N.Y. General Business Law § 687: Fraudulent and unlawful practices

§ 687. Fraudulent and unlawful practices. 1. It is unlawful for any

person to make any untrue statement of a material fact in any

application, notice, statement, prospectus or report filed with the

department under this article, or wilfully to omit to state in any such

application, notice, statement, prospectus or report any material fact

which is required to be stated therein, or to fail to notify the

department of any material change as required by this article.

2. It is unlawful for a person, in connection with the offer, sale or

purchase of any franchise, to directly or indirectly:

(a) Employ any device, scheme, or artifice to defraud.

(b) Make any untrue statement of a material fact or omit to state a

material fact necessary in order to make the statements made, in the

light of the circumstances under which they were made, not misleading.

It is an affirmative defense to one accused of omitting to state such a

material fact that said omission was not an intentional act.

(c) Engage in any act, practice, or course of business which operates

or would operate as a fraud or deceit upon any person.

3. It is unlawful for any person to violate any provision of this

article, or any rule of the department promulgated hereunder, or any

condition to the effectiveness of the registration of an offering

prospectus or of an exemption from the registration provisions of this

article.

4. Any condition, stipulation, or provision purporting to bind any

person acquiring any franchise to waive compliance with any provision of

this law, or rule promulgated hereunder, shall be void.

5. It is unlawful to require a franchisee to assent to a release,

assignment, novation, waiver or estoppel which would relieve a person

from any duty or liability imposed by this article.