Section 45.66.080. Disclosure requirements.

   (a) At least 10 days before a buyer signs the contract required by AS 45.66.090, or at least 10 days before receipt of any consideration by the seller, whichever event occurs first, the seller shall give the buyer the written disclosure statement described in (b) of this section, require the buyer to sign a receipt containing the buyer's name and the date on which the buyer received the disclosure statement, and give the buyer the original receipt with the buyer's original signature. The seller shall retain a copy of the receipt.
   (b) The department shall specify by regulation the form and content of the disclosure statement required by (a) of this section, including
        (1) the seller's name, type of business organization, address, and name of any parent or affiliated company related to the transaction;
        (2) the names, addresses, and other relevant information regarding the owners, officers, directors, and other persons responsible for the seller's business activities related to the contract;
        (3) the business history of the seller and the seller's representatives and the background of the seller and the seller's representatives that relates to business opportunities;
        (4) the total contract amount to be paid by the buyer and the schedule of payments;
        (5) the financial condition of the seller, including audits and recent income statements;
        (6) a complete description of the services that the seller will perform for the buyer, including training;
        (7) the history of the seller's registration or attempted registration in this or another state as a seller of business opportunities;
        (8) a history of civil actions, criminal actions, and consumer protection complaints as described in AS 45.66.020(b)(3) brought against the seller or the seller's representatives related to the sale of business opportunities and the resolution of the actions and complaints in this state or another jurisdiction;
        (9) identification of any bankruptcy actions filed in court by the seller and the resolution of the actions;
        (10) if the seller makes a statement about potential earnings that can be made through a business opportunity, the basis for the statement and the economic risks associated with the business opportunity;
        (11) the rights and obligations of the seller and buyer regarding termination of the contract, including the rights arising out of the bond required by AS 45.66.060; and
        (12) any additional information that the department determines by regulation is reasonable and in the public interest for the seller to provide in order to make a complete disclosure concerning the contract.

Authorities

45.66.020;45.66.130;45.66.150

Notes

Implemented As

9 AAC 16.020
9 AAC 16.900

References

9 AAC 16.040
AS 45.66.020 Registration procedure.
AS 45.66.130 Cancellation of contract.
AS 45.66.150 Untrue statements or omissions.

History

(Sec. 3 ch 128 SLA 2002)