South Carolina General Assembly
106th Session, 1985-1986

Bill 970

                    Current Status

Bill Number:               970
Ratification Number:       459
Act Number:                415
Introducing Body:          Senate
Subject:                   Relating to the definition of
                           "business opportunity"
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A415, R459, S970)

AN ACT TO AMEND SECTION 39-57-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITION OF "BUSINESS OPPORTUNITY", SO AS TO PROVIDE THAT IT INCLUDES ONLY BEGINNING BUSINESSES WHEN THE PURCHASER OF GOODS OR SERVICES PAYS THE SELLER A FEE IN EXCESS OF FIVE HUNDRED DOLLARS AND TO EXCLUDE SALES AND LEASES WHERE THE SELLER HAS A NET WORTH ON A CONSOLIDATED BASIS OF NOT LESS THAN TEN MILLION DOLLARS AND THE NOT FOR PROFIT SALE OF SALES DEMONSTRATION EQUIPMENT, MATERIALS, AND SAMPLES.

Be it enacted by the General Assembly of the State of South Carolina:

Definition

SECTION 1. Section 39-57-20 of the 1976 Code is amended to read:

"Section 39-57-20. As used in this chapter 'business opportunity' means the sale or lease of any products, equipment, supplies, or services which are sold to the purchaser for the purpose of enabling the purchaser to start a business, for which the purchaser pays to the seller a fee which exceeds five hundred dollars, and in which the seller represents:

(1) that he will provide locations or assist the purchaser in finding locations for the use or operation of vending machines, racks, display cases, or other similar devices, or currency-operated amusement machines or devices, on premises neither owned nor leased by the purchaser or seller; or

(2) that he will purchase any or all products made, produced, fabricated, grown, bred, or modified by the purchaser using in whole or in part, the supplies, services, or chattels sold to the purchaser; or

(3) that he guarantees that the purchaser will derive income from the business opportunity which exceeds the price paid for the business opportunity; or that he will refund all or part of the price paid for the business opportunity, or repurchase any of the products, equipment, supplies, or chattels supplied by the seller, if the purchaser is unsatisfied with the business opportunity; or

(4) the seller will provide a sales program or marketing program which will enable the purchaser to derive income from business opportunity which exceeds the price paid for the business opportunity; provided, that this subsection shall not apply to the sale or a marketing program made in conjunction with the licensing of a registered trademark or service mark.

'Business opportunity' does not include the sale of ongoing businesses when the owner of those businesses sells or intends to sell any portion thereof; provided, a business shall not be considered an ongoing business unless it has filed income tax returns with the South Carolina Tax Commission for at least one year; nor does it include the sale of assets or substantially all of the assets of an ongoing business; nor does it include the sale or lease of any products, equipment, supplies, or services where the seller has a net worth on a consolidated basis, according to its most recent audited financial statement, of not less than ten million dollars."

Time effective

SECTION 2. This act shall take effect upon approval by the Governor.