TITLE 14: COMMERCE
SUBTITLE A: REGULATION OF BUSINESS
CHAPTER I: SECRETARY OF STATE
PART 135 REGULATIONS UNDER THE BUSINESS OPPORTUNITY SALES LAW OF 1995
SECTION 135.50 DEFINITIONS OF TERMS AS USED IN THE ACT AND THE RULES
Section 135.50 Definitions of Terms as Used in the Act and the Rules
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.
b) A Section in this Part which defines a term without express reference to the Act or to this Part or to a portion thereof or hereof defines such term for all purposes as used both in the Act and in this Part. Terms defined in the Act and not defined in this Part have the meanings given them in the Act.
(Source: Amended at 22 Ill. Reg. 9571, effective May 20, 1998)