a) As used in this Part, unless the context
otherwise requires, the term:
"Act" means the Business Opportunity Sales Law of 1995 [815
ILCS 602 ] and this Part.
"Advertising" means any circular, prospectus, advertisement,
or other material or any communication by radio, television, pictures or the
transmittal or sending of any communication via the non-proprietary, nonprofit,
public computer network (commonly known as the "Internet") or similar means
used in connection with an offer or sale of any business opportunity.
"Affiliate" of, or a person "affiliated" with, a specified
person means a person who, directly or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with,
the person specified.
"Applicant" means the person making application for
registration.
"Consideration" as set forth in Section 5-35(a) of the Act
includes, without limitation, fully refundable deposits and postdated
checks.
"Date of filing" means the date that all of the required
documents are received by the Securities Department and all the required fees
are paid to the Secretary of State. A document shall not be deemed to be filed
if any material information required by the Act or this Part is omitted or the
document is illegible.
"Director" means any director of a corporation or any person
performing similar functions with respect to any organization whether
incorporated or unincorporated.
"Employee" does not include a director, trustee or
officer.
"Federal Banking Act of 1933" means the Federal Banking Act
of 1933 (
12 U.S.C.
227 ), and the Rules and Regulations
thereunder as in effect on January 1, 1996.
"Hearing" means a proceeding conducted by the Securities
Department in which the rights, privileges, immunities, duties or obligations
of any person or party are required by law to be determined by the Secretary of
State only after opportunity for a hearing.
"Initial payment" as set forth in Section 5-10(b) of the
Act:
shall include any form of a payment which evidences a
financial obligation on the part of the purchaser, including, without
limitation, a lump sum payment or a note evidencing installment debt;
shall include any form of payment or payments required to
start the business opportunity; that are made during a period from any time
before and within six months after commencing operation of the purchaser's
business opportunity, in whatever form, inclusive of payment for, without
limitation, services, supplies, sales material, samples and inventory
(inclusive of shipping and handling costs); and
does not include any cash payment by any purchaser not
exceeding $500 if the payment is made for the not-for-profit sale of
demonstration equipment, material or samples, or the payment is made for
product inventory sold to the purchaser at a bona fide wholesale price.
"Material", when used to qualify a requirement for the
furnishing of information as to any subject, limits the information required to
those matters as to which there is a substantial likelihood that a reasonable
person would consider important.
"Officer" means the president; any vice president in charge
of a principal business unit, division or function; the secretary; the
treasurer; any principal financial officer, comptroller or principal accounting
officer; any other officer performing a principal policy-making function and
any other person performing similar functions with respect to any organization
whether incorporated or unincorporated.
"Principal" means any officer, director, partner, member,
trustee or manager who is responsible for the supervision and management of the
daily business operations in this State of a business opportunity required to
be registered under the Act.
"Purchaser" means a person who enters into a contract or
agreement for the acquisition of a business opportunity or a person to whom an
offer to sell a business opportunity is directed.
"Rules" refers to all rules adopted by the Secretary of State
pursuant to the Act.
"Secretary of State" means the Securities Department of the
Office of the Secretary of State or the Securities Director or his or her
designee, as the case may be.
"Section" refers to a Section of this Part unless a reference
to the Act is specifically made.
