R.I. Gen. Laws § 5-61-4
§ 5-61-4. Filing, information required
Each filing pursuant to § 5-61-3 contains the following information:
(1)
The name or names of the seller, including the name under which the seller is doing or intends to do
business, if different from the name of the seller, and the name of any parent or affiliated organization (i)
that will engage in business transactions with purchasers relating to sales solicited by the seller or (ii)
that accepts responsibility for statements made by or acts of the seller relating to sales solicited by the
seller.
(2)
The seller's business form and place of organization and, if the seller is a corporation, a copy of its
articles of incorporation and bylaws and amendments, or, if a partnership, a copy of the partnership agreement
or if operating under a fictitious business name, the location where the fictitious name is registered. All
the same information is included for any parent or affiliated organization disclosed pursuant to subdivision
(1).
(3)
The complete street address or addresses of all locations, designating the principal location from
which the telephonic seller will be conducting business. If the principal business location of the seller is
not in this state, then the seller also designates which of its locations within the state is its main
location in the state.
(4)
A listing of all telephone numbers to be used by the seller and the address where each telephone using
each of these telephone numbers is located.
(5)
The name of, and the office held by, the seller's officers, directors, trustees, general and limited
partners, sole proprietor, and owners, and the names of those persons who have management responsibilities in
connection with the seller's business activities.
(6)
The complete address of the principal residence, the date and place of birth, and the driver's license
number and state of issuance of each of the persons whose names are disclosed pursuant to subdivision (5).
(7)
The name and principal residence address of each person the telephonic seller leaves in charge at each
location from which the seller does business in this state, as defined in § 5-61-1, and the business location
for which each of these persons is or will be in charge.
(8)
A statement, meeting the requirements of this subdivision as to any person identified pursuant to
subdivision (5) or (7) who:
(i)
(A)
Has been convicted of a felony or misdemeanor involving an alleged violation of this section, or
fraud, theft, embezzlement, fraudulent conversion or misappropriation of property.
(B)
For purposes of this paragraph, a plea of nolo contendere is a conviction;
(ii)
Has had entered against him or her a final judgment or order in a civil or administrative action,
including a stipulated judgment or order, if the complaint or petition in the civil or administrative action
alleged acts constituting a violation of this section, fraud, theft, embezzlement, fraudulent conversion, or
misappropriation of property, the use of untrue or misleading representations in an attempt to sell or dispose
of real or personal property, or the use of unfair, unlawful or deceptive business practices;
(iii)
Is subject to any currently effective injunction or restrictive court order relating to business
activity as the result of an action brought by a federal, state, or local public agency or unit including, but
not limited to, an action affecting any vocational license;
(iv)
(A)
Has at any time during the previous seven (7) tax years filed in bankruptcy, been adjudged a
bankrupt, been reorganized due to insolvency, or been a principal director, officer, trustee, general or
limited partner or had management responsibilities of any other corporation, partnership, joint venture, or
business entity, that has filed or was adjudicated or reorganized during or within one year after the period
that the person held that position.
(B)
For the purposes of paragraphs (i), (ii) and (iii), the statement required by this subdivision
identifies the person, the court or administrative agency rendering the conviction, judgment or order, the
docket number of the matter, the date of the conviction, judgment or order, and the name of the governmental
agency, if any, that brought the action resulting in the conviction, judgment or order. For the purposes of
subdivision (iv), the statement required by this subdivision includes the name and location of the person
filing in bankruptcy, adjudged a bankrupt or reorganized due to insolvency, and includes the date thereof, the
court which exercised jurisdiction and the docket number of the matter.
(9)
A list of names including date of birth and place of birth and principal residence addresses of
salespersons who solicit on behalf of the telephonic seller and the names the salespersons use while
soliciting.
(10)
A copy of all sales information and literature (including, but not limited to, scripts, outlines,
instructions, and information regarding how to conduct telephonic sales, sample introductions, sample
closings, product information, and contest or premium-award information) provided by the telephonic seller to
salespersons or of which the seller informs the salespersons, and a copy of all written materials the seller
sends to any prospective or actual purchaser.
(11)
If the telephonic seller represents or implies or directs salespersons to represent or imply, to
purchasers that the purchaser will receive certain specific items or one or more items from among bonuses,
prizes, or otherwise, the filing includes the following:
(i)
A list of the items offered.
(ii)
The value or worth of each item described to prospective purchasers and the basis for the
valuation.
(iii)
The price paid by the telephonic seller to its supplier for each of these items and the name,
address, and telephone number of each item's supplier.
(iv)
If the purchaser is to receive fewer than all of the items described by the seller, the filing
includes the following:
(A)
The manner in which the telephonic seller decides which item or items a particular prospective
purchaser is to receive;
(B)
The odds a single prospective purchaser has of receiving each described item;
(C)
The name and address of each recipient who has, during the preceding 12 months (or if the seller
has not been in business that long, during the period the telephonic seller has been in business) received the
item having the greatest value and the item with the smallest odds of being received.
(v)
All rules, regulations, terms, and conditions a prospective purchaser must meet in order to receive
the item.
(12)
If the telephonic seller is offering to sell any metal, stone, or mineral, the filing includes the
following:
(i)
The name, address and telephone number of each of the seller's suppliers and a description of each
metal, stone, or mineral provided by the supplier.
(ii)
If possession of any metal, stone, or mineral is to be retained by the seller or will not be
transferred to the purchaser until the purchaser has paid in full, the filing includes the following:
(A)
The address of each location where the metal, stone, or mineral will be kept;
(B)
If not kept on premises owned by the seller or at an address or addresses set forth in compliance
with subdivision (C), the name of the owner of the business at which the metal, stone, or mineral will be
kept;
(C)
A copy of any contract or other document which evidences the seller's right to store the metal,
stone, or mineral at the address or addresses designated pursuant to subdivision (A).
(iii)
If the seller is not selling the metal, stone, or mineral from its own inventory, but instead
purchases the metal, stone, or mineral to fill orders taken from purchases, the filing includes copies of all
contracts or other documents evidencing the seller's ability to call upon suppliers to fill the seller's
orders.
(iv)
If the seller represents to purchasers that the seller has insurance or a surety bond of any type
relating to a purchaser's purchase of any metal, stone, or mineral from the seller, the filing includes a
complete copy of all these insurance policies and bonds.
(v)
If the seller makes any representation as to the earning or profit potential of purchases of any
metal, stone, or mineral, the filing includes data to substantiate the claims made. If the representation
relates to previous sales made by the seller or a related entity, substantiating data is based on the
experiences of at least fifty percent (50%) of the persons who have purchased the particular metal, stone, or
mineral from the seller or related entity during the preceding six months (or if the seller or related entity
has not been in business that long, during the period the seller or related entity has been in business) and
includes the raw data upon which the representation is based, including, but not limited to, all of the
following:
(A)
The length of time the seller or related entity has been selling the particular metal, stone or
mineral being offered;
(B)
The number of purchasers from the seller or related entity known to the seller or related entity
to have made at least the same earnings or profit as those represented;
(C)
The percentage that the number disclosed pursuant to subdivision (B) represents of the total
number of purchasers from the seller or related entity of the particular metal, stone, or mineral.
(13)
If the telephonic seller is offering to sell an interest in oil, gas, or mineral fields, wells or
exploration sites, the filing includes disclosure of the following:
(i)
the seller's ownership interest, if any, in each field, well or site being offered for sale;
(ii)
the total number of interests to be sold in each field, well, or site being offered for sale;
(iii)
if, in selling an interest in any particular field, well, or site, reference is made to an
investigation of these fields, wells, or sites by the seller or anyone else, the filing includes the
following:
(A)
The name, business address, telephone number and professional credentials of the person or
persons who made the investigation;
(B)
A copy of the report and documents relating to the investigation prepared by the person or
persons.
(iv)
If the seller makes any representation as to the earning or profit potential of purchases of any
interest in these fields, wells, or sites, the filing includes data to substantiate the claims made. If the
representation relates to previous sales made by the seller or related entity, then substantiating data is
based on the experiences of at least fifty percent (50%) of the purchasers of the particular interests from
the seller or the related entity during the preceding six months (or if the seller has not been in business
that long, during the period the seller or related entity has been in business) and includes the raw data upon
which the representation is based, including, but not limited to, all of the following:
(A)
The length of time the seller or related entity has been selling the particular interests in the
fields, wells, or sites being offered;
(B)
The number of purchasers of the particular interests from the seller or related entity known to
the seller to have made, at least the same earnings as those represented;
(C)
The percentage the number disclosed pursuant to subdivision (B) represents of the total number of
purchasers of the particular interests from the seller or related entity.
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