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§ 37-5B-25 Fraud--Class 6 felony.

SD Codified L § 37-5B-25 (2019) (N/A)
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37-5B-25. Fraud--Class 6 felony. No person may, directly or indirectly, in connection with the offer or sale of a franchise willfully:

(1) Make an untrue statement of material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading;

(2) Engage in an act, practice, or course of business which operates or would operate as a fraud or deceit on a person;

(3) Represent to a prospective franchisee that the notice filing of a franchise application constitutes a finding by the director that a disclosure document filed under this chapter is true, complete, and not misleading or that the director has passed upon the merits of the disclosure document and the franchise;

(4) Violate an order of the director after the person receives notice that the order was issued;

(5) Misrepresent that a franchise is notice filed or exempted from notice filing under this chapter; and

(6) Omit to state a material fact or make or cause to be made an untrue statement of a material fact in any application, notice, or report filed with the director under this chapter.

A violation of this section is a Class 6 felony.

Source: SL 2008, ch 203, § 25.

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§ 37-5B-24 Fraud--Class 4 felony.
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§ 37-5B-26 Prohibited practices.