March 15, 2018, Introduced by Reps. Iden, Lucido, Marino, Noble, Leutheuser and Hornberger and referred to the Committee on Commerce and Trade.
A bill to amend 1976 PA 331, entitled
"Michigan consumer protection act,"
by amending section 2 (MCL 445.902), as amended by 2006 PA 508.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. (1) As used in this act:
(a) Subject to subsection (2), "business opportunity" means
the sale or lease of any products, equipment, supplies, or services
for the purpose of enabling the purchaser to start a business, and
in which the seller represents 1 or more of the following:
(i) That the seller 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.
(ii) That the seller may, in the ordinary course of business,
purchase any or all products made, produced, fabricated, grown,
bred, or modified by the purchaser using whole or in part the
supplies, services, or chattels sold to the purchaser.
(iii) The seller guarantees that the purchaser will derive
income from the business opportunity that exceeds the price paid
for the business opportunity; or that the seller 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. As used in this subparagraph, "guarantee" means a
written or oral representation that would cause a reasonable person
in the purchaser's position to believe that income is assured.
(iv) That the seller will provide a sales program or marketing
program which will enable the purchaser to derive income from the
business opportunity that exceeds the price paid for the business
opportunity. This subparagraph does not apply to the sale of a
marketing program made in conjunction with the licensing of a
federally registered trademark or a federally registered service
mark, or to the sale of a business opportunity for which the
purchaser pays less than $500.00 in total for the business
opportunity
from anytime any time before the date of sale to
anytime
any time within 6 months after the date of sale.
(b) "Documentary material" includes the original or copy of a
book, record, report, memorandum, paper, communication, tabulation,
map, chart, photograph, mechanical transcription, or other tangible
document or recording, wherever situated.
(c) "Performing group" means a vocal or instrumental group
seeking to use the name of another group that has previously
released a commercial sound recording under that name.
(d)
"Person" means a natural person, an individual,
corporation, limited liability company, trust, partnership,
incorporated or unincorporated association, or other legal entity.
(e) "Recording group" means a vocal or instrumental group that
meets both of the following:
(i) At least 1 of the members of the group has previously
released a commercial sound recording under the group's name.
(ii) At least 1 of the members of the group has a legal right
to use the group's name, by virtue of use or operation under the
group's name without abandoning the name of or affiliation with the
group.
(f) "Sound recording" means a work that results from the
fixation on a material object of a series of musical, spoken, or
other sounds regardless of the nature of the material object, such
as a disk, tape, or other phono-record, in which the sounds are
embodied.
(g) "Trade or commerce" means the conduct of a business
providing goods, property, or service primarily for personal,
family, or household purposes and includes the advertising,
solicitation, offering for sale or rent, sale, lease, or
distribution of a service or property, tangible or intangible,
real, personal, or mixed, or any other article, or a business
opportunity. "Trade or commerce" does not include the purchase or
sale
of a franchise, but does include pyramid and chain promotions,
as
"franchise", "pyramid", and "chain promotions"
are defined in
the
franchise investment law, 1974 PA 269, MCL 445.1501 to
445.1546.a pyramid promotional scheme that violates the
pyramid
promotional scheme act, MCL 445.2581 to 445.2585.
(2) As used in this act, "business opportunity" does not
include a sale of a franchise as defined in section 2 of the
franchise investment law, 1974 PA 269, MCL 445.1502, or the sale of
an ongoing business if the owner of the business sells and intends
to sell only that single business opportunity.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 5726 (request no.
04879'17) of the 99th Legislature is enacted into law.