cumulative and nonexclusive and do not affect any other remedy available at law.
This chapter may be known and cited as the Business Opportunity Fraud Act.
This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1981.