                                 CODE OF VIRGINIA

DEFINITIONS (§ 59.1-263)

A. For purposes of this chapter, &#8220;business opportunity&#8221; means the
sale of any products, equipment, supplies or services which are sold to a
purchaser upon payment of an initial required consideration exceeding $500 for
the purpose of enabling such purchaser to start a business, and in which the
seller:

   1. Represents 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; or

   2. Represents that it will purchase any or all products made, produced,
   fabricated, grown, bred or modified by the purchaser using in whole or in part
   the supplies, services or chattels sold by the seller to the purchaser; or

   3. Guarantees that the purchaser will derive income from the business
   opportunity which 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 not satisfied with the
   business opportunity; or

   4. Represents that the seller will provide a sales program or marketing
   program which will enable the purchaser to derive income from the business
   opportunity which exceeds the price paid for the business opportunity.
   				B.&#xA0;Exclusions. &#8212; Such definition of &#8220;business
   opportunity&#8221; shall not include the following:

   1. A security as defined by &#xA7; 13.1-501; or

   2. A franchise as defined in subsection A of &#xA7; 13.1-559 or &#xA7;
   59.1-21.10; or

   3. A license granted by a general merchandise retailer which allows the
   licensee to sell goods, equipment, supplies, products or services to the
   general public under the retailer&#8217;s trademark, trade name or service
   mark, provided that such general merchandise retailer has been doing business
   in the Commonwealth continuously for five years prior to the granting of such
   license and such general merchandise retailer also sells the same goods,
   equipment, supplies, products or services directly to the general public; or

   4. A newspaper distribution system; or

   5. The sale of an on-going business. An &#8220;on-going business&#8221; as
   used herein is one which for at least twelve months previous to the sale: (i)
   has been operated from a specific location, (ii) has been open for business to
   the general public and (iii) has had all equipment and supplies necessary for
   operating the business located at such specific location; or

   6. The sale of sales demonstration equipment and materials furnished at cost
   for use in making sales and not for resale; or

   7. A contract or agreement by which a retailer of goods or services is granted
   the right to sell goods or services within, or appurtenant to, a retail
   business establishment as a department or division thereof.

HISTORY: 1979, c. 523; 1985, c. 242.