Missouri Statute | Act | Code |Trade And Commerce| US Code - US Statute

As used in sections 407.010 to 407.130, the following words and
terms mean:

(1) "Advertisement", the attempt by publication, dissemination,
solicitation, circulation, or any other means to induce, directly or
indirectly, any person to enter into any obligation or acquire any title
or interest in any merchandise;

(2) "Documentary material", the original or a copy of any book, record,
report, memorandum, paper, communication, tabulation, map, chart,
photograph, mechanical transcription, or other tangible document or
recording, wherever situated;

(3) "Examination of documentary material", the inspection, study, or
copying of such material, and the taking of testimony under oath or
acknowledgment in respect to any documentary material or copy thereof;

(4) "Merchandise", any objects, wares, goods, commodities, intangibles,
real estate or services;

(5) "Person", any natural person or his legal representative,
partnership, firm, for-profit or not-for-profit corporation, whether
domestic or foreign, company, foundation, trust, business entity or
association, and any agent, employee, salesman, partner, officer,
director, member, stockholder, associate, trustee or cestui que trust
thereof;

(6) "Sale", any sale, lease, offer for sale or lease, or attempt to sell
or lease merchandise for cash or on credit;

(7) "Trade" or "commerce", the advertising, offering for sale, sale, or
distribution, or any combination thereof, of any services and any
property, tangible or intangible, real, personal, or mixed, and any other
article, commodity, or thing of value wherever situated. The terms
"trade" and "commerce" include any trade or commerce directly or
indirectly affecting the people of this state. (L. 1967 p. 607 § 1, A.L.
1973 H.B. 55, A.L. 1986 S.B. 685)

Effective 5-1-86

*No continuity with § 407.010 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

(1984) The state lacked standing to challenge the dischargeability in
bankruptcy of debts owed to individuals as the result of prosecuted
violations of the Merchandising Practices Act. In Re Cannon (8th Cir.),
741 F.2d 1139.

(2003) Merchandising Practices Act applies to deceptive schemes conducted
by out-of-state businesses and involving out-of-state consumers. State ex
rel. Nixon v. Estes, 108 S.W.3d 795 (Mo.App. W.D.).

(2004) Medical goods and services constitute "merchandise" within
definition of section. Freeman Health System v. Wass, 124 S.W.3d 504
(Mo.App. S.D.).

1. The act, use or employment by any person of any deception,
fraud, false pretense, false promise, misrepresentation, unfair practice
or the concealment, suppression, or omission of any material fact in
connection with the sale or advertisement of any merchandise in trade or
commerce or the solicitation of any funds for any charitable purpose, as
defined in section 407.453, in or from the state of Missouri, is declared
to be an unlawful practice. The use by any person, in connection with the
sale or advertisement of any merchandise in trade or commerce or the
solicitation of any funds for any charitable purpose, as defined in
section 407.453, in or from the state of Missouri of the fact that the
attorney general has approved any filing required by this chapter as the
approval, sanction or endorsement of any activity, project or action of
such person, is declared to be an unlawful practice. Any act, use or
employment declared unlawful by this subsection violates this subsection
whether committed before, during or after the sale, advertisement or
solicitation.

2. Nothing contained in this section shall apply to:

(1) The owner or publisher of any newspaper, magazine, publication or
printed matter wherein such advertisement appears, or the owner or
operator of a radio or television station which disseminates such
advertisement when the owner, publisher or operator has no knowledge of
the intent, design or purpose of the advertiser; or

(2) Any institution or company that is under the direction and
supervision of the director of the department of insurance, director of
the division of credit unions, or director of the division of finance,
unless the directors of such divisions specifically authorize the
attorney general to implement the powers of this chapter or such powers
are provided to either the attorney general or a private citizen by
statute.

3. Any person who willfully and knowingly engages in any act, use,
employment or practice declared to be unlawful by this section with the
intent to defraud shall be guilty of a class D felony.

4. It shall be the duty of each prosecuting attorney and circuit attorney
in their respective jurisdictions to commence any criminal actions under
this section, and the attorney general shall have concurrent original
jurisdiction to commence such criminal actions throughout the state where
such violations have occurred.

5. It shall be an unlawful practice for any long-term care facility, as
defined in section 660.600, RSMo, except a facility which is a
residential care facility I or a residential care facility II, as defined
in section 198.006, RSMo, which makes, either orally or in writing,
representation to residents, prospective residents, their families or
representatives regarding the quality of care provided, or systems or
methods utilized for assurance or maintenance of standards of care to
refuse to provide copies of documents which reflect the facility's
evaluation of the quality of care, except that the facility may remove
information that would allow identification of any resident. If the
facility is requested to provide any copies, a reasonable amount, as
established by departmental rule, may be charged.

6. Any long-term care facility, as defined in section 660.600, RSMo,
which commits an unlawful practice under this section shall be liable for
damages in a civil action of up to one thousand dollars for each
violation, and attorney's fees and costs incurred by a prevailing
plaintiff, as allowed by the circuit court. (L. 1967 p. 607 § 2, A.L.
1973 H.B. 55, A.L. 1985 H.B. 96, et al., A.L. 1986 S.B. 685, A.L. 1992
S.B. 705, A.L. 1994 H.B. 1165, A.L. 1995 H.B. 409, A.L. 2000 S.B. 763)

*No continuity with § 407.020 as repealed by L. 1963 S.B. 2 § 10-102

(1997) Amendments to this section contained in 1995 CCS HB 409 declared
unconstitutional pursuant to sections 21 and 23 of article III of the
Missouri Constitution. Missouri Health Care Association v. Attorney
General of the State of Missouri, 953 S.W.2d 617 (Mo.banc).

(2000) Delivery of beer by unlicensed foreign microbrewery without
inspection by state authorities and inadequate precautions to prevent
sales to minors constituted misrepresentations in violation of section.
State ex rel. Nixon v. Beer Nuts, Ltd., 29 S.W.3d 828 (Mo.App.E.D.).

(2001) Sale of motor fuel below cost in violation of the Motor Fuel
Marketing Act is not an unfair practice within meaning of section, and
thus the Attorney General lacks authority to invoke civil investigative
demand power. Ports Petroleum Company, Inc. of Ohio v. Nixon, 37 S.W.3d
237 (Mo.banc).

1. No person who alleges to represent a particular business at a
wholesale trade show or market shall rent or lease space at the trade
show or market unless he can produce written evidence of the agency
relationship or contract status with the business he claims to represent;
provided, however, that nothing herein contained shall apply to any trade
show or market which in good faith endeavors to obtain evidence of said
agency's relationship or contract status.

2. Any violation of this section is an unlawful merchandising practice.
(L. 1982 H.B. 1031)

1. Any person who purchases or leases merchandise primarily for
personal, family or household purposes and thereby suffers an
ascertainable loss of money or property, real or personal, as a result of
the use or employment by another person of a method, act or practice
declared unlawful by section 407.020, may bring a private civil action in
either the circuit court of the county in which the seller or lessor
resides or in which the transaction complained of took place, to recover
actual damages. The court may, in its discretion, award punitive damages
and may award to the prevailing party attorney's fees, based on the
amount of time reasonably expended, and may provide such equitable relief
as it deems necessary or proper.

2. Persons entitled to bring an action pursuant to subsection 1 of this
section may, if the unlawful method, act or practice has caused similar
injury to numerous other persons, institute an action as representative
or representatives of a class against one or more defendants as
representatives of a class, and the petition shall allege such facts as
will show that these persons or the named defendants specifically named
and served with process have been fairly chosen and adequately and fairly
represent the whole class, to recover damages as provided for in
subsection 1 of this section. The plaintiff shall be required to prove
such allegations, unless all of the members of the class have entered
their appearance, and it shall not be sufficient to prove such facts by
the admission or admissions of the defendants who have entered their
appearance. In any action brought pursuant to this section, the court may
in its discretion order, in addition to damages, injunction or other
equitable relief and reasonable attorney's fees.

3. An action may be maintained as a class action in a manner consistent
with Rule 23 of the Federal Rules of Civil Procedure and Missouri rule of
civil procedure 52.08 to the extent such state rule is not inconsistent
with the federal rule if:

(1) The class is so numerous that joinder of all members is impracticable;

(2) There are questions of law or fact common to the class;

(3) The claims or defenses of the representative parties are typical of
the claims or defenses of the class; and

(4) The representative parties will fairly and adequately protect the
interests of the class; and, in addition

(5) The prosecution of separate action by or against individual members
of the class would create a risk of:

(a) Inconsistent or varying adjudications with respect to individual
members of the class which would establish incompatible standards of
conduct for the party opposing the class; or

(b) Adjudications with respect to individual members of the class which
would as a practical matter be dispositive of the interests of the other
members not parties to the adjudications or substantially impair or
impede their ability to protect their interests; or

(6) The party opposing the class has acted or refused to act on grounds
generally applicable to the class, thereby making appropriate final
injunctive relief or corresponding declaratory relief with respect to the
class as a whole; or

(7) The court finds that the questions of law or fact common to the
members of the class predominate over any questions affecting only
individual members, and that a class action is superior to other
available methods for the fair and efficient adjudication of the
controversy. The matters pertinent to the findings include:

(a) The interest of members of the class in individually controlling the
prosecution or defense of separate actions;

(b) The extent and nature of any litigation concerning the controversy
already commenced by or against members of the class;

(c) The desirability or undesirability of concentrating the litigation of
the claims in the particular forum;

(d) The difficulties likely to be encountered in the management of a
class action.

4. (1) As soon as practicable after the commencement of an action brought
as a class action, the court shall determine by order whether it is to be
so maintained. An order pursuant to this subdivision may be conditional,
and may be altered or amended before the decision on the merits.

(2) In any class action maintained pursuant to subdivision (7) of
subsection 3 of this section, the court shall direct to the members of
the class the best notice practicable under the circumstances, including
individual notice to all members who can be identified through reasonable
effort. The notice shall advise each member that:

(a) The court will exclude such member from the class if such member so
requests by a specified date;

(b) The judgment, whether favorable or not, will include all members who
do not request exclusion; and

(c) Any member who does request exclusion may, if such member desires,
enter an appearance through such member's counsel.

(3) The judgment in an action maintained as a class action pursuant to
subdivision (5) of subsection 3 of this section or subdivision (6) of
subsection 3 of this section, whether or not favorable to the class,
shall include and describe those whom the court finds to be members of
the class. The judgment in an action maintained as a class action
pursuant to subdivision (7) of subsection 3 of this section, whether or
not favorable to the class, shall include and specify or describe those
to whom the notice provided in subdivision (2) of this subsection was
directed, and who have requested exclusion, and whom the court finds to
be members of the class.

(4) When appropriate an action may be brought or maintained as a class
action with respect to particular issues, or a class may be divided into
subclasses and each subclass treated as a class, and the provisions of
this section shall then be construed and applied accordingly.

5. In the conduct of actions to which this section applies, the court may
make appropriate orders:

(1) Determining the course of proceedings or prescribing measures to
prevent undue repetition or complication in the presentation of evidence
or argument;

(2) Requiring, for the protection of the members of the class or
otherwise for the fair conduct of the action, that notice be given in
such manner as the court may direct to some or all of the members of any
step in the action, or of the proposed extent of the judgment, or of the
opportunity of members to signify whether they consider the
representation fair and adequate, to intervene and present claims or
defenses, or otherwise to come into the action;

(3) Imposing conditions on the representative parties or on intervenors;

(4) Requiring that the pleadings be amended to eliminate therefrom
allegations as to representation of absent persons, and that the action
proceed accordingly;

(5) Dealing with similar procedural matters.

6. A class action shall not be dismissed or compromised without the
approval of the court, and notice of the proposed dismissal or compromise
shall be given to all members of the class in such manner as the court
directs.

7. Upon commencement of any action brought pursuant to subsection 1 of
this section, the plaintiff or plaintiffs shall inform the clerk of the
court in which such action is brought, on forms to be provided by such
clerk, that the action is brought pursuant to this section. The clerk of
the court shall forthwith inform the attorney general of the commencement
of such action, together with a copy of the complaint or other initial
pleading, and, upon entry of any judgment or decree in the action, the
clerk shall mail a copy of such judgment or decree to the attorney
general.

8. Any permanent injunction, judgment or order of the court made pursuant
to section 407.100 shall be prima facie evidence in an action brought
pursuant to* this section that the respondent used or employed a method,
act or practice declared unlawful by section 407.020. (L. 1973 H.B. 55,
A.L. 1985 H.B. 96, et al., A.L. 1999 S.B. 1, et al., A.L. 2000 H.B. 1509)

*Word "to" does not appear in original rolls.

(2001) Placing a bet at casino blackjack table is not a purchase within
meaning of section. Ziglin v. Players MH, L.P., 36 S.W.3d 786
(Mo.App.E.D.).

1. In the administration of this chapter, the attorney general
may accept an assurance of voluntary compliance with respect to any
method, act, use, practice or solicitation deemed to be violative of this
chapter from any person who has engaged in or is engaging in such a
method, act, use, practice or solicitation. The assurance of voluntary
compliance shall be in writing and shall be filed with and subject to the
approval of the circuit court of the county in which the alleged violator
resides or has his principal place of business, or the circuit court of
Cole County. Such assurance of voluntary compliance shall not be
considered an admission of violation for any purpose.

2. Any person who violates the terms of an assurance of voluntary
compliance entered into under subsection 1 of this section shall forfeit
and pay to the state a civil penalty of not more than two thousand
dollars per violation. For the purposes of this subsection, the circuit
court of a county approving an assurance of voluntary compliance shall
retain jurisdiction, and the attorney general acting in the name of the
state may petition for recovery of civil penalties under this subsection.
(L. 1967 p. 607 § 3, A.L. 1973 H.B. 55, A.L. 1985 H.B. 96, et al., A.L.
1986 S.B. 685)

Effective 5-1-86

*No continuity with § 407.030 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

(1980) Attorney General not authorized to seek civil penalties for
alleged violation of assurance of voluntary compliance; may seek
injunctive relief under 407.100. State ex rel. Danforth v. European
Health Spa (A.), 611 S.W.2d 250.

1. When it appears to the attorney general that a person has
engaged in or is engaging in any method, act, use, practice or
solicitation declared to be unlawful by this chapter or when he believes
it to be in the public interest that an investigation should be made to
ascertain whether a person in fact has engaged in or is engaging in any
such method, act, use, practice or solicitation, he may execute in
writing and cause to be served upon any person who is believed to have
information, documentary material, or physical evidence relevant to the
alleged or suspected violation, a civil investigative demand requiring
such person to appear and testify, or to produce relevant documentary
material or physical evidence or examination, at such reasonable time and
place as may be stated in the civil investigative demand, concerning the
advertisement, sale or offering for sale of any goods or services or the
conduct of any trade or commerce or the conduct of any solicitation that
is the subject matter of the investigation. Service of any civil
investigative demand, notice, or subpoena may be made by any person
authorized by law to serve process or by any duly authorized employee of
the attorney general.

2. Each civil investigative demand shall:

(1) State the statute and section thereof, the alleged violation of which
is under investigation, and the general subject matter of the
investigation;

(2) Describe the class or classes of information, documentary material,
or physical evidence to be produced thereunder with reasonable
specificity so as fairly to indicate the material demanded;

(3) Prescribe a return date by which the information, documentary
material, or physical evidence is to be produced; and

(4) Identify the members of the attorney general's staff to whom the
information, documentary material, or physical evidence requested is to
be made available.

3. No civil investigative demand shall:

(1) Contain any requirement which would be unreasonable or improper if
contained in a subpoena duces tecum issued by a court of this state; or

(2) Require the disclosure of any documentary material which would be
privileged or which, for any other reason, could not be required by a
subpoena duces tecum issued by a court of this state.

4. Service of any civil investigative demand, notice, or subpoena may be
made by:

(1) Delivering a duly executed copy thereof to the person to be served,
or to a partner or any officer or agent authorized by appointment or by
law to receive service of process on behalf of such person;

(2) Delivering a duly executed copy thereof to the principal place of
business or the residence in this state of the person to be served;

(3) Mailing by registered or certified mail a duly executed copy thereof,
addressed to the person to be served, at the principal place of business
or the residence in this state or, if such person has no place of
business or residence in this state, to his principal office or place of
business or his residence; or

(4) The mailing thereof by registered or certified mail, requesting a
return receipt signed by the addressee only, to the last known place of
business, residence or abode within or without this state of such person
for whom the same is intended. (L. 1967 p. 607 § 4, A.L. 1973 H.B. 55,
A.L. 1985 H.B. 96, et al., A.L. 1986 S.B. 685)

Effective 5-1-86

*No continuity with § 407.040 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

(1977) Held, this section not unconstitutional as a denial of due
process, further an assertion that information requested would require
disclosure of trade secrets is premature until attorney general attempts
to present such information before a court. Lewandowski v. Danforth
(Mo.), 547 S.W.2d 470.

(2001) Sale of motor fuel below cost in violation of the Motor Fuel
Marketing Act is not an unfair practice within meaning of Merchandising
Practices Act, and thus the Attorney General lacks authority to invoke
civil investigative demand power. Ports Petroleum Company, Inc. of Ohio
v. Nixon, 37 S.W.3d 237 (Mo.banc).

In any civil investigative demand served under section 407.040,
no individual shall be permitted to refuse to answer any question
material to the matter in controversy or to refuse to produce documentary
material or testify on the ground that the testimony or documentary
material required of him may tend to incriminate him or subject him to
any penalty; but, if such individual asserts his rights against
self-incrimination, he shall not be subject to criminal prosecution or to
any action for a criminal penalty or forfeiture on account of any
transaction, matter or thing concerning which he may testify or produce
documentary material. To avail himself of this section, such individual
need only make his assertion of his right against self-incrimination on
the record or known to the attorney general. (L. 1985 H.B. 96, et al.)

Effective 5-31-85

Documentary material, information, or physical evidence demanded
pursuant to the provisions of sections 407.010 to 407.130 shall be
produced during normal business hours at the principal office or place of
business of the person served, or at such other times and places as may
be agreed upon by the person served and the attorney general. (L. 1967 p.
607 § 5, A.L. 1973 H.B. 55)

*No continuity with § 407.050 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

1. No information, documentary material, or physical evidence
requested pursuant to a civil investigative demand issued under section
407.040 shall, unless otherwise ordered by a court for good cause shown,
be produced for or the contents thereof be disclosed to, any person other
than the authorized employee of the attorney general without the consent
of the person who produced such information, documentary material or
physical evidence; provided, that under such reasonable terms and
conditions as the attorney general shall prescribe, such information,
documentary material or physical evidence shall be made available for
inspection and copying by the person who produced such information,
documentary material or physical evidence, or any duly authorized
representative of such person. The attorney general, or any attorney
designated by him, may use the information, documentary material, or
physical evidence in the enforcement of this chapter, by presentation
before any court or by disclosure to law enforcement agencies of this
state, another state or the United States for enforcement of the laws of
such other state or the United States concerning methods, acts, uses,
practices and solicitations similar to those prohibited by this chapter.

2. Any material which contains trade secrets shall not be presented
before any court except with the approval of the court in which the
action is pending after adequate notice to the person furnishing such
material or, in the case of disclosure to agencies of other states, the
approval of the circuit court having jurisdiction under section 407.070.
(L. 1967 p. 607 § 6, A.L. 1973 H.B. 55, A.L. 1985 H.B. 96, et al., A.L.
1986 S.B. 685)

Effective 5-1-86

*No continuity with § 407.060 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

At any time before the return date specified in a civil
investigative demand issued under section 407.040, or within twenty days
after the civil investigative demand has been served, whichever period is
shorter, a petition to extend the return date for, or to modify or set
aside the civil investigative demand, stating good cause, may be filed in
the circuit court of the county where the parties reside or in the
circuit court of Cole County. (L. 1967 p. 607 § 7, A.L. 1973 H.B. 55,
A.L. 1986 S.B. 685)

Effective 5-1-86

*No continuity with § 407.070 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

A person upon whom a civil investigative demand is served
pursuant to the provisions of section 407.040 shall comply with the terms
thereof unless otherwise provided by an order of a court. Any person who,
with intent to avoid, evade, or prevent compliance, in whole or in part,
with any civil investigative demand issued under section 407.040, removes
from any place, conceals, withholds, or destroys, mutilates, alters, or
by any other means falsifies any information, documentary material, or
physical evidence in the possession, custody or control of any person,
which is the subject of any such civil investigative demand shall be
guilty of a class A misdemeanor. The attorney general shall have original
jurisdiction to enforce the provisions of this section. (L. 1967 p. 607 §
8, A.L. 1973 H.B. 55, A.L. 1985 H.B. 96, et al., A.L. 1986 S.B. 685)

Effective 5-1-86

*No continuity with § 407.080 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

Whenever any person fails to comply with any civil investigative
demand duly served upon him under section 407.040 or whenever
satisfactory copying or reproduction of any such material cannot be done
and such person refuses to surrender such material, the attorney general,
through such officers or attorneys as he may designate, may file, in the
trial court of general jurisdiction of a county or judicial district in
which such person resides, is found, or transacts business, and serve
upon such person a petition for an order of such court for the
enforcement of such civil investigative demand; except that, if such
person transacts business in more than one county or judicial district
such petition shall be filed in the county or judicial district in which
such person maintains his principal place of business, or in such other
county or judicial district as may be agreed upon by the parties to such
petition. Whenever any petition is filed in the trial court of general
jurisdiction of a county or judicial district under this section, such
court shall have jurisdiction to hear and determine the matter so
presented, and to enter such order or orders as may be required to carry
into effect the provisions of section 407.040. Any final order so entered
shall be subject to appeal to the state supreme court. Any disobedience
of any final order entered under this section by any court shall be
punished as a contempt thereof. (L. 1967 p. 607 § 9, A.L. 1985 H.B. 96,
et al.)

Effective 5-31-85

*No continuity with § 407.090 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

1. Whenever it appears to the attorney general that a person has
engaged in, is engaging in or is about to engage in any method, act, use,
practice or solicitation declared to be unlawful by any provision of this
chapter, he may issue and cause to be served upon such person, and any
other person or persons concerned with or who, in any way, have
participated, are participating or are about to participate in such
unlawful method, act, use, practice or solicitation, an order prohibiting
such person or persons from engaging or continuing to engage in such
unlawful method, act, use, practice or solicitation. Such order shall not
be issued until the attorney general has notified each person who will be
subject to such order of the statutory section which such person is
alleged to have violated, be violating or be about to violate, and the
nature of the method, act, use, practice or solicitation which is the
basis of such alleged violation. The person to whom such notice is given
shall have two business days from the receipt of such notice to file an
answer to such notice with the attorney general before the order
authorized by this subsection may be issued.

2. All orders issued by the attorney general under subsection 1 of this
section shall be signed by the attorney general or, in the event of his
absence, his duly authorized representative, and shall be served in the
manner provided in section 407.040, for the service of civil
investigative demands and shall expire of their own force ten days after
being served.

3. Any person who has been duly served with an order issued under
subsection 1 of this section and who willfully and knowingly violates any
provision of such order while such order remains in effect, either as
originally issued or as modified, is guilty of a class D felony. The
attorney general shall have original jurisdiction to commence all
criminal actions necessary to enforce this section. (L. 1986 S.B. 685)

Effective 5-1-86

1. Whenever it appears to the attorney general that a person has
engaged in, is engaging in, or is about to engage in any method, act,
use, practice or solicitation, or any combination thereof, declared to be
unlawful by this chapter, the attorney general may seek and obtain, in an
action in a circuit court, an injunction prohibiting such person from
continuing such methods, acts, uses, practices, or solicitations, or any
combination thereof, or engaging therein, or doing anything in
furtherance thereof.

2. In any action under subsection 1 of this section, and pursuant to the
provisions of the Missouri Rules of Civil Procedure, the attorney general
may seek and obtain temporary restraining orders, preliminary
injunctions, temporary receivers, and the sequestering of any funds or
accounts if the court finds that funds or property may be hidden or
removed from the state or that such orders or injunctions are otherwise
necessary.

3. If the court finds that the person has engaged in, is engaging in, or
is about to engage in any method, act, use, practice or solicitation, or
any combination thereof, declared to be unlawful by this chapter, it may
make such orders or judgments as may be necessary to prevent such person
from employing or continuing to employ, or to prevent the recurrence of,
any prohibited methods, acts, uses, practices or solicitations, or any
combination thereof, declared to be unlawful by this chapter.

4. The court, in its discretion, may enter an order of restitution,
payable to the state, as may be necessary to restore to any person who
has suffered any ascertainable loss, including, but not limited to, any
moneys or property, real or personal, which may have been acquired by
means of any method, act, use, practice or solicitation, or any
combination thereof, declared to be unlawful by this chapter. It shall be
the duty of the attorney general to distribute such funds to those
persons injured. Such funds may or may not be interest-bearing accounts,
but any interest which accrues to any such account shall be sent at least
annually by the attorney general to the director of revenue to be
deposited in the state treasury to the credit of the state general
revenue fund.

5. The court, in its discretion, may appoint a receiver to ensure the
conformance to any orders issued under subsection 3 of this section or to
ensure the payment of any damages ordered under subsection 4 of this
section.

6. The court may award to the state a civil penalty of not more than one
thousand dollars per violation; except that, if the person who would be
liable for such penalty shows, by a preponderance of the evidence, that a
violation resulted from a bona fide error notwithstanding the maintenance
of procedures reasonably adopted to avoid the error, no civil penalties
shall be imposed.

7. Any action under this section may be brought in the county in which
the defendant resides, in which the violation alleged to have been
committed occurred, or in which the defendant has his principal place of
business.

8. The attorney general is authorized to enter into consent judgments or
consent injunctions with or without admissions of violations of this
chapter. Violation of any such consent judgment or consent injunction
shall be treated as a violation under section 407.110. (L. 1967 p. 607 §
10, A.L. 1973 H.B. 55, A.L. 1985 H.B. 96, et al., A.L. 1986 S.B. 685,
A.L. 1994 H.B. 1461)

*No continuity with § 407.100 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

When a receiver is appointed by the court pursuant to section
407.100, he may sue for, collect, receive and take into his possession
all the goods and chattels, rights and credits, moneys and effects, lands
and tenements, books, records, documents, papers, choses in action,
bills, notes and property of every description, derived by means of any
method, act, use, practice or solicitation, or any combination thereof,
declared to be unlawful or prohibited by this chapter, including property
with which such property has been mingled if it cannot be identified in
kind because of such commingling, and to sell, convey, and assign the
same and hold and dispose of the proceeds thereof under the direction of
the court. Any person who has suffered damages as a result of the use or
employment of any unlawful methods, acts, uses, practices or
solicitations, or any combination thereof, and submits proof to the
satisfaction of the court that he has in fact been damaged, may
participate with general creditors in the distribution of the assets to
the extent he has sustained out-of-pocket losses. In the case of a
partnership or business entity, the receiver shall settle the estate and
distribute the assets under the direction of the court. The court shall
have jurisdiction of all questions arising in such proceedings and may
make such orders and judgments therein as may be required. (L. 1973 H.B.
55, A.L. 1985 H.B. 96, et al., A.L. 1986 S.B. 685)

Effective 5-1-86

Any person who violates the terms of an injunction, an order to
make restitution, or any other judgment or order issued under section
407.100 shall forfeit and pay to the state a civil penalty of not more
than five thousand dollars per violation. For the purposes of this
section, the circuit court of a county issuing an injunction or
restitutionary order shall retain jurisdiction, and the cause shall be
continued, and in such cases the attorney general acting in the name of
the state may petition for recovery of civil penalties. (L. 1967 p. 607 §
11, A.L. 1973 H.B. 55, A.L. 1985 H.B. 96, et al.)

Effective 5-31-85

*No continuity with § 407.110 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

(1980) Attorney General not authorized to seek civil penalties for
alleged violation of assurance of voluntary compliance; may seek
injunctive relief under 407.100. State ex rel. Danforth v. European
Health Spa (A.), 611 S.W.2d 250.

The provisions of sections 407.010 to 407.130 shall not bar any
civil claim against any person who has acquired any moneys or property,
real or personal, by means of any practice declared to be unlawful by
this chapter. (L. 1967 p. 607 § 12, A.L. 1986 S.B. 685)

Effective 5-1-86

*No continuity with § 407.120 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

The provisions of this chapter shall not bar the commissioner of
securities from administering the provisions of chapter 409, RSMo. (L.
2000 S.B. 896)

In any action brought under the provisions of section 407.100,
the attorney general is entitled to recover as costs, in addition to
normal court costs, the cost of the investigation and prosecution of any
action to enforce the provisions of this chapter. (L. 1967 p. 607 § 13,
A.L. 1985 H.B. 96, et al.)

Effective 5-31-85

*No continuity with § 407.130 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

1. There is created in the state treasury a special trust fund
for the office of the attorney general, to be known as the "Merchandising
Practices Revolving Fund", which shall consist of money transferred by
the general assembly of the state of Missouri from the general revenue
fund of this state, and any money paid into the state treasury and
required by law to be credited to the merchandising practices revolving
fund. The moneys in the merchandising practices revolving fund shall be
kept separate and apart from all other moneys in the state treasury and
shall be paid out by the state treasurer upon warrants issued by the
state auditor as certified by the commissioner of administration upon
verified vouchers of the attorney general.

2. Money in the merchandising practices revolving fund shall be available
for the payment of all costs and expenses incurred by the attorney
general in the investigation, prosecution, and enforcement of the
provisions of this chapter, and to provide funds for consumer education
and advocacy programs.

3. In any case in which the court awards damages as provided in section
407.100, there shall be added, in addition to restitution and costs, an
amount equal to ten percent of the total restitution awarded, or such
other amount as may be agreed upon by the parties or awarded by the
court, which amount shall be paid into the state treasury to the credit
of the merchandising practices revolving fund.

4. All moneys recovered as court costs or as costs provided by section
407.130 pursuant to litigation brought under the authority of this
chapter shall be paid into the state treasury to the credit of the
merchandising practices revolving fund.

5. Any restitution awarded under section 407.100 which is not claimed or
for which the injured person entitled thereto cannot be found, or which
is otherwise remaining after distribution by the attorney general, shall
be paid into the state treasury to the credit of the merchandising
practices revolving fund.

6. The provisions of section 33.080, RSMo, requiring the transfer of all
unexpended funds to the credit of the ordinary revenue fund of the state
shall not apply to funds in the merchandising practices revolving fund.
(L. 1985 H.B. 96, et al., A.L. 1986 S.B. 685)

Effective 5-1-86

*No continuity with § 407.140 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

The attorney general shall have the authority to promulgate, in
accordance with the provisions of chapter 536, RSMo, all rules necessary
to the administration and enforcement of the provisions of this chapter.
Such rules may include, but need not be limited to, provisions
designating the size and style of type which shall be used in written
disclosures required by any provision of this chapter for which the size
and style of type have not been otherwise designated. (L. 1986 S.B. 685,
A.L. 1993 S.B. 52)

Where unsolicited merchandise is delivered to a person for whom
it is intended, such person has a right to refuse to accept delivery of
this merchandise or he may deem it to be a gift and use it or dispose of
it in any manner without any obligation to the sender. (L. 1969 S.B. 20 §
1)

*No continuity with § 407.200 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

1. As used in this section, the following terms mean:

(1) "Aftermarket crash part", a replacement for any of the nonmechanical
sheet metal or plastic parts which generally constitute the exterior of a
motor vehicle, including inner and outer panels;

(2) "Insurer", an insurance company and any person authorized to
represent the insurer with respect to a claim;

(3) "Nonoriginal equipment manufacturer (Non-OEM) aftermarket crash
part", aftermarket crash parts not made for or by the manufacturer of the
motor vehicle.

2. Any aftermarket crash part supplied by a nonoriginal equipment
manufacturer for use in this state after January 1, 1990, shall have
affixed thereto or inscribed thereon the logo or name of its
manufacturer. Such manufacturer's logo or name shall be visible after
installation whenever practicable.

3. No insurer shall specify directly or indirectly the use of non-OEM
aftermarket crash parts in the repair of an insured's motor vehicle
without disclosing the intended use of such parts. In all instances where
non-OEM aftermarket crash parts are intended for use by an insurer:

(1) The written estimate shall clearly identify each such part; and

(2) A disclosure document containing the following information in
ten-point or larger type shall appear on or be attached to the insured's
copy of the estimate: "This estimate has been prepared based on the use
of one or more crash parts supplied by a source other than the
manufacturer of your motor vehicle. Warranties applicable to these
replacement parts are provided by the parts manufacturer or distributor
rather than by the manufacturer of your vehicle."

4. Any violation of this section shall be deemed an unlawful practice as
the term is used in sections 407.010 to 407.130, and shall be subject to
the enforcement provisions of sections 407.010 to 407.130.

5. This section shall become effective January 1, 1990. (L. 1989 H.B. 726
§ 1)

Effective 1-1-90

1. Every collector of or dealer in junk or any secondhand
property shall keep a register which shall contain the name and address
of the person from whom any copper wire or cable is purchased, whatever
may be the condition or length of such copper wire or cable; the
residence or place of business and driver's license number of such
person; a full description of each purchase including the quantity by
weight thereof; and shall permit any peace officer to inspect the
register at any reasonable time.

2. Anyone convicted of violating this section shall be fined not less
than twenty-five dollars nor more than five hundred dollars, or
imprisoned for not less than thirty days nor more than six months, or
both. (L. 1971 H.B. 124 § 1)

*No continuity with § 407.300 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

1. Whenever any collector of or dealer in junk or any secondhand
property purchases any bronze cemetery vase or receptacle, any bronze
cemetery memorial or any bronze statuary, whatever may be the condition
of the vase or receptacle, cemetery memorial or bronze statuary, he*
shall enter in a register kept for that purpose the name, address, and
place of business of the person from whom the vase or receptacle was
purchased, the driver's license number of the person, and a full
description of each purchase including quantity by weight thereof.

2. Any peace officer of this state may inspect the register at any
reasonable time.

3. Any person violating any of the provisions of this section is guilty
of a misdemeanor and, upon conviction, shall be punished as provided by
law. (L. 1973 H.B. 29 § 1)

*Word "they" appears in original rolls.

1. The provisions of this section shall apply to:

(1) Farm implement dealerships, as provided in sections 407.838 to
407.880;

(2) Industrial maintenance and construction power equipment dealerships,
as provided in sections 407.750 to 407.756; and

(3) Outdoor power equipment dealerships, as provided in sections 407.890
to 407.898.

2. A manufacturer, wholesaler or distributor shall have ninety days in
which to consider and make a determination on a request by a
dealer/retailer to sell or transfer any portion of his or her business
ownership to another party or to enter into an agreement to operate the
dealership with another party. The dealer/retailer's request shall
include the reasonable financial information, personal background,
character references and work histories as required by the manufacturer
to render such a determination. In the event the manufacturer or
distributor determines that the request is not acceptable, the
manufacturer or distributor shall provide the dealer/retailer with a
written notice of its determination with the stated reasons for
nonacceptance. (L. 1998 S.B. 626)

As used in sections 407.325 to 407.340, the following terms
shall mean:

(1) "Business day", any day except a Sunday or a legal holiday;

(2) "Buyer", a natural person who enters into a health spa contract;

(3) "Contract price", the sum of all monthly fees except interest
required by the health spa contract and any nonrecurring fee charged at
or near the beginning of a health spa membership;

(4) "Health spa", any person, firm, corporation, organization, club or
association engaged in the sale of memberships in a program of physical
exercise, which includes the use of one or more of a sauna, whirlpool,
weight-lifting room, massage, steam room, or exercising machine or
device, or engaged in the sale of the right or privilege to use exercise
equipment or facilities, such as a sauna, whirlpool, weight-lifting room,
massage, steam room or exercising machine or device. The term "health
spa" shall not include the following:

(a) Bona fide nonprofit organizations, including, but not limited to, the
Young Men's Christian Association, Young Women's Christian Association,
or similar organizations whose functions as health spas are only
incidental to their overall functions and purposes;

(b) Any private club owned and operated by its members;

(c) Any organization primarily operated for the purpose of teaching a
particular form of self-defense such as judo or karate;

(d) Any facility owned or operated by the United States;

(e) Any facility owned or operated by the state of Missouri or any of its
political subdivisions;

(f) Any nonprofit public or private school, college or university; and

(g) Any facility owned or operated by any person, firm, corporation,
organization, club or association, engaged in the sale of the right or
privilege to use such facility when the proceeds of the sale of such
rights or privileges accounts for twenty percent or less of the gross
annual receipts of the person, firm, corporation, organization, club or
association;

(5) "Health spa contract", a written agreement whereby the buyer of
health spa services purchases, or becomes obligated to purchase, health
spa services to be rendered over a period longer than three months; and
the seller of health spa services receives payment to cover a period more
than three months;

(6) "Health spa services", services, privileges, or rights offered for
sale or provided by a health spa;

(7) "Monthly fee", the total consideration, including but not limited to,
equipment or locker rental, credit check, finance, medical and dietary
evaluation, class and training fees, and all other similar fees or
charges and interest, but excluding any nonrecurring fee charged at or
near the beginning of a health spa membership, to be paid by a buyer,
divided by the total number of months of health spa service use allowed
by the buyer's contract, including months or time periods called "free"
or "bonus" months or time periods and such months or time periods which
are described in any other terms suggesting that they are provided free
of charge, which months or time periods are given or contemplated when
the contract is initially executed;

(8) "Prepayment", payment of any consideration for services or the use of
facilities made prior to the day on which the services or facilities of
the health spa are fully open and available for regular use by the
members. (L. 1988 S.B. 486 § 1)

1. It shall be unlawful for any health spa to offer, advertise,
or execute or cause to be executed by the buyer any health spa contract
in this state unless the health spa at the time of the offer,
advertisement, sale or execution of a health spa contract has been
properly registered with the office of the attorney general. The
registration shall:

(1) Disclose the address, ownership, date of first sales and date of
first opening of the health spa;

(2) Be renewed annually; and

(3) Be accompanied by a fee of one hundred dollars per registration and
each annual renewal thereof. Each separate location where health spa
services are offered shall be considered a separate health spa and shall
file a separate registration, even though the separate locations are
owned or operated by the same owner.

2. All fees collected pursuant to this section shall be deposited in the
state treasury to the credit of a special trust fund to be known as the
"Health Spa Regulatory Fund". Moneys in the health spa regulatory fund
shall be used solely for the administration of sections 407.325 to
407.340.

3. The attorney general shall have all powers, rights and duties as are
provided in sections 407.010 to 407.145, to seek penalties, remedies, and
procedures that are provided in such sections against any health spa that
is engaged in practices that are unlawful according to the provisions of
this chapter.

4. The provisions of this section* are not exclusive and do not relieve
health spas or the contract subject thereto from compliance with all
other applicable provisions of law nor shall such provisions bar any
civil claim against any health spa which has acquired any moneys or
property, real or personal, by means of any practice declared unlawful by
this chapter. (L. 1988 S.B. 486 § 2)

*Word "subsection" appears in original rolls but apparently refers to
entire section.

1. Each health spa selling contracts or health spa services on a
prepayment basis shall notify the office of the attorney general of the
proposed location of the spa for which prepayments will be solicited and
shall deposit all funds received from such prepayment contracts in an
account established in a financial institution authorized to transact
business in this state until the health spa has commenced operations. The
account shall be established and maintained only in a financial
institution which agrees in writing with the office of the attorney
general to hold all funds deposited and not to release such funds until
receipt of written authorization from the office of the attorney general.
The prepayment funds deposited will be eligible for withdrawal by the
health spa after the health spa has opened and is providing services
pursuant to its health spa contracts and the office of the attorney
general gives written authorization for withdrawal.

2. The provisions of this section shall not apply to any health spa duly
registered pursuant to the provisions of section 407.327 which has posted
a bond or letter of credit in the amount of twenty-five thousand dollars.
(L. 1988 S.B. 486 § 3)

1. Every health spa contract for the sale of future health spa
services which are paid for in advance or which the buyer agrees to pay
for in future installments shall be in writing and shall contain the
following contractual provisions:

(1) A provision for the penalty-free cancellation of the contract within
three business days of its making and refund upon such notice of all
moneys paid under the contract;

(2) A provision requiring that to cancel a contract the buyer shall
notify the health spa of cancellation in writing, by certified mail,
return receipt requested, or personal delivery, to the address specified
in the health spa contract; that all moneys to be refunded upon
cancellation of the health spa contract shall be paid within thirty days
of receipt of the notice of cancellation; and that if the customer has
executed any credit or lien agreement with the health spa to pay for all
or part of health spa services, any such negotiable instrument executed
by the buyer shall also be returned within thirty days after such
cancellation;

(3) A provision for the cancellation of the contract if the buyer dies or
becomes permanently disabled and unable to use a substantial portion of
the services for sixty or more consecutive days. Upon receipt of such
notice, the health spa shall refund to the buyer funds paid or accepted
in payment of the contract in an amount computed by dividing the contract
price by the number of weeks in the contract term and multiplying the
result by the number of weeks remaining in the contract term. In the case
of disability, the health spa may require the buyer to submit to a
physical examination by a doctor agreeable to the buyer and the health
spa;

(4) A provision for extension of the term of the membership for time loss
due to temporary disability. In the case of disability, the health spa
may require the buyer to submit to a physical examination by a doctor
agreeable to the buyer and the health spa.

2. The provisions required by subsection 1 of this section shall be set
forth under a conspicuous caption:

"BUYER'S RIGHT TO CANCEL"; and read substantially as follows:

If you wish to cancel this contract, you may cancel by delivering written
notice to this health spa by certified mail, return receipt requested.
The notice must say that you do not wish to be bound by the contract and
must be delivered or mailed before midnight of the third business day
after you sign this contract. The notice must be delivered or mailed to:
....................................................... (Health spa shall
insert its name and mailing address.) (L. 1988 S.B. 486 § 4)

*No continuity with § 407.330 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

1. The provisions of section 408.405, RSMo, shall apply to any
health spa contract with the following exceptions:

(1) It shall not be a defense relieving the buyer from amounts then owing
on any contract between a buyer and a health spa for health services
regardless of whether such contract has been assigned that the health spa
has relocated provided that the health spa has relocated within ten miles
of the location designated in the health spa contract;

(2) It shall not be a defense relieving the buyer from amounts then owing
on any contract between a buyer and a health spa for health spa services
regardless of whether such contract has been assigned that the health spa
has been sold provided there has not been a lapse in services for more
than thirty days. However, it shall be the legal obligation of every
buyer of a health spa that has been providing health spa services
pursuant to contracts to honor the terms of such contracts. The new owner
of a health spa shall not consider the lapsed time period when
determining how much time remains for service on any particular contract.

2. It shall be a defense relieving the buyer from amounts then owing on
any contract between a buyer and a health spa for health spa services,
regardless of whether such contract has been assigned, that the health
spa has gone out of business without providing alternative health spa
services at another location within ten miles of the location designated
in the health spa contract.

3. Any health spa which relocates to a location that is ten miles from
the location designated in a health spa contract or which goes out of
business prior to the expiration of a buyer's contract without providing
alternative health spa services at another location within ten miles of
the location designated in the health spa contract shall be required to
refund to the buyer funds paid or accepted in payment of the contract in
an amount computed by dividing the contract price by the number of weeks
in the contract term and multiplying the result by the number of weeks
remaining in the contract term. This provision shall not apply to any
health spa that has been sold provided there has not been a lapse in
service for more than thirty days. However the new owner of a health spa
shall honor the terms of all contracts entered into between buyers and
the health spa while controlled by the prior owner. The new owner of the
health spa shall not consider the lapsed period when determining how much
time remains for service on any particular contract.

4. In order to ensure adequate enforcement of the provisions of this
section the office of the attorney general is empowered to represent
buyers who may be injured as a result of noncompliance with the
provisions of this section. The attorney general is hereby given in
addition to the powers granted to the attorney general to enforce the
provisions of this chapter the additional power to seek and be granted
receivership of all goods and chattels, rights and credits, moneys and
effects, lands and tenements, books, records, documents, papers, choses
in action, bills, notes, and property of every description of any person,
firm, corporation, organization, club or association that has operated a
health spa that is determined to have injured a buyer as a result of
going out of business or being sold and failing to refund moneys due and
owing buyers under the provisions of subsection 3 of this section, and to
sell, convey, and assign the same and hold and dispose of the proceeds
thereof under the direction of the court for the benefit of the injured
buyers. (L. 1988 S.B. 486 § 5)

1. Every health spa contract shall be signed by the buyer, shall
designate the date on which the buyer actually signed the contract and a
copy of the contract shall be delivered to the buyer at the time the
contract is executed.

2. No health spa contract shall have a duration for a period longer than
thirty-six months, but the contract may give the buyer a right of renewal.

3. Any health spa contract which does not comply with the applicable
provisions of section 407.330 shall be voidable at the option of the
buyer.

4. Any waiver by the buyer of any of the provisions of section 407.330
shall be deemed contrary to public policy and shall be void and
unenforceable. (L. 1988 S.B. 486 § 6)

All health spa contracts and any promissory note executed by the
buyer in connection therewith shall contain the following provision on
the face thereof in at least 10-point, boldface type:

NOTICE

ANY HOLDER OF THIS CONTRACT OR NOTE IS SUBJECT TO ALL CLAIMS AND DEFENSES
WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES
OBTAINED WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL
NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER. (L. 1988 S.B. 486 § 7)

Whether or not the health spa has complied with the notice
requirements of section 407.335, any right of action or defense arising
out of a health spa contract which the buyer has against the health spa,
and which would be cut off by assignment, shall not be cut off by
assignment of the contract to any third party holder, whether or not the
holder acquires the contract in good faith and for value. (L. 1988 S.B.
486 § 8)

1. Before entering into any nonprepayment health spa contract,
every health spa except any health spa which has been engaged in such
business in any county of the first or second class or in any city not
located within a county for at least three years prior to August 13,
1988, and except in any county of the third or fourth class for at least
one year prior to August 13, 1988, shall file and maintain with the
office of the attorney general, in form and substance satisfactory to
him, a bond with corporate surety, from a company authorized to transact
business in this state or a letter of credit from a bank insured by the
Federal Deposit Insurance Corporation in the amounts indicated below:

Number of unexpired Amount of bond

contracts exceeding or letter of

three months credit

500 or less $10,000

501 to 1000 $20,000

more than 1000 $25,000 The number of unexpired contracts exceeding three
months shall be separately calculated for each location where health spa
services are offered. Any health spa subject to the requirements of this
section shall be exempt from its provisions after such health spa has
been engaged in business for three years.

2. Each separate location where health spas services are offered shall be
considered a separate health spa and shall file a separate bond or letter
of credit with respect thereto, even though the separate locations are
owned or operated by the same owner; but, no owner shall be required to
file with the office of the attorney general bonds or letters of credit
in excess of seventy-five thousand dollars. If the seventy-five thousand
dollar limit is applicable, then the bonds or letters of credit filed by
such owner shall apply to all health spas owned or operated by the same
owner.

3. A health spa which has not filed a bond or letter of credit may
nevertheless sell health spa contracts of up to thirty-six months'
duration so long as the amount of payment actually charged, due or
received each month by the health spa or any holder of its health spa
contracts does not exceed the monthly fee calculated pursuant to the
definition thereof in section 407.325.

4. The bond required by subsection 1 of this section shall be renewed
annually. No bond required of any health spa under the provisions of
sections 407.325 to 407.340 shall be canceled by either party without
thirty days written notice prior to the intended cancellation date. All
claims against the holder of the bond must be made within ninety days
after the expiration or cancellation of the bond. (L. 1988 S.B. 486 § 9)

1. The bond or letter of credit required by section 407.339
shall be in favor of the state of Missouri for the benefit of:

(1) Any buyer injured by having paid money for health spa services in a
facility which fails to open within sixty days after the date upon which
the buyer and the health spa entered into a contract or goes out of
business prior to the expiration of the buyer's health spa contract; or

(2) Any buyer injured as a result of a violation of sections 407.325 to
407.340.

2. The aggregate liability of the bond or letter of credit to all persons
for all breaches of the conditions of the bond or letter of credit shall
in no event exceed the amount of the bond or letter of credit. The bond
or letter of credit shall not be canceled or terminated except with the
consent of the office of the attorney general. (L. 1988 S.B. 486 § 10)

*No continuity with § 407.340 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

As used in sections 407.350 to 407.357, unless the context
clearly requires otherwise, the following terms mean:

(1) "Bid", a written or oral proposal by an exhibitor to a distributor,
which proposal is in response to an invitation to bid or negotiate and
states the terms under which the exhibitor will agree to exhibit a motion
picture in this state;

(2) "Blind bidding", bidding, negotiating, offering terms, accepting a
bid, or agreeing to terms for the purpose of entering into a license
agreement prior to a trade screening of the motion picture that is the
subject of the agreement;

(3) "Distributor", any person engaged in the business of renting,
selling, or licensing motion pictures to exhibitors;

(4) "Exhibit" or "exhibition", showing a motion picture to the public for
a charge;

(5) "Exhibitor", any person engaged in the business of operating a
theater in this state;

(6) "Invitation to bid", a written or oral solicitation or invitation by
a distributor to one or more exhibitors to bid or negotiate for the right
to exhibit a motion picture in this state;

(7) "License agreement", any contract between a distributor and an
exhibitor for the exhibition of a motion picture by the exhibitor in this
state;

(8) "Run", the continuous exhibition of a motion picture in a defined
geographic area for a specified period of time. A "first run" means the
initial exhibition of a motion picture in a designated geographic area
for a specified period of time, a "subsequent run" means any continuous
exhibition of a motion picture in a designated geographic area for a
specified period of time after the first run;

(9) "Theater", any establishment in which motion pictures are exhibited
regularly to the public for a charge;

(10) "Trade screening", the showing of a motion picture by a distributor
in the two largest metropolitan areas, which showing is open to any
exhibitor interested in exhibiting the motion picture. (L. 1982 S.B. 525
§ 1)

*No continuity with § 407.350 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

1. Blind bidding of more than two motion pictures in any
twelve-month period in the state of Missouri by the aggregate of all
distributors, or their subsidiary distributors or related companies, not
previously exhibited within this state is hereby prohibited within this
state. No bids shall be returnable, no negotiations for the exhibition or
licensing of a motion picture shall take place, and no license agreement
or any of its terms shall be agreed to for the exhibition of any motion
picture within this state before the motion picture has been trade
screened within this state.

2. Every distributor shall furnish to all exhibitors in this state
reasonable and uniform notice of all trade screenings that are held
within this state of motion pictures that he is distributing. (L. 1982
S.B. 525 § 2)

1. If bids are solicited from exhibitors for the purpose of
entering into a license agreement, the invitation to bid shall specify:

(1) The number and length of runs to which the invitation to bid applies;

(2) Whether the invitation to bid applies to a first or subsequent run;

(3) The geographic area for each run;

(4) The names of all exhibitors who are being given an invitation to bid;

(5) The date, hour, and location at which the bid is required to be made;

(6) The name and address of the location where the bids will be opened,
which location shall be within this state.

2. If the motion picture that is the subject of a bid has not already
been trade screened within this state, the distributor soliciting the bid
shall include in the invitation to bid the date, time, and location of
the trade screening of the motion picture that is the subject of the
invitation to bid. An exhibitor is prohibited from submitting a bid
unless the exhibitor or his agent has attended a trade screening of the
motion picture for which bids are being solicited.

3. If a distributor issues invitations to bid for a motion picture and he
receives no bids for the motion picture, he may then negotiate for the
picture with all exhibitors on the bid list. No further bidding is
required. If a distributor receives bids which are not acceptable to the
distributor the first time the motion picture is bid, he must rebid the
motion picture a second time and if after bidding the motion picture a
second time the bids are still unacceptable, he shall notify all
exhibitors of such rejections and then may negotiate the motion picture.
No further bidding is required and all exhibitors must be given an
opportunity to negotiate. (L. 1982 S.B. 525 § 3)

Notwithstanding any other provisions of sections 407.350 to
407.357, a distributor of motion pictures may blind bid motion pictures
based upon a play or review which has been performed for a period of not
less than six months for the public, or based upon published manuscripts
which are in the top ten best sellers in sales or manuscripts having sold
at least five hundred thousand copies to the general public from the time
of copyright, or based upon television or radio scripts which have been
previously televised or broadcast on a national network to the public.
Provided, however, if a distributor solicits bids from exhibitors for the
purposes of entering into a license agreement and engages in blind
bidding for such solicitation, the invitation to bid shall be in writing
and shall specify, in addition to any other information the distributor
desires to convey to an exhibitor, the audience to which the motion
picture is principally directed and the rating anticipated for the motion
picture which shall be specified by using the rating system of the
Classification and Rating Administration. Blind bidding as provided for
in section 407.353 and this section may only take place during the
one-hundred-eighty-day period immediately preceding the designated
release date of the motion picture which is the subject of the license
agreement and no exhibitor shall forward any money to a distributor
earlier than fourteen days immediately preceding the designated release
date of the motion picture which is the subject of the license agreement.
A license agreement is voidable by the exhibitor if the released motion
picture does not substantially conform to the information provided by the
distributor about the motion picture in the invitation to bid, or if the
rating given by the Classification and Rating Administration is more
restrictive than the rating indicated by the distributor in the
invitation to bid, and all money received by the distributor from the
exhibitor before the release of the motion picture under the terms of the
license agreement, shall be returned to the exhibitor within seven days.
All license agreements entered into as a result of blind bidding shall
contain a provision stating the amount of damages payable to the
exhibitor by the distributor in the event the license agreement is voided
under the terms of this section. (L. 1982 S.B. 525 § 4)

As used in sections 407.400 to 407.420:

(1) "Franchise" means a written or oral arrangement for a definite or
indefinite period, in which a person grants to another person a license
to use a trade name, trademark, service mark, or related characteristic,
and in which there is a community of interest in the marketing of goods
or services at wholesale, retail, by lease, agreement, or otherwise,
including but not limited to a commercial relationship of definite
duration or continuing indefinite duration, between a "wholesaler", such
wholesaler being a person as defined in this section, licensed pursuant
to the provisions of chapter 311, RSMo, to sell at wholesale,
intoxicating liquor, as defined in section 311.020, RSMo, to retailers,
duly licensed in this state, and a "supplier", being a person engaged in
the business as a manufacturer, distiller, rectifier or out-of-state
solicitor whose brands of intoxicating liquor are distributed through
duly licensed wholesalers in this state, and wherein a wholesaler is
granted the right to offer, sell, and distribute within this state or any
designated area thereof such of the supplier's brands of intoxicating
liquor, or all of them, as may be specified; except that, the term
"franchise" shall not apply to persons engaged in sales from warehouses
or like places of storage, other than wholesalers as above described,
leased departments of retail stores, places of original manufacture, nor
shall the term "franchise" apply to a commercial relationship that does
not contemplate the establishment or maintenance of a place of business
within the state of Missouri. As used herein "place of business" means a
fixed, geographical location at which goods, products or services are
displayed or demonstrated for sale;

(2) The term "goods" includes any personal property, real property, or
any combination thereof;

(3) The term "other property" includes a franchise, license
distributorship, or other similar right, privilege, or interest;

(4) The term "person" includes an individual, corporation, trust, estate,
partnership, unincorporated association, or any other legal or commercial
entity;

(5) The term "pyramid sales scheme" includes any plan or operation for
the sale or distribution of goods, services or other property wherein a
person for a consideration acquires the opportunity to receive a
pecuniary benefit, which is not primarily contingent on the volume or
quantity of goods, services, or other property sold or distributed or to
be sold or distributed to persons for purposes of resale to consumers,
and is based upon the inducement of additional persons, by himself or
herself or others, regardless of number, to participate in the same plan
or operation; and

(6) The term "sale or distribution" includes the acts of leasing, renting
or consigning. (L. 1974 H.B. 1132 § 1, A.L. 1975 H.B. 810 § 1, A.L. 1998
H.B. 957 & 1063)

*No continuity with § 407.400 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-99.

(1978) Amendment changing definition of franchise to include wholesalers
and suppliers or distillers of spirituous liquors during passage of bill
did not violate constitutional requirements that bill contain no more
than one subject and that it be clearly expressed in the title, and that
bill was so amended in its passage as to change its original purpose.
Brown-Forman Distillers Corp. v. McHenry (Mo.), 556 S.W.2d 194.

(1980) Sale of club memberships not exempt from statute prohibiting
pyramid sales schemes on basis that operation was contingent on volume or
quantity of goods, services, or other property sold or distributed or to
be sold or distributed to persons for purpose of resale where what was
sold was place on club chart, with opportunity to move to higher
position. State ex rel. Ashcroft v. Wahl (A.), 600 S.W.2d 175.

(1980) General intent of the legislature in the enactment of statutes
prohibiting pyramid sales schemes, is to buttress a strong public policy
against pyramid sales schemes involving cover or disguise of some
seemingly legitimate commercial transaction. State ex rel. Ashcroft v.
Wahl (A.), 600 S.W.2d 175.

(1986) A "community of interest" is found, for purposes of this section,
where either (1) the franchisor benefits from the franchisee's marketing
of the franchisor's product or service, or (2) the franchisee benefits
from the franchisor's marketing of the product or service. C&J Delivery,
Inc. v. Emery Air Freight Corp., 647 F.Supp. 867 (E.D. Mo.).

No person shall, directly or through the use of agents or
intermediaries, in connection with the sale or distribution of goods,
service, or other property, sell, offer or attempt to sell a
participation or the right to participate in a pyramid sales scheme. No
person who has granted a franchise to another person shall cancel or
otherwise terminate any such franchise agreement without notifying such
person of the cancellation, termination or failure to renew in writing at
least ninety days in advance of the cancellation, termination or failure
to renew, except that when criminal misconduct, fraud, abandonment,
bankruptcy or insolvency of the franchisee, or the giving of a no account
or insufficient funds check is the basis or grounds for cancellation or
termination, the ninety days' notice shall not be required. (L. 1974 H.B.
1132 § 2, A.L. 1975 H.B. 810 § 2)

(1980) Solicitation of individuals to join pyramid structured club, the
purpose of which was to generate money payable to members higher up on
the pyramidal scale, violated statute prohibiting pyramid sales schemes.
State ex rel. Ashcroft v. Wahl (A.), 600 S.W.2d 175.

(1980) General intent of the legislature in the enactment of statutes
prohibiting pyramid sales schemes is to buttress a strong public policy
against pyramid sales schemes involving cover or disguise of some
seemingly legitimate commercial transaction. State ex rel. Ashcroft v.
Wahl (A.), 600 S.W.2d 175.

(1986) Ninety-day notice requirement for franchise cancellation held not
repealed by implication as applied to motor vehicle franchises by
enactment of Motor Vehicle Franchise Practice Act, sections 407.810 to
407.835, RSMo. Maude v. General Motors Corp., 626 F.Supp. 1081 (W.D. Mo.)

1. Any contract made in violation of section 407.405 is void and
any person who, directly or through the use of agents or intermediaries,
induces or causes another person to participate in a pyramid sales scheme
will be liable to that person in civil damages in an amount equal to the
sum of twice the amount of consideration paid, and in the case of any
successful action to enforce such liability, the costs of the action
together with a reasonable attorney's fee, as determined by the court. An
action under this section may be brought in the circuit court having
venue within five years from the date on which the consideration was paid.

2. A franchisee suffering damage as a result of the failure to give
notice as required of the cancellation or termination of a franchise, may
institute legal proceedings under the provisions of sections 407.400 to
407.420 against the franchisor who canceled or terminated his franchise
in the circuit court for the circuit in which the franchisor or his agent
resides or can be located. When the franchisee prevails in any such
action in the circuit court, he may be awarded a recovery of damages
sustained to include loss of goodwill, costs of the suit, and any
equitable relief that the court deems proper. (L. 1974 H.B. 1132 § 3,
A.L. 1975 H.B. 810 § 3)

*No continuity with § 407.410 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

(1980) General intent of the legislature in the enactment of statutes
prohibiting pyramid sales schemes is to buttress a strong public policy
against pyramid sales schemes involving cover or disguise of some
seemingly legitimate commercial transaction. State ex rel. Ashcroft v.
Wahl (A.), 600 S.W.2d 175.

(1987) Franchisor who fails to provide time notice of termination to a
franchisee under section 407.405 the franchisee is not entitled to
recover punitive damages in an action brought pursuant to this section.
Ridings v. Thoele, Inc., 739 S.W.2d 547 (Mo. banc.).

1. If more than one franchise for the same brand or brands of
intoxicating liquor is granted to different wholesalers in this state, it
is a violation of sections 407.400 to 407.420 for any supplier to
discriminate between the wholesalers with respect to any of the terms,
provisions, and conditions of these franchises.

2. Notwithstanding the terms, provisions and conditions of any franchise,
no supplier shall unilaterally terminate or refuse to continue or change
substantially the condition of any franchise with the wholesaler unless
the supplier has first established good cause for such termination,
noncontinuance or change.

3. Any wholesaler may bring an action in a court of competent
jurisdiction against a supplier for violation of any of the provisions of
this section and may recover damages sustained by such wholesaler
together with the costs of the action and reasonable attorney's fees.

4. In any action brought by a wholesaler against a supplier for
termination, noncontinuance or substantial change in violation of the
provisions of this section, it is a complete defense for the supplier to
prove that the termination, noncontinuance or change was done in good
faith and for good cause.

5. As used in this section, "good faith" is the duty of each party to any
franchise and all officers, employees or agents thereof to act in a fair
and equitable manner towards each other, and "good cause" means the
following:

(1) Failure by the wholesaler to comply substantially with the provisions
of an agreement or understanding with the supplier, which provisions are
both essential and reasonable;

(2) Use of bad faith or failure to observe reasonable commercial
standards of fair dealing in the trade; or

(3) Revocation or suspension for more than thirty-one days of a beer
wholesaler's federal basic permit or of any state or local license
required of a beer wholesaler for the normal operation of its business.

6. As to brewers and beer wholesalers, the provisions of this section
shall only apply to agreements entered into on or after August 28, 1998,
and to agreements which are renewed or substantially amended on or after
August 28, 1998. As used in the preceding sentence, "substantially
amended" means a written amendment that materially alters the fundamental
business relationship between brewer and wholesaler. "Substantially
amended" does not include changes or amendments that are contemplated in
writing by the parties to an agreement. (L. 1975 H.B. 810 § 4, A.L. 1998
H.B. 957 & 1063)

(1978) Amendment adding this section to bill during passage did not
violate constitutional requirements that bill contain no more than one
subject and that it be clearly expressed in the title, and that bill was
so amended in its passage as to change its original purpose. Brown-Forman
Distillers Corp. v. McHenry (Mo.), 556 S.W.2d 194.

In addition to other penalties and remedies provided in sections
407.400 to 407.420, whenever it appears that any person is engaged or is
about to engage in any act or practice which constitutes a pyramid sales
scheme, the attorney general may bring an action in the circuit court
having venue to enjoin such act or practice, and upon a proper showing, a
temporary restraining order or a preliminary or permanent injunction
shall be granted without bond. (L. 1974 H.B. 1132 § 4, A.L. 1975 H.B. 810
§ 5)

(1980) General intent of the legislature in the enactment of statutes
prohibiting pyramid sales schemes is to buttress a strong public policy
against pyramid sales schemes involving cover or disguise of some
seemingly legitimate commercial transaction. State ex rel. Ashcroft v.
Wahl (A.), 600 S.W.2d 175.

Any person willfully violating any of the provisions of section
407.405 is guilty of a class D felony. It shall be the duty of each
prosecuting attorney and circuit attorney in their respective
jurisdictions to commence any criminal actions under this section, and
the attorney general shall have concurrent original jurisdiction to
commence such criminal actions throughout the state where such violations
have occurred. (L. 1974 H.B. 1132 § 5, A.L. 1975 H.B. 810 § 6, A.L. 1986
S.B. 685)

Effective 5-1-86

*No continuity with § 407.420 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

(1980) General intent of the legislature in the enactment of statutes
prohibiting pyramid sales schemes is to buttress a strong public policy
against pyramid sales schemes involving cover or disguise of some
seemingly legitimate commercial transaction. State ex rel. Ashcroft v.
Wahl (A.), 600 S.W.2d 175.

Sections 407.430 to 407.436 shall be known and may be cited as
the "Credit User Protection Law". (L. 1991 S.B. 112)

*No continuity with § 407.430 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

As used in sections 407.430 to 407.436, the following terms
shall mean:

(1) "Acquirer", a business organization, financial institution, or an
agent of a business organization or financial institution that authorizes
a merchant to accept payment by credit card for merchandise;

(2) "Cardholder", the person's name on the face of a credit card to whom
or for whose benefit the credit card is issued by an issuer, or any agent
authorized signatory or employee of such person;

(3) "Counterfeit credit card", any credit card which is fictitious,
altered, or forged, any false representation, depiction, facsimile or
component of a credit card, or any credit card which is stolen, obtained
as part of a scheme to defraud, or otherwise unlawfully obtained, and
which may or may not be embossed with account information or a company
logo;

(4) "Credit card" or "debit card", any instrument or device, whether
known as a credit card, credit plate, bank service card, banking card,
check guarantee card, or debit card or by any other name, issued with or
without fee by an issuer for the use of the cardholder in obtaining money
or merchandise on credit, or for use in an automated banking device to
obtain any of the services offered through the device. The presentation
of a credit card account number is deemed to be the presentation of a
credit card;

(5) "Expired credit card", a credit card for which the expiration date
shown on it has passed;

(6) "Issuer", the business organization or financial institution or its
duly authorized agent, which issues a credit card;

(7) "Merchandise", any objects, wares, goods, commodities, intangibles,
real estate, services, or anything else of value;

(8) "Merchant", an owner or operator of any retail mercantile
establishment, or any agent, employee, lessee, consignee, officer,
director, franchisee, or independent contractor of such owner or
operator. A merchant includes a person who receives from an authorized
user of a payment card, or an individual the person believes to be an
authorized user, a payment card or information from a payment card as the
instrument for obtaining, purchasing, or receiving goods, services,
money, or anything of value from the person;

(9) "Person", any natural person or his legal representative,
partnership, firm, for-profit or not-for-profit corporation, whether
domestic or foreign, company, foundation, trust, business entity or
association, and any agent, employee, salesman, partner, officer,
director, member, stockholder, associate, trustee or cestui que trust
thereof;

(10) "Reencoder", an electronic device that places encoded information
from the magnetic strip or stripe of a credit or debit card onto the
magnetic strip or stripe of a different credit or debit card;

(11) "Revoked credit card", a credit card for which permission to use it
has been suspended or terminated by the issuer;

(12) "Scanning device", a scanner, reader, or any other electronic device
that is used to access, read, scan, obtain, memorize, or store,
temporarily or permanently, information encoded on the magnetic strip or
stripe of a credit or debit card. (L. 1991 S.B. 112, A.L. 2002 S.B. 895)

1. No person, other than the cardholder, shall:

(1) Disclose more than the last five digits of a credit card or debit
card account number on any sales receipt provided to the cardholder for
merchandise sold in this state;

(2) Use a scanning device to access, read, obtain, memorize, or store,
temporarily or permanently, information encoded on the magnetic strip or
stripe of a credit or debit card without the permission of the cardholder
and with the intent to defraud any person, the issuer, or a merchant; or

(3) Use a reencoder to place information encoded on the magnetic strip or
stripe of a credit or debit card onto the magnetic strip or stripe of a
different card without the permission of the cardholder from which the
information is being reencoded and with the intent to defraud any person,
the issuer, or a merchant.

2. Any person who knowingly violates this section is guilty of an
infraction and any second or subsequent violation of this section is a
class A misdemeanor.

3. It shall not be a violation of subdivision (1) of subsection 1 of this
section if:

(1) The sole means of recording the credit card number or debit card
number is by handwriting or, prior to January 1, 2005, by an imprint of
the credit card or debit card; and

(2) For handwritten or imprinted copies of credit card or debit card
receipts, only the merchant's copy of the receipt lists more than the
last five digits of the account number.

4. This section shall become effective on January 1, 2003, and applies to
any cash register or other machine or device that prints or imprints
receipts of credit card or debit card transactions and which is placed
into service on or after January 1, 2003. Any cash register or other
machine or device that prints or imprints receipts on credit card or
debit card transactions and which is placed in service prior to January
1, 2003, shall be subject to the provisions of this section on or after
January 1, 2005. (L. 2002 S.B. 895, A.L. 2003 H.B. 221 merged with S.B.
292 merged with S.B. 346)

1. A person or employee of a person who is authorized by an
acquirer to furnish money or merchandise upon presentation of a credit
card by a cardholder and furnishes money or merchandise to the cardholder
upon presentation of a credit card which such person knows to be a
counterfeit credit card, expired credit card, revoked credit card, or a
credit card used without the consent of the cardholder, and has furnished
such money or merchandise to the cardholder with the intent to defraud
the acquirer, has engaged in an unlawful practice.

2. A person who is authorized by an acquirer to furnish money or
merchandise upon presentation of a credit card by a cardholder and, with
intent to defraud the issuer, the acquirer, or the cardholder, fails to
furnish money or merchandise which the person represents in writing to
the issuer or the acquirer that he has furnished, has engaged in an
unlawful practice.

3. A person who is authorized by an acquirer to furnish money or
merchandise upon presentation of a credit card by a cardholder and, with
the intent to defraud the issuer, the acquirer, or the cardholder,
presents to the issuer or acquirer for payment, a credit card transaction
record of a sale of merchandise, which such sale of merchandise was not
made by the person or his agent or employee, has engaged in an unlawful
practice.

4. A person who, without the acquirer's authorization, employs, solicits,
or otherwise causes another person authorized by an acquirer to furnish
money or merchandise upon presentation of a credit card by a cardholder,
or employs, solicits, or otherwise causes, an agent or employee of such
other authorized person to remit to the acquirer a credit card
transaction record of a sale that was not made by such other authorized
person or his agent or employee, has engaged in an unlawful practice. (L.
1991 S.B. 112)

1. Any person who willfully and knowingly, and with the intent
to defraud, engages in any practice declared to be an unlawful practice
in sections 407.430 to 407.436 of this credit user protection law shall
be guilty of a class D felony.

2. The violation of any provision of sections 407.430 to 407.436 of this
credit user protection law constitutes an unlawful practice pursuant to
sections 407.010 to 407.130, and the violator shall be subject to all
penalties, remedies and procedures provided in sections 407.010 to
407.130. The attorney general shall have all powers, rights, and duties
regarding violations of sections 407.430 to 407.436 as are provided in
sections 407.010 to 407.130, in addition to rulemaking authority as
provided in section 407.145. (L. 1991 S.B. 112)

Sections 407.450 to 407.478 shall be known and may be cited as
the "Charitable Organizations and Solicitations Law". (L. 1986 S.B. 685)

Effective 5-1-86

*No continuity with § 407.450 as repealed by L. 1963 S.B. 2 § 10-102,
effective 7-1-65.

As used in sections 407.450 to 407.478, the following terms
shall mean:

(1) "Charitable organization", any person, as defined in section 407.010,
who does business in this state or holds property in this state for any
charitable purpose and who engages in the activity of soliciting funds or
donations for, or purported to be for, any fraternal, benevolent, social,
educational, alumni, historical or other charitable purpose;

(2) "Charitable purpose", any purpose which promotes, or purports to
promote, directly or indirectly, the well-being of the public at large or
any number of persons, whether such well-being is in general or limited
to certain activities, endeavors or projects;

(3) "Educational institution", a school, college or other institution
which has a defined curriculum, student body and faculty, and which
conducts classes on a regular basis;

(4) "Professional fund-raiser", any person, as defined in section
407.010, who is retained under contract or otherwise compensated by or on
behalf of a charitable organization primarily for the purpose of
soliciting funds. The term "professional fund-raiser" shall not include
any bona fide employee of a charitable organization who receives regular
compensation and is not primarily employed for the purpose of soliciting
funds;

(5) "Religious organization", any society, sect, persuasion, mission,
church, parish, congregation, temple, convention or association of any of
the foregoing, diocese or presbytery, or other organization, whether or
not incorporated, or any employee thereof, no part of the net earnings of
which inures to the benefit of any private party or individual associated
with such organization, and that otherwise qualifies as an exempt
organization under section 501(c)(3) of title 26, United States Code, as
amended, that either:

(a) Meets at more or less regular intervals for worship of a supreme
being or higher power, or for mutual support or edification in piety or
with respect to the idea that a minimum standard of behavior from the
standpoint of overall morality is to be observed; or

(b) Is, including but not limited to, any nursing, boarding, retirement,
children's or orphan's home, or any foundation, commission, hospital,
school, college, university, seminary, or other entity, which is owned,
operated, controlled, supervised or principally supported by, or
associated with through the sharing of common religious bonds and
convictions, any organization which meets the requirements of this
subdivision;

(6) "Solicitation", any request or appeal, either oral or written, or any
endeavor to obtain, seek or plead for funds, property, financial
assistance or other thing of value, including the promise or grant of any
money or property of any kind or value for a charitable purpose, but
excluding:

(a) Direct grants or allocation of funds received or solicited from any
affiliated fund-raising organization by a member agency; and

(b) Unsolicited contributions received from any individual donor,
foundation, trust, governmental agency or other source, unless such
contributions are received in conjunction with a solicitation drive. (L.
1986 S.B. 685)

Effective 5-1-86

1. Except for charitable organizations which are exempted under
subsection 2 of this section, no charitable organization shall solicit
funds in this state, nor employ a professional fund-raiser to solicit
funds in this state, for any charitable purpose unless it, and each
professional fund-raiser employed by it, have filed all registrations and
reports required by sections 407.450 to 407.478.

2. The provisions of sections 407.459 and 407.462, and subsection 1 of
section 407.469 shall not apply to the following:

(1) Religious organizations;

(2) Educational institutions and their authorized and related foundations;

(3) Fraternal, benevolent, social, educational, alumni, and historical
organizations, and any auxiliaries associated with any of such
organizations, when solicitation of contributions is confined to the
membership of such organizations or auxiliaries;

(4) Hospitals and auxiliaries of hospitals, provided all fund-raising
activities and solicitations of contributions are carried on by employees
of the hospital or members of the auxiliary and not by any professional
fund-raiser who is employed as an independent contractor;

(5) Any solicitation for funds governed by chapter 130, RSMo; and

(6) Any organization that has obtained an exemption from the payment of
federal income taxes as provided in section 501(c)(3), 501(c)(7) or
501(c)(8) of Title 26, United States Code, as amended, if, in fact, no
part of the net earnings of the organization inure to the benefit of any
private party or individual associated with such organization.

3. Sections 407.450 to 407.478 shall apply regardless of any contrary
provisions contained in any contract, agreement, instrument or other
document. (L. 1986 S.B. 685, A.L. 1988 H.B. 1760)

The attorney general shall establish and maintain a register of
all documents filed by charitable organizations in accordance with the
provisions of sections 407.450 to 407.478. Such register shall be open to
public inspection; except that, the attorney general may withhold from
public inspection documents or information obtained in the course of an
investigation undertaken pursuant to the provisions of this chapter, or
which otherwise may be withheld from public inspection by law. (L. 1986
S.B. 685)

Effective 5-1-86

1. No charitable organization shall solicit funds in this state,
nor employ a professional fund-raiser to solicit funds in this state, for
any charitable purpose, unless it has filed with the office of the
attorney general an initial registration, which shall be sworn to under
oath and shall be in the form and manner prescribed by the attorney
general, except that charitable organizations in existence and soliciting
on May 1, 1986, may file such initial registration within one year of May
1, 1986. All initial registrations, and amendments thereto, shall be
accompanied by a filing fee of fifteen dollars unless the attorney
general, by rule, establishes a different filing fee. Amendments to
initial registrations shall be filed as prescribed by the attorney
general.

2. In addition to the documents required by subsection 1 of this section,
every charitable organization shall, within seventy-five days of the
close each of its fiscal years ending after the date on which the
charitable organization files its initial registration under subsection 1
of this section, file an annual report. Each annual report shall be sworn
to under oath, and shall be in the form and shall be filed in the manner
prescribed by the attorney general. Each annual report shall be
accompanied by a filing fee of fifteen dollars unless the attorney
general, by rule, establishes a different filing fee. The provisions of
this subsection shall not apply to:

(1) Any charitable organization which receives an allocation of money
from an incorporated community chest or united fund, provided such
community chest or united fund is complying with all provisions of this
section relating to the filing of registrations, amendments to
registrations and annual reports;

(2) Any charitable organization which does not actually raise or receive
contributions in cash, goods or services valued in excess of the dollar
amount established by the attorney general by rule, which amount shall
not be less than ten thousand dollars, during the twelve-month period
immediately preceding the date on which its annual report would otherwise
be due under this subsection; or

(3) Any charitable organization which is a local affiliate of a statewide
or national charitable organization if all local fund-raising expenses
are paid by the statewide or national organization and the statewide or
national organization files the annual report required by this subsection.

3. All fees collected pursuant to this section shall be credited to and
deposited in the merchandising practices revolving fund. (L. 1986 S.B.
685)

Effective 5-1-86

1. No person shall act as a professional fund-raiser for any
charitable organization unless he is registered with the attorney general
and such registration has not expired or been canceled. Applications for
registration as a professional fund-raiser, and renewals thereof, shall
be in the form and manner prescribed by the attorney general, and shall
be sworn to under oath. All registrations issued to professional
fund-raisers shall be effective for a period of one year.

2. All applications for registration as a professional fund-raiser, and
renewals thereof, shall be accompanied by a fee of fifty dollars unless a
different fee has been prescribed by the attorney general by rule. All
fees collected pursuant to this subsection shall be credited to and
deposited in the merchandising practices revolving fund. (L. 1986 S.B.
685)

Effective 5-1-86

1. All charitable organizations required to submit an annual
report under section 407.462 shall, upon request, disclose the percentage
of the funds solicited which were spent on the costs of fund raising in
the last twelve-month period for which an annual report was filed under
section 407.462. For purposes of this section, costs of fund raising
shall include all money directly expended on fund raising and that
portion of all administrative expenses and salaries of the charitable
organization attributable to fund-raising activities. Any person who
markets or collects funds on behalf of a charitable organization shall
state on all literature soliciting such funds that a portion of the funds
contributed are used for marketing expenses and paid to persons for
marketing the charitable organization, if any such funds are so used.

2. Whenever a solicitation of funds on behalf of a charitable
organization is undertaken by a professional fund-raiser, the
professional fund-raiser shall disclose that fact to prospective
contributors. (L. 1986 S.B. 685, A.L. 1994 H.B. 1095)

1. When it appears to the attorney general that a person has
engaged in, is engaging in or is about to engage in any method, use, act
or practice declared to be unlawful by sections 407.450 to 407.478, or
when it appears that any funds solicited by or on behalf of any
charitable organization are being used, or are about to be used, for any
purpose in violation of this chapter or section 576.080, RSMo, or when he
or she believes it to be in the public interest that an investigation
should be made to ascertain whether a person in fact has engaged in, is
engaging in, or is about to engage in any such act or practice he or she
may issue and cause to be served a civil investigative demand to assist
in the investigation of the matter. The issuance and enforcement of each
civil investigative demand shall be in compliance with all of the terms
and provisions of sections 407.040 to 407.090.

2. Whenever it appears to the attorney general that a person has engaged
in, is engaging in, or is about to engage in any method, use, act, or
practice declared to be unlawful by sections 407.450 to 407.478, or when
it appears that any funds solicited by or on behalf of any charitable
organization are being used, or are about to be used, for any purpose in
violation of this chapter or section 576.080, RSMo, he or she may bring
an action pursuant to section 407.100 for an injunction prohibiting such
person from continuing such methods, uses, acts, or practices, or
engaging therein, or doing anything in furtherance thereof. In any action
brought by the attorney general pursuant to this subsection all of the
provisions of sections 407.100 to 407.140 shall apply thereto. (L. 1986
S.B. 685, A.L. 2002 S.B. 712)

Nothing in sections 407.450 to 407.478 shall be construed to
preclude any person or group of persons from asserting any private cause
of action they might have against a charitable organization. (L. 1986
S.B. 685)

Effective 5-1-86

Notwithstanding any provision of section 89.020, RSMo, to the
contrary, the legislative body of all cities, towns, and villages is
hereby prohibited from passing any zoning law, ordinance, or code that
would prevent any entity organized pursuant to Section 501(c)(3) of the
Internal Revenue Code that owns or operates a retail business engaged in
the practice of reselling donated goods from operating a business
establishment within any area where any other business engaged in retail
sales is permitted to operate; provided that at least eighty percent of
all revenue generated by such entity is used to fund the charitable
purpose of the organization. (L. 2002 S.B. 810 § 1)

Residents of the state of Missouri may purchase rifles and
shotguns in a state contiguous to the state of Missouri, provided that
such residents conform to the applicable provisions of the Federal Gun
Control Act of 1968, and regulations thereunder, as administered by the
United States Secretary of the Treasury, and provided further that such
residents conform to the provisions of law applicable to such purchase in
the state of Missouri and in the contiguous state in which the purchase
is made. (L. 1971 H.B. 138 § 2)

Residents of a state contiguous to the state of Missouri may
purchase rifles and shotguns in the state of Missouri, provided that such
residents conform to the applicable provisions of the Federal Gun Control
Act of 1968, and regulations thereunder, as administered by the United
States Secretary of the Treasury, and provided further that such
residents conform to the provisions of law applicable to such purchase in
the state of Missouri and in the state in which such persons reside. (L.
1971 H.B. 138 § 3)

As used in sections 407.511 to 407.556, unless the context
clearly indicates otherwise, the following terms mean:

(1) "Mileage", the actual distance that a vehicle has traveled;

(2) "Odometer", an instrument for measuring and recording the actual
distance a motor vehicle travels while in operation; but does not include
any auxiliary odometer designed to be reset by the operator of the motor
vehicle for the purpose of recording mileage on trips;

(3) "Person", any natural person, corporation, unincorporated
association, partnership or any agent, corporate officer or partner
acting in such capacity;

(4) "Repair and replacement", to restore to a sound working condition by
replacing the odometer or any part thereof or by correcting what is
inoperative;

(5) "Transfer", to change ownership by purchase, gift, or any other means;

(6) "Transferee", any person to whom ownership of a motor vehicle is
transferred by purchase, gift, or any means other than by the creation of
a security interest, and any person who, as agent, signs an odometer
disclosure statement for the transferee; and

(7) "Transferor", any person who transfers his ownership in a motor
vehicle by sale, gift, or any means other than by creation of a security
interest, and any person who, as agent, signs an odometer disclosure
statement for the transferor. (L. 1983 S.B. 9, A.L. 1989 S.B. 327)

1. A person commits the crime of odometer fraud in the first
degree if he advertises for sale, sells, installs or has installed any
device which causes an odometer to register any mileage other than the
true mileage driven.

2. For purposes of this section, the true mileage driven is that mileage
driven by the vehicle as registered by the odometer within the
manufacturer's designed tolerance.

3. Odometer fraud in the first degree is a class A misdemeanor. (L. 1983
S.B. 9)

Effective 1-1-84

1. A person commits the crime of odometer fraud in the second
degree if he, with the intent to defraud disconnects, resets, or alters
the odometer of any motor vehicle with the intent to change the number of
miles indicated thereon.

2. The disconnection, resetting, or altering of any odometer while in the
possession of the person shall be prima facie evidence of intent to
defraud.

3. Odometer fraud in the second degree is a class D felony. (L. 1983 S.B.
9, A.L. 1986 S.B. 685)

Effective 5-1-86

1. A person commits the crime of odometer fraud in the third
degree if, with the intent to defraud, he operates a motor vehicle less
than ten years old on any street or highway knowing that the odometer of
the motor vehicle is disconnected or not functioning.

2. Odometer fraud in the third degree is a class C misdemeanor. (L. 1983
S.B. 9)

Effective 1-1-84

1. Nothing in sections 407.511 to 407.556 shall prevent the
service, repair, or replacement of an odometer, provided the mileage
indicated thereon remains the same as before the service, repair, or
replacement occurred.

2. When the repaired or replaced odometer is incapable of registering the
same mileage as before the service, repair, or replacement, the odometer
shall be adjusted to read zero and a notice in writing shall be attached
to the left door frame of the vehicle by the owner or his agent,
specifying the mileage prior to repair or replacement of the odometer and
the date on which it was repaired or replaced.

3. Removal or alteration of the notice required by subsection 2 of this
section is an infraction. (L. 1983 S.B. 9)

Effective 1-1-84

1. Any person transferring ownership of a motor vehicle
previously titled in this or any other state shall do so by assignment of
title and shall place the mileage registered on the odometer at the time
of transfer above the signature of the transferor. The signature of the
transferor below the mileage shall constitute an odometer mileage
statement. The transferee shall sign such odometer mileage statement
before an application for certificate of ownership may be made. If the
true mileage is known to the transferor to be different from the number
of miles shown on the odometer or the true mileage is unknown, a
statement from the transferor shall accompany the assignment of title
which shall contain all facts known by the transferor concerning the true
mileage of the motor vehicle. That statement shall become a part of the
permanent record of the motor vehicle with the Missouri department of
revenue. The department of revenue shall place on all new titles issued
after September 28, 1977, a box titled "mileage at the time of transfer".

2. Any person transferring the ownership of a motor vehicle previously
untitled in this or any other state to another person shall give an
odometer mileage statement to the transferee. The statement shall include
above the signature of the transferor and transferee the cumulative
mileage registered on the odometer at the time of transfer. If the true
mileage is known to the transferor to be different from the number of
miles shown on the odometer or the true mileage is unknown, a statement
from the transferor shall accompany the assignment of title which shall
contain all facts known by the transferor concerning the true mileage of
the motor vehicle. That statement shall become a permanent part of the
records of the Missouri department of revenue.

3. If, upon receiving an application for registration or for a
certificate of ownership of a motor vehicle, the director of revenue has
credible evidence that the odometer reading provided by a transferor is
materially inaccurate, he may place an asterisk on the face of the title
document issued by the Missouri department of revenue, provided that the
process required thereby does not interfere with his obligations under
subdivision (2) of subsection 3 of section 301.190, RSMo. The asterisk
shall refer to a statement on the face and at the bottom of the title
document which shall read as follows: "This may not be the true and
accurate mileage of this motor vehicle. Consult the documents on file
with the Missouri department of revenue for an explanation of the
inaccuracy." Nothing in this section shall prevent any person from
challenging the determination by the director of revenue in the circuit
courts of the state of Missouri. The burden of proof shall be on the
director of the department of revenue in all such proceedings.

4. The mileage disclosed by the odometer mileage statement for a new or
used motor vehicle as described in subsections 1 and 2 of this section
shall be placed by the transferor on any title or document evidencing
ownership. Additional statements shall be placed on the title document as
follows:

(1) If the transferor states that to the best of his knowledge the
mileage disclosed is the actual mileage of the motor vehicle, an asterisk
shall follow the mileage on the face of the title or document of
ownership issued by the Missouri department of revenue. The asterisk
shall reference to a statement on the face and bottom of the title
document which shall read as follows: "Actual Mileage".

(2) Where the transferor has submitted an explanation why this mileage is
incorrect, an asterisk shall follow the mileage on the face of the title
or document of ownership issued by the Missouri department of revenue.
The asterisk shall reference to a statement on the face and at the bottom
of the title document which shall read as follows: "This is not the true
and accurate mileage of this motor vehicle. Consult the documents on file
with the Missouri department of revenue for an explanation of the
inaccuracy." Further wording shall be included as follows:

(a) If the transferor states that the odometer reflects the amount of
mileage in excess of the designed mechanical odometer limit, the above
statement on the face of the title document shall be followed by the
words: "Mileage exceeds the mechanical limits";

(b) If the transferor states that the odometer reading differs from the
mileage and that the difference is greater than that caused by odometer
calibration error and the odometer reading does not reflect the actual
mileage and should not be relied upon, the above statement on the face of
the title document shall be preceded by the words: "Warning--Odometer
Discrepancy".

5. The department of revenue shall notify all motor vehicle ownership
transferees of the civil and criminal penalties involving odometer fraud.

6. Any person defacing or obscuring or otherwise falsifying any odometer
reading on any document required by this section shall be guilty of a
class D felony.

7. The granting or creation of a security interest or lien shall not be
considered a change of ownership for the purpose of this section, and the
grantor of such lien or security interest shall not be required to make
an odometer mileage statement. The release of a lien by a mortgage holder
shall not be considered a change of ownership of the motor vehicle for
the purposes of this section. The mortgage holder or lienholder shall not
be required to make an odometer disclosure statement or state the current
odometer setting at the time of the release of the lien where there is no
change of ownership.

8. For the purposes of the mileage disclosure requirements of this
section, if a certificate of ownership is held by a lienholder, if the
transferor makes application for a duplicate certificate of ownership, or
as otherwise provided in the federal Motor Vehicle Information and Cost
Savings Act and related federal regulations, the transferor may execute a
written power of attorney authorizing a transfer of ownership. The person
granted such power of attorney shall restate exactly on the assignment of
title the actual mileage disclosed at the time of transfer. The power of
attorney shall accompany the certificate of ownership and the original
power of attorney and a copy of the certificate of ownership shall be
returned to the issuing state in the manner prescribed by the director of
revenue, unless otherwise provided by federal law, rule or regulation.
The department of revenue may prescribe a secure document for use in
executing a written power of attorney. The department shall collect a fee
for each form issued, not to exceed the cost of procuring the form.

(L. 1977 S.B. 180, A.L. 1983 S.B. 9, A.L. 1988 H.B. 1581, A.L. 1989 S.B.
327, A.L. 1990 H.B. 1279, A.L. 1992 H.B. 884)

Effective 5-15-92

1. A person is guilty of attempt to commit odometer fraud in the
first degree or odometer fraud in the second degree when, with the
purpose of committing the offense, he does any act which is a substantial
step towards the commission of the offense. A "substantial step" is
conduct which is strongly corroborative of the firmness of the actor's
purpose to complete the commission of the offense.

2. It is no defense to a prosecution under this section that the offense
attempted was, under the actual attendant circumstances, factually or
legally impossible of commission, if such offense could have been
committed had the attendant circumstances been as the actor believed them
to be.

3. An attempt to commit odometer fraud in the first or second degree is a
class C misdemeanor. (L. 1983 S.B. 9)

Effective 1-1-84

1. A person is guilty of conspiring with another person or
persons to commit odometer fraud in the first or second degree if, with
the purpose of promoting or facilitating its commission he agrees with
such other person or persons that they or one or more of them will engage
in conduct which constitutes such an offense.

2. The provisions of section 564.016, RSMo, shall apply to this section
and as is provided in that section conspiring to commit odometer fraud in
the first or second degree is a class C misdemeanor. (L. 1983 S.B. 9)

Effective 1-1-84

Notwithstanding any provision of law to the contrary, a court
may enhance the sentence for any person convicted of violating section
407.516, 407.521, 407.526, 407.536, 407.542 or 407.543 who has a prior
conviction for any one of the aforegoing sections to a fine and to a time
of imprisonment within the department of corrections and human resources
for a term not to exceed that otherwise authorized by law for violation
of a class D felony. (L. 1983 S.B. 9, A.L. 1988 H.B. 1581)

Effective 7-1-89

1. Any person who, with intent to defraud, violates any of the
provisions of sections 407.511 to 407.556 shall be liable in civil
damages to the purchaser or owner of the motor vehicle in an amount equal
to three times the amount of actual damages sustained or two thousand
five hundred dollars, whichever is the greater, and, in the case of any
successful action to enforce the liability created by this section, the
costs of the action together with reasonable attorney fees as determined
by the court.

2. An action to enforce any liability created by subsection 1 of this
section may be brought in the circuit court where the defendant resides
or may be found or where the transfer of the ownership of the motor
vehicle occurred, within two years from the date on which the liability
arises.

3. Nothing contained in this section shall authorize a cause of action or
damages against the seller of a motor vehicle, the odometer of which has
been altered or tampered with by a previous owner, unless the seller knew
or should have known of this alteration or tampering. (L. 1983 S.B. 9,
A.L. 1986 H.B. 1153, A.L. 1988 H.B. 1581)

Effective 7-1-89

1. The attorney general or any prosecuting attorney of this
state may bring an action in any circuit court for injunctive relief to
restrain any violation of sections 407.511 to 407.556.

2. Notwithstanding any other provision of chapter 536, RSMo, or any other
provision of law to the contrary, the attorney general or prosecuting
attorney may after notice amend any such action to seek the revocation or
suspension of any license issued by the department of revenue pursuant to
chapter 301, RSMo. The decision of the circuit court to revoke or suspend
a license may be appealed as in any other civil matter.

3. The remedies available in this section are cumulative and in addition
to any other remedies available. (L. 1983 S.B. 9)

Effective 1-1-84

Notwithstanding other provisions of law to the contrary, the
attorney general or the county prosecuting attorney shall have authority
to file and prosecute any criminal or civil action authorized by sections
301.252 and 301.280, RSMo, and sections 407.511 to 407.556 except for the
civil action authorized by section 407.546. (L. 1983 S.B. 9)

Effective 1-1-84

1. A violation of the provisions of sections 407.511 to 407.556
by any person licensed or registered as a manufacturer or dealer pursuant
to the provisions of chapter 301, RSMo, shall be considered a violation
of the provisions of that chapter, subjecting that person to revocation
or suspension of any license issued pursuant to the provisions of that
chapter.

2. The provisions of sections 407.511 to 407.556 do not apply to the
following motor vehicles:

(1) Any motor vehicle having a gross vehicle weight rating of more than
sixteen thousand pounds;

(2) Any motor vehicle that is ten years old or older;

(3) Any motor vehicle sold directly by the manufacturer to any agency of
the United States in conformity with contractual specifications; or

(4) Any new vehicle prior to its first transfer for purposes other than
resale. (L. 1983 S.B. 9, A.L. 1989 S.B. 327, A.L. 1990 H.B. 1279)

Effective 7-1-91

As used in sections 407.560 to 407.579, the following terms mean:

(1) "Collateral charges", those additional charges to a consumer not
directly attributable to a manufacturer's suggested retail price label
for the new motor vehicle. For the purposes of sections 407.560 to
407.579, "collateral charges" includes all sales tax, license fees,
registration fees, title fees and motor vehicle inspections;

(2) "Comparable motor vehicle", an identical or reasonably equivalent
motor vehicle;

(3) "Consumer", the purchaser, other than for the purposes of resale, of
a new motor vehicle, primarily used for personal, family, or household
purposes, and any person to whom such new motor vehicle is transferred
for the same purposes during the duration of an express warranty
applicable to such new motor vehicle, and any other person entitled by
the terms of such warranty to enforce the obligations of the warranty;

(4) "Express warranty", any written affirmation of the fact or promise
made by a manufacturer to a consumer in connection with the sale of new
motor vehicles which relates to the nature of the material or workmanship
or will meet a specified level of performance over a specified period of
time;

(5) "Manufacturer", any person engaged in the manufacturing or assembling
of new motor vehicles as a regular business;

(6) "New motor vehicle", any motor vehicle being transferred for the
first time from a manufacturer, distributor or new vehicle dealer, which
has not been registered or titled in this state or any other state and
which is offered for sale, barter or exchange by a dealer who is
franchised to sell, barter or exchange that particular make of new motor
vehicle. The term "new motor vehicle" shall include only those vehicles
propelled by power other than muscular power, but the term shall not
include vehicles used as a commercial motor vehicle, off-road vehicles,
mopeds, motorcycles or recreational motor vehicles as defined in section
301.010, RSMo, except for the chassis, engine, powertrain and component
parts of recreational motor vehicles. The term "new motor vehicle" shall
also include demonstrators or lease-purchase vehicles as long as a
manufacturer's warranty was issued as a condition of sale. (L. 1984 H.B.
992 § 1)

The provisions of sections 400.2-602 to 400.2-609, RSMo, shall
not apply to sales of new motor vehicles and such sales shall be governed
by the provisions of sections 407.560 to 407.579. (L. 1984 H.B. 992 § 2)

For the purposes of sections 407.560 to 407.579, if a new motor
vehicle does not conform to all applicable express warranties, and the
consumer reports the nonconformity to the manufacturer, or its agent,
during the term of such express warranties, or during the period of one
year following the date of original delivery of the new motor vehicle to
the consumer, whichever period expires earlier, the manufacturer, or its
agent, shall make such repairs as are necessary to conform the new
vehicle to such express warranties, notwithstanding the fact that such
repairs are made after the expiration of such term or such one-year
period. (L. 1984 H.B. 992 § 3)

1. If the manufacturer, through its authorized dealer or its
agent, cannot conform the new motor vehicle to any applicable express
warranty by repairing or correcting any default or condition which
impairs the use, market value, or safety of the new motor vehicle to the
consumer after a reasonable number of attempts, the manufacturer shall,
at its option, either replace the new motor vehicle with a comparable new
vehicle acceptable to the consumer, or take title of the vehicle from the
consumer and refund to the consumer the full purchase price, including
all reasonably incurred collateral charges, less a reasonable allowance
for the consumer's use of the vehicle. The subtraction of a reasonable
allowance for use shall apply when either a replacement or refund of the
new motor vehicle occurs.

2. Refunds shall be made to the consumer and lienholder of record, if
any, as their interests may appear.

3. (1) Upon taking the title to a vehicle under this section, the
manufacturer may apply to the department of revenue for a reimbursement
equal to any amounts refunded to a consumer for any sales tax, license
fees, registration fees, and title fees paid by the consumer as a result
of purchasing the vehicle. Upon the receipt of a written request for a
refund, accompanied by satisfactory proof that such sales tax and fees on
the vehicle were paid when or after the vehicle was purchased and that
the manufacturer has refunded such sales tax and fees to the consumer,
lienholder, or lessor of the vehicle, the department of revenue shall
refund to the manufacturer an amount equal to the amounts refunded to a
consumer for such sales tax and fees paid by the consumer as a result of
purchasing the vehicle.

(2) The manufacturer may, in lieu of applying to the department of
revenue for a reimbursement under this subsection, direct the consumer to
apply to the department of revenue for a refund of any sales tax, license
fees, registration fees, and title fees paid by the consumer as a result
of purchasing the vehicle. The manufacturer shall provide the consumer
with the documentation required to prove that the consumer paid such
sales tax and fees to the manufacturer. Upon the receipt of a written
request by the consumer for a refund, accompanied by satisfactory proof
that such sales tax and fees on the vehicle were paid when or after the
vehicle was purchased, and a written statement from the manufacturer that
such sales tax and fees were not refunded to the consumer, lienholder, or
lessor of the vehicle, the department of revenue shall refund to the
consumer an amount equal to the amounts for such sales tax and fees paid
by the consumer as a result of purchasing the vehicle. (L. 1984 H.B. 992
§ 4 subsecs. 1, 2, A.L. 2004 S.B. 1233, et al.)

It shall be an affirmative defense to any claim under sections
407.560 to 407.579 that:

(1) An alleged nonconformity does not substantially impair the use,
market value, or safety of the motor vehicle;

(2) A nonconformity is the result of abuse, neglect, or unauthorized
modifications or alterations of a motor vehicle;

(3) A claim by a consumer was not filed in good faith; or

(4) Any other affirmative defense allowed by law. (L. 1984 H.B. 992 § 4
subsec. 3)

It shall be presumed that a reasonable number of attempts have
been undertaken to conform a new motor vehicle to the applicable express
warranties if within the terms, conditions, or limitations of the express
warranty, or during the period of one year following the date of original
delivery of the new motor vehicle to a consumer, whichever expires
earlier, either:

(1) The same nonconformity has been subject to repair four or more times
by the manufacturer, or its agents, and such nonconformity continues to
exist; or

(2) The new vehicle is out of service by reason of repair of the
nonconformity by the manufacturer, through its authorized dealer or its
agents, for a cumulative total of thirty or more working days, exclusive
of down time for routine maintenance as prescribed by the manufacturer,
since delivery of the new vehicle to the consumer. The thirty-day period
may be extended by a period of time during which repair services are not
available to the consumer because of conditions beyond the control of the
manufacturer or its agents. (L. 1984 H.B. 992 § 4 subsec. 4)

1. The terms, conditions, or limitations of the express
warranty, or* the period of one year following the date of original
delivery of the new motor vehicle to a consumer, whichever expires
earlier, may be extended if the new motor vehicle warranty problem has
been reported but has not been repaired by the manufacturer, or its
agent, by the expiration of the applicable time period.

2. The manufacturer shall provide information for consumer complaint
remedies with each new motor vehicle. It shall be the responsibility of
the consumer, or his representative, prior to availing himself of the
provisions of sections 407.560 to 407.579, to give written notification
to the manufacturer of the need for the repair of the nonconformity, in
order to allow the manufacturer an opportunity to cure the alleged
defect. The manufacturer shall immediately notify the consumer of a
reasonably accessible repair facility of a franchised new vehicle dealer
to conform the new vehicle to the express warranty. After delivery of the
new vehicle to an authorized repair facility by the consumer, the
manufacturer shall have ten calendar days to conform the new motor
vehicle to the express warranty. Upon notification from the consumer that
the new vehicle has not been conformed to the express warranty, the
manufacturer shall inform the consumer if an informal dispute settlement
procedure has been established by the manufacturer in accordance with
section 407.575. However, if prior notice by the manufacturer of an
informal dispute settlement procedure has been given, no further notice
is required.

3. Any action brought under sections 407.560 to 407.579 shall be
commenced within six months following expiration of the terms,
conditions, or limitations of the express warranty, or within eighteen
months following the date of original delivery of the new motor vehicle
to a consumer, whichever is earlier, or, in the event that a consumer
resorts to an informal dispute settlement procedure as provided in
sections 407.560 to 407.579, within ninety days following the final
action of any panel established pursuant to such procedure. (L. 1984 H.B.
992 § 5)

*Word "of" appears in original rolls.

(1989) Notice to car dealer, not the manufacturer, was failure to notify
proper party in order for car buyer to avail herself of "lemon law." (Mo.
App. E.D.) Stewart v. Sieben, Inc., 783 S.W.2d 432.

If a manufacturer has established an informal dispute settlement
procedure which complies in all respects with the provisions of the code
of Federal Regulations, 16 CFR 703, provisions of sections 407.560 to
407.579 concerning refunds or replacements shall not apply to any
consumer who has not first resorted to such procedure. (L. 1984 H.B. 992
§ 6)

(1989) Car manufacturer has affirmative duty to notify consumer if it has
an informal dispute settlement procedure but has no duty to notify
consumer that similar procedure was not established in accordance with
statute and procedure did not toll the statute of limitation under the
"lemon law." (Mo. App. E.D.) Stewart v. Sieben, Inc., 783 S.W.2d 432.

1. If a consumer undertakes a court action after complying with
the provisions of sections 407.560 to 407.579 and finally prevails in
that action, he shall be allowed by the court to recover as part of the
judgment a sum equal to the aggregate amount of costs and expenses,
including attorney's fees based on actual time expended, determined by
the court to have been reasonably incurred by the plaintiff for or in
connection with the commencement and prosecution of such action.

2. If any claim by a consumer under sections 407.560 to 407.579 is found
by a court to have been filed in bad faith, or solely for the purpose of
harassment, or in the absence of a substantial justifiable issue of
either law or fact raised by the consumer, or for which the final
recovery is not at least ten percent greater than any settlement offer
made by the manufacturer prior to the commencement of the court action,
then the consumer shall be liable for all costs and reasonable attorney's
fees incurred by the manufacturer, or its agent, as a direct result of
the bad faith claim. (L. 1984 H.B. 992 § 7)

1. Except as provided in subdivision (1) of section 407.560,
nothing in sections 407.560 to 407.579 shall in any way limit the rights
or remedies which are otherwise available to a consumer at law or in
equity.

2. Sections 407.560 to 407.579 shall apply to any new motor vehicle sold
after January 1, 1985. (L. 1984 H.B. 992 §§ 8, 9)

1. Notwithstanding the provisions of sections 301.200 and
301.210, any person licensed as a motor vehicle dealer under sections
301.550 to 301.573 shall be authorized to purchase or accept in trade any
motor vehicle for which there has been issued a certificate of title, and
to receive such vehicle subject to any existing liens thereon created and
perfected under sections 301.600 to 301.660 provided the licensed dealer
receives the following:

(1) A signed written contract between the licensed dealer and the owner
of the vehicle; and

(2) Physical delivery of the vehicle to the licensed dealer; and

(3) A power of attorney from the owner to the licensed dealer, in
accordance with subsection 4 of section 301.300, authorizing the licensed
dealer to obtain a duplicate or replacement title in the owner's name and
sign any title assignments on the owner's behalf.

2. If the dealer complies with the requirements of subsection 1 of this
section, the sale or trade of the vehicle to the dealer shall be
considered final.

3. If a licensed dealer complies with the requirements of subsection 1 of
this section, the licensed dealer may sell such vehicle prior to
receiving and assigning to the purchaser the certificate of title,
provided such dealer complies with the following:

(1) All outstanding liens created on the vehicle pursuant to sections
301.600 to 301.660 have been paid in full, and the dealer provides a copy
of proof or other evidence to the purchaser; and

(2) The dealer has obtained proof or other evidence from the department
of revenue confirming that no outstanding child support liens exist upon
the vehicle at the time of sale and provides a copy of said proof or
other evidence to the purchaser; and

(3) The dealer has obtained proof or other evidence from the department
of revenue confirming that all applicable state sales tax has been
satisfied on the sale of the vehicle to the previous owner and provides a
copy of said proof or other evidence to the purchaser; and

(4) The dealer has signed and submitted an application for duplicate or
replacement title for the vehicle pursuant to subsection 4 of section
301.300 and provides a copy of the application to the purchaser, along
with a copy of the power of attorney required under subsection 1 of this
section.

4. Following a sale or other transaction in which a certificate of title
has not been assigned from the owner to the dealer, a licensed dealer
shall, within five business days, apply for a duplicate or replacement
title. Upon receipt of a duplicate or replacement title applied for
pursuant to subsection 4 of section 301.300, the dealer shall assign and
deliver said certificate of title to the purchaser of the vehicle within
five business days. The dealer shall maintain proof of the assignment and
delivery of the certificate of title to the purchaser. For purposes of
this subsection, a dealer shall be deemed to have delivered the
certificate of title to the purchaser upon either:

(1) Physical delivery of the certificate of title to any of the
purchasers identified in the contract with the dealer; or

(2) Mailing of the certificate, postage prepaid, return receipt
requested, to any of the purchasers at any of their addresses identified
in the contract with the dealer.

5. If a dealer fails to comply with subsection 3 of this section, and the
purchaser of the vehicle is thereby damaged, then the dealer shall be
liable to the purchaser of the vehicle for actual damages, plus court
costs and reasonable attorney fees.

6. If a dealer fails to comply with subsection 4 of this section, and the
purchaser of the vehicle is thereby damaged, then the dealer shall be
liable to the purchaser of the vehicle for actual damages, plus court
costs and reasonable attorney fees. If the dealer cannot be found by the
purchaser after making reasonable attempts, and thereby fails to assign
and deliver the duplicate or replacement certificate of title to the
purchaser, as required by subsection 4 of this section, then the
purchaser may deliver to the director a copy of the contract for sale of
the vehicle, a copy of the application for duplicate title provided by
the dealer to the purchaser, a copy of the secure power of attorney
allowing the dealer to assign the duplicate title, and the proof or other
evidence obtained by the purchaser from the dealer under subsection 3 of
this section. Thereafter, the director shall mail by certified mail,
return receipt requested, a notice to the dealer at the last address
given to the department by that dealer. That notice shall inform the
dealer that the director intends to cancel any prior certificate of title
issued to the dealer on the vehicle and issue to the purchaser a
certificate of title in the name of the purchaser, subject to any liens
incurred by the purchaser in connection with the purchase of the vehicle,
unless the dealer, within ten business days from the date of the
director's notice, files with the director a written objection to the
director taking such action. If the dealer does file a timely, written
objection with the director, then the director shall not take any further
action without an order from a court of competent jurisdiction. However,
if the dealer does not file a timely, written objection with the
director, then the director shall cancel the prior certificate of title
issued to the dealer on the vehicle and issue a certificate of title to
the purchaser of the vehicle, subject to any liens incurred by the
purchaser in connection with the purchase of the vehicle and subject to
the purchaser satisfying all applicable taxes and fees associated with
registering the vehicle.

7. If a seller fraudulently misrepresents to a dealer that the seller is
the owner of a vehicle and the dealer or any subsequent purchaser is
thereby damaged, then the seller shall be liable to the dealer and any
subsequent purchaser for actual damages, plus court costs and reasonable
attorney fees.

8. When a lienholder is damaged as a result of acts or omissions by the
dealer to the lienholder or any party covered by subsections 5, 6, and 7
of this section, or by any combination of claims under this subsection,
then the dealer shall be liable to the lienholder for actual damages,
plus court costs and reasonable attorney fees.

9. No court costs or attorney fees shall be awarded under this section
unless, prior to filing any such action, the following conditions have
been met:

(1) The aggrieved party seeking damages has delivered an itemized written
demand of the party's actual damages to the party from whom damages are
sought; and

(2) The party from whom damages are sought has not satisfied the written
demand within thirty days after receipt of the written demand. (L. 2005
H.B. 487 § 301.894)

When a dealer makes repairs to any motor vehicle or vessel
pursuant to any warranty provision, the dealer shall receive from the
manufacturer or distributor giving the warranty, reasonable compensation
for labor at a rate no less than that posted by the dealer for labor not
under warranty. (L. 1987 H.B. 232 § 1, A.L. 1990 H.B. 1279)

As used in sections 407.585 to 407.592, the following terms mean:

(1) "Collateral charges", those additional charges to a consumer not
directly attributable to a manufacturer's suggested retail price label
for farm machinery;

(2) "Comparable farm machinery", an identical or reasonably equivalent
piece of farm machinery;

(3) "Consumer", the purchaser, other than for the purposes of resale, of
new farm machinery, primarily used for agricultural purposes, and any
person to whom such new farm machinery is transferred for the same
purposes during the duration of an express warranty applicable to such
new farm machinery, and any other person entitled by the terms of such
warranty to enforce the obligations of the warranty;

(4) "Express warranty", any written affirmation of fact or promise made
by a manufacturer to a consumer in connection with the sale of new farm
machinery which relates to the nature of the material or workmanship or
will meet a specified level of performance over a specified period of
time. For the purposes of sections 407.585 to 407.592, express warranties
do not include implied warranties;

(5) "Farm machinery", any self-propelled equipment or machinery used for
agricultural purposes being transferred for the first time from a
manufacturer, distributor or new farm machinery dealer, which has not
been registered or titled in this state or any other state and which is
offered for sale, barter or exchange by a dealer who is franchised to
sell, barter or exchange that particular make of new farm machinery; "new
farm machinery" as defined in sections 407.585 to 407.592 shall include
farm machinery propelled by power other than muscular power, but the term
shall not include off-road vehicles other than self-propelled equipment
and machinery used for agricultural purposes;

(6) "Manufacturer", any person engaged in the manufacturing or assembling
of new farm machinery as a regular business;

(7) "Nonconformity", any condition of the farm machinery that makes it
impossible to use for the purpose for which it was intended;

(8) "Reasonable allowance for consumer use":

(a) That amount attributable to use by the consumer prior to the
consumer's first report of the nonconformity to the manufacturer or its
authorized dealers;

(b) That amount attributable to use by the consumer during any period
subsequent to such report when the farm machinery is not out of service
by reason of repair of the reported nonconformity; and

(c) That amount attributable to use by the consumer of the farm machinery
provided by the manufacturer or its authorized dealer. While the machine
is out of service by reason of repair of the reported nonconformity, but
in any event not less than the fair rental value of the farm machinery.
(L. 1987 H.B. 76 § 1)

1. The provisions of sections 400.2-602 to 400.2-609*, RSMo,
shall not apply to sales of new farm machinery and such sales shall be
governed by the provisions of sections 407.585 to 407.592.

2. For the purposes of sections 407.585 to 407.592, if new farm machinery
does not conform to all applicable express warranties, and the consumer
reports the nonconformity to the manufacturer, or its agent during the
term of such express warranties, or during the period of one year
following the date of original delivery of the new farm machinery to the
consumer, whichever period expires earlier, the manufacturer, or its
agent, shall make such repairs as are necessary to conform the new
machinery to such express warranties, notwithstanding the fact that such
repairs are made after the expiration of such term or such one-year
period. (L. 1987 H.B. 76 §§ 2, 3)

*"400.609" appears in original rolls, an apparent typographical error.

1. If the manufacturer, or its agent, cannot conform the new
farm machinery to any applicable express warranty by repairing or
correcting any default or condition which substantially impairs the use
or market value of the new farm machinery to the consumer after a
reasonable number of attempts, the manufacturer shall give the consumer
the option of having the manufacturer either replace the new farm
machinery with a comparable new farm machinery acceptable to the
consumer, or take title of the machine from the consumer and refund to
the consumer the full purchase price, including all reasonably incurred
collateral charges, less a reasonable allowance for the consumer's use of
the machine. The subtraction of a reasonable allowance for use shall
apply when either a replacement or refund of the new farm machinery
occurs.

2. Refunds shall be made to the consumer and lienholder of record, if
any, as their interests may appear. (L. 1987 H.B. 76 § 4 subsecs. 1, 2)

1. It shall be an affirmative defense to any claim under
sections 407.585 to 407.592 that:

(1) An alleged nonconformity does not substantially impair the use,
market value, or safety of the farm machinery;

(2) A nonconformity is the result of abuse, neglect, or unauthorized
modifications or alterations of a farm machinery by a consumer;

(3) A claim by a consumer was not filed in good faith; or

(4) Any other affirmative defense allowed by law.

2. It shall be presumed that a reasonable number of attempts have been
undertaken to conform a new farm machine to the applicable express
warranties if within the terms, conditions, or limitations of the express
warranty, or during the period of one year following the date of original
delivery of the new farm machinery to a consumer, whichever expires
earlier, either:

(1) The same nonconformity has been subject to repair five or more times
by the manufacturer, or its agents, and such nonconformity continues to
exist; or

(2) The new farm machinery is out of service by reason of repair of the
nonconformity by the manufacturer, or its agents, for a cumulative total
of thirty or more working days, exclusive of down time for routine
maintenance as prescribed by the manufacturer, since delivery of the new
farm machinery to the consumer. The thirty-day period may be extended by
a period of time during which repair services are not available to the
consumer because of conditions beyond the control of the manufacturer or
its agents. (L. 1987 H.B. 76 § 4 subsecs. 3, 4)

1. The manufacturer shall provide information for consumer
complaint remedies with each new farm machinery. It shall be the
responsibility of the consumer, or his representative, prior to availing
himself of the provisions of sections 407.585 to 407.592, to give written
notification to the manufacturer of the need for the repair of the
nonconformity, in order to allow the manufacturer an opportunity to cure
the alleged defect. The manufacturer shall immediately notify the
consumer of a reasonably accessible repair facility of a franchised new
farm machinery dealer to conform the new farm machinery to the express
warranty. After delivery of the new farm machinery to an authorized
repair facility by the consumer, the manufacturer shall have thirty
calendar days to conform the new farm machinery to the express warranty
in appropriate seasonable use times, and sixty days in other times. The
department of agriculture shall designate appropriate seasonal use times
for all machinery covered by the provisions of sections 407.585 to
407.592. Upon notification from the consumer that the new farm machinery
has not been conformed to the express warranty, the manufacturer shall
inform the consumer if an informal dispute settlement procedure has been
established by the manufacturer. However, if prior notice by the
manufacturer of an informal dispute settlement procedure has been given,
no further notice is required. In the event any repairs which may be
required under any warranty takes more than fourteen working days to
complete, then said manufacturer shall supply at no cost a like piece of
farm machinery for use by the consumer if requested by the consumer
during said time of repair. Any costs incurred by a dealer under the
provisions of sections 407.585 to 407.592 shall be reimbursed to the
dealer by the manufacturer.

2. Any action brought under sections 407.585 to 407.592 shall be
commenced within six months following expiration of the terms,
conditions, or limitations of the express warranty, or within eighteen
months following the date of original delivery of the new farm machinery
to a consumer, whichever is earlier, or, in the event that a consumer
resorts to an informal dispute settlement procedure as provided in
sections 407.585 to 407.592, within ninety days following the final
action of any panel established pursuant to such procedure. In the event
an action is brought under the provisions of sections 407.585 to 407.592
the prevailing party shall be allowed to recover any court costs and
reasonable attorneys fees. (L. 1987 H.B. 76 § 5)

Sections 407.585 to 407.592 shall apply to any new farm
machinery sold after January 1, 1988, but no provision of sections
407.585 to 407.592 shall operate or be construed to invalidate, impair,
or otherwise infringe upon the specific requirements of any contract
between a dealer and a manufacturer entered into prior to September 28,
1987, and which is in effect on September 28, 1987; provided, however,
that in any case wherein warranty repair work is performed for a consumer
by a farm equipment dealer under the provisions of a manufacturer's
express warranty, the manufacturer shall reimburse the dealer at an
hourly labor rate that is the same or greater than the hourly labor rate
the dealer currently charges consumers for nonwarranty repair work. The
dealer may accept the manufacturer's reimbursement terms and conditions
in lieu of the above. (L. 1987 H.B. 76 § 6, A.L. 2002 H.B. 1348)

As used in sections 407.600 to 407.630, the following terms
shall mean:

(1) "Accommodations", any apartment, condominium or cooperative unit,
cabin, lodge, hotel or motel room, or any other private or commercial
structure which is situated on real property and designed for occupancy
by one or more individuals, which is made available to the purchasers of
a time-share plan;

(2) "Enrolled", paid membership in an exchange program or membership in
an exchange program evidenced by written acceptance or confirmation of
membership;

(3) "Exchange company", the person operating an exchange program;

(4) "Exchange program", any opportunity or procedure for the assignment
or exchange of time-share periods among purchasers in the same or other
time-share plans;

(5) "Facilities", any structure, service, improvement, campground,
recreational vehicle park or real property, improved or unimproved, which
is made available to the purchasers of a time-share plan;

(6) "Person", any natural person or his legal representative,
partnership, domestic or foreign corporation, company, trust, business
entity or association, and any agent, employee, salesman, partner,
officer, director, member, stockholder, associate, trustee or cestui que
trust thereof;

(7) "Promotion", any advertisement, whether by mail, radio, television or
personal sales, in which a time-share property is offered for sale by use
of a sweepstakes;

(8) "Sweepstakes", a method of promoting the sale of time-share plans
which involves the offering, giving, or awarding of prizes which have
odds associated with the actual delivery of the prize or gift;

(9) "Time-share periods", all periods of time when a purchaser of a
time-share plan is entitled to the possession and use of the
accommodations or facilities, or both, of a time-share plan regardless of
whether such periods are designated as one or more specific days, weeks
or months;

(10) "Time-share developments", a single specific parcel of real property
from which only time-share plans are offered for sale or sold;

(11) "Time-share plan", any arrangement, plan, scheme or similar device,
other than an exchange program, whether by membership, agreement, tenancy
in common, sale, lease, deed, rental agreement, license, right-to-use
agreement or any other means, whereby a purchaser, in exchange for a
consideration, receives one or more time-share periods, or any type of
interval or joint ownership in, or a right-to-use, any accommodation or
facility for a period of time which is less than a full continuous and
uninterrupted year during any given year, and which extends for a period
of more than three years, as to each individual time-share development
subject to the purchase;

(12) "Time-share unit", an accommodation or facility of a time-share plan
which is divided into time-share periods, or is otherwise subject to
interval or joint ownership or use by the purchaser of the time-share
plans;

(13) "Prize/gift", any merchandise offered in any time-share promotional
device, sweepstakes, drawing or display booth which is used to induce or
encourage the attendance of any time-share sales solicitation or
presentation. (L. 1985 H.B. 96, et al., A.L. 1988 H.B. 988)

1. Any person who intends to use any promotional device or
promotional program, including any sweepstakes, gift award, drawing or
display booth, or any other such award or prize inducement items, to
advertise, solicit sales or sell any time-share period, time-share plan,
or time-share property in the state of Missouri or sell any
tourist-related services as defined pursuant to subsection 8 of this
section where a consumer is required to provide any consideration other
than monetary for such tourist-related services, shall notify the
Missouri attorney general in writing of this intention not less than
fourteen days prior to release of such materials to the public. Included
with such notice shall be an exact copy of each promotional device and
promotional program to be used. Each promotional device, promotional
program, and the notice thereof shall include the following information:

(1) A statement that the promotional device or promotional program is
being used for the purpose of soliciting sales of a time-share period,
time-share plan or time-share property;

(2) The date by which all such awards or other prize inducement items
will be awarded;

(3) The method by which all such items will be awarded;

(4) The odds of being awarded such items;

(5) The manufacturer's suggested retail price of such items; and

(6) The names and addresses of each time-share plan or business entity
participating in the promotional device or promotional program.

2. Any material change in a promotional device or promotional program
previously submitted to the attorney general shall constitute a new
promotional device or promotional program and shall be resubmitted to the
attorney general with the notice thereof.

3. It shall be a violation of section 407.020 for any person to:

(1) Fail to comply with the provisions of the notice requirements of this
section;

(2) Provide to the attorney general in the notice required by this
section any information that is false or misleading in a material manner;

(3) Represent to any person that the filing of the notice of the
promotional device or the promotional program constitute an endorsement
or approval of the promotional device or promotional program by the
attorney general;

(4) Engage in any act or practice declared to be unlawful by section
407.020 in connection with the use of any promotional device or
promotional program or any advertisement, or sale of time-share plans,
time-share periods or time-share property.

4. At least one of each prize featured in a promotional program shall be
awarded by the day and year specified in the promotion. When a promotion
promises the award of a certain number of each prize, such number of
prizes shall be awarded by the date and year specified in the promotion.
A record shall be maintained containing the names and addresses of
winners of the prizes and the record shall be made available, upon
request, to the public, upon the payment of reasonable reproduction
costs. If a seller for any reason does not provide, at the time of a site
visitation or visitation to a time-share sales office, the inducement
gift which was promised, the seller shall deliver the gift, or an
acceptable substitute therefor agreed upon in writing, to the prospective
purchaser or purchaser no later than ten days following such visitation,
or shall deliver instead of such gift cash in an amount equal to the
retail value of the gift.

5. If a prospective purchaser or purchaser does not receive the gift or
the cash as provided in subsection 4 of this section, he may bring an
action under the provisions of section 407.025. For purposes of actions
brought pursuant to this section, the term "actual damages", as used in
section 407.025, shall mean at least five times the cash retail value of
the most expensive gift offered, but shall not exceed one thousand
dollars, in addition to such other actual damages as may be determined by
the evidence.

6. The provisions of sections 407.600 to 407.630 shall not apply to a
person who has acquired a time-share period for his own occupancy and
later offers it for resale.

7. If the sale of a time-share plan or of time-share property is subject
to the provisions of sections 407.600 to 407.630, such sale shall not be
subject to the provisions of chapter 339, RSMo.

8. For the purposes of this section, the term "tourist-related services"
includes but is not limited to, selling or entering into contracts or
other arrangements under which a purchaser receives a premium, coupon or
contract for car rentals, lodging, transfers, entertainment, sightseeing
or any service reasonably related to air, sea, rail, motor coach or other
medium of transportation directly to the consumer. (L. 1985 H.B. 96, et
al., A.L. 1988 H.B. 988, A.L. 2002 H.B. 1041)

In addition to any other remedy by which such an agreement may
be rescinded or otherwise voided, a purchaser of a time-share plan or
time-share property has five days after the day of purchase to cancel the
purchase. Printed notice of this right to cancel shall be given to the
purchaser in writing with the use of 18-point boldface type in the
following manner:

NOTICE YOU HAVE THE RIGHT TO CANCEL THIS AGREEMENT WITHIN FIVE DAYS AFTER
THE DATE OF THIS AGREEMENT. CANCELLATION MUST BE IN WRITING AND IF SENT
BY MAIL, ADDRESSED TO THE OTHER CONTRACTING PARTY AS SHOWN ON THIS
AGREEMENT, CANCELLATION WILL BE ACCOMPLISHED AT THE MOMENT THE LETTER IS
POSTMARKED. IF SENT BY MAIL, THE LETTER MAY BE CERTIFIED WITH A RETURN
RECEIPT REQUESTED. YOUR RIGHT TO CANCEL CANNOT BE WAIVED. (L. 1985 H.B.
96, et al.)

Effective 5-31-85

1. If a purchaser is offered the opportunity to subscribe to any
exchange program, the developer shall, except as provided in subsection 2
of this section, deliver to the purchaser, prior to the execution of any
contract between the purchaser and the exchange company and the sales
contract, at least the following information regarding such exchange
program, and the purchaser shall certify, in writing, to the receipt of
such written information:

(1) The name and address of the exchange company;

(2) The names of all officers, directors, and shareholders owning five
percent or more of the outstanding stock of the exchange company;

(3) Whether the exchange company or any of its officers or directors has
any legal or beneficial interest in any developer or managing agent for
any time-share plan participating in the exchange program and, if so, the
name and location of the time-share plan and the nature of the interest;

(4) Unless the exchange company is also the developer or an affiliate, a
statement that the purchaser's contract with the exchange company is a
contract separate and distinct from the sales contract;

(5) Whether the purchaser's participation in the exchange program is
dependent upon the continued affiliation of the time-share plan with the
exchange program;

(6) Whether the purchaser's membership or participation, or both, in the
exchange program is voluntary or mandatory;

(7) A complete and accurate description of the terms and conditions of
the purchaser's contractual relationship with the exchange company and
the procedure by which changes thereto may be made;

(8) A complete and accurate description of the procedure to qualify for
and effectuate exchanges;

(9) A complete and accurate description of all limitations, restrictions,
or priorities employed in the operation of the exchange program,
including, but not limited to, limitations on exchanges based on
seasonality, unit size, or levels of occupancy, expressed in boldfaced
type, and, in the event that such limitations, restrictions, or
priorities are not uniformly applied by the exchange program, a clear
description of the manner in which they are applied;

(10) Whether exchanges are arranged on a space available basis and
whether any guarantees of fulfillment of specific requests for exchanges
are made by the exchange program;

(11) Whether and under what circumstances an owner, in dealing with the
exchange company, may lose the use and occupancy of his time-share in any
properly applied for exchange without his being provided with substitute
accommodations by the exchange company;

(12) The fees or range of fees for participation by owners in the
exchange program, a statement whether any such fees may be altered by the
exchange company, and the circumstances under which alterations may be
made;

(13) The name and address of the site of each time-share property,
accommodation or facility which is participating in the exchange program;

(14) The number of units in each property participating in the exchange
program which are available for occupancy and which qualify for
participation in the exchange program, expressed within the following
numerical groupings: 1-5, 6-10, 11-20, 21-50, and 51 and over;

(15) The number of owners with respect to each time-share plan or other
property which are eligible to participate in the exchange program
expressed within the following numerical groupings: 1-100, 101-249,
250-499, 500-999, and 1,000 and over; and a statement of the criteria
used to determine those owners who are currently eligible to participate
in the exchange program;

(16) The disposition made by the exchange company of time-shares
deposited with the exchange program by owners eligible to participate in
the exchange program and not used by the exchange company in effecting
exchanges;

(17) The following information, which, except as provided in subsection 2
of this section, shall be independently audited by a certified public
accountant or accounting firm in accordance with the standards of the
Accounting Standards Board of the American Institute of Certified Public
Accountants and reported for each year no later than July first of the
succeeding year, beginning no later than July 1, 1986:

(a) The number of owners enrolled in the exchange program. Such numbers
shall disclose the relationship between the exchange company and owners
as being either fee paying or gratuitous in nature;

(b) The number of time-share properties, accommodations or facilities
eligible to participate in the exchange program categorized by those
having a contractual relationship between the developer or the
association and the exchange company and those having solely a
contractual relationship between the exchange company and owners directly;

(c) The percentage of confirmed exchanges, which shall be the number of
exchanges confirmed by the exchange company divided by the number of
exchanges properly applied for, together with a complete and accurate
statement of the criteria used to determine whether an exchange request
was properly applied for;

(d) The number of time-shares for which the exchange company has an
outstanding obligation to provide an exchange to an owner who
relinquished a time-share during the year in exchange for a time-share in
any future year;

(e) The number of exchanges confirmed by the exchange company during the
year;

(18) A statement in boldfaced type to the effect that the percentage
described in paragraph (c) of subdivision (17) of this subsection is a
summary of the exchange requests entered with the exchange company in the
period reported and that the percentage does not indicate a
purchaser's/owner's probabilities of being confirmed to any specific
choice or range of choices, since availability at individual locations
may vary.

2. The information required by subsection 1 of this section shall be
accurate as of a date which is no more than thirty days prior to the date
on which the information is delivered to the purchaser; except that, the
information required by subdivisions (2), (3), (13), (14), (15) and (17)
of subsection 1 of this section shall be accurate as of December
thirty-first of the preceding year if the information is delivered
between July first and December thirty-first of any year; information
delivered between January first and June thirtieth of any year shall be
accurate as of December thirty-first of the year prior to the preceding
year. At no time shall such information be accurate as of a date which is
more than eighteen months prior to the date of delivery. All references
in this subsection to the word "year" shall mean calendar year.

3. In the event an exchange company offers an exchange program directly
to the purchaser or owner, the exchange company shall deliver to each
purchaser or owner, simultaneously with such offering and prior to the
execution of any contract between the purchaser or owner and the exchange
company, the information set forth in subsection 1 of this section. The
requirements of this subsection shall not apply to any renewal of a
contract between an owner and an exchange company.

4. Each exchange company shall include the statement set forth in
subdivision (18) of subsection 1 of this section on all promotional
brochures, pamphlets, advertisements, or other materials disseminated by
the exchange company which also contain the percentage of confirmed
exchanges described in paragraph (c) of subdivision (17) of subsection 1
of this section.

5. An exchange company shall, on or before July first of each year, file
with the attorney general and secretary of the association for the
time-share plan in which the time-shares are offered or disposed, the
information required by subsection 1 of this section with respect to the
preceding year. If the attorney general determines that any of the
information supplied fails to meet the requirements of this section, the
attorney general may undertake enforcement action against the exchange
company in accordance with the provisions of sections 407.600 to 407.630.
No developer shall have any liability arising out of the use, delivery or
publication by the developer of written information provided to it by the
exchange company pursuant to this section. Except for written information
provided to the developer by the exchange company, no exchange company
shall have any liability with respect to any representation made by the
developer relating to the exchange program or exchange company; or the
use, delivery or publication by the developer of any information relating
to the exchange program or exchange company. The failure of the exchange
company to observe the requirements of this section, or the use by it of
any unfair or deceptive act or practice in connection with the operation
of the exchange program, shall be a violation of sections 407.600 to
407.630.

6. The offering of an exchange program in this state in conjunction with
the offer or sale of time-shares in this state shall not constitute a
security under the laws of this state. (L. 1985 H.B. 96, et al.)

Effective 5-31-85

1. A time-share plan or time-share property is merchandise under
the provisions of this chapter and the sale or offering for sale of such
plans or property shall be subject to the provisions of sections 407.010
to 407.140, unless otherwise specifically provided in sections 407.600 to
407.630.

2. Violation of any provision of sections 407.600 to 407.620 is a class A
misdemeanor. (L. 1985 H.B. 96, et al.)

Effective 5-31-85

As used in sections 407.635 to 407.644, the following words and
phrases shall mean:

(1) "Buyer", an individual who is solicited to purchase or who purchases
the services of a credit services organization;

(2) "Consumer reporting agency" has the meaning assigned by section
603(f) of the federal Fair Credit Reporting Act, 15 U.S.C. Section
1681a(f);

(3) "Extension of credit", the right to defer payment of debt or to incur
debt and defer its payment offered or granted primarily for personal
family or household purposes. (L. 1991 S.B. 112 § 1)

1. A credit services organization is a person who, with respect
to the extension of credit by others and in return for the payment of
money or other valuable consideration, provides or represents that the
person can or will provide any of the following services:

(1) Improving the buyer's credit record, history or rating;

(2) Obtaining an extension of credit for a buyer; or

(3) Providing advice or assistance to a buyer with regard to subdivision
(1) or (2) of this subsection.

2. The following are exempt from the provisions of sections 407.635 to
407.644:

(1) A person authorized to make loans or extensions of credit under the
laws of this state or the United States who is subject to regulation and
supervision by this state or the United States, or a lender approved by
the United States Secretary of Housing and Urban Development for
participation in a mortgage insurance program under the federal National
Housing Act, 12 U.S.C. Section 1701, et seq.;

(2) A bank or savings and loan association whose deposits or accounts are
eligible for insurance by the Federal Deposit Insurance Corporation, or a
subsidiary of such a bank or savings and loan association;

(3) A credit union doing business in this state;

(4) A nonprofit organization exempt from taxation under section 501(c)(3)
of the Internal Revenue Code;

(5) A person licensed as a real estate broker or salesperson pursuant to
chapter 339, RSMo, acting within the course and scope of that license;

(6) A person licensed to practice law in this state acting within the
course and scope of the person's practice as an attorney;

(7) A broker-dealer registered with the Securities and Exchange
Commission or the Commodity Futures Trading Commission acting within the
course and scope of that regulation;

(8) A consumer reporting agency;

(9) A person whose primary business is making loans secured by liens on
real property;

(10) A person who is licensed as a certified public accountant pursuant
to chapter 326, RSMo, acting within the course and scope of that license;
or an individual who is enrolled to practice before the Internal Revenue
Service; or an accountant, who is accredited by the Accreditation Council
for Accountancy. (L. 1991 S.B. 112 § 2)

A credit services organization, a salesperson, agent or
representative of a credit services organization, or an independent
contractor who sells or attempts to sell the services of a credit
services organization may not:

(1) Charge a buyer or receive from a buyer money or other valuable
consideration before completing performance of all services the credit
services organization has agreed to perform for the buyer, unless the
credit services organization has obtained in accordance with section
407.639 a surety bond in the amount required by subsection 4 of section
407.639, issued by a surety company authorized to do business in this
state, or has established and maintained a surety account at a federally
insured bank or savings and loan association located in this state in
which the amount required by subsection 5 of section 407.639 is held in
trust as required by section 407.639;

(2) Charge a buyer or receive from a buyer money or other valuable
consideration solely for referral of the buyer to a retail seller who
will or may extend credit to the buyer if the credit that is or will be
extended to the buyer is substantially the same as that available to the
general public;

(3) Make or use a false or misleading representation in the offer or sale
of the services of a credit services organization, including:

(a) Guaranteeing to "erase bad credit" or words to that effect unless the
representation clearly discloses that this can be done only if the credit
history is inaccurate or obsolete; and

(b) Guaranteeing an extension of credit regardless of the person's
previous credit problem or credit history unless the representation
clearly discloses the eligibility requirements for obtaining an extension
of credit;

(4) Engage, directly or indirectly, in a fraudulent or deceptive act,
practice or course of business in connection with the offer or sale of
the services of a credit services organization;

(5) Make, or advise a buyer to make, a statement with respect to a
buyer's credit worthiness, credit standing, or credit capacity that is
false or misleading or that should be known by the exercise of reasonable
care to be false or misleading, to a consumer reporting agency or to a
person who has extended credit to a buyer or to whom a buyer is applying
for an extension of credit;

(6) Advertise or cause to be advertised, in any manner whatsoever, the
services of a credit services organization without filing a registration
statement with the director of finance, unless otherwise provided by this
chapter. (L. 1991 S.B. 112 § 3)

1. This section applies to a credit services organization
required by subdivision (1) of section 407.638 to obtain a surety bond or
establish a surety account.

2. If a bond is obtained, a copy of it shall be filed with the director
of finance. If a surety account is established, notification of the
depository, the trustee and the account number shall be filed with the
director of finance.

3. The bond or surety account required shall be in favor of the state for
the benefit of any person who is damaged by any violation of sections
407.635 to 407.644. The bond or surety account shall also be in favor of
any person damaged by such a violation.

4. Any person claiming against the bond or surety account for a violation
of sections 407.635 to 407.644 may maintain an action at law against the
credit services organization and against the surety or trustee. The
surety or trustee shall be liable only for damages awarded under
subdivision (1) of subsection 1 of section 407.644 and not the punitive
damages permitted under that section. The aggregate liability of the
surety or trustee to all persons damaged by a credit services
organization's violation of this chapter may not exceed the amount of the
surety account or bond.

5. The bond or the surety account shall be in the amount of ten thousand
dollars.

6. A depository holding money in a surety account under sections 407.635
to 407.644 shall not convey money in the account to the credit services
organization that established the account or a representative of the
credit services organization unless the credit services organization or
representative presents a statement issued by the director of finance
indicating that section 407.640* has been satisfied in relation to the
credit services organization. The director of finance may conduct
investigations and require submission of information as is necessary to
enforce this section.

7. The bond or surety account shall be maintained until two years after
the date that the credit services organization ceases operations. (L.
1991 S.B. 112 § 4)

*Original rolls contain reference to "subsection 6 of section 5"
(407.640), an apparent typographical error since section 407.640 does not
contain a subsection 6. All of section 407.640 seems germane to the
original reference.

1. A credit services organization shall file a registration
statement with the director of finance before conducting business in this
state. The registration statement must contain:

(1) The name and address of the credit services organization; and

(2) The name and address of any person who directly or indirectly owns or
controls ten percent or more of the outstanding shares of stock in the
credit services organization.

2. The registration statement must also contain either:

(1) A full and complete disclosure of any litigation or unresolved
complaint filed by or with a governmental authority of this state
relating to the operation of the credit services organization; or

(2) A notarized statement that states that there has been no litigation
or unresolved complaint filed by or with a governmental authority of this
state relating to the operation of the credit services organization.

3. The credit services organization shall update the statement not later
than the ninetieth day after the date on which a change in the
information required in the statement occurs.

4. Each credit services organization registering under this section shall
maintain a copy of the registration statement in the office of the credit
services organization. The credit services organization shall allow a
buyer to inspect the registration statement on request.

5. The director of finance may charge each credit services organization
that files a registration statement with the director of finance a
reasonable fee not to exceed one hundred dollars to cover the cost of
filing. The director of finance may not require a credit services
organization to provide information other than that provided in the
registration statement as part of the registration process. (L. 1991 S.B.
112 § 5)

1. Before executing a contract or agreement with a buyer or
receiving money or other valuable consideration, a credit services
organization shall provide the buyer with a statement in writing,
containing:

(1) A complete and detailed description of the services to be performed
by the credit services organization for the buyer and the total cost of
the services;

(2) A statement explaining the buyer's right to proceed against the bond
or surety account required by subdivision (1) of section 407.638;

(3) The name and address of the surety company that issued the bond, or
the name and address of the depository and the trustee, and the account
number of the surety account;

(4) A complete and accurate statement of the buyer's right to review any
file on the buyer maintained by a consumer reporting agency, as provided
by the federal Fair Credit Reporting Act, 15 U.S.C. Section 1681, et seq.;

(5) A statement that the buyer's file is available for review at no
charge on request made to the consumer reporting agency within thirty
days after the date of receipt of notice that credit has been denied, and
that the buyer's file is available for a minimal charge at any other time;

(6) A complete and accurate statement of the buyer's right to dispute
directly with the consumer reporting agency the completeness or accuracy
of any item contained in a file on the buyer maintained by that consumer
reporting agency;

(7) A statement that accurate information cannot be permanently removed
from the files of a consumer reporting agency;

(8) A complete and accurate statement of when consumer information
becomes obsolete and of when consumer reporting agencies are prevented
from issuing reports containing obsolete information; and

(9) A complete and accurate statement of the availability of nonprofit
credit counseling services.

2. The credit services organization shall maintain on file, for a period
of two years after the date the statement is provided, an exact copy of
the statement, signed by the buyer, acknowledging receipt of the
statement. (L. 1991 S.B. 112 § 6)

1. Each contract between the buyer and a credit services
organization for the purchase of the services of the credit services
organization must be in writing, dated, signed by the buyer and must
include:

(1) A statement in type that is boldfaced, capitalized, underlined, or
otherwise set out from surrounding written material so as to be
conspicuous, in immediate proximity to the space reserved for the
signature of the buyer, as follows: "YOU, THE BUYER, MAY CANCEL THIS
CONTRACT AT ANY TIME BEFORE MIDNIGHT OF THE THIRD DAY AFTER THE DATE OF
THE TRANSACTION. SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN
EXPLANATION OF THIS RIGHT";

(2) The terms and conditions of payment, including the total of all
payments to be made by the buyer, whether to the credit services
organization or to another person;

(3) A full and detailed description of the services to be performed by
the credit services organization for the buyer, including all guarantees
and all promises of full or partial refunds, and the estimated length of
time, not to exceed one hundred eighty days, for performing the services;
and

(4) The address of the credit services organization's principal place of
business and the name and address of its registered agent in the state
authorized to receive service of process.

2. The contract must have attached two easily detachable copies of a
notice of cancellation. The notice must be in boldfaced type and in the
following form:

"NOTICE OF CANCELLATION YOU MAY CANCEL THIS CONTRACT, WITHOUT ANY PENALTY
OR OBLIGATION, WITHIN THREE DAYS AFTER THE DATE THE CONTRACT IS SIGNED.
IF YOU CANCEL, ANY PAYMENT MADE BY YOU UNDER THIS CONTRACT WILL BE
RETURNED WITHIN TEN DAYS AFTER THE DATE OF RECEIPT BY THE SELLER OF YOUR
CANCELLATION NOTICE. TO CANCEL THIS CONTRACT, MAIL OR DELIVER A SIGNED
DATED COPY OF THIS CANCELLATION NOTICE, OR OTHER WRITTEN NOTICE TO:

(NAME OF SELLER) AT (ADDRESS OF SELLER) (PLACE OF BUSINESS) NOT LATER
THAN MIDNIGHT (DATE). I HEREBY CANCEL THIS TRANSACTION.

DATE: ..............................

BUYER'S SIGNATURE: ......................................."

3. The credit services organization shall give to the buyer a copy of the
completed contract and all other documents the credit services
organization requires the buyer to sign at the time they are signed.

4. The breach by a credit services organization of a contract under this
section, or of any obligation arising from a contract under this section,
is a violation of sections 407.635 to 407.644. (L. 1991 S.B. 112 § 7)

1. A credit services organization may not attempt to cause a
buyer to waive a right under sections 407.635 to 407.644.

2. A waiver by a buyer of any part of sections 407.635 to 407.644 is
void. (L. 1991 S.B. 112 § 8)

1. (1) A buyer injured by a violation of sections 407.635 to
407.644 may bring an action for recovery of damages. The damages awarded
may not be less than the amount paid by the buyer to the credit services
organization, plus reasonable attorney's fees and court costs.

(2) The buyer may also be awarded punitive damages.

2. The attorney general or a buyer may bring an action in a court of
competent jurisdiction to enjoin a violation of sections 407.635 to
407.644.

3. A violation of sections 407.635 to 407.644 is an unlawful practice
pursuant to sections 407.010 to 407.130, and the violator shall be
subject to all penalties, remedies and procedures provided in sections
407.010 to 407.130.

4. An action may not be brought under subsection 1 or 3 of this section
after four years after the date of the execution of the contract for
services to which the action relates.

5. A person who violates any provision of sections 407.635 to 407.644 is
guilty of a class B misdemeanor.

6. In an action under this section the burden of proving an exemption
under section 407.637 is on the person claiming the exemption.

7. The remedies provided by sections 407.635 to 407.644 are in addition
to other remedies provided by law. (L. 1991 S.B. 112 §§ 9 to 15)

Sections 407.660 to 407.665 shall be known and may be cited as
the "Rental-Purchase Agreement Law". (L. 1988 H.B. 988)

As used in sections 407.660 to 407.665 the following terms shall
mean:

(1) "Advertisement", the attempt by publication, dissemination,
solicitation, circulation, or any other means to induce, directly or
indirectly, any person to enter into any obligation or acquire any title
or interest in any merchandise, or any commercial message in any medium
that directly or indirectly promotes or assists a rental-purchase
agreement;

(2) "Cash price", the price for which the merchant would have sold the
merchandise to the consumer for cash on the date of the rental-purchase
agreement;

(3) "Consumer", an individual who leases personal property under a
rental-purchase agreement;

(4) "Merchandise", the personal property that is the subject of a
rental-purchase agreement;

(5) "Merchant", a person who, in the ordinary course of business,
regularly leases, offers to lease, or arranges for the leasing of
merchandise under a rental-purchase agreement;

(6) "Rental-purchase agreement", an agreement between a merchant and a
consumer for the use of merchandise by the consumer for personal, family,
or household purposes, for an initial period of four months or less that
is automatically renewable with each payment after the initial period,
and that permits the consumer to become the owner of the merchandise. A
rental-purchase agreement shall not be construed to be nor be governed by
any of the following:

(a) A lease or agreement which constitutes a credit sale as defined in 12
CFR 226.2(a)(16) and section 1602(g) of the Truth-in-Lending Act, 15
U.S.C. 1601 et seq.;

(b) A lease which constitutes a consumer lease as defined in 12 CFR
213.2(a)(6);

(c) Any lease for agricultural, business, or commercial purposes;

(d) Any lease made to an organization;

(e) A lease or agreement which constitutes a retail time contract or
retail time transaction as defined in subdivisions (14) and (15) of
section 408.250, RSMo;

(f) A security interest as defined in subdivision (37) of section
400.1-201, RSMo; or

(g) A home solicitation sale as that term is defined in section 407.700;

(7) "Period", a day, week, month, or other subdivision of a year. (L.
1988 H.B. 988)

1. A rental-purchase agreement shall be in the form of a written
statement and shall constitute the entire agreement between the merchant
and consumer. All amounts shall be stated in numerical figures.

2. A rental-purchase agreement may not contain a provision:

(1) Requiring a confession of judgment;

(2) Authorizing a merchant or an agent of the merchant to commit a breach
of the peace in the repossession of merchandise;

(3) Waiving a defense, counterclaim, or right the consumer may have
against the merchant or an agent of the merchant;

(4) Requiring the purchase of insurance from the merchant to cover the
merchandise;

(5) Requiring the payment of a late charge greater than five dollars for
each payment in default;

(6) Requiring a payment at the end of the scheduled rental-purchase term
in excess of, or in addition to, a regular periodic payment in order to
acquire ownership of the merchandise; or

(7) Requiring the consumer to pay rental payments greater than the total
amount to be paid to acquire ownership.

3. A rental-purchase agreement must disclose in 10-point boldface type:

(1) Whether the merchandise is new or used;

(2) The cash price of the merchandise;

(3) The total amount and number of payments necessary to acquire
ownership of the merchandise;

(4) The amount and timing of payments;

(5) That the consumer does not acquire ownership rights in the
merchandise until all payments have been made under the ownership terms
of the agreement;

(6) The amount and purpose of any payment, charge, or fee in addition to
the regular periodic payments;

(7) Whether the consumer is liable for loss or damage to the merchandise,
provided that the consumer's liability for loss or damage to the
merchandise shall be no greater than the disclosed cash price plus any
costs allowed by law;

(8) A statement of the conditions under which the lessee may terminate
the lease;

(9) A statement of whether any part of a manufacturer's warranty
continues to cover the rental property at the time the consumer assumes
ownership of the property;

(10) Notice of the right to reinstate an agreement; and

(11) A statement of the reinstatement rights provided for in section
407.664. (L. 1988 H.B. 988)

An advertisement for a rental-purchase agreement that refers to
or states the amount of the payment or the right to acquire ownership of
any one particular item under the agreement must clearly and
conspicuously state:

(1) That the transaction advertised is a rental-purchase agreement;

(2) The total amount and number of payments necessary to acquire
ownership of the merchandise; and

(3) That the consumer does not acquire ownership rights in the
merchandise until all payments have been made under the terms of the
agreement. (L. 1988 H.B. 988)

1. A consumer who fails to make timely rental payments has the
right to reinstate the original rental-purchase agreement without losing
any rights or options previously acquired under the rental-purchase
agreement within three rental terms after the expiration of the last
rental term for which the consumer made a timely payment if the consumer
surrenders the rental property to the merchant when the merchant or its
agent requests him to surrender the rental property.

2. Before reinstating a rental-purchase agreement, a merchant may require
a consumer to pay any unpaid rental payments, delinquency charges, a
reasonable reinstatement fee of not more than five dollars, and a
delivery charge if redelivery of the rental property is necessary.

3. If reinstatement occurs pursuant to this section, the merchant shall
provide the consumer with either the same property leased by the consumer
prior to reinstatement or substitute property that is of comparable
quality and condition. (L. 1988 H.B. 988)

1. A violation of any provision or requirement of sections
407.660 to 407.664 shall be deemed a violation of section 407.020 and any
person violating such provisions shall be subject to all penalties,
remedies and procedures provided in sections 407.010 to 407.145. The
attorney general shall have all powers, rights and duties regarding
violations of sections 407.660 to 407.665 as are provided in sections
407.010 to 407.145.

2. Notwithstanding subsection 1 of this section, any failure to comply
with any provision or requirement of sections 407.660 to 407.665 may be
corrected within ten days after the date of execution of the
rental-purchase agreement by the merchant, and, if so corrected, neither
the merchant or any holder of the executed rental-purchase agreement is
subjected to any penalty under the provisions of this chapter.

3. The provisions of sections 407.660 to 407.665 are not exclusive and do
not relieve the parties or the contracts subject thereto from compliance
with other applicable provisions of law nor shall such provisions bar any
civil claim against any person who has acquired any moneys or property,
real or personal, by means of any practice declared unlawful by any
provision of sections 407.660 to 407.665. (L. 1988 H.B. 988)

Sections 407.670 to 407.679 shall be known and may be cited as
the "Buyers Club Law". (L. 1988 H.B. 988)

As used in sections 407.670 to 407.679, the following terms
shall mean:

(1) "Business day", any day other than a Saturday, Sunday, or legal
holiday;

(2) "Buying service", "buying club", or "club", any person, corporation,
partnership, unincorporated association or other business enterprise
operating for profit within the state of Missouri, the primary purpose of
which is to provide benefits to members from the cooperative purchase of
services or merchandise;

(3) "Buyer" or "member", any status by which any natural person is
entitled to any of the benefits of a discount buying organization;

(4) "Contract", any written agreement by which one becomes a member of a
club;

(5) "Prepayment", any payment greater than fifty dollars for service,
merchandise or membership made before any service or merchandise is
rendered. Money received by a club from a financial institution upon
assignment of a contract shall be considered prepayment when and to the
extent the member is required to make prepayments to the financial
institution pursuant to the contract. (L. 1988 H.B. 988)

1. Any person who has elected to become a member of a club may
cancel such membership by giving written notice any time before midnight
of the third business day following the date on which membership was
attained. Such cancellation shall be without liability on the part of the
member and shall entitle the member to a refund of the entire
consideration paid for the contract.

2. Notice of cancellation shall be in writing and delivered personally or
by mail. If given by mail, the notice is effective upon deposit in a
mailbox, properly addressed and postage paid. Notice of cancellation need
not take a particular form and is sufficient if it indicates, by any form
of written expression, the intention of the member not to be bound by the
contract. If delivered personally, the notice is to be accepted by any
agent or employee of the club, and a receipt for the notice must be given
by that agent or employee to the person canceling.

3. The entitled refund shall be delivered to the member within fourteen
days after notice of cancellation is given.

4. Rights of cancellation may not be waived or otherwise surrendered.

5. Cancellation shall not relieve the member from paying for any
merchandise or services received prior to the date of cancellation. (L.
1988 H.B. 988)

1. A fully completed copy of every contract shall be delivered
to the member at the time the contract is signed. Every contract shall
constitute the entire agreement between seller and member, shall be in
writing, shall be signed by the member, shall designate the date on which
the member signed the contract and shall state, clearly and
conspicuously, in boldface type of minimum size of 14-points, in
immediate proximity to the space reserved for the signature of the buyer,
the following:

MEMBER'S RIGHT TO CANCEL If you wish to cancel this contract, you may
cancel by delivering or mailing a written notice to the company.
Certified mail would provide greater protection than first-class mail,
but is not necessary. If you deliver the notice personally, you are
entitled to a receipt. Your notice must make known that you do not wish
to be bound by the contract. If the notice is delivered or mailed before
midnight of the third business day after you sign this contract, you are
entitled to a refund of the entire consideration paid for the contract.
The notice must be delivered or mailed to
.............................................................. .

(Insert name and mailing address of company). If you cancel, the club is
required to return, within fourteen days of the date on which you give
notice of cancellation, any payments you have made.

2. Until the buying club has complied with this section, the member may
cancel the contract by notifying the buying club, in any manner and by
any means, of his intention to cancel and is then entitled to a refund of
the entire consideration paid for the contract. (L. 1988 H.B. 988)

1. Every contract shall provide that if any goods, except
furniture or custom manufactured goods, ordered by the member from the
buying club, are not delivered to the member or available for pick-up by
the member at the location where the order was placed within six weeks
from the date the member placed an order for such goods, then any payment
by the member for such goods in advance of delivery shall, upon the
member's request, be fully refunded, unless a predetermined delivery date
has been furnished to the member in writing at the time he or she ordered
such goods and the goods are delivered to the member or available for
pick-up by that date. Every contract shall disclose that delivery dates
for furniture or custom manufactured goods cannot be predicted, if such
is the case.

2. Every contract shall provide that all savings claims made by the
buying club are based on price comparisons with retailers doing business
in the trade area who sell or offer for sale the same or comparable goods
and at the prices the goods are actually sold or offered for sale by such
retailers.

3. Any contract which does not comply with subsections 1 and 2 of this
section shall be void and unenforceable. (L. 1988 H.B. 988)

No contract shall be valid for a term longer than twenty-four
months from the date upon which the contract is signed. However, a club
may allow a member to convert his contract into a contract for a period
longer than twenty-four months after the member has been a member of the
club for a period of at least six months. The duration of the contract
shall be clearly and conspicuously disclosed in the contract in boldface
type of a minimum size of 14-points. No contract shall contain an
automatic renewal clause; provided, however, that such an agreement may
provide for the buyer to exercise a renewal. (L. 1988 H.B. 988)

Sections 407.670 to 407.679 shall not apply to:

(1) Any buyers club in which the total consideration paid by each buyer
in any manner whatsoever for discount buying services does not exceed
fifty dollars over the expected life of the contract;

(2) Any buyers club in which persons receive discount buyer services
incidentally as part of a package of services provided to or available to
such individual on account of his membership in such organization, which
is not organized for the profit of any person or corporation or which
does not have as one of its primary purposes or businesses the provisions
of discount buying services; and

(3) Any buyers club which files with the office of the attorney general a
declaration, executed under penalty of perjury by the owner or manager of
such club, stating that the club does not require, or in the ordinary
course of business, receive prepayment. (L. 1988 H.B. 988)

1. It shall be a violation of section 407.020 for any buyers
club to fail to disclose to a prospective member in writing, prior to the
sale of any contract for discount buying services:

(1) That goods or services can only be bought through catalogs with no
opportunity to inspect samples;

(2) The buyers club's policies regarding warranties or guarantees on
goods ordered, return of ordered goods by buyers, procedures for
cancellation of merchandise orders by the buyer, and refunds of deposits
for the cancellation of orders;

(3) Any incidental charges, such as estimated freight costs, handling
fees, credit life or disability insurance, suppliers' and buyers clubs'
markup, and other costs incidental to the purchase of goods through the
buyers club and which are to be paid by the buyer;

(4) A list of the categories of merchandise which are available to the
buyers from cooperating suppliers. If the list includes savings claims
based on price comparisons, the savings claims must be based on price
comparisons with retailers doing business in the trade who sell or offer
for sale the same or comparable goods and at the prices the goods are
sold or offered for sale by such retailers;

(5) The percentage of the purchase price required as a down payment on
merchandise orders of any nature. This subdivision shall apply in all
cases where rebates are offered, regardless of whether such promised
rebates are contingent upon the seller's ability to enroll the referred
persons into the buyers club.

2. In addition, it shall be a violation of section 407.020 for a buying
club to:

(1) Represent that it is affiliated with any other buyers club
organization or showroom unless an affiliation in fact exists and unless
the prospective buyer would be legally entitled to services from the
allegedly affiliated organization as a result of being a buyer of the
buyers club. If such an affiliation is claimed by the representative of
the buyers club, written proof of such a binding legal right must be made
available to the prospective buyer, including a description of the
services available from the affiliated club, before the signing of any
contract for discount buying services or application;

(2) Represent that the prospective buyer will be entitled to a particular
benefit unless that benefit is currently available from the buyers club
on a regular basis;

(3) Offer any gifts or consideration of any nature to a prospective buyer
as a solicitation for said persons to attend a buyers club sales
presentation or to sign a membership application or a contract for
discount buying services where the club fails to honor or deliver the
gift or consideration in accordance with the term of its promise;

(4) Represent or suggest in any manner that it offers its buyers the
lowest prices, excluding freight and service charges, available on all
categories of merchandise handled by the club, unless such is true;

(5) Represent that merchandise is available to its buyer from any
particular supplier unless such is true at the time the representation is
made. Reference to unavailable suppliers or manufacturers may be made
only for purposes of allowing prospective buyers to compare merchandise
costs against those manufacturers which are available through the club.
No buyers club may represent to a prospective buyer, unless it is true,
that the club can purchase any item of merchandise at supplier's cost if
the buyer provides the club with the necessary model number for the item.
(L. 1988 H.B. 988)

Any waiver by the member of the provisions of sections 407.670
to 407.679 shall be deemed contrary to public policy and shall be void
and unenforceable. (L. 1988 H.B. 988)

1. A violation of any provisions or requirement of sections
407.670 to 407.678 shall be deemed a violation of section 407.020 and any
person violating such provisions shall be subject to all penalties,
remedies and procedures provided in sections 407.010 to 407.145. The
attorney general shall have all powers, rights and duties regarding
violations of sections 407.670 to 407.679 as are provided in sections
407.010 to 407.145.

2. The provisions of sections 407.670 to 407.679 are not exclusive and do
not relieve the parties or the contracts subject thereto from compliance
with all other applicable provisions of law nor shall such provisions bar
any civil claim against any person who has acquired any moneys or
property, real or personal, by means of any practice declared unlawful by
any provision of sections 407.670 to 407.679. (L. 1988 H.B. 988)

"Home solicitation sale" means a consumer credit sale of goods,
or services, except the sale of real property or interest therein, or the
sale of personal property which is incident to the sale of real property
or interest therein, in which the seller or a person acting for him
engages in a personal solicitation of the sale at a residence of the
buyer and the buyer's agreement or offer to purchase is there given to
the seller or a person acting for him. It does not include a sale made
pursuant to a preexisting revolving charge account, or a sale made
pursuant to prior negotiations between both parties present at a business
establishment at a fixed location where goods or services are offered or
exhibited for sale. (L. 1973 H.B. 61 & 367 § 1)

1. Except as provided in subsection 3 of this section, in
addition to any right otherwise to revoke an offer, the buyer has the
right to cancel a home solicitation sale until midnight of the third
business day after the day on which the buyer signs an agreement or offer
to purchase which complies with sections 407.700 to 407.720. For the
purposes of this section, the term "business day" shall mean any day
except Saturday, Sunday, and legal holidays.

2. Cancellation occurs when the buyer gives written notice of
cancellation to the seller at the address stated in the agreement or
offer to purchase. Notice of cancellation, if given by mail, is given
when it is deposited in a mailbox properly addressed and postage prepaid.
Notice of cancellation given by the buyer need not take a particular form
and is sufficient if it indicates by any form of written expression the
intention of the buyer not to be bound by the home solicitation sale.

3. The buyer may not cancel a home solicitation sale if:

(1) The buyer requests the seller to provide goods or services without
delay because of an emergency; and

(2) The seller in good faith makes a substantial beginning of performance
of the contract before the buyer gives notice of cancellation; and

(3) In the case of goods, the goods cannot be returned to the seller in
substantially as good condition as when received by the buyer. (L. 1973
H.B. 61 & 367 § 2, A.L. 1986 S.B. 685)

Effective 5-1-86

1. In a home solicitation sale, unless the buyer requests the
seller to provide goods or services without delay in an emergency, the
seller must present to the buyer and obtain his signature to a written
agreement or offer to purchase which designates as the date of the
transaction the date on which the buyer actually signs and contains a
statement of the buyer's rights which complies with subsection 2.

2. The statement must

(1) Contain in 10-point boldface type the following information and
statements;

"NOTICE OF CANCELLATION" (
............................................................ )

Date of transaction must be filled in at time of sale by seller; and

If this agreement was solicited at your residence and you do not want the
goods or services, you may cancel, without further obligation, this
agreement by mailing a notice to the seller at the address as shown
below, within 3 business days following the above date. You shall return
the goods to seller in substantially the same condition as when you
obtained them. Seller will then cancel all contracts and negotiable
instruments executed by you and return any property given by you to
seller within 10 days from date of transaction. If seller does not pick
up the purchased goods within 20 days from date of your cancellation, you
may retain or dispose of the goods without any further obligation. The
notice must be mailed to: (..........) Name and mailing address of seller
must be filled in at time of sale.

(2) A home solicitation sales contract which contains the notice of
cancellation forms and content provided in the Federal Trade Commission's
trade regulation rule providing a cooling-off period for door-to-door
sales shall be deemed as complying with the requirements of subsection 2
herein so long as the Federal Trade Commission language provides at least
equal information to the consumer concerning his right to cancel as is
required by sections 407.700 to 407.720.

3. Until the seller has complied with this section the buyer may cancel
the home solicitation sale by notifying the seller in any manner and by
any means of his intention to cancel. (L. 1973 H.B. 61 & 367 § 3)

1. Except as provided in this section, within ten days after a
home solicitation sale has been canceled the seller must tender to the
buyer any payments made by the buyer and any note or other evidence of
indebtedness with the word "canceled" stamped conspicuously on the face.

2. If the down payment includes goods traded in, the goods must be
tendered in substantially as good condition as when received by the
seller. If the seller fails to tender the goods as provided by this
section, the buyer may elect to recover an amount equal to the trade-in
allowance stated in the agreement.

3. Until the seller has complied with the obligations imposed by this
section the buyer may retain possession of goods delivered to him by the
seller and has a lien on the goods in his possession or control for any
recovery to which he is entitled. (L. 1973 H.B. 61 & 367 § 4)

1. Except as provided by the provision of section 407.715,
within a reasonable time after a home solicitation sale has been canceled
the buyer upon demand must tender to the seller any goods delivered by
the seller pursuant to the sale but he is not obligated to tender at any
place other than his residence. If the seller fails to demand possession
of goods within a reasonable time after cancellation the goods become the
property of the buyer without obligation to pay for them. For the purpose
of this section, twenty days is presumed to be a reasonable time.

2. The buyer has a duty to take reasonable care of the goods in his
possession before cancellation or revocation and for a reasonable time
thereafter, during which time the goods are otherwise at the seller's
risk.

3. If the seller has performed any services pursuant to a home
solicitation sale prior to its cancellation, the seller is entitled to no
compensation. (L. 1973 H.B. 61 & 367 § 5)

As used in sections 407.730 to 407.748, the following terms mean:

(1) "Advertisement", oral, written, graphic or pictorial statements made
in the course of solicitation of business including, without limitation,
any statement or representation made in a newspaper, magazine, the car
rental company's proprietary web site, or other publication, or contained
in any notice, sign, poster, display, circular, pamphlet, or letter which
may collectively be called "print advertisements", or on radio or
television, which may be referred to as "broadcast commercials";

(2) "Authorized driver":

(a) The renter;

(b) The renter's spouse if the spouse is a licensed driver and satisfies
the car rental company's minimum age requirement;

(c) The renter's employee or co-worker if they are engaged in business
activity with the person to whom the vehicle is rented, are licensed
drivers, and satisfy the rental company's minimum age requirements;

(d) Any person who operates the vehicle during an emergency situation; and

(e) Any person expressly listed by the car rental company on the renter's
contract as an authorized driver;

(3) "Blackout date", any date on which an advertised price is totally
unavailable to the public;

(4) "Car rental company", any person or entity in the business of renting
private passenger vehicles to the public;

(5) "Car rental insurance", products and services that are offered in
connection with and incidental to the rental of a motor vehicle under
subdivision (10) of subsection 1 of section 375.786, RSMo. This
definition of optional car rental insurance or any other definition of
insurance shall not include collision damage waiver;

(6) "Clear and conspicuous", that the statement, representation or term
being disclosed is of such size, color contrast, and audibility and is so
presented as to be readily noticed and understood by the person to whom
it is being disclosed. All language and terms should be used in
accordance with their common or ordinary usage and meaning;

(7) "Collision damage waiver", any product a consumer purchases from a
car rental company in order to waive all or part of his responsibility
for damages, or loss of, a rental vehicle;

(8) "Limited time availability", that the advertised rental price is only
available for a specific period of time or that the price is not
available during certain blackout periods;

(9) "Mandatory charge", any charge, fee, or surcharge consumers must
generally pay in order to obtain or operate a rental vehicle;

(10) "Master rental agreement", those documents used by a car rental
company for expedited service to members in a program sponsored by the
car rental company in which renters establish a profile and select
preferences for rental needs which establish the terms and conditions
governing the use of a rental car rented by a car rental company by a
participant in a master rental agreement;

(11) "Material restriction", a restriction, limitation or other
requirement which significantly affects the price of, use of, or a
consumer's financial responsibility for a rental car;

(12) "Rental agreement", any document or combination of documents, which,
when read together and incorporated by reference to each other, relate to
and establish the terms and conditions of the rental of a motor vehicle
by an individual; or when such a combination of documents is entered into
as part of any written master, corporate, group or individual agreement
setting forth the terms and conditions governing the use of a rental car
rented by a car rental company. (L. 1989 H.B. 893 § 1, A.L. 2004 H.B.
1285 merged with S.B. 1233, et al.)

1. Any advertisement shall be nondeceptive and in plain
language. Deception may result not only from a direct statement in the
advertisement and from reasonable inferences therefrom, but also from
omitting or obscuring a material restriction or fact.

2. Print advertisements that include prices for car rentals shall make
clear and conspicuous disclosure of the following applicable restrictions:

(1) The expiration date of the price offered if it is available for less
than thirty days after the last date of publication of the advertisement;

(2) The existence of any geographical limitations on use;

(3) The extent of any advance reservation or advance payment requirements;

(4) Airport access fee disclosure;

(5) The existence of any penalties or higher rates that may apply for
early or late returns for weekly or weekend rentals;

(6) Existence of additional driver fee;

(7) The existence of blackout dates or specific blackout dates for
location specific advertisements;

(8) Nonavailability of offer at all locations;

(9) Disclosure of mileage caps and charges;

(10) Disclosure of collision damage waiver costs.

Print advertisements that include prices for car rentals, where mileage
fees apply to the advertised price, shall prominently disclose this
extraordinary material restriction. Print advertisements that include
prices for car rentals, where a company sells collision damage waiver to
the public and does not include this cost in the advertised rate, shall
prominently disclose the price for collision damage waiver.

3. Broadcast commercials that include prices shall indicate whether
substantial restrictions apply and shall include:

(1) The expiration date of the price offered if the advertised price is
available for less than thirty days;

(2) Nonavailability of the advertised price in certain locations if that
is the case;

(3) Mileage limitations and charges, if any;

(4) Price or price range for collision damage waiver.

4. Any advertised price shall be available in sufficient quantity to meet
reasonably expected public demand for the rental cars advertised for the
entire advertised period, beginning on the day on which the advertisement
appears and continuing at least thirty days thereafter, unless the
advertisement clearly and conspicuously discloses a shorter or longer
expiration date for the offer, and in that event, through the expiration
date. Prices may be advertised although less cars are available than
would be required to meet the expected demand, as long as this limitation
is clearly and conspicuously set forth in the advertisement and a
reasonable number of cars are made available at the advertised price.

5. Any surcharge or fee, including, but not limited to, fuel surcharges,
airport access fees, and surcharges in lieu of sales tax that consumers
must generally pay at any location in order to obtain or operate a rental
vehicle shall be clearly and conspicuously disclosed when a price is
advertised.

6. A photograph of a rental car shall not be used in a price
advertisement unless the advertisement clearly and conspicuously
discloses, in immediate proximity to the photograph, the cost to rent the
car depicted. A photograph of a rental car shall not be used in an
advertisement if the advertisement states directly or by implication that
the automobile depicted may be rented under certain conditions and that
is not the case.

7. Any price advertised as a "daily price" or "price per day" shall be
available for rentals of a single day or more, and any price advertised
as a "weekly" rate shall be available for the first week and for
subsequent weeks of the same rental. A rental company shall not charge
more than a weekly price which was advertised if a customer on a weekly
rental returns the car earlier than seven days. A price advertised as a
"weekend rate" shall be available on both Saturday and Sunday.

8. Any car rental advertising promotion which extends a free offer or
promises a gift or other incentive shall clearly and conspicuously
disclose all the terms and conditions for receiving the offer, gift or
incentive. A gift, incentive, or other merchandise or service shall not
be advertised as free, if the cost of the item, in whole or in part, is
included in the advertised rental rate. If the gift or offer is provided
by a third party, the car rental company shall be fully responsible for
providing the gift or offer under the terms and conditions disclosed.

9. A rental car shall not be advertised using the words "unlimited
mileage" or other terms that suggest there are absolutely no mileage
restrictions on the use of the rental vehicle only unless there are no
geographical restrictions on the use of the vehicle.

10. At the time of the car rental transaction, the car rental company
shall disclose the following:

(1) The total cost, including any airport access fees;

(2) Geographical limitations;

(3) Advance reservation or payment requirements;

(4) Penalties or higher rates that may apply for early or late returns
for weekly or weekend rentals;

(5) Cost of additional driver fee;

(6) Blackout dates. (L. 1989 H.B. 893 § 2)

1. Any business practices utilized by car rental companies in
furtherance of their business of renting vehicles to the public shall be
nondeceptive, fair and shall not be unconscionable.

2. Any collision damage waiver product offered for sale to the public
shall not contain any provisions that are deceptive, unfair or
unconscionable. It is deceptive, unfair, and unconscionable to require a
consumer to assume absolute liability for damage or loss up to the total
value of a rental vehicle regardless of fault as a condition of the
rental agreement, and then not include as part of any collision damage
waiver product, a waiver of liability for any damage or loss which occurs
as a result of the consumer's ordinary negligence, except where:

(1) The damage is caused intentionally by an authorized driver or as a
result of his willful and wanton misconduct;

(2) The damage arises out of the authorized driver's operation of the
vehicle while intoxicated or under the influence of any illegal or
unauthorized drug;

(3) The rental transaction is based on fraudulent information supplied by
the renter;

(4) The damage arises out of the use of the vehicle while committing or
otherwise engaged in a criminal act in which the automobile usage is
substantially related to the nature of the criminal activity;

(5) The damage arises out of the use of the vehicle to carry persons or
property for hire;

(6) The damage occurs while the vehicle is operated by a person other
than an authorized driver as defined in section 407.730;

(7) The damage arises out of the use of the vehicle outside of the United
States unless such use is specifically authorized by the rental agreement;

(8) Towing or pushing anything or if operation of the vehicle on an
unpaved road has resulted in damage or loss which is a direct result of
the road or driving conditions;

(9) Loss due to the theft of the rental vehicle. However, the renter
shall be presumed to have no liability for any loss due to theft if:

(a) An authorized driver has possession of the ignition key furnished by
the rental company or an authorized driver establishes that the ignition
key furnished by the car rental company was not in the vehicle at the
time of the theft; and

(b) An authorized driver files an official report of the theft with the
police or other law enforcement agency within twenty-four hours of
learning of the theft and reasonably cooperates with the car rental
company and the police or other law enforcement agency in providing
information concerning the theft.

The presumption set forth in this paragraph is a presumption affecting
the burden of proof which the car rental company may rebut by
establishing that an authorized driver committed, or aided and abetted
the commission of, the theft.

3. Any claim resulting from damage to or loss of a rental vehicle shall
be reasonably and rationally related to the actual loss incurred. The car
rental company shall not assert or collect any claim for physical or
mechanical damage to or loss of a rental vehicle which exceeds: the
actual cash value of the vehicle immediately before the loss less any
proceeds from the vehicle's disposal after the loss, or the actual cost
to repair the damaged vehicle including all discounts or price
reductions, whichever is less. Such claim shall be based on an estimate
of damage or repair invoice made by an independent appraisal company, an
insurance company, or a repair facility that completed or would complete
the repairs. A car rental company's charge for loss of use shall not
exceed a reasonable estimate of the actual income lost.

4. It is a deceptive and unfair practice for a car rental company or
employee to knowingly and intentionally misrepresent any material element
of a rental agreement transaction including the sale of collision damage
waiver and car rental insurance. The company shall disclose in the rental
agreement the extent of the consumer's liability for the vehicle and
applicable mileage limitations and charges. When the consumer elects the
collision damage waiver or car rental insurance, the price for collision
damage waiver and car rental insurance shall appear on the rental
agreement. A car rental company shall not require the purchase of
collision damage waiver or car rental insurance. No car rental company
shall sell to a consumer or offer to sell a consumer a collision damage
waiver or car rental insurance as a part of the rental agreement unless
the car rental company provides the consumer with the following written
notice:

COLLISION DAMAGE WAIVER AND CAR RENTAL INSURANCE NOTICE: OUR CONTRACT
OFFERS FOR AN ADDITIONAL CHARGE COLLISION DAMAGE WAIVER AND CAR RENTAL
INSURANCE PRODUCTS. BEFORE DECIDING WHETHER TO PURCHASE ANY OF THESE
OPTIONAL PRODUCTS, YOU MAY WISH TO DETERMINE WHETHER YOUR PERSONAL
INSURANCE OR CREDIT CARD PROVIDES YOU COVERAGE DURING THE RENTAL PERIOD.
THE PURCHASE OF ANY OF THESE OPTIONAL PRODUCTS IS NOT REQUIRED TO RENT A
VEHICLE. Such notice shall be made on the face of the rental agreement as
part of the written contract and shall be set apart in boldface type and
in no smaller print than ten-point type, and shall include a space for
the consumer to acknowledge his receipt of this notice. This notice
requirement shall be deemed satisfied if this written notice appears in
materials furnished to a consumer during the enrollment process into a
master rental agreement. This notice provision is deemed complied with
for all consumers who have previously enrolled into a master rental
agreement prior to August 28, 2004, and no further notice shall be
required.

5. The car rental company shall provide a notice at the rental office in
the form of a sign, placard, or brochure that informs the consumer of the
following:

(1) The availability of collision damage waiver;

(2) The availability of car rental insurance;

(3) A statement that the purchase of collision damage waiver and/or car
rental insurance is not required in order to rent.

The following language may be used to comply with the requirements of
this section, but shall not be considered the exclusive language that may
be used:

COLLISION DAMAGE WAIVER AND CAR RENTAL INSURANCE NOTICE:

Our contract offers for an additional charge optional products which
provide you protection during your rental, including:

1. Collision Damage Waiver: You are responsible for all damages to or
loss of the rental vehicle. A Collision Damage Waiver will relieve you of
responsibility for all or part of the damage to the rental vehicle that
may occur during the rental period.

2. Personal Accident Insurance: Personal Accident Insurance provides
accidental death and accident medical insurance that protects you during
the rental period in or out of the rental vehicle and your passengers
while in the rental vehicle.

3. Personal Effects Coverage: Personal Effects Coverage protects your
possessions from loss or damage during the rental period.

4. Liability Insurance: Liability Insurance provides protection to cover
injuries or death to third parties or damage to a third party's property
if you are at fault in an accident with the rental vehicle during the
rental period.

Before deciding to purchase any of these optional products, you may wish
to determine whether your personal insurance or credit card provides you
coverage during the rental period.

The purchase of any of these products is not required to rent a vehicle.

6. Car rental companies shall not place a hold against a consumer's
credit limit or charge a consumer's credit card in a deceptive or unfair
manner, and without full and complete disclosure of such practice.

7. The remedies for any violation by a car rental company of any
provision of sections 407.730 to 407.735, or for any conduct, act, or
practice prescribed by any provisions of sections 407.730 to 407.735,
shall be injunctive relief and monetary damages in an amount not to
exceed fifty dollars for each violation. The aggregate amount of monetary
damages which may be assessed against a car rental company for violations
of any provisions of sections 407.730 to 407.735, or for any conduct,
act, or practice prescribed by any provisions of sections 407.730 to
407.735, shall not exceed the sum of one hundred thousand dollars in the
aggregate during any calendar year. (L. 1989 H.B. 893 § 3, A.L. 2003 S.B.
207, A.L. 2004 H.B. 1285 merged with S.B. 1233, et al.)

1. Any one or more of the following persons who suffers any
damage proximately resulting from one or more acts of unlawful motor
vehicle subleasing, as described in section 407.742 may bring an action
in the circuit court in the county in which the defendant resides, has
his principal place of business, or where an act of unlawful motor
vehicle subleasing occurred against the person who has engaged in those
acts:

(1) A seller or other secured party under a conditional sale contract or
a security agreement;

(2) A lender under a direct loan agreement;

(3) A lessor under a lease contract;

(4) A buyer under a conditional sale contract;

(5) A purchaser under a direct loan agreement, an agreement which
provides for a security interest, or an agreement which is equivalent to
these types of agreements;

(6) A lessee under a lease contract;

(7) An actual or purported transferee or assignee of any right or
interest of a buyer, a purchaser, or a lessee.

2. The circuit court in an action under subsection 1 of this section may
award, in its discretion, actual damages; punitive damages; reasonable
attorney's fees and costs to the prevailing party; equitable relief,
including, but not limited to, an injunction and restitution of money and
property; and any other equitable relief which the court deems proper.

3. As used in sections 407.738 to 407.745, the following terms have the
following meanings:

(1) "Buyer" has the meaning set forth in subdivision (9) of section
365.010, RSMo;

(2) "Conditional sale contract" means:

(a) Any contract for the sale of a motor vehicle between a buyer and a
seller, with or without accessories, under which possession is delivered
to the buyer but the title vests in the buyer thereafter only upon the
payment of all or part of the price, or upon the performance of any other
condition; or

(b) Any contract for the bailment or leasing of a motor vehicle between a
buyer and a seller, with or without accessories, by which the bailee or
lessee agrees to pay as compensation for use a sum substantially
equivalent to or in excess of the aggregate value of the vehicle and its
accessories, if any, at the time the contract is executed, and by which
it is agreed that the bailee or lessee will become, or for no other
consideration or for a nominal consideration has the option of becoming,
the owner of the vehicle upon full compliance with the terms of the
contract; or

(c) Any contract for the sale of a motor vehicle between a buyer and a
seller, with or without accessories, under which possession is delivered
to the buyer, and a lien on the property is to vest in the seller as
security for the payment of part or all of the price, or for the
performance of any other condition;

(d) Conditional sale contract includes any contract for the sale or
bailment of a motor vehicle between a buyer and a seller primarily for
business or commercial purposes;

(3) "Direct loan agreement" means an agreement between a lender and a
purchaser whereby the lender has advanced funds pursuant to a loan
secured by the motor vehicle which the purchaser has purchased;

(4) "Lease contract" means a lease contract between a lessor or bailor
and a lessee or bailee including a lease for business or commercial
purposes;

(5) "Motor vehicle" means any vehicle required to be registered pursuant
to chapter 301, RSMo;

(6) "Person" has the meaning set forth in subdivision (5) of section
407.010;

(7) "Purchaser", has the meaning set forth in subdivision (33) of section
400.1-201, RSMo;

(8) "Security agreement" and "secured party" have the meanings set forth,
respectively, in paragraphs (h) and (i) of subdivision (1) of section
400.9-105, RSMo. "Security interest" has the meaning set forth in
subdivision (37) of section 400.1-201, RSMo;

(9) "Seller" has the meaning set forth in subdivision (12) of section
365.020, RSMo, and includes the present holder of the conditional sale
contract.

4. The rights and remedies provided in sections 407.738 to 407.745 are in
addition to any other rights and remedies provided by law. (L. 1989 H.B.
893 § 4)

1. Any person who willfully and knowingly engages in unlawful
subleasing of a motor vehicle, as defined in section 407.742, shall be
guilty of a class D felony. It shall be the duty of each prosecuting
attorney and circuit attorney in their respective jurisdictions to
commence any criminal actions under sections 407.738 to 407.745, and the
attorney general shall have concurrent original jurisdiction to commence
such criminal actions throughout the state where such violations have
occurred.

2. Whenever it appears to the attorney general that a person has engaged
in, is engaging in, or is about to engage in unlawful subleasing of a
motor vehicle, he may bring an action pursuant to section 407.100 for an
injunction prohibiting such person from continuing such methods, uses,
acts, or practices, or engaging therein, or doing anything in furtherance
thereof. In any action brought by the attorney general under this
subsection, all of the provisions of sections 407.100 to 407.140 shall
apply thereto. (L. 1989 H.B. 893 § 5)

A person engages in an act of unlawful subleasing of a motor
vehicle if all of the following conditions are met:

(1) The motor vehicle is subject to a lease contract, conditional sale
contract, or security agreement the terms of which prohibit the transfer
or assignment of any right of interest in the motor vehicle or under the
lease contract, conditional sale contract, or security agreement;

(2) The person is not a party to the original lease contract, conditional
sale contract, or security agreement;

(3) The person transfers or assigns, or purports to transfer or assign,
or assists, causes, or arranges an actual or purported transfer or
assignment of any right or interest in the motor vehicle or under the
lease contract, conditional sale contract, or security agreement, to any
person who is not a party to the original lease contract, conditional
sale contract, or security agreement;

(4) The person does not obtain, prior to the transfer or assignment
described in subdivision (3) of this section, written consent to the
transfer or assignment from the motor vehicle's lessor, seller, or
secured party;

(5) The person receives compensation or some other consideration for the
transfer or assignment described in subdivision (3) of this section. (L.
1989 H.B. 893 § 6)

1. The actual or purported transfer or assignment, or the
assisting, causing, or arranging of an actual or purported transfer or
assignment, of any right or interest in a motor vehicle or under a lease
contract, conditional sale contract, or security agreement, by an
individual who is a party to the original lease contract, conditional
sale contract, or security agreement is not an act of unlawful subleasing
of a motor vehicle and is not subject to prosecution.

2. Sections 407.730 to 407.748 shall not affect the enforceability of any
provision of any lease contract, conditional sale contract, security
agreement, or direct loan agreement by any party thereto. (L. 1989 H.B.
893 § 7)

1. Violation of any provision of sections 407.730 to 407.748
shall be deemed an unlawful practice under sections 407.010 to 407.130,
and shall be subject to all penalties, remedies and procedures provided
in sections 407.010 to 407.130. The attorney general shall have all
powers, rights and duties regarding violations of sections 407.730 to
407.748 as are provided in sections 407.010 to 407.130, in addition to
rulemaking authority as provided in section 407.145.

2. The provisions of sections 407.730 to 407.748 are not exclusive. The
remedy specified in sections 407.730 to 407.748 for violation of any
section of sections 407.730 to 407.748 or for conduct described by any
section of sections 407.730 to 407.748 shall be in addition to any other
procedures or remedies for any violation or conduct provided for in any
other law. Nothing in sections 407.730 to 407.748 shall limit any other
statutory or any common law rights of the attorney general, any circuit
attorney or prosecuting attorney, or any other person. If any act or
practice prescribed by sections 407.730 to 407.748 is also the basis for
a cause of action in common law or a violation of another statute, the
purchaser may assert the common law or statutory cause of action under
the procedures and with the remedies applicable thereto.

3. If any provision of sections 407.730 to 407.748 or any rule or
regulation made thereunder, or the application thereof to any person or
circumstances is held invalid by the court of competent jurisdiction, the
remainder of sections 407.730 to 407.748, rule or regulation and the
application of such provision to other persons or circumstances shall not
be affected thereby. (L. 1989 H.B. 893 § 8)

1. Any manufacturer, wholesaler or distributor of industrial,
maintenance and construction power equipment used for industrial,
maintenance and construction applications and repair parts therefor, who
enters into a written or parol contract with any person, firm, or
corporation engaged in the business of selling and repairing industrial,
maintenance and construction power equipment used for industrial,
maintenance and construction applications and repair parts therefor,
whereby such retailer agrees to maintain a stock of parts or complete or
whole machines or attachments, shall not terminate, cancel, or fail to
renew any such contract without good cause. "Good cause" means failure by
the retailer to substantially comply with essential and reasonable
requirements imposed upon the retailer by the contract if such
requirements are not different from those requirements imposed on other
similarly situated retailers either by their terms or in the manner of
their enforcement. In addition, good cause shall exist whenever:

(1) The retailer has transferred an interest in the retailer business
without the manufacturer's, wholesaler's or distributor's written
consent, or there has been a withdrawal from the retailer's business of
an individual proprietor, partner, major shareholder, or the manager of
the retailer's business, or there has been a substantial reduction in
interest of a partner or major stockholder without the written consent of
the manufacturer, wholesaler, or distributor;

(2) The retailer has filed a voluntary petition in bankruptcy or has had
an involuntary petition in bankruptcy filed against it which has not been
discharged within thirty days after the filing, or there has been a
closeout or sale of a substantial part of the retailer's assets related
to the retailer's business or there has been a commencement or
dissolution or liquidation of the retailer's business;

(3) There has been a change, without the prior written approval of the
manufacturer, wholesaler, or distributor, in the location of the
retailer's principal place of business under the retailer's agreement
with the manufacturer, wholesaler, or distributor;

(4) The retailer has defaulted under any chattel mortgage or other
security agreement between the retailer and the manufacturer, wholesaler,
or distributor, or there has been a revocation or discontinuance of any
guarantee of the retailer's present or future obligations to the
manufacturer, wholesaler, or distributor;

(5) The retailer has failed to operate in the normal course of business
for seven consecutive days or has otherwise abandoned his business,
except for reasonable and customary closures of business;

(6) The retailer has pleaded guilty to or has been convicted of a felony
affecting the relationship between the retailer and the manufacturer,
wholesaler, or distributor;

(7) The retailer has engaged in conduct which is injurious or detrimental
to the retailer's customers or the public welfare;

(8) The retailer has consistently failed to meet the manufacturer's,
wholesaler's or distributor's requirements for reasonable market
penetration based on the manufacturer's, wholesaler's, or distributor's
experience in other comparable marketing areas.

2. Except as otherwise provided in this section, a supplier shall provide
a retailer at least ninety-days prior written notice of termination,
cancellation, or nonrenewal of the contract. The notice shall state all
reasons constituting good cause for termination, cancellation or
nonrenewal and shall provide that the dealer has sixty days in which to
cure any claimed deficiency. If the deficiency is rectified within sixty
days the notice shall be void. The notice and right-to-cure provisions
under this section shall not apply if the reason for termination,
cancellation or nonrenewal is for any reason set forth in subdivisions
(1) to (8) of this section. (L. 1991 S.B. 241 § 4)

The obligations of any wholesaler, manufacturer or distributor
created by the provisions of sections 407.750 to 407.754 apply to any
successor in interest or assignee of that wholesaler, manufacturer, or
distributor. A "successor in interest" includes any purchaser of
substantially all of the assets or over fifty percent of the stock, any
surviving corporation resulting from a merger or liquidation, any
receiver, or any trustee of the original wholesaler, manufacturer or
distributor. (L. 1991 S.B. 241 § 5)

If a manufacturer, wholesaler or distributor violates any
provisions of sections 407.753 and 407.754, a retailer may bring an
action against such manufacturer, wholesaler, or distributor in any court
of competent jurisdiction for damages sustained by the retailer as a
consequence of the violation, together with the actual costs of the
action, including reasonable attorney's fees. The court may award court
costs and reasonable attorney fees to the prevailing party. The remedies
set forth in this section shall not be deemed exclusive and shall be in
addition to any other remedies permitted by law. (L. 1991 S.B. 241 § 6)

The provisions of sections 407.750 to 407.756 shall apply to all
continuing or nonrenewable contracts and all other contracts entered
into, amended, or renewed after August 28, 1991. Any contract in force
and effect on August 28, 1991, which, by its terms, will terminate on a
date subsequent thereto, is governed by the law as it existed before
August 28, 1991.

(L. 1991 S.B. 241 § 7)

Any person, except a licensed auctioneer as defined in section
343.010, RSMo, who advertises or conducts a going-out-of-business sale or
any sale of merchandise which indicates the person conducting the sale is
terminating or liquidating the person's trade, commerce or business for
any reason shall inform the attorney general, in writing, not less than
ten days prior to the sale of the duration of the sale by indicating the
first and last days of the sale. Any person who informs the attorney
general that the person is going to conduct a going-out-of-business sale
shall submit to the attorney general information regarding the items
which will be offered for sale during the going-out-of-business sale. The
inventory shall not be supplemented after the beginning of such sale. The
going-out-of-business sale shall not exceed a period of sixty days unless
an extension has been registered with the attorney general's office by
affidavit. Such affidavit shall indicate the duration of such extension
and the reasons therefor, and the time extension shall not exceed a
reasonable time period as determined by the attorney general based upon
the information provided to the attorney general by the person conducting
the sale. Any affidavit supporting the request for an extension shall
describe the efforts made by the person and the person's plan to dispose
of such sale items, and shall state why the items remain unsold, and
shall contain any other information requested by the attorney general. A
violation of this section shall be considered a violation of section
407.020 and shall be remedied pursuant to section 407.100. If the
attorney general fails to take action within one hundred twenty days
after a violation of this section occurs, the prosecuting attorney or
circuit attorney of the appropriate jurisdiction may take action as
provided in sections 407.020 and 407.100. (L. 1980 H.B. 993, A.L. 1986
S.B. 685, A.L. 1995 H.B. 558)

Sections 407.810 to 407.835 shall be known and may be cited as
the "Motor Vehicle Franchise Practices Act". (L. 1980 H.B. 1600 § 1)

(1990) Franchisee was not entitled to punitive damages where franchisee
did not allege or prove existence of independent, willful tort. (E.D.Mo.)
Tom Papas Toyota v. Toyota Motor Distributors, 729 F.Supp. 71).

As used in sections 407.810 to 407.835, unless the context
otherwise requires, the following terms mean:

(1) "Administrative hearing commission", the body established in chapter
621, RSMo, to conduct administrative hearings;

(2) "All-terrain vehicle", any motorized vehicle manufactured and used
exclusively for off-highway use which is fifty inches or less in width,
with an unladen dry weight of six hundred pounds or less, traveling on
three, four or more low pressure tires, with a seat designed to be
straddled by the operator, and handlebars for steering control;

(3) "Coerce", to force a person to act in a given manner or to compel by
pressure or threat but shall not be construed to include the following:

(a) Good faith recommendations, exposition, argument, persuasion or
attempts at persuasion;

(b) Notice given in good faith to any franchisee of such franchisee's
violation of terms or provisions of such franchise or contractual
agreement;

(c) Any other conduct set forth in section 407.830 as a defense to an
action brought pursuant to sections 407.810 to 407.835; or

(d) Any other conduct set forth in sections 407.810 to 407.835 that is
permitted of the franchisor or is expressly excluded from coercion or a
violation of sections 407.810 to 407.835;

(4) "Franchise" or "franchise agreement", a written arrangement or
contract for a definite or indefinite period, in which a person grants to
another person a license to use, or the right to grant to others a
license to use, a trade name, trademark, service mark, or related
characteristics, in which there is a community of interest in the
marketing of goods or services, or both, at wholesale or retail, by
agreement, lease or otherwise, and in which the operation of the
franchisee's business with respect to such franchise is substantially
reliant on the franchisor for the continued supply of franchised new
motor vehicles, parts and accessories for sale at wholesale or retail;

(5) "Franchisee", a person to whom a franchise is granted;

(6) "Franchisor", a person who grants a franchise to another person;

(7) "Motor vehicle", for the purposes of sections 407.810 to 407.835, any
motor-driven vehicle required to be registered pursuant to the provisions
of chapter 301, RSMo, except that, motorcycles and all-terrain vehicles
as defined in section 301.010, RSMo, shall not be included;

(8) "New", when referring to motor vehicles or parts, means those motor
vehicles or parts which have not been held except as inventory, as that
term is defined in subdivision (4) of section 400.9-109, RSMo;

(9) "Person", a natural person, sole proprietor, partnership,
corporation, or any other form of business entity or organization. (L.
1980 H.B. 1600 § 2, A.L. 1997 H.B. 516, A.L. 1998 H.B. 1055, A.L. 2001
H.B. 575)

1. As used in subdivision (7) of section 407.815, the term
"motor vehicle" shall not include "trailer" as such term is defined in
subdivision (58) of section 301.010, RSMo.

2. Prior to August 1, 2002, the provisions of section 407.817,
subdivisions (13), (17) and (18) of section 407.825 and section 407.826
shall not apply to recreational vehicle dealers or manufacturers.

3. As of August 1, 2002, the term "motor vehicle" as used in sections
407.810 to 407.835 shall not apply to recreational vehicles as defined in
section 407.1320. (L. 1997 H.B. 207 § 1, A.L. 2001 H.B. 575)

1. For purposes of this section, "relevant market area" means:

(1) For a proposed new motor vehicle dealer or a new motor vehicle dealer
who plans to relocate his or her place of business in a county having a
population which is greater than one hundred thousand, the area within a
radius of six miles of the intended site of the proposed or relocated
dealer. The six-mile distance shall be determined by measuring the
distance between the nearest surveyed boundary of the existing new motor
vehicle dealer's principal place of business and the nearest surveyed
boundary line of the proposed or relocated new motor vehicle dealer's
principal place of business; or

(2) For a proposed new motor vehicle dealer or a new motor vehicle dealer
who plans to relocate his or her place of business in a county having a
population which is not greater than one hundred thousand, the area
within a radius of ten miles of the intended site of the proposed or
relocated dealer, or the county line, whichever is closer to the intended
site. The ten-mile distance shall be determined by measuring the distance
between the nearest surveyed boundary line of the existing new motor
vehicle dealer's principal place of business and the nearest surveyed
boundary line of the proposed or relocated new motor vehicle dealer's
principal place of business.

2. As used in this section, "relocate" and "relocation" shall not include
the relocation of a new motor vehicle dealer within two miles of its
established place of business.

3. Before a franchisor enters into a franchise establishing or relocating
a new motor vehicle dealer within a relevant market area where the same
line-make is represented, the franchisor shall give written notice to
each new motor vehicle dealer of the same line-make in the relevant
market area of its intention to establish an additional dealer or to
relocate an existing dealer within that relevant market area.

4. Within thirty days after receiving the notice provided for in
subsection 3 of this section, or within thirty days after the end of any
appeal procedure provided by the franchisor, a new motor vehicle dealer
may bring an action pursuant to section 407.822 to determine whether good
cause exists for the establishing or relocating of a proposed new motor
vehicle dealer.

5. This section shall not apply to the reopening or replacement in a
relevant market area of a closed dealership that has been closed within
the preceding year, if the established place of business of the reopened
or replacement dealer is within two miles of the established place of
business of the closed dealership.

6. In determining whether good cause exists for establishing or
relocating an additional new motor vehicle dealer for the same line-make,
the court shall take into consideration the existing circumstances,
including, but not limited to, the following:

(1) Permanency of the investment;

(2) Effect on the retail motor vehicle business and the consuming public
in the relevant market area;

(3) Whether it is injurious or beneficial to the public welfare;

(4) Whether the new motor vehicle dealers of the same line-make in that
relevant market area are providing adequate competition and convenient
consumer care for the motor vehicles of that line-make in the market
area, including the adequacy of motor vehicle sales and qualified service
personnel;

(5) Whether the establishment or relocation of the new motor vehicle
dealer would promote competition;

(6) Growth or decline of the population and the number of new motor
vehicle registrations in the relevant market area; and

(7) Effect on the relocating dealer of a denial of its relocation into
the relevant market area.

7. The remedies and relief available pursuant to section 407.835 shall
apply to this section. (L. 2001 H.B. 575)

Any person who is engaged or engages directly or indirectly in
purposeful contacts within the state of Missouri in connection with the
offering, advertising, purchasing, selling, or contracting to purchase or
to sell new motor vehicles, or who, being a motor vehicle franchisor, is
transacting or transacts any business with a motor vehicle franchisee who
maintains a place of business within the state and with whom he or she
has a franchise, shall be subject to the jurisdiction of the courts and
administrative agencies of the state of Missouri, upon service of process
in accordance with the provisions of section 506.510, RSMo, irrespective
of whether such person is a manufacturer, importer, distributor or dealer
in new motor vehicles. (L. 1980 H.B. 1600 § 3, A.L. 2001 H.B. 575 merged
with H.B. 693)

1. Any party seeking relief pursuant to the provisions of
sections 407.810 to 407.835 may file an application for a hearing with
the administrative hearing commission within the time periods specified
in this section. The application for a hearing shall comply with the
requirements for a request for agency action set forth in chapter 536,
RSMo. Simultaneously, with the filing of the application for a hearing
with the administrative hearing commission, the applicant shall send by
certified mail, return receipt requested, a copy of the application to
the party or parties against whom relief is sought. Upon receiving a
timely application for a hearing, the administrative hearing commission
shall enter an order fixing a date, time and place for a hearing on the
record. The administrative hearing commission shall send by certified
mail, return receipt requested, a copy of the order to the party seeking
relief and to the party or parties against whom relief is sought. The
order shall also state that the party against whom relief is sought shall
not proceed with the initiation of its activity or activities until the
administrative hearing commission issues its final decision or order, and
the party against whom relief is sought shall, within thirty days of such
order, file an answer or other responsive pleading directed to each claim
for relief set forth in the application for hearing. Failure to answer or
otherwise respond within such time frame may be deemed by the
administrative hearing commission as an admission of the grounds for
relief set forth in the application for hearing.

2. Unless otherwise expressly provided in sections 407.810 to 407.835,
the provisions of chapter 536, RSMo, shall govern hearings and prehearing
procedures conducted pursuant to the authority of this section. Any party
may obtain discovery in the same manner, and under the same conditions
and requirements, as is or may hereafter be provided for with respect to
discovery in civil actions by rule of the supreme court of Missouri for
use in the circuit courts, and the administrative hearing commission may
enforce discovery by the same methods as provided by supreme court rule
for use in civil cases. The administrative hearing commission shall issue
a final decision or order, in proceedings arising pursuant to the
provisions of sections 407.810 to 407.835, within ninety days from the
conclusion of the hearing. In any proceeding initiated pursuant to
sections 407.810 to 407.835 involving a matter requiring a franchisor to
show good cause for any intended action being protested by a franchisee,
the franchisor shall refrain from taking the protested action if, after a
hearing on the matter before the administrative hearing commission, the
administrative hearing commission determines that good cause does not
exist for the franchisor to take such action. The franchisee may, if
necessary, seek enforcement of the decision of the administrative hearing
commission pursuant to the provisions of section 407.835. Venue for such
proceedings shall be in the circuit court of Cole County, Missouri, or in
the circuit court of the county in which the franchisee resides or
operates the franchise business. In determining any relief necessary for
enforcement of the decision of the administrative hearing commission, the
court shall defer to the commission's factual findings, and review shall
be limited to a determination of whether the commission's decision was
authorized by law and whether the commission abused its discretion. Any
final decisions of the administrative hearing commission shall be subject
to review pursuant to a petition for review to be filed in the court of
appeals in the district in which the hearing, or any part of the hearing,
is held and by delivery of copies of the petition to each party of
record, within thirty days after the mailing or delivery of the final
decision and notice of the final decision in such a case. Appeal of the
administrative hearing commission's decision pursuant to this section
shall not preclude any action authorized by section 407.835, brought in a
court of competent jurisdiction, requesting an award of legal or
equitable relief, provided that if such an action is brought solely for
the purpose of enforcing a decision of the administrative hearing
commission which is on appeal pursuant to this subsection, the court in
which such action is pending may hold in abeyance its judgment pending
issuance of a decision by the court of appeals. Review pursuant to this
section shall be exclusive and decisions of the administrative hearing
commission reviewable pursuant to this section shall not be reviewable in
any other proceeding, and no other official or court shall have power to
review any such decision by an action in the nature of mandamus or
otherwise, except pursuant to the provisions of this section. The party
seeking review shall be responsible for the filing of the transcript and
record of all proceedings before the administrative hearing commission
with the appropriate court of appeals.

3. Any franchisee receiving a notice from a franchisor pursuant to the
provisions of sections 407.810 to 407.835, or any franchisee adversely
affected by a franchisor's acts or proposed acts described in the
provisions of sections 407.810 to 407.835, shall be entitled to file an
application for a hearing before the administrative hearing commission
for a determination as to whether the franchisor has good cause for its
acts or proposed acts.

4. Not less than sixty days before the effective date of the initiation
of any enumerated act pursuant to subdivisions (5), (6), (7) and (14) of
subsection 1 of section 407.825, a franchisor shall give written notice
to the affected franchisee or franchisees, by certified mail, return
receipt requested, except as follows:

(1) Upon the initiation of an act pursuant to subdivision (5) of
subsection 1 of section 407.825, such notice shall be given not less than
fifteen days before the effective date of such act only if the grounds
for the notice include the following:

(a) Transfer of any ownership or interest in the franchised dealership
without the consent of the motor vehicle franchisor;

(b) Material misrepresentation by the motor vehicle franchisee in
applying for the franchise;

(c) Insolvency of the motor vehicle franchisee or the filing of any
petition by or against the motor vehicle franchisee under any bankruptcy
or receivership law;

(d) Any unfair business practice by the motor vehicle franchisee after
the motor vehicle franchisor has issued a written warning to the motor
vehicle franchisee to desist from such practice;

(e) Conviction of the motor vehicle franchisee of a crime which is a
felony;

(f) Failure of the motor vehicle franchisee to conduct customary sales
and service operations during customary business hours for at least seven
consecutive business days unless such closing is due to an act of God,
strike or labor difficulty or other cause over which the motor vehicle
franchisee has no control; or

(g) Revocation of the motor vehicle franchisee's license;

(2) Upon initiation of an act pursuant to subdivision (7) of subsection 1
of section 407.825, such notice shall be given within sixty days of the
franchisor's receipt of a written proposal to consummate such sale or
transfer and the receipt of all necessary information and documents
generally used by the franchisor to conduct its review. The franchisor
shall acknowledge in writing to the applicant the receipt of the
information and documents and if the franchisor requires additional
information or documents to complete its review, the franchisor shall
notify the applicant within fifteen days of the receipt of the
information and documents. If the franchisor fails to request additional
information and documents from the applicant within fifteen days after
receipt of the initial forms, the sixty-day time period for approval
shall be deemed to run from the initial receipt date. Otherwise, the
sixty-day time period for approval shall run from receipt of the
supplemental requested information. In no event shall the total time
period for approval exceed seventy-five days from the date of the receipt
of all necessary information and documents generally used by the
franchisor to conduct its review. The franchisor's notice of disapproval
shall also specify the reasonable standard which the franchisor contends
is not satisfied and the reason the franchisor contends such standard is
not satisfied. Failure on the part of the franchisor to provide such
notice shall be conclusively deemed an approval by the franchisor of the
proposed sale or transfer to the proposed transferee. A franchisee's
application for a hearing shall be filed with the administrative hearing
commission within twenty days from receipt of such franchisor's notice;

(3) Pursuant to paragraphs (a) and (b) of subdivision (14) of subsection
1 of section 407.825, such notice shall be given within sixty days of the
franchisor's receipt of a deceased or incapacitated franchisee's
designated family member's intention to succeed to the franchise or
franchises or of the franchisor's receipt of the personal and financial
data of the designated family member, whichever is later.

5. A franchisor's notice to a franchisee or franchisees pursuant to
subdivisions (5), (6), (7) and (14) of subsection 1 of section 407.825
shall contain a statement of the particular grounds supporting the
intended action or activity which shall include any reasonable standards
which were not satisfied. The notice shall also contain at a minimum, on
the first page thereof, a conspicuous statement which reads as follows:
"NOTICE TO FRANCHISEE: YOU MAY BE ENTITLED TO FILE A PROTEST WITH THE
MISSOURI ADMINISTRATIVE HEARING COMMISSION IN JEFFERSON CITY, MISSOURI,
AND HAVE A HEARING IN WHICH YOU MAY PROTEST THE CONTENTS OF THIS NOTICE.
ANY ACTION MUST BE FILED WITHIN TWENTY DAYS FROM RECEIPT OF THIS NOTICE.".

6. When more than one application for a hearing is filed with the
administrative hearing commission, the administrative hearing commission
may consolidate the applications into one proceeding to expedite the
disposition of all relevant issues.

7. In all proceedings before the administrative hearing commission
pursuant to this section, section 407.825 and section 621.053, RSMo,
where the franchisor is required to give notice pursuant to subsection 4
of this section, the franchisor shall have the burden of proving by a
preponderance of the evidence that good cause exists for its actions. In
all other actions, the franchisee shall have the burden of proof. (L.
1997 H.B. 516, A.L. 2001 H.B. 693, A.L. 2001 H.B. 575)

Notwithstanding the terms of any franchise agreement, the
performance, whether by act or omission, by a motor vehicle franchisor of
any or all of the following acts enumerated in this section* are hereby
defined as unlawful practices, the remedies for which are set forth in
section 407.835:

(1) To engage in any conduct which is capricious, in bad faith, or
unconscionable and which causes damage to a motor vehicle franchisee or
to the public; provided, that good faith conduct engaged in by motor
vehicle franchisors as sellers of new motor vehicles or parts or as
holders of security interest therein, in pursuit of rights or remedies
accorded to sellers of goods or to holders of security interests pursuant
to the provisions of chapter 400, RSMo, uniform commercial code, shall
not constitute unfair practices pursuant to sections 407.810 to 407.835;

(2) To coerce any motor vehicle franchisee to accept delivery of any new
motor vehicle or vehicles, equipment, parts or accessories therefor, or
any other commodity or commodities which such motor vehicle franchisee
has not ordered after such motor vehicle franchisee has rejected such
commodity or commodities. It shall not be deemed a violation of this
section for a motor vehicle franchisor to require a motor vehicle
franchisee to have an inventory of parts, tools, and equipment reasonably
necessary to service the motor vehicles sold by a motor vehicle
franchisor; or new motor vehicles reasonably necessary to meet the
demands of dealers or the public or to display to the public the full
line of a motor vehicle franchisor's product line;

(3) To unreasonably refuse to deliver in reasonable quantities and within
a reasonable time after receipt of orders for new motor vehicles, such
motor vehicles as are so ordered and as are covered by such franchise and
as are specifically publicly advertised by such motor vehicle franchisor
to be available for immediate delivery; provided, however, the failure to
deliver any motor vehicle shall not be considered a violation of sections
407.810 to 407.835 if such failure is due to an act of God, work
stoppage, or delay due to a strike or labor difficulty, shortage of
products or materials, freight delays, embargo or other cause of which
such motor vehicle franchisor shall have no control;

(4) To coerce any motor vehicle franchisee to enter into any agreement
with such motor vehicle franchisor or to do any other act prejudicial to
such motor vehicle franchisee, by threatening to cancel any franchise or
any contractual agreement existing between such motor vehicle franchisor
and motor vehicle franchisee; provided, however, that notice in good
faith to any motor vehicle franchisee of such motor vehicle franchisee's
violation of any provisions of such franchise or contractual agreement
shall not constitute a violation of sections 407.810 to 407.835;

(5) To terminate, cancel or refuse to continue any franchise without good
cause, directly or indirectly through the actions of the franchisor,
unless such new motor vehicle franchisee substantially defaults in the
performance of such franchisee's reasonable and lawful obligations under
such franchisee's franchise, or such new motor vehicle franchisor
discontinues the sale in the state of Missouri of such franchisor's
products which are the subject of the franchise. In determining whether
good cause exists, the administrative hearing commission shall take into
consideration the existing circumstances, including, but not limited to,
the following factors:

(a) The franchisee's sales in relation to sales in the market;

(b) The franchisee's investment and obligations;

(c) Injury to the public welfare;

(d) The adequacy of the franchisee's service facilities, equipment, parts
and personnel in relation to those of other franchisees of the same
line-make;

(e) Whether warranties are being honored by the franchisee;

(f) The parties' compliance with their franchise agreement;

(g) The desire of a franchisor for market penetration or a market study,
if any, prepared by the franchisor or franchisee are two factors which
may be considered;

(h) The harm to the franchisor;

(6) To prevent by contract or otherwise, any motor vehicle franchisee
from changing the capital structure of the franchisee's franchise of such
motor vehicle franchisee or the means by or through which the franchisee
finances the operation of the franchisee's franchise, provided the motor
vehicle franchisee at all times meets any reasonable capital standards
agreed to between the motor vehicle franchisee and the motor vehicle
franchisor and grants to the motor vehicle franchisor a purchase money
security interest in the new motor vehicles, new parts and accessories
purchased from the motor vehicle franchisor;

(7) (a) To** prevent, by contract or otherwise, any sale or transfer of a
franchisee's franchise or franchises or interest or management thereof;
provided, if the franchise specifically permits the franchisor to approve
or disapprove any such proposed sale or transfer, a franchisor shall only
be allowed to disapprove a proposed sale or transfer if the interest
being sold or transferred when added to any other interest owned by the
transferee constitutes fifty percent or more of the ownership interest in
the franchise and if the proposed transferee fails to satisfy any
standards of the franchisor which are in fact normally relied upon by the
franchisor prior to its entering into a franchise, and which relate to
the proposed management or ownership of the franchise operations or to
the qualification, capitalization, integrity or character of the proposed
transferee and which are reasonable. A franchisee may request, at any
time, that the franchisor provide a copy of the standards which are
normally relied upon by the franchisor to evaluate a proposed sale or
transfer and a proposed transferee;

(b) The franchisee and the prospective franchisee shall cooperate fully
with the franchisor in providing information relating to the prospective
transferee's qualifications, capitalization, integrity and character;

(c) In the event of a proposed sale or transfer of a franchise, the
franchisor shall be permitted to exercise a right of first refusal to
acquire the franchisee's assets or ownership if:

a. The franchise agreement permits the franchisor to exercise a right of
first refusal to acquire the franchisee's assets or ownership in the
event of a proposed sale or transfer;

b. Such sale or transfer is conditioned upon the franchisor or franchisee
entering a franchise agreement with the proposed transferee;

c. The exercise of the right of first refusal shall result in the
franchisee and the franchisee's owners receiving the same or greater
consideration and the same terms and conditions as contracted to receive
in connection with the proposed sale or transfer;

d. The sale or transfer does not involve the sale or transfer to an
immediate member or members of the family of one or more franchisee
owners, defined as a spouse, child, grandchild, spouse of a child or
grandchild, brother, sister or parent of the franchisee owner, or to the
qualified manager, defined as an individual who has been employed by the
franchisee for at least two years and who otherwise qualifies as a
franchisee operator, or a partnership or corporation controlled by such
persons; and

e. The franchisor agrees to pay the reasonable expenses, including
attorney's fees which do not exceed the usual, customary and reasonable
fees charged for similar work done for other clients, incurred by the
proposed transferee prior to the franchisor's exercise of its right of
first refusal in negotiating and implementing the contract for the
proposed sale or transfer of the franchise or the franchisee's assets.
Notwithstanding the foregoing, no payment of such expenses and attorney's
fees shall be required if the franchisee has not submitted or caused to
be submitted an accounting of those expenses within fourteen days of the
franchisee's receipt of the franchisor's written request for such an
accounting. Such accounting may be requested by a franchisor before
exercising its right of first refusal;

(d) For determining whether good cause exists for the purposes of this
subdivision, the administrative hearing commission shall take into
consideration the existing circumstances, including, but not limited to,
the following factors:

a. Whether the franchise agreement specifically permits the franchisor to
approve or disapprove any proposed sale or transfer;

b. Whether the interest to be sold or transferred when added to any other
interest owned by the proposed transferee constitutes fifty percent or
more of the ownership interest in the franchise;

c. Whether the proposed transferee fails to satisfy any standards of the
franchisor which are in fact normally relied upon by the franchisor prior
to its entering into a franchise, and which related to the proposed
management or ownership of the franchise operations or to the
qualification, capitalization, integrity or character of the proposed
transferee which are reasonable;

d. Injury to the public welfare;

e. The harm to the franchisor;

(8) To prevent by contract or otherwise any motor vehicle franchisee from
changing the executive management of the motor vehicle franchisee's
business, except that any attempt by a motor vehicle franchisor to
demonstrate by giving reasons that such change in executive management
will be detrimental to the distribution of the motor vehicle franchisor's
motor vehicles shall not constitute a violation of this subdivision;

(9) To impose unreasonable standards of performance upon a motor vehicle
franchisee;

(10) To require a motor vehicle franchisee at the time of entering into a
franchise arrangement to assent to a release, assignment, novation,
waiver or estoppel which would relieve any person from liability imposed
by sections 407.810 to 407.835;

(11) To prohibit directly or indirectly the right of free association
among motor vehicle franchisees for any lawful purpose;

(12) To provide any term or condition in any lease or other agreement
ancillary or collateral to a franchise, which term or condition directly
or indirectly violates the provisions of sections 407.810 to 407.835;

(13) Upon any termination, cancellation or refusal to continue any
franchise or any discontinuation of any line-make or parts or products
related to such line-make by a franchisor, fail to pay reasonable
compensation to a franchisee as follows:

(a) Any new, undamaged and unsold vehicle in the franchisee's inventory
of either the current model year or purchased from the franchisor within
one hundred twenty days prior to receipt of a notice of termination or
nonrenewal, provided the vehicle has less than five hundred miles
registered on the odometer, including mileage incurred in delivery from
the franchisor or in transporting the vehicle between dealers for sale,
at the dealer's net acquisition cost, plus any cost to the dealer for
returning the vehicle inventory to the franchisor;

(b) The franchisee's cost of each new, unused, undamaged and unsold part
or accessory if the part or accessory is in the current parts catalog,
less applicable allowances, plus five percent of the catalog price of the
part for the cost of packing and returning the part to the franchisor. In
the case of sheet metal, a comparable substitute for the original package
may be used. Reconditioned or core parts shall be valued at their core
value, the price listed in the current parts catalog or the amount paid
for expedited return of core parts, whichever is higher. If the part or
accessory was purchased by the franchisee from an outgoing authorized
franchisee, the franchisor shall purchase the part for either the price
in the current parts catalog or the franchisee's actual purchase price of
the part, whichever is less. In the case of parts which no longer appear
in the current parts catalog, the franchisor may purchase the part for
either the price in the last version of the parts catalog in which the
part appeared or the franchisee's actual purchase price of the part,
whichever is less. The franchisee shall maintain accurate records
regarding the actual purchase price of parts bought from an outgoing
authorized franchisee. In the absence of such records, the franchisor is
not required to purchase parts which are not in the current parts catalog;

(c) The depreciated value determined pursuant to generally accepted
accounting principles of each undamaged sign owned by the franchisee
which bears a trademark or trade name used or claimed by the franchisor
if the sign was purchased from, or purchased at the request of, the
franchisor;

(d) The fair market value of all special tools, data processing equipment
and automotive service equipment owned by the franchisee which were
recommended in writing and designated as special tools and equipment and
purchased from, or purchased at the request of, the franchisor within
three years of the termination of the franchise, if the tools and
equipment are in usable and good condition, except for reasonable wear
and tear;

(e) Except as provided in paragraph (a) of this subdivision, the cost of
transporting, handling, packing, storing and loading of any property
subject to repurchase pursuant to this section shall not exceed
reasonable and customary charges; and

(f) The franchisor shall pay the franchisee the amounts specified in this
subdivision within ninety days after the tender of the property subject
to the franchisee providing evidence of good and clear title upon return
of the property to the franchisor. The franchisor shall remove the
property within one hundred eighty days after the tender of the property
from the franchisee's property. Unless previous arrangements have been
made and agreed upon, the franchisee is under no obligation to provide
insurance for the property left after one hundred eighty days;

(14) To prevent or refuse to honor the succession to a franchise or
franchises by any legal heir or devisee under the will of a franchisee,
under any written instrument filed with the franchisor designating any
person as the person's successor franchisee, or pursuant to the laws of
descent and distribution of this state; provided:

(a) Any designated family member of a deceased or incapacitated
franchisee shall become the succeeding franchisee of such deceased or
incapacitated franchisee if such designated family member gives the
franchisor written notice of such family member's intention to succeed to
the franchise or franchises within one hundred twenty days after the
death or incapacity of the franchisee, and agrees to be bound by all of
the terms and conditions of the current franchise agreement, and the
designated family member meets the current reasonable criteria generally
applied by the franchisor in qualifying franchisees. A franchisee may
request, at any time, that the franchisor provide a copy of such criteria
generally applied by the franchisor in qualifying franchisees;

(b) The franchisor may request from a designated family member such
personal and financial data as is reasonably necessary to determine
whether the existing franchise agreement should be honored. The
designated family member shall supply the personal and financial data
promptly upon the request;

(c) If the designated family member does not meet the reasonable criteria
generally applied by the franchisor in qualifying franchisees, the
discontinuance of the current franchise agreement shall take effect not
less than ninety days after the date the franchisor serves the required
notice on the designated family member pursuant to subsection 4 of
section 407.822;

(d) The provisions of this subdivision shall not preclude a franchisee
from designating any person as the person's successor by written
instrument filed with the franchisor, and if such an instrument is filed,
it alone shall determine the succession rights to the management and
operation of the franchise; and

(e) For determining whether good cause exists, the administrative hearing
commission shall take into consideration the existing circumstances,
including, but not limited to, the following factors:

a. Whether the franchise agreement specifically permits the franchisor to
approve or disapprove any successor;

b. Whether the proposed successor fails to satisfy any standards of the
franchisor which are in fact normally relied upon by the franchisor prior
to the successor entering into a franchise, and which relate to the
proposed management or ownership of the franchise operation or to the
qualification, capitalization, integrity or character of the proposed
successor and which are reasonable;

c. Injury to the public welfare;

d. The harm to the franchisor;

(15) To coerce, threaten, intimidate or require a franchisee under any
condition affecting or related to a franchise agreement, or to waive,
limit or disclaim a right that the franchisee may have pursuant to the
provisions of sections 407.810 to 407.835. Any contracts or agreements
which contain such provisions shall be deemed against the public policy
of the state of Missouri and are void and unenforceable. Nothing in this
section shall prohibit voluntary settlement agreements;

(16) To initiate any act enumerated in this subsection on grounds that it
has advised a franchisee of its intention to discontinue representation
at the time of a franchisee change or require any franchisee to enter
into a site control agreement as a condition to initiating any act
enumerated in this subsection. Such condition shall not be construed to
nullify an existing site control agreement for a franchisee's property;

(17) To require, coerce, or attempt to coerce any franchisee in this
state to refrain from, or to terminate, cancel, or refuse to continue any
franchise based upon participation by the franchisee in the management
of, investment in or the acquisition of a franchise for the sale of any
other line of new vehicle or related products in the same or separate
facilities as those of the franchisor. This subdivision does not apply
unless the franchisee maintains a reasonable line of credit for each make
or line of new vehicle, the franchisee remains in compliance with the
franchise and any reasonable facilities requirements of the franchisor,
and no change is made in the principal management of the franchisee. The
reasonable facilities requirement shall not include any requirement that
a franchisee establish or maintain exclusive facilities, personnel, or
display space, when such requirements or any of them would not otherwise
be justified by reasonable business considerations. Before the addition
of a line-make to the dealership facilities the franchisee must first
request consent of the franchisor, if required by the franchise
agreement. Any decision of the franchisor with regard to dualing of two
or more franchises shall be granted or denied within sixty days of a
written request from the new vehicle dealer. The franchiser's failure to
respond timely to a dualing request shall be deemed to be approval of the
franchisee's request;

(18) To fail or refuse to offer to sell to all franchisees for a
line-make every motor vehicle sold or offered for sale to any franchisee
of that line-make. However, the failure to deliver any such motor vehicle
shall not be considered a violation of this section if the failure is not
arbitrary, or is due to a lack of manufacturing capacity or to a strike
or labor difficulty, a shortage of materials, a freight embargo or other
cause over which the franchisor has no control. A franchisor may impose
reasonable requirements on the franchisee including, but not limited to,
the purchase of reasonable quantities of advertising materials, the
purchase of special tools required to properly service a motor vehicle,
the undertaking of sales person or service person training related to the
motor vehicle, the meeting of reasonable display and facility
requirements as a condition of receiving a motor vehicle, or other
reasonable requirements; provided, that if a franchisor requires a
franchisee to purchase essential service tools with a purchase price in
the aggregate of more than seventy- five hundred dollars in order to
receive a particular model of new motor vehicle, the franchisor shall
upon written request provide such franchisee with a good faith estimate
in writing of the number of vehicles of that particular model that the
franchisee will be allocated during that model year in which the tools
are required to be purchased. (L. 1980 H.B. 1600 § 4, A.L. 1997 H.B. 516,
A.L. 2001 H.B. 575)

*Word "subsection" appears in original rolls.

**Word "to" does not appear in original rolls.

(1985) The "substantial default" of a franchisee's "reasonable and lawful
obligations" could not be proven where franchisor could show no adverse
impact on his business and where an exclusive space use requirement of
franchise agreement was unreasonable in light of the fact that franchisor
could not supply enough vehicles to utilize available space. G.A.
Imports, Inc. v. Subaru Mid-America, Inc. (E.D.Mo.), 608 F.Supp. 1571.

(1986) Ninety-day notice requirement for cancellation of franchises
contained in section 407.405, RSMo, held applicable to motor vehicle
franchises. Maude v. General Motors Corp., 626 F.Supp. 1081 (W.D. Mo.).

(1995) "Capricious" is "impulsive; unpredictable". "Unconscionable" is
"shockingly unfair or unjust". Thoroughbred Ford, Inc. v. Ford Motor Co.,
908 S.W.2d 719 (Mo.App.E.D.).

1. (1) A franchisor shall be prohibited from owning or operating
a new motor vehicle dealership in this state. It is not a violation of
this section for a franchisor to own or operate a new motor vehicle
dealership:

(a) For a temporary period of not more than twenty-four months if the
dealership is for sale at a reasonable price and on reasonable terms and
conditions to an independent qualified buyer. On showing by a franchisor
of good cause, the time limit set forth above may be extended for an
additional period of up to twelve months; or

(b) In a bona fide relationship with an independent person (i) who is
required to make a significant investment in the new motor vehicle
dealership subject to loss and (ii) operates the dealership and can
reasonably expect to acquire full ownership of the dealership within a
reasonable time and under reasonable terms and conditions.

(2) Nothing in this section shall be deemed to prohibit a franchisor from
owning a minority interest in an entity that owns motor vehicle
dealerships of the same line-make manufactured and franchised by the
factory, provided that all of the following conditions are met at the
time of acquisition and continue to be met during the time the entity
maintains ownership:

(a) The interest owned by the factory in said entity shall not exceed
forty-five percent of the total ownership;

(b) Any dealership in which the entity owns an interest shall be no less
than nine miles of any unaffiliated new motor vehicle dealership trading
in the same line-make of vehicle;

(c) All of the licensed dealerships for the sale of such factory's new
motor vehicle in the state trade exclusively in the factory's line- make;

(d) During any period in which the entity has such ownership interest,
the factory shall have no more than four franchise agreements governing
such line-make with dealers licensed to do business in this state;

(e) All the factory's franchise agreements confer rights on the
franchisee of the line-make to develop and operate, within a defined
geographic territory or area, as many dealership facilities as the
franchisee and factory shall agree are appropriate;

(f) At the time the entity first acquires an ownership interest, not
fewer than seventy-five percent of the franchisees of the line-make
within this state own and operate two or more dealership facilities in
the geographic territory or area covered by the franchise agreement with
the factory;

(g) As of January 1, 2001, there were no more than ten dealerships of
such line-make licensed as a new motor vehicle dealer in this state; and

(h) Prior to August 28, 2001, the factory has been continuously engaged,
at least since July 1, 1998, in the retail sale of motor vehicles of its
own line-make through direct or indirect ownership of dealerships in at
least five states.

2. A franchisor shall not sell new motor vehicles directly to any retail
consumer except through a franchisee for the line-make that includes the
new motor vehicle unless such consumer is an employee of the franchisor,
or is a not-for-profit organization or an agency of the federal, state or
local governments. This subsection shall not preclude a franchisor from
providing information to consumers for the purpose of marketing or
facilitating the sale of a new motor vehicle or from establishing
programs to sell or offer to sell new motor vehicles through
participating franchisees.

3. The remedies and relief available pursuant to section 407.835 shall
apply to this section. (L. 2001 H.B. 575)

When a franchised dealer or manufacturer proposes to establish
or relocate a motor vehicle dealership within any city not within a
county, the dealer or manufacturer shall make reasonable efforts to
establish or relocate such dealership in an area within such city that
improves the equitable distribution of dealerships within such city and
is conveniently located to serve minorities who reside in such city. (L.
1997 H.B. 516)

1. Each franchisor shall specify in writing to each of its
franchisees in this state the franchisee's obligations for preparation,
delivery, and warranty service on its products. The franchisor shall
compensate the franchisee for warranty service required of the franchisee
by the franchisor. The franchisor shall provide the franchisee with the
schedule of compensation to be paid to the franchisee for parts, work and
service, and the time allowance for the performance of the work and
service.

2. The schedule of compensation shall include reasonable compensation for
diagnostic work, as well as repair service and labor. Time allowances for
the diagnosis and performance of warranty work and service shall be
reasonable and adequate for the work to be performed. In the
determination of what constitutes reasonable compensation pursuant to
this section, the principal factor to be given consideration shall be the
prevailing wage rates being paid by franchisees in the community in which
the franchisee is doing business, and in no event shall the compensation
of a franchisee for warranty labor be less than the rates charged by the
franchisee for like service to retail customers for nonwarranty service
and repairs, provided that such rates are reasonable.

3. A franchisor shall not:

(1) Fail to perform any warranty obligation;

(2) Fail to include in written notices of franchisor recalls to new motor
vehicle owners and franchisees the expected date by which necessary parts
and equipment will be available to franchisees for the correction of the
defects; or

(3) Fail to compensate any of the franchisees in this state for repairs
effected by the recall.

4. All claims made by a franchisee pursuant to this section for labor and
parts shall be paid within thirty days after their approval. All claims
shall be either approved or disapproved by the franchisor within thirty
days after their receipt on a proper form generally used by the
franchisor and containing the usually required information therein. Any
claims not specifically disapproved in writing within thirty days after
the receipt of the form shall be considered to be approved and payment
shall be made within thirty days. A claim which has been approved and
paid may not be charged back to the franchisee unless the franchisor can
show that the claim was fraudulent, false, or unsubstantiated, except
that a charge back for false or fraudulent claims shall not be made more
than two years after payment, and a charge back for unsubstantiated
claims shall not be made more than fifteen months after payment. A
franchise shall maintain all records of warranty repairs, including the
related time records of its employees, for at least two years following
payment of any warranty claim.

5. A franchisor shall compensate the franchisee for franchisor- sponsored
sales or service promotion events, programs, or activities in accordance
with established guidelines for such events, programs, or activities.

6. All claims made by a franchisee pursuant to subsection 5 for promotion
events, programs, or activities shall be paid within ten days after their
approval. All claims shall be either approved or disapproved by the
franchisor within thirty days after their receipt on a proper form
generally used by the franchisor and containing the usually required
information therein. Any claim not specifically disapproved in writing
within thirty days after the receipt of this form shall be considered to
be approved and payment shall be made within thirty days. The franchisor
has the right to charge back any claim for twelve months after the later
of either the close of the promotion event, program, or activity, or the
date of the payment. (L. 2001 H.B. 575)

The Missouri motor vehicle commission, in approving licenses for
dealer franchises in any metropolitan statistical area with a population
of more than one million inhabitants as defined by the federal Office of
Management and Budget or its successor agency shall ensure that the
community of dealer franchises shall reflect an adequate percentage of
minority-owned businesses. (L. 1997 H.B. 516)

It shall be a defense for a motor vehicle franchisor, to any
action brought under sections 407.810 to 407.835 by a motor vehicle
franchisee, if it be shown that such motor vehicle franchisee has failed
to substantially comply with reasonable and lawful requirements imposed
by the franchise and other agreements ancillary or collateral thereto, or
if the motor vehicle franchisee, or any of its officers, have been
convicted of a felony relevant to business honesty or business practices,
or if the motor vehicle franchisee has ceased conducting its business or
has abandoned the franchise, or is insolvent as that term is defined in
subdivision (23) of section 400.1-201, RSMo, or has filed a voluntary
petition in bankruptcy, or has made an assignment for benefit of
creditors, or has been the subject of an involuntary proceeding under the
federal bankruptcy act or under any state insolvency law which is not
vacated within twenty days from the institution thereof, or there has
been an appointment of a receiver or other officer having similar powers
for the motor vehicle franchisee or the motor vehicle franchisee's
business who is not removed within twenty days from his appointment, or
there has been a levy under attachment, execution or similar process
which is not within ten days vacated or removed by payment or bonding,
and it shall be a defense to any action brought under sections 407.810 to
407.835 that the complained of conduct by a motor vehicle franchisor was
undertaken in good faith in pursuit of rights or remedies accorded to a
motor vehicle franchisor as a seller of goods or a holder of a security
interest under the provisions of chapter 400, RSMo. (L. 1980 H.B. 1600 §
5)

No franchisee or franchisor shall use any false, deceptive or
misleading advertising. (L. 1997 H.B. 516)

In addition to the administrative relief provided in sections
407.810 to 407.835, any motor vehicle franchisee may bring an action in
any court of competent jurisdiction against a motor vehicle franchisor
with whom the franchisee has a franchise, for an act or omission which
constitutes an unlawful practice as defined in section 407.825 to recover
damages sustained by reason thereof, and, where appropriate, such motor
vehicle franchisee shall be entitled to injunctive relief, but the
remedies set forth in this section shall not be deemed exclusive and
shall be in addition to any other remedies permitted by law. (L. 1980
H.B. 1600 § 6, A.L. 1997 H.B. 516, A.L. 1998 H.B. 1055)

As used in sections 407.838 to 407.848, the following terms
shall mean:

(1) "Farm equipment", equipment including, but not limited to, tractors,
trailers, combines, tillage implements, bailers and other equipment
including attachments and repair parts thereof used in the planting,
cultivating, irrigation, harvesting and marketing of agricultural
products, excluding self-propelled machines designed primarily for the
transportation of persons or property on a street or highway;

(2) "Farm equipment manufacturer" or "manufacturer", any person,
partnership, corporation, association or other form of business
enterprise engaged in the manufacturing, assembly or wholesale
distribution of farm equipment;

(3) "Farm equipment dealer", "farm equipment dealership" or "dealer", any
person, partnership, corporation, association or other form of business
enterprise engaged in the retail sale of farm equipment;

(4) "Dealership agreement", a written or oral agreement of definite or
indefinite duration between a farm equipment manufacturer and a farm
equipment dealer which provides for the rights and obligations of the
parties with respect to the purchase or sale of farm equipment. (L. 1987
S.B. 35)

No farm equipment manufacturer, directly or through any officer,
agent or employee may terminate, cancel or fail to renew a dealership
agreement or substantially change the competitive circumstances of a farm
equipment dealership without good cause. Good cause means failure by a
farm equipment dealer to substantially comply with essential and
reasonable requirements imposed upon the dealer by the dealership
agreement if such requirements are not different from those requirements
imposed on other similarly situated dealers either by their terms or in
the manner of their enforcement. In addition, good cause shall exist
whenever:

(1) The farm equipment dealer has transferred an interest in the farm
equipment dealership without the manufacturer's written consent, or there
has been a withdrawal from the dealership of an individual proprietor,
partner, major shareholder, or the manager of the dealership, or there
has been a substantial reduction in interest of a partner or major
stockholder without the written consent of the manufacturer;

(2) The farm equipment dealer has filed a voluntary petition in
bankruptcy or has had an involuntary petition in bankruptcy filed against
it which has not been discharged within thirty days after the filing, or
there has been a closeout or sale of a substantial part of the dealer's
assets related to the farm equipment dealership or there has been a
commencement or dissolution or liquidation of the farm equipment
dealership;

(3) There has been a change, without the prior written approval of the
manufacturer, in the location of the dealer's principal place of business
under the dealership agreement;

(4) The farm equipment dealer has defaulted under any chattel mortgage or
other security agreement between the dealer and the farm equipment
manufacturer, or there has been a revocation or discontinuance of any
guarantee of the dealer's present or future obligations to the farm
equipment manufacturer;

(5) The farm equipment dealer has failed to operate in the normal course
of business for seven consecutive days or has otherwise abandoned his*
business;

(6) The farm equipment dealer has pleaded guilty to or has been convicted
of a felony affecting the relationship between the dealer and
manufacturer;

(7) The dealer has engaged in conduct which is injurious or detrimental
to the dealer's customers or to the public welfare;

(8) The farm equipment dealer has consistently failed to meet the
manufacturer's requirements for reasonable market penetration based on
the manufacturer's experience in other comparable marketing areas. (L.
1987 S.B. 35)

*Word "its" appears in original rolls.

Except as otherwise provided in this section, a farm equipment
manufacturer shall provide a farm equipment dealer at least ninety days'
prior written notice of termination, cancellation or nonrenewal of the
dealership agreement. The notice shall state all reasons constituting
good cause for termination, cancellation or nonrenewal and shall provide
that the dealer has sixty days in which to cure any claimed deficiency.
If the deficiency is rectified within sixty days, the notice shall be
void. The notice and right to cure provisions under this section shall
not apply if the reason for termination, cancellation or nonrenewal is
for any reason set forth in subdivisions (1) to (8) of section 407.840.
(L. 1987 S.B. 35)

No farm equipment manufacturer shall:

(1) Coerce, or attempt to coerce, any farm equipment dealer to accept
delivery of any farm equipment, parts or accessories therefor, which such
farm equipment dealer has not voluntarily ordered;

(2) To condition or attempt to condition the sale of any farm equipment
on a requirement that the farm equipment dealer also purchase any other
goods or services but nothing contained in sections 407.838 to 407.848
shall prevent the farm equipment manufacturer from requiring the dealer
to purchase all parts reasonably necessary to maintain the quality of
operation in the field of any farm equipment used in the trade area;

(3) To coerce or attempt to coerce any farm equipment dealer into a
refusal to purchase the farm equipment manufactured by another farm
equipment manufacturer;

(4) To discriminate in the prices charged for farm equipment of like
grade and quality sold by the farm equipment manufacturer to similarly
situated farm equipment dealers, but nothing contained in sections
407.838 to 407.848 shall prevent differentials which make only due
allowance for difference in the cost of manufacture, sale or delivery
resulting from the differing methods or quantities in which such farm
equipment is sold or delivered, by the farm equipment manufacturer. (L.
1987 S.B. 35)

The provisions of sections 407.838 to 407.848 shall apply to all
dealership agreements now in effect and all other dealership agreements
entered into or renewed after September 28, 1987. (L. 1987 S.B. 35)

If any farm equipment manufacturer violates any provision of
sections 407.838 to 407.848, a farm equipment dealer may bring an action
against such manufacturer in any court of competent jurisdiction for
damages sustained by the dealer as a consequence of the manufacturer's
violation, together with the actual costs of the action, including
reasonable attorneys fees, and the dealer also may be granted injunctive
relief against unlawful termination, cancellation, nonrenewal or
substantial change of competitive circumstances. The remedies set forth
in this section shall not be deemed exclusive and shall be in addition to
any other remedies permitted by law. (L. 1987 S.B. 35)

As used in sections 407.850 to 407.885, the following terms mean:

(1) "Current model", a model listed in the wholesaler's, manufacturer's
or distributor's current sales manual or any supplements thereto;

(2) "Current net price", the price listed in the wholesaler's,
manufacturer's or distributor's price list or catalogue in effect at the
time the contract is canceled or discontinued, less any applicable trade
and cash discounts;

(3) "Inventory", equipment, implements, machinery, attachments and repair
parts;

(4) "Net cost", the price the retailer actually paid for the merchandise
to the wholesaler, manufacturer or distributor, plus freight from the
wholesaler's, manufacturer's or distributor's location to the dealer's
location;

(5) "Retailer", any person, firm or corporation engaged in the business
of selling, repairing and retailing:

(a) Farm implements, machinery, attachments or repair parts;

(b) Industrial, maintenance and construction power equipment; or

(c) Outdoor power equipment used for lawn, garden, golf course,
landscaping or grounds maintenance;

but shall not include retailers of petroleum and motor vehicles and
related automotive care and replacement products normally sold by such
retailers. (L. 1982 H.B. 958 § 1, A.L. 1987 S.B. 35, A.L. 2000 H.B. 1142,
A.L. 2002 H.B. 1348 merged with H.B. 2008)

(1991) Distributor of farm equipment violated statute by refusing to
repurchase retailer's repair parts inventory upon the retailer's
retirement from business. Lewis G. Moore & Co. v. Massey-Ferguson, Inc.,
756 F.Supp. 424 (W.D. Mo.).

Whenever any retailer enters into a written or oral contract
with a wholesaler, manufacturer or distributor wherein the retailer
agrees to maintain an inventory and the contract is terminated by the
wholesaler, manufacturer, distributor, or retailer, or upon the
retailer's retirement at sixty-two years of age or older, then the
retailer may require the repurchase of the inventory as provided for in
sections 407.850 to 407.885. In the event of the death of the retailer or
the majority stockholder of a corporation operating as a retailer, the
wholesaler, manufacturer or distributor shall repurchase the inventory as
provided for in section 407.880. If the retailer has any outstanding
debts to the wholesaler, manufacturer or distributor, then the repurchase
amount may be credited to the retailer's account. All payments or
allowances of credit due retailer shall be paid or credited within sixty
days after the return of implements, machinery, attachments or repair
parts. After sixty days all payments or allowances shall include interest
at the rate stated in section 408.040, RSMo. (L. 1982 H.B. 958 § 2, A.L.
1985 H.B. 604, A.L. 1987 S.B. 35)

Retailers who sell and service industrial, maintenance and
construction power equipment or outdoor power equipment as defined in
section 407.850, and who do warranty repair work for a consumer under
provisions of a manufacturer's express warranty, shall be reimbursed by
the manufacturer for the warranty work at an hourly rate that is the same
or greater than the hourly labor rate the retailer currently charges
consumers for nonwarranty repair work. (L. 2001 S.B. 462)

1. The wholesaler, manufacturer or distributor shall repurchase
that inventory previously purchased from him and held by the retailer at
the date of termination of the contract. The provisions of sections
407.850 to 407.885 shall apply to the transferee of such wholesaler,
manufacturer or distributor if such transferee acquired substantially all
of the assets of such wholesaler, manufacturer or distributor. The
wholesaler, manufacturer or distributor shall pay one hundred percent of
the net cost of all new, unsold, undamaged and complete equipment,
implements, machinery, and attachments and ninety-five percent of the
current net price of all new, unused and undamaged repair parts. The
retailer shall pay the cost of transportation to the nearest warehouse
maintained by the wholesaler, manufacturer, or distributor, or to a
mutually agreeable site. The wholesaler, manufacturer or distributor
shall pay the retailer five percent of the current net price on all new,
unused and undamaged repair parts returned to cover the cost of handling,
packing and loading. The wholesaler, manufacturer or distributor shall
have the option of performing the handling, packing and loading in lieu
of paying the five percent for these services. The retailer shall pay the
cost of transportation to the nearest warehouse maintained by the
wholesaler, manufacturer, or distributor, or to a mutually agreeable site.

2. Upon payment of the repurchase amount to the retailer, the title and
right of possession to the repurchased inventory shall transfer to the
wholesaler, manufacturer or distributor. (L. 1982 H.B. 958 § 3, A.L. 1987
S.B. 35, A.L. 2002 H.B. 1348 merged with H.B. 2008)

The provisions of sections 407.850 to 407.885 shall not be
construed to affect in any way any security interest which any financial
institution, person, wholesaler, manufacturer or distributor may have in
the inventory of the retailer, and any repurchase under the provisions of
sections 407.850 to 407.885 shall be subject to the provisions of the
bulk sales law. (L. 1982 H.B. 958 § 4, A.L. 1987 S.B. 35)

The provisions of sections 407.850 to 407.885 shall not require
the repurchase from a retailer of:

(1) Any repair part which because of its condition is not resalable as a
new part without repackaging or reconditioning;

(2) Any inventory for which the retailer is unable to furnish evidence,
satisfactory to the wholesaler, manufacturer or distributor, of title,
free and clear of all claims, liens and encumbrances;

(3) Any inventory which the retailer desires to keep, provided the
retailer has a contractual right to do so;

(4) Any equipment, implements, machinery, and attachments which are not
in new, unused, undamaged, or complete condition;

(5) Any repair parts which are not in new, unused, or undamaged condition;

(6) Any equipment, implements, machinery or attachments which were
purchased twenty-four months or more prior to notice of termination of
the contract;

(7) Any inventory which was ordered by the retailer on or after the date
of notification of termination of the contract;

(8) Any inventory which was acquired by the retailer from any source
other than the wholesaler, manufacturer or distributor or transferee of
such wholesaler, manufacturer or distributor unless such inventory was
acquired from any source authorized or arranged by the manufacturer. (L.
1982 H.B. 958 § 5, A.L. 1987 S.B. 35, A.L. 2000 H.B. 1142, A.L. 2002 H.B.
1348 merged with H.B. 2008)

If any wholesaler, manufacturer or distributor shall fail or
refuse to repurchase any inventory as required by section 407.860, he
shall be civilly liable for one hundred percent of the current net price
of the inventory, plus any freight charges paid by the retailer, the
retailer's attorney's fees, and court costs. (L. 1982 H.B. 958 § 6)

In the event of the death of the retailer or the spouse of a
surviving retailer if the retailer is operating as a tenancy by the
entireties or the majority stockholder of a corporation operating as a
retailer, the wholesaler, manufacturer or distributor shall, at the
option of the surviving spouse or the heir or heirs, repurchase the
inventory from the surviving spouse or the heir or heirs of the retailer
or majority stockholder as if the wholesaler, manufacturer or distributor
had terminated the contract. The surviving spouse or the heir or heirs
shall have one year from the date of the death of the retailer or
majority stockholder to exercise their options under sections 407.850 to
407.885. Nothing in sections 407.850 to 407.885 shall require the
repurchase of any inventory if the surviving spouse or the heir or heirs
and wholesaler, manufacturer or distributor enter into a new contract to
operate the retail dealership. (L. 1982 H.B. 958 § 7)

The provisions of sections 407.850 to 407.885 shall apply to all
valid contracts now in effect which have no expiration date and are
continuing contracts, and all other contracts entered into or renewed
after September 28, 1987. Any contract in force and effect on September
28, 1987, which by its own terms will terminate on a date subsequent
thereto shall be governed by the law as it existed prior to September 28,
1987. (L. 1982 H.B. 958 § 8, A.L. 1987 S.B. 35)

Any manufacturer, wholesaler or distributor of outdoor power
equipment used for lawn, garden, golf course, landscaping or grounds
maintenance, and repair parts therefor, who enters into a written or
parol contract with any person, firm, or corporation engaged in the
business of selling and repairing outdoor power equipment used for lawn,
garden, golf course, landscaping or grounds maintenance and repair parts
therefor, whereby such retailer agrees to maintain a stock of parts or
complete or whole machines or attachments, shall not terminate, cancel,
or fail to renew any such contract without good cause. "Good cause" means
failure by the retailer to substantially comply with essential and
reasonable requirements imposed upon the retailer by the contract if such
requirements are not different from those requirements imposed on other
similarly situated retailers either by their terms or in the manner of
their enforcement. In addition, good cause shall exist whenever:

(1) The retailer has transferred an interest in the retailer business
without the manufacturer's, wholesaler's or distributor's written
consent, or there has been a withdrawal from the retailer's business of
an individual proprietor, partner, major shareholder, or the manager of
the retailer's business, or there has been a substantial reduction in
interest of a partner or major stockholder without the written consent of
the manufacturer, wholesaler, or distributor;

(2) The retailer has filed a voluntary petition in bankruptcy or has had
an involuntary petition in bankruptcy filed against it which has not been
discharged within thirty days after the filing, or there has been a
closeout or sale of a substantial part of the retailer's assets related
to the retailer's business or there has been a commencement or
dissolution or liquidation of the retailer's business;

(3) There has been a change, without the prior written approval of the
manufacturer, wholesaler, or distributor, in the location of the
retailer's principal place of business under the retailer's agreement
with the manufacturer, wholesaler, or distributor;

(4) The retailer has defaulted under any chattel mortgage or other
security agreement between the retailer and the manufacturer, wholesaler,
or distributor, or there has been a revocation or discontinuance of any
guarantee of the retailer's present or future obligations to the
manufacturer, wholesaler, or distributor;

(5) The retailer has failed to operate in the normal course of business
for seven consecutive days or has otherwise abandoned his business,
except for reasonable and customary closures of business;

(6) The retailer has pleaded guilty to or has been convicted of a felony
affecting the relationship between the retailer and the manufacturer,
wholesaler, or distributor;

(7) The retailer has engaged in conduct which is injurious or detrimental
to the retailer's customers or the public welfare;

(8) The retailer has consistently failed to meet the manufacturer's,
wholesaler's or distributor's requirements for reasonable market
penetration based on the manufacturer's, wholesaler's, or distributor's
experience in other comparable marketing areas. (L. 1989 S.B. 41 § 4)

1. The obligations of any wholesaler, manufacturer or
distributor created by the provisions of sections 407.890 to 407.898
apply to any successor in interest or assignee of that wholesaler,
manufacturer, or distributor. A successor in interest includes any
purchaser of substantially all of the assets or over fifty percent of the
stock, any surviving corporation resulting from a merger or liquidation,
any receiver, or any trustee of the original wholesaler, manufacturer or
distributor.

2. The provisions of sections 407.890 to 407.898 shall not apply to such
manufacturer in the state of Missouri who employs less than fifty
employees or to any distributor who distributes solely within the state
of Missouri and who employs less than five employees for the two-year
period prior to the dealer termination and shall apply to all contracts
now in effect which have no expiration date and are continuing contracts
and all other contracts entered into, amended, or renewed after August
31, 1989. Any contract in force and effect on September 1, 1989, which by
its terms will terminate on a date subsequent thereto is governed by the
law as it existed before September 1, 1989. (L. 1989 S.B. 41 §§ 5, 6)

If a manufacturer, wholesaler or distributor violates any
provisions of sections 407.895 and 407.897, a retailer may bring an
action against such manufacturer, wholesaler, or distributor in any court
of competent jurisdiction for damages sustained by the retailer as a
consequence of the violation, together with the actual costs of the
action, including reasonable attorney fees, and the retailer also may be
granted injunctive relief against unlawful termination, cancellation,
nonrenewal or substantial change of competitive circumstances. The
remedies set forth in this section shall not be deemed exclusive and
shall be in addition to any other remedies permitted by law. (L. 1989
S.B. 41 § 7)

As used in sections 407.900 to 407.910:

(1) The term "art dealer" means a person engaged in the business of
selling fine arts. The term "art dealer" does not include any person
engaged exclusively in the business of selling goods at public auction;

(2) The term "artist" means a person who creates fine art or, if such
person is deceased, such person's heir, legatee, or personal
representative;

(3) The term "consignment" means a transfer of the physical possession of
fine art by the artist creating the fine art as consignor in which no
title to, estate in, or right to possession of the fine art superior to
that of the artist who is the consignor shall vest in the consignee,
notwithstanding the consignee's power or authority to transfer and convey
the title, and all of the rights and interests of the artist who is the
consignor in and to such fine art to a third person;

(4) The term "creditors" includes, but is not limited to, those persons
included in the definition of "creditor" in section 400.1-201, RSMo;

(5) The term "fine arts" includes:

(a) Visual art such as paintings, sculptures, drawings, mosaics, or
photographs;

(b) Calligraphy;

(c) Graphic art such as etchings, lithographs, offset prints, silk
screens, and other works of a similar nature;

(d) Crafts, including any item made by an artist or craftsman through the
use of clay, textiles, fibers, wood, metal, plastic, glass, ceramics, or
similar materials;

(e) Works in mixed media such as collages or any combination of the art
forms or media listed in paragraph (a), (b), (c), or (d) of this
subdivision. (L. 1984 S.B. 688 § 1)

1. Notwithstanding any custom, practice, or usage of the trade
to the contrary, whenever an artist delivers, or causes to be delivered,
a work of fine art of the artist's own creation to an art dealer in this
state for the purpose of exhibition or sale, or both, on a commission,
fee, or other basis of compensation, the delivery to and acceptance of
such work of fine art by the art dealer from the artist shall constitute
a consignment unless the delivery to the art dealer is pursuant to an
outright sale for which the artist has received or receives, either prior
to or upon delivery, full compensation for the work of fine art.

2. Whenever a consignee accepts a work of fine art from an artist for the
purpose of sale or exhibition and sale to the public on a commission,
fee, or other basis of compensation, there shall be a written contract or
agreement between the artist who is the consignor and consignee which
shall include, but need not be limited to, provisions that:

(1) The proceeds of the sale of the work of fine art shall be delivered
to the artist who is the consignor at a schedule agreed upon by the
artist who is the consignor and consignee;

(2) The consignee shall be responsible for the stated value of the work
of fine art in the event of the loss of or damage to such work of fine
art while it is in the possession of such consignee;

(3) The work of fine art shall only be sold by the consignee for an
amount at least equal to the amount agreed upon by the artist who is the
consignor in writing;

(4) The work of fine art may be used or displayed by the consignee or
others only with prior written consent of the artist who is the
consignor. (L. 1984 S.B. 688 § 2)

A consignment of a work of fine art shall result in all of the
following:

(1) The art dealer, after receipt of the work of fine art, shall
constitute an agent of the artist for the purpose of sale or exhibition
of the consigned work of fine art within the state of Missouri;

(2) The work of fine art shall constitute property held in trust by the
consignee for the benefit of the artist who is the consignor and shall
not be subject to claim by a creditor of the consignee;

(3) The proceeds from the sale of the work of fine art shall constitute
funds held in trust by the consignee for the benefit of the artist who is
the consignor, and such proceeds shall first be applied to pay any
balance due to the artist who is the consignor, unless the artist who is
the consignor expressly agrees otherwise in writing. (L. 1984 S.B. 688 §
3)

A work of fine art received as a consignment from the artist who
created the work of fine art shall remain trust property, notwithstanding
the subsequent purchase thereof by the consignee directly or indirectly
for the consignee's own account until the price is paid in full to the
artist who is consignor. If such work is thereafter resold to a bona fide
purchaser before the artist who is consignor has been paid in full, the
proceeds of the resale received by the consignee shall constitute funds
held in trust for the benefit of the artist who is consignor to the
extent necessary to pay any balance still due to the artist who is
consignor and such trusteeship shall continue until the fiduciary
obligation of the consignee to the artist who is the consignor with
respect to such transaction is discharged in full. (L. 1984 S.B. 688 § 4)

An artist who is a consignor may lawfully waive the provisions
of subdivision (3) of section 407.904 if such waiver is clear,
conspicuous, in writing, and signed by the artist who is the consignor.
No waiver shall be valid with respect to the proceeds of a work of fine
art initially received "on consignment" but subsequently purchased by the
consignee directly or indirectly for his own account. No waiver shall
inure to the benefit of the consignor's creditors in any manner which
might be inconsistent with the rights under sections 407.900 to 407.910
of the artist who is the consignor. (L. 1984 S.B. 688 § 5)

Sections 407.900 to 407.910 shall not apply to a written
contract executed prior to August 13, 1984, unless either the parties
agree by mutual written consent that sections 407.900 to 407.910 shall
apply or such contract is extended or renewed after August 13, 1984. The
provisions of sections 407.900 to 407.910 shall prevail over any
conflicting or inconsistent provisions of chapter 400, RSMo, affecting
the subject matter of sections 407.900 to 407.910. (L. 1984 S.B. 688 § 6)

Any art dealer or creditor of an art dealer who violates any
provision of sections 407.900 to 407.910 with intent to injure shall, in
addition to the payment of all other damages and costs owed by him, pay
to the artist involved punitive damages in an amount as may be determined
by law and reasonable attorney's fees. (L. 1984 S.B. 688 § 7)

As used in sections 407.911 to 407.915, the following terms mean:

(1) "Commission", compensation accruing to a sales representative for
payment by a principal, the rate of which is expressed as a percentage of
the dollar amount of orders or sales, or as a specified amount per order
or per sale;

(2) "Principal", a person, firm, corporation, partnership or other
business entity, whether or not it has a permanent or fixed place of
business in this state, and who:

(a) Manufactures, produces, imports, provides, or distributes a product
or service for sale;

(b) Contracts with a sales representative to solicit orders for the
product or service; and

(c) Compensates the sales representative, in whole or in part, by
commission;

(3) "Sales representative", a person, firm, corporation, partnership, or
other business entity who contracts with a principal to solicit orders
and who is compensated, in whole or in part, by commission, but shall not
include a person, firm, corporation, partnership, or other business
entity who places orders or purchases for its own account for resale. (L.
1989 S.B. 192 § 1 subsec. 1, A.L. 2005 S.B. 211)

1. When a commission becomes due shall be determined in the
following manner:

(1) The written terms of the contract between the principal and sales
representative shall control;

(2) If there is no written contract, or if the terms of the written
contract do not provide when the commission becomes due, or the terms are
ambiguous or unclear, the commission shall be paid when the product or
service is delivered and accepted by the purchaser or the principal
receives satisfaction in full;

(3) If neither subdivision (1) nor (2) of this subsection can be used to
clearly ascertain when the commission becomes due, then the commission
shall be due on the date the principal accepts the order and receives
satisfaction in full, unless the custom and usage prevalent in this state
for the parties' particular industry is different, in which event such
custom and usage shall prevail.

2. Nothing in sections 407.911 to 407.915 shall be construed to impair a
sales representative from collecting commissions on products or services
ordered prior to the termination of the contract between the principal
and the sales representative but delivered and accepted by the purchaser
after such termination.

3. When the contract between a sales representative and a principal is
terminated, all commissions then due shall be paid within thirty days of
such termination. Any and all commissions which become due after the date
of such termination shall be paid within thirty days of becoming due. (L.
1989 S.B. 192 § 1 subsecs. 2, 3, 4, A.L. 2005 S.B. 211)

Any principal who fails to timely pay the sales representative
commissions earned by such sales representative shall be liable to the
sales representative in a civil action for the actual damages sustained
by the sales representative and an additional amount as if the sales
representative were still earning commissions calculated on an annualized
pro rata basis from the date of termination to the date of payment. In
addition the court may award reasonable attorney's fees and costs to the
prevailing party. (L. 1989 S.B. 192 § 1 subsec. 5, A.L. 2005 S.B. 211)

A principal who is not a resident or citizen of this state who
contracts with a sales representative to solicit orders in this state is
declared to be transacting business in this state for purposes of the
exercise of jurisdiction of the courts of this state under section
506.500, RSMo. (L. 1989 S.B. 192 § 1 subsec. 6)

1. Nothing in sections 407.911 to 407.915 shall invalidate or
restrict any other or additional right or remedy available to a sales
representative from seeking to recover in one action on all claims
against a principal.

2. A provision in any contract between a sales representative and a
principal purporting to waive any provision of sections 407.911 to
407.915, whether by expressed waiver or by a contract subject to the laws
of another state, shall be void. (L. 1989 S.B. 192 § 1 subsecs. 7, 8)

1. The division of liquor control within the department of
public safety shall implement and enforce the provisions of sections
407.925 to 407.934.

2. Beginning January 1, 2003, the division of liquor control shall submit
an annual report to the general assembly on the effectiveness of sections
407.925 to 407.934 in reducing tobacco possession by minors and the
enforcement activities by the division for violations of sections 407.925
to 407.934. (L. 2001 H.B. 381)

As used in sections 407.925 to 407.932, the following terms mean:

(1) "Center of youth activities", any playground, school or other
facility, when such facility is being used primarily by persons under the
age of eighteen for recreational, educational or other purposes;

(2) "Distribute", a conveyance to the public by sale, barter, gift or
sample;

(3) "Minor", a person under the age of eighteen;

(4) "Municipality", the city, village or town within which tobacco
products are sold or distributed or, in the case of tobacco products that
are not sold or distributed within a city, village or town, the county in
which they are sold or distributed;

(5) "Person", an individual, partnership, copartnership, firm, company,
public or private corporation, association, joint stock company, trust,
estate, political subdivision or any agency, board, department or bureau
of the state or federal government, or any other legal entity which is
recognized by law as the subject of rights and duties;

(6) "Proof of age", a driver's license or other generally accepted means
of identification that contains a picture of the individual and appears
on its face to be valid;

(7) "Rolling papers", paper designed, manufactured, marketed, or sold for
use primarily as a wrapping or enclosure for tobacco, which enables a
person to roll loose tobacco into a smokable cigarette;

(8) "Sample", a tobacco product distributed to members of the general
public at no cost or at nominal cost for product promotional purposes;

(9) "Sampling", the distribution to members of the general public of
tobacco product samples;

(10) "Tobacco products", any substance containing tobacco leaf,
including, but not limited to, cigarettes, cigars, pipe tobacco, snuff,
chewing tobacco, or dipping tobacco;

(11) "Vending machine", any mechanical electric or electronic,
self-service device which, upon insertion of money, tokens or any other
form of payment, dispenses tobacco products. (L. 1992 S.B. 509, et al. §
7)

1. Any person or entity who sells tobacco products shall deny
the sale of such tobacco products to any person who is less than eighteen
years of age.

2. Any person or entity who sells or distributes tobacco products by mail
or through the Internet in this state in violation of subsection 1 of
this section shall be assessed a fine of two hundred * fifty dollars for
the first violation and five hundred dollars for each subsequent
violation. (L. 2001 H.B. 381)

*Word "and" appears in original rolls.

The owner of an establishment at which tobacco products or
rolling papers are sold at retail or through vending machines shall cause
to be prominently displayed in a conspicuous place at every display from
which tobacco products are sold and on every vending machine where
tobacco products are purchased a sign that shall:

(1) Contain in red lettering at least one-half inch high on a white
background the following: "It is a violation of state law for cigarettes
or other tobacco products to be sold or otherwise provided to any person
under the age of eighteen or for such person to purchase, attempt to
purchase or possess cigarettes or other tobacco products."; and

(2) Include a depiction of a pack of cigarettes at least two inches high
defaced by a red diagonal diameter of a surrounding red circle, and the
words "Under 18". (L. 1992 S.B. 509, et al. § 9, A.L. 2001 H.B. 381)

No person or entity shall sell individual packs of cigarettes or
smokeless tobacco products unless such packs satisfy one of the following
conditions prior to the time of sale:

(1) It is sold through a vending machine; or

(2) It is displayed behind the check-out counter or it is within the
unobstructed line of sight of the sales clerk or store attendant from the
checkout counter. (L. 2001 H.B. 381)

1. A person or entity selling tobacco products or rolling papers
or distributing tobacco product samples shall require proof of age from a
prospective purchaser or recipient if an ordinary person would conclude
on the basis of appearance that such prospective purchaser or recipient
may be under the age of eighteen.

2. The operator's or chauffeur's license issued pursuant to the
provisions of section 302.177, RSMo, or the operator's or chauffeur's
license issued pursuant to the laws of any state or possession of the
United States to residents of those states or possessions, or an
identification card as provided for in section 302.181, RSMo, or the
identification card issued by any uniformed service of the United States,
or a valid passport shall be presented by the holder thereof upon request
of any agent of the division of liquor control or any owner or employee
of an establishment that sells tobacco, for the purpose of aiding the
registrant, agent or employee to determine whether or not the person is
at least eighteen years of age when such person desires to purchase or
possess tobacco products procured from a registrant. Upon such
presentation, the owner or employee of the establishment shall compare
the photograph and physical characteristics noted on the license,
identification card or passport with the physical characteristics of the
person presenting the license, identification card or passport.

3. Any person who shall, without authorization from the department of
revenue, reproduce, alter, modify or misrepresent any chauffeur's
license, motor vehicle operator's license or identification card shall be
deemed guilty of a misdemeanor and upon conviction shall be subject to a
fine of not more than one thousand dollars, and confinement for not more
than one year, or by both such fine and imprisonment.

4. Reasonable reliance on proof of age or on the appearance of the
purchaser or recipient shall be a defense to any action for a violation
of subsections 1, 2 and 3 of section 407.931. No person shall be liable
for more than one violation of subsections 2 and 3 of section 407.931 on
any single day. (L. 1992 S.B. 509, et al. §§ 11, 13, A.L. 2001 H.B. 381)

1. It shall be unlawful for any person to sell, provide or
distribute tobacco products to persons under eighteen years of age.

2. By January 1, 2002, all vending machines that dispense tobacco
products shall be located within the unobstructed line of sight and under
the direct supervision of an adult responsible for preventing persons
less than eighteen years of age from purchasing any tobacco product from
such machine or shall be equipped with a lock-out device to prevent the
machines from being operated until the person responsible for monitoring
sales from the machines disables the lock. Such locking device shall be
of a design that prevents it from being left in an unlocked condition and
which will allow only a single sale when activated. A locking device
shall not be required on machines that are located in areas where persons
less than eighteen years of age are not permitted or prohibited by law.
An owner of an establishment whose vending machine is not in compliance
with the provisions of this subsection shall be subject to the penalties
contained in subsection 5 of this section. A determination of
noncompliance may be made by a local law enforcement agency or the
division of liquor control. Nothing in this section shall apply to a
vending machine if located in a factory, private club or other location
not generally accessible to the general public.

3. No person or entity shall sell, provide or distribute any tobacco
product or rolling papers to any minor, or sell any individual cigarettes
to any person in this state. This subsection shall not apply to the
distribution by family members on property that is not open to the public.

4. Any person including, but not limited to, a sales clerk, owner or
operator who violates subsection 1, 2 or 3 of this section or section
407.927 shall be penalized as follows:

(1) For the first offense, twenty-five dollars;

(2) For the second offense, one hundred dollars;

(3) For a third and subsequent offense, two hundred fifty dollars.

5. Any owner of the establishment where tobacco products are available
for sale who violates subsection 3 of this section, in addition to the
penalties established in subsection 4 of this section, shall be penalized
in the following manner:

(1) For the first violation per location within two years, a reprimand
shall be issued by the division of liquor control;

(2) For the second violation per location within two years, the division
of liquor control shall issue a citation prohibiting the outlet from
selling tobacco products for a twenty-four-hour period;

(3) For the third violation per location within two years, the division
of liquor control shall issue a citation prohibiting the outlet from
selling tobacco products for a forty-eight-hour period;

(4) For the fourth and any subsequent violations per location within two
years, the division of liquor control shall issue a citation prohibiting
the outlet from selling tobacco products for a five-day period.

6. Any owner of the establishment where tobacco products are available
for sale who violates subsection 3 of this section shall not be penalized
pursuant to this section if such person documents the following:

(1) An in-house or other tobacco compliance employee training program was
in place to provide the employee with information on the state and
federal regulations regarding tobacco sales to minors. Such training
program must be attended by all employees who sell tobacco products to
the general public;

(2) A signed statement by the employee stating that the employee has been
trained and understands the state laws and federal regulations regarding
the sale of tobacco to minors; and

(3) Such in-house or other tobacco compliance training meets the minimum
training criteria, which shall not exceed a total of ninety minutes in
length, established by the division of liquor control.

7. The exemption in subsection 6 of this section shall not apply to any
person who is considered the general owner or operator of the outlet
where tobacco products are available for sale if:

(1) Four or more violations per location of subsection 3 of this section
occur within a one-year period; or

(2) Such person knowingly violates or knowingly allows his or her
employees to violate subsection 3 of this section.

8. If a sale is made by an employee of the owner of an establishment in
violation of sections 407.925 to 407.934, the employee shall be guilty of
an offense established in subsections 1, 2 and 3 of this section. If a
vending machine is in violation of section 407.927, the owner of the
establishment shall be guilty of an offense established in subsections 3
and 4 of this section. If a sample is distributed by an employee of a
company conducting the sampling, such employee shall be guilty of an
offense established in subsections 3 and 4 of this section.

9. A person cited for selling, providing or distributing any tobacco
product to any individual less than eighteen years of age in violation of
subsection 1, 2 or 3 of this section shall conclusively be presumed to
have reasonably relied on proof of age of the purchaser or recipient, and
such person shall not be found guilty of such violation if such person
raises and proves as an affirmative defense that such individual
presented a driver's license or other government-issued photo
identification purporting to establish that such individual was eighteen
years of age or older.

10. Any person adversely affected by this section may file an appeal with
the administrative hearing commission which shall be adjudicated pursuant
to the procedures established in chapter 621, RSMo. (L. 1992 S.B. 509, et
al. §§ 8, 10, 12, A.L. 2001 H.B. 381)

Nothing in sections 407.925 to 407.932 shall prohibit local
political subdivisions from enacting more stringent ordinances or rules.
(L. 1992 S.B. 509, et al. § 14)

1. No person less than eighteen years of age shall purchase,
attempt to purchase or possess cigarettes or other tobacco products
unless such person is an employee of a seller of cigarettes or tobacco
products and is in such possession to effect a sale in the course of
employment, or an employee of the division of liquor control for
enforcement purposes pursuant to subsection 5 of section 407.934.

2. Any person less than eighteen years of age shall not misrepresent his
or her age to purchase cigarettes or tobacco products.

3. Any person who violates the provisions of this section shall be
penalized as follows:

(1) For the first violation, the person is guilty of an infraction and
shall have any cigarettes or tobacco products confiscated;

(2) For a second violation and any subsequent violations, the person is
guilty of an infraction, shall have any cigarettes or tobacco products
confiscated and shall complete a tobacco education or smoking cessation
program, if available. (L. 2001 H.B. 381)

1. No person shall sell cigarettes or tobacco products unless
the person has a retail sales tax license.

2. Beginning January 1, 2002, the department of revenue shall permit
persons to designate through the Internet or by including a place on all
sales tax license applications for the applicant to designate himself or
herself as a seller of tobacco products and to provide a list of all
locations where the applicant sells such products.

3. On or before July first of each year, the department of revenue shall
make available to the division of liquor control and the department of
mental health a complete list of every establishment which sells
cigarettes and other tobacco products in this state.

4. The division of liquor control shall have the authority to inspect
stores and tobacco outlets for compliance with all laws related to access
of tobacco products to minors. The division may employ a person seventeen
years of age, with parental consent, to attempt to purchase tobacco for
the purpose of inspection or enforcement of tobacco laws.

5. The supervisor of the division of liquor control shall not use minors
to enforce the provisions of this chapter unless the supervisor
promulgates rules that establish standards for the use of minors. The
supervisor shall establish mandatory guidelines for the use of minors in
investigations by a state, county, municipal or other local law
enforcement authority which shall be followed by such authority and which
shall, at a minimum, provide for the following:

(1) The minor shall be seventeen years of age;

(2) The minor shall have a youthful appearance, and the minor, if a male,
shall not have facial hair or a receding hairline and if a female, shall
not wear excessive makeup or excessive jewelry;

(3) The state, county, municipal or other local law enforcement agency
shall obtain the consent of the minor's parent or legal guardian before
the use of such minor on a form approved by the supervisor;

(4) The state, county, municipal or other local law enforcement agency
shall make a photocopy of the minor's valid identification showing the
minor's correct date of birth;

(5) Any attempt by such minor to purchase tobacco products shall be
videotaped or audiotaped with equipment sufficient to record all
statements made by the minor and the seller of the tobacco product;

(6) The minor shall carry his or her own identification showing the
minor's correct date of birth and shall, upon request, produce such
identification to the seller of the tobacco product;

(7) The minor shall answer truthfully any questions about his or her age
and shall not remain silent when asked questions regarding his or her age;

(8) The minor shall not lie to the seller of the tobacco product to
induce a sale of tobacco products;

(9) The minor shall not be employed by the state, county, municipal or
other local law enforcement agency on an incentive or quota basis;

(10) The state, county, municipal or other local law enforcement agency
shall, within forty-eight hours, contact or take all reasonable steps to
contact the owner or manager of the establishment if a violation occurs;

(11) The state, county, municipal or other local law enforcement agency
shall maintain records of each visit to an establishment where a minor is
used by the state, county, municipal or other local law enforcement
agency for a period of at least one year following the incident,
regardless of whether a violation occurs at each visit, and such records
shall, at a minimum, include the following information:

(a) The signed consent form of the minor's parent or legal guardian;

(b) A Polaroid photograph of the minor;

(c) A photocopy of the minor's valid identification, showing the minor's
correct date of birth;

(d) An information sheet completed by the minor on a form approved by the
supervisor; and

(e) The name of each establishment visited by the minor, and the date and
time of each visit.

6. If the state, county, municipal or other local law enforcement
authority uses minors in investigations or in enforcing or determining
violations of this chapter or any local ordinance and does not comply
with the mandatory guidelines established by the supervisor of liquor
control in subsection 5 of this section, the supervisor of liquor control
shall not take any disciplinary action against the establishment or
seller pursuant to this chapter based on an alleged violation discovered
when using a minor and shall not cooperate in any way with the state,
county, municipal or other local law enforcement authority in prosecuting
any alleged violation discovered when using a minor. (L. 2001 H.B. 381)

As used in sections 407.935 to 407.943, the following words and
phrases shall mean:

(1) "Contract", any agreement, or any term thereof, between a foreclosure
consultant and an owner for the rendition of any service as defined in
subdivision (6) of this section;

(2) "Foreclosure consultant":

(a) Includes any person who makes any solicitation, representation, or
offer to any owner to perform for compensation or who, for compensation,
performs any service which the person in any manner represents will do in
any manner any of the following:

a. Stop or postpone the foreclosure sale;

b. Obtain any forbearance from any beneficiary or mortgagee;

c. Assist the owner to exercise any right of redemption;

d. Obtain any extension of the period within which the owner may
reinstate his obligation;

e. Obtain any waiver of an acceleration clause contained in any
promissory note or contract secured by a deed of trust or mortgage on a
residence in foreclosure or contained in any such deed of trust or
mortgage;

f. Assist the owner in obtaining a loan or advance of funds;

g. Avoid or ameliorate the impairment of the owner's credit resulting
from the recording of a notice of default or the conduct of a foreclosure
sale;

h. Save the owner's residence from foreclosure;

(b) A foreclosure consultant does not include any of the following:

a. A person licensed to practice law in this state when the person
renders service in the course of his practice as an attorney at law;

b. A person licensed as a real estate broker pursuant to chapter 339,
RSMo, when the person makes a direct loan or when the person:

(i) Engages in acts, the performance of which require licensure under
that chapter;

(ii) Is entitled to compensation for the act performed in connection with
the sale of a residence in foreclosure or with the arranging of a loan
secured by a lien on a residence in foreclosure;

(iii) Does not claim, demand, charge, collect, or receive any
compensation until the acts have been performed or cannot be performed
because of the failure of the owner to accept an offer from a purchaser
or lender ready, willing, and able to purchase a residence in foreclosure
or make a loan secured by a lien on a residence in foreclosure on the
terms prescribed in a listing or a loan agreement; and

(iv) Does not acquire any interest in a residence in foreclosure directly
from an owner for whom the person agreed to perform the acts other than
as a trustee or beneficiary under a deed of trust given to secure the
payment of a loan or that compensation;

(v) For the purposes of this subdivision, a "direct loan" means a loan of
a real estate broker's own funds secured by a deed of trust on the
residence in foreclosure, which loan and deed of trust the broker in good
faith attempts to assign to a lender, for an amount at least sufficient
to cure all of the defaults on obligations which are then subject to a
notice of default, provided that: if a foreclosure sale is conducted with
respect to the deed of trust, the person conducting the foreclosure sale
has no interest in the residence in foreclosure or in the outcome of the
sale and is not owned, controlled, or managed by the lending broker; the
lending broker does not acquire any interest in the residence in
foreclosure directly from the owner other than as a beneficiary under the
deed of trust; and the loan is not made for the purpose or effect of
avoiding or evading the provisions of this act*;

c. A person or his authorized agent acting under the express authority or
written approval of the department of housing and urban development or
other department or agency of the United States or this state to provide
services;

d. A person who holds or is owed an obligation secured by a lien on any
residence in foreclosure when the person performs services in connection
with the obligation or lien;

e. Any person licensed to make loans pursuant to sections 367.100 to
367.215, RSMo, subject to the authority of the director of finance to
terminate this exclusion, if after notice and hearing, any such licensee
is found to have engaged in practices described in section 407.938;

f. Any person or entity doing business under any law of this state, or of
the United States relating to banks, trust companies, savings and loan
associations, credit unions, or any person or entity authorized under the
laws of this state to conduct a title or escrow business, or a mortgagee
which is a United States department of housing and urban development
approved mortgagee and any subsidiary or affiliate of the above, and any
agent or employee of the above while engaged in business of these persons
or entities;

(3) "Owner", the record owner of any residence in foreclosure;

(4) "Person", any individual, partnership, corporation, association or
other group, however organized;

(5) "Residence in foreclosure", any real property improved by a
residential structure used or intended to be used as a residence by not
more than four families, and occupied by the owner, which is the subject
of any attempt by any person to enforce an obligation, the performance of
which is secured by a mortgage or deed of trust encumbering the real
property;

(6) "Service" includes, but is not limited to, any of the following:

(a) Debt, budget, or financial counseling of any type;

(b) Receiving money for the purpose of distributing it to creditors in
payment or partial payment of any obligation secured by a lien on a
residence in foreclosure;

(c) Contacting creditors on behalf of an owner of a residence in
foreclosure;

(d) Arranging or attempting to arrange for an extension of the period
within which the owner of a residence in foreclosure may cure his default
and reinstate his obligation;

(e) Arranging or attempting to arrange for any delay or postponement of
the time of sale of the residence in foreclosure;

(f) Advising the filing of any document or assisting in any manner in the
preparation of any document for filing with any bankruptcy court;

(g) Giving any advice, explanation or instruction to an owner of a
residence in foreclosure which in any manner relates to the cure of a
default in or the reinstatement of an obligation secured by a lien on the
residence in foreclosure, the full satisfaction of that obligation, or
the postponement or avoidance of a sale of a residence in foreclosure
pursuant to a power of sale contained in any deed of trust. (L. 1992 S.B.
705 § 2)

*"This act" (S.B. 705, 1992) contained numerous sections. Consult
Disposition of Sections table for a definitive listing.

1. In addition to any other right under law to rescind a
contract, an owner has the right to cancel a contract until midnight of
the third business day after the day on which the owner signs a contract
which complies with section 407.938.

2. The term "third business day" shall exclude all intervening Saturdays,
Sundays and national and state holidays.

3. Notice of cancellation, if given by mail, is effective when deposited
in the mail properly addressed with postage prepaid.

4. Notice of cancellation given by the owner need not take the particular
form as provided with the contract and, however expressed, is effective
if it indicates the intention of the owner not to be bound by the
contract. (L. 1992 S.B. 705 § 3)

1. Every contract shall be in writing and shall fully disclose
the exact nature of the foreclosure consultant's services and the total
amount and terms of compensation.

2. The following notice, printed in at least fourteen-point boldface type
and completed with the name of the foreclosure consultant, shall be
printed immediately above the statement required by subsection 3 of this
section:

NOTICE REQUIRED BY MISSOURI LAW

................................. (Enter name of foreclosure consultant)
or anyone working for him or her cannot:

(1) Take any money from you or ask you for money until
.................................. (Enter name of foreclosure consultant)
has completely finished doing everything he or she said he or she would
do; and

(2) Ask you to sign or have you sign any lien, mortgage, deed of trust,
or deed.

3. The contract shall be written in the same language as principally used
by the foreclosure consultant to describe his services or to negotiate
the contract, shall be dated and signed by the owner, and shall contain
in immediate proximity to the space reserved for the owner's signature a
conspicuous statement in a size equal to at least ten-point bold type, as
follows:

You, the owner, may cancel this transaction at any time prior to midnight
of the third business day after the date of this transaction. See the
attached notice of cancellation form for an explanation of this right.

4. The contract shall contain on the first page, in a type size no
smaller than that generally used in the body of the document, each of the
following:

(1) The name and address of the foreclosure consultant to which the
notice or cancellation is to be mailed;

(2) The date the owner signed the contract.

5. The contract shall be accompanied by a completed form in duplicate,
captioned "notice of cancellation", which shall be attached to the
contract, shall be easily detachable, and shall contain in type of at
least ten-point the following statement written in the same language as
used in the contract:

NOTICE OF CANCELLATION ............. (Enter date of transaction.)
............... (Date) You may cancel this transaction, without any
penalty or obligation, within three business days from the above date. To
cancel this transaction, mail or deliver a signed and dated copy of this
cancellation notice, or any other written notice, or send a telegram to
................................. (Enter name of foreclosure consultant)
at .................................. (Enter address of foreclosure
consultant's place of business) NOT LATER THAN MIDNIGHT OF
........................ (Enter date) I hereby cancel this transaction on
..................... (Date) ......... (Owner's signature)

6. The foreclosure consultant shall provide the owner with a copy of the
contract and the attached notice of cancellation. (L. 1992 S.B. 705 § 4)

1. It shall be unlawful for a foreclosure consultant to
knowingly:

(1) Claim, demand, charge, collect, or receive any compensation until
after the foreclosure consultant has fully performed each and every
service the foreclosure consultant contracted to perform or represented
he would perform;

(2) Claim, demand, charge, collect, or receive any fee, interest, or any
other compensation for any reason which exceeds ten percent per annum of
the amount of any loan which the foreclosure consultant may make to the
owner;

(3) Take any wage assignment, any lien of any type on real or personal
property, or other security to secure the payment of compensation. Any
such security shall be void and unenforceable;

(4) Receive any consideration from any third party in connection with
services rendered to an owner unless such consideration is fully
disclosed to the owner;

(5) Acquire any interest in a residence in foreclosure from an owner with
whom the foreclosure consultant has contracted. Any interest acquired in
violation of this subdivision shall be voidable, provided that nothing
herein shall affect or defeat the title of a bona fide purchaser or
encumberer for value and without notice of a violation of this section.
Knowledge that the property was a "residence in foreclosure" shall not
constitute notice of a violation of this section. This subdivision shall
not be deemed to abrogate any duty of inquiry which exists as to rights
or interests of persons in possession of a residence in foreclosure;

(6) Take any power of attorney from an owner for any purpose, except to
inspect documents as provided by law;

(7) Induce or attempt to induce any owner to enter a contract which does
not comply in all respects with sections 407.935 and 407.937.

2. Any violation of any of the acts enumerated in subsection 1 of this
section shall be a class A misdemeanor. (L. 1992 S.B. 705 § 5)

Any waiver by an owner of the provisions of sections 407.935 to
407.943 shall be deemed void and unenforceable as contrary to public
policy. Any attempt by a foreclosure consultant to induce an owner to
waive his rights shall be deemed a violation of subdivision (7) of
subsection 1 of section 407.940. (L. 1992 S.B. 705 § 6)

1. An owner may bring an action against a foreclosure consultant
for any violation of sections 407.935 to 407.943. Judgment shall be
entered for actual damages, reasonable attorneys' fees and costs, and
appropriate equitable relief. The court also may, in its discretion,
award exemplary damages equivalent to at least twice the compensation
received by the foreclosure consultant in violation of section 407.940,
in addition to any other award of actual damages.

2. The rights and remedies provided in subsection 1 of this section are
cumulative to, and not a limitation of, any other rights and remedies
provided by law. Any action brought pursuant to this section shall be
commenced within three years from the date of the alleged violation. (L.
1992 S.B. 705 § 7)

1. As used in sections 407.950 to 407.970, the following terms
mean:

(1) "Assistive device", any device, including a demonstrator, that a
consumer purchases or accepts transfer of in this state which is used for
a major life activity which includes, but is not limited to, manual
wheelchairs, motorized wheelchairs, motorized scooters, and other aids
that enhance the mobility of an individual; hearing aid, telephone
communication devices for the deaf (TDD), assistive listening devices,
and other aids that enhance an individual's ability to hear;
voice-synthesized computer modules, optical scanners, talking software,
Braille printers, and other devices that enhance a sight impaired
individual's ability to communicate; and any other assistive device that
enables a person with a disability to communicate, see, hear, or maneuver;

(2) "Assistive device dealer", a person who is in the business of selling
assistive devices;

(3) "Assistive device lessor", a person who leases an assistive device to
a consumer, or who holds the lessor's rights, under a written lease;

(4) "Collateral costs", expenses incurred by a consumer in connection
with the repair of a nonconformity, including the costs of obtaining an
alternative assistive device;

(5) "Consumer", any of the following:

(a) The purchaser of an assistive device, if the assistive device was
purchased from an assistive device dealer or manufacturer for purposes
other than resale;

(b) A person to whom the assistive device is transferred for purposes
other than resale, if the transfer occurs before the expiration of an
express warranty applicable to the assistive device;

(c) A person who may enforce the warranty;

(d) A person who leases an assistive device from an assistive device
lessor under a written lease;

(6) "Demonstrator", an assistive device used primarily for the purpose of
demonstration to the public;

(7) "Early termination cost", any expense or obligation that an assistive
device lessor incurs as a result of both the termination of a written
lease before the termination date set forth in that lease and the return
of an assistive device to a manufacturer pursuant to sections 407.950 to
407.970. Early termination cost includes a penalty for prepayment under a
finance arrangement;

(8) "Early termination saving", any expense or obligation that an
assistive device lessor avoids as a result of both the termination of a
written lease before that termination date set forth in that lease and
the return of an assistive device to a manufacturer pursuant to sections
407.950 to 407.970. Early termination saving includes an interest charge
that the assistive device lessor would have paid to finance the assistive
device or, if the assistive device lessor does not finance the assistive
device, the difference between the total amount for which the lease
obligates the consumer during the period of the lease term remaining
after the early termination and the present value of that amount at the
date of the early termination;

(9) "Manufacturer", a person who manufactures or assembles assistive
devices and agents of that person, including an importer, a distributor,
factory branch, distributor branch and any warrantors of the
manufacturer's assistive device, but does not include an assistive device
dealer;

(10) "Nonconformity", a condition or defect that substantially impairs
the use, value or safety of an assistive device, and that is covered by
an express warranty applicable to the assistive device or to a component
of the assistive device, but does not include:

(a) A condition of the device that is the result of abuse, neglect or
unauthorized modification or alteration of the assistive device by a
consumer; or

(b) A condition of the device that is the result of normal use which may
be resolved through a fitting adjustment, preventative maintenance or
proper care;

(11) "Reasonable attempt to repair", within the terms of an express
warranty applicable to a new assistive device:

(a) Any nonconformity within the warranty that is either subject to
repair by the manufacturer, assistive device lessor or any of the
manufacturer's authorized assistive device dealers, for at least four
times and a nonconformity continues; or

(b) The assistive device is out of service with no comparable loaner
available for an aggregate of at least thirty cumulative days because of
warranty nonconformity. (L. 1995 H.B. 333 § 1 subsec. 1, A.L. 1997 S.B.
410)

A manufacturer who sells an assistive device to a consumer,
either directly or through an assistive device dealer, shall furnish the
consumer with an express warranty for the assistive device. The duration
of the express warranty shall be not less than one year after first
delivery of the assistive device to the consumer. In the absence of an
express warranty from the manufacturer, the manufacturer shall be deemed
to have expressly warranted to the consumer of an assistive device that,
for a period of one year from the date of first delivery to the consumer,
the assistive device will be free from any condition or defect which
substantially impairs the value of the assistive device to the consumer.
(L. 1995 H.B. 333 § 1 subsec. 2)

If a new assistive device does not conform to an applicable
express warranty and the consumer reports the nonconformity to the
manufacturer, the assistive device lessor or any of the manufacturer's
authorized assistive device dealers and makes the assistive device
available for repair before one year after return delivery of the
assistive device to a consumer, the nonconformity shall be repaired at no
charge to the consumer. (L. 1995 H.B. 333 § 1 subsec. 3)

1. If, after a reasonable attempt to repair, the nonconformity
is not repaired, the manufacturer shall carry out the requirement set
forth under subsection 2 of this section.

2. If, after a reasonable attempt to repair, the nonconformity is not
repaired, then at the direction of a consumer described under paragraph
(a), (b), or (c) of subdivision (5) of section 407.950, the manufacturer
shall do one of the following:

(1) Accept return of the assistive device and replace the assistive
device with a comparable new assistive device and refund any collateral
costs;

(2) Accept return of the assistive device and refund to the consumer and
to any holder of a perfected security interest in the consumer's
assistive device, as their interest may appear, the full purchase price
plus any finance charge amount paid by the consumer at the point of sale
and collateral costs, less a reasonable allowance for use. A reasonable
allowance for use may not exceed the amount obtained by multiplying the
full purchase price of the assistive device by a fraction, the
denominator of which is one thousand eight hundred twenty-five and the
numerator of which is the number of days that the assistive device was
used before the consumer first reported the nonconformity to the
assistive device dealer;

(3) With respect to a consumer described under paragraph (d) of
subdivision (5) of section 407.950, accept return of the assistive
device, refund to the assistive device lessor and to any holder of a
perfected security interest in the assistive device, as their interest
may appear, the current value of the written lease and refund to the
consumer the amount that the consumer paid under the written lease plus
any collateral costs, less a reasonable allowance for use. (L. 1995 H.B.
333 § 1 subsecs. 4, 5)

1. The current value of the written lease equals the total
amount for which that lease obligates the consumer during the period of
the lease remaining after its early termination, plus the assistive
device dealer's early termination costs and the value of the assistive
device at the lease expiration date if the lease sets forth that value,
less the assistive device lessor's early termination savings.

2. A reasonable allowance for use may not exceed the amount obtained by
multiplying the total amount for which the written lease obligates the
consumer by a fraction, the denominator of which is one thousand eight
hundred twenty-five and the numerator of which is the number of days that
the consumer used the assistive device before first reporting the
nonconformity to the manufacturer, assistive device lessor or assistive
device dealer. (L. 1995 H.B. 333 § 1 subsecs. 6, 7)

1. To receive a comparable new assistive device or a refund due
under subsection 2 of section 407.957, a consumer described under
subdivision (5) of section 407.950 shall offer to the manufacturer of the
assistive device having the nonconformity to transfer possession of that
assistive device to that manufacturer. No later than thirty days after
that offer, the manufacturer shall provide the consumer with the
comparable assistive device or refund. When the manufacturer provides the
new assistive device or refund, the consumer shall return the assistive
device having the nonconformity to the manufacturer, along with any
endorsements necessary to transfer real possession to the manufacturer.

2. To receive a refund due under subdivision (3) of subsection 2 of
section 407.957, a consumer described under paragraph (d) of subdivision
(5) of section 407.950 shall offer to return the assistive device having
the nonconformity to its manufacturer. No later than thirty days after
that offer, the manufacturer shall provide the refund to the consumer.
When the manufacturer provides the refund, the consumer shall return to
the manufacturer the assistive device having the nonconformity.

3. To receive a refund due under subdivision (3) of subsection 2 of
section 407.957, an assistive device lessor shall offer to transfer
possession of the assistive device having the nonconformity to its
manufacturer. No later than thirty days after that offer, the
manufacturer shall provide the refund to the assistive device lessor.
When the manufacturer provides the refund, the assistive device lessor
shall provide to the manufacturer any endorsements necessary to transfer
legal possession to the manufacturer.

4. No person shall enforce the lease against the consumer after the
consumer receives a refund due under subdivision (3) of subsection 2 of
section 407.957. (L. 1995 H.B. 333 § 1 subsecs. 8 to 11)

No assistive device returned by a consumer or assistive device
lessor in this state, or by a consumer or assistive device lessor in
another state under a similar law of that state, may be sold or leased
again in this state unless full disclosure of the reasons for return is
made to any prospective buyer or lessee. (L. 1995 H.B. 333 § 1 subsec. 12)

1. Each consumer shall have the option of submitting any dispute
arising under sections 407.950 to 407.970 upon the payment of a
prescribed filing fee to an alternate arbitration mechanism established
pursuant to regulations promulgated by the attorney general. Upon
application of the consumer and payment of the filing fee, all
manufacturers shall submit to such alternate arbitration.

2. Such alternate arbitration shall be conducted by a professional
arbitrator or arbitration firm appointed by and under regulations
established by the attorney general. Such mechanism shall ensure the
personal objectivity of its arbitrators and the right of each party to
present its case, to be in attendance during any presentation made by the
other party and to rebut or refute such presentation.

3. Sections 407.950 to 407.970 shall not be construed to limit rights or
remedies available to a consumer under any other law.

4. Any waiver by a consumer of rights under sections 407.950 to 407.970
is void. (L. 1995 H.B. 333 § 1 subsecs. 13 to 16)

In addition to pursuing any other remedy, a consumer may bring
an action to recover for any damages caused by a violation of sections
407.950 to 407.970. The court shall award a consumer who prevails in such
an action twice the amount of any pecuniary loss, together with costs,
disbursements and reasonable attorney fees, and any equitable relief that
the court determines is appropriate. (L. 1995 H.B. 333 § 1 subsec. 17)

1. No rule or portion of a rule promulgated under the authority
of sections 407.950 to 407.970 shall become effective until it has been
approved by the joint committee on administrative rules in accordance
with the procedures provided in sections 407.950 to 407.970, and the
delegation of the legislative authority to enact law by the adoption of
such rules is dependent upon the power of the joint committee on
administrative rules to review and suspend rules pending ratification by
the senate and the house of representatives as provided in sections
407.950 to 407.970.

2. Upon filing any proposed rule with the secretary of state the attorney
general shall concurrently submit such proposed rule to the committee
which may hold hearings upon any proposed rule or portion thereof at any
time.

3. A final order of rulemaking shall not be filed with the secretary of
state until thirty days after such final order of rulemaking has been
received by the committee. The committee may hold one or more hearings
upon such final order of rulemaking during the thirty-day period. If the
committee does not disapprove such order of rulemaking within the thirty-
day period, the attorney general may file such order of rulemaking with
the secretary of state and the order of rulemaking shall be deemed
approved.

4. The committee may, by majority vote of the members, suspend the order
of rulemaking or portion thereof by action taken prior to the filing of
the final order of rulemaking only for one or more of the following
grounds:

(1) An absence of statutory authority for the proposed rule;

(2) An emergency relating to public health, safety or welfare;

(3) The proposed rule is in conflict with state law;

(4) A substantial change in circumstance since enactment of the law upon
which the proposed rule is based.

5. If the committee disapproves any rule or portion thereof, the attorney
general shall not file such disapproved portion of any rule with the
secretary of state and the secretary of state shall not publish in the
Missouri Register any final order of rulemaking containing the
disapproved portion.

6. If the committee disapproves any rule or portion thereof, the
committee shall report its findings to the senate and the house of
representatives. No rule or portion thereof disapproved by the committee
shall take effect so long as the senate and the house of representatives
ratify the act of the joint committee by resolution adopted in each house
within thirty legislative days after such rule or portion thereof has
been disapproved by the joint committee.

7. Upon adoption of a rule as provided in sections 407.950 to 407.970,
any such rule or portion thereof may be suspended or revoked by the
general assembly either by bill or, pursuant to section 8, article IV of
the Constitution of Missouri, by concurrent resolution upon
recommendation of the joint committee on administrative rules. The
committee shall be authorized to hold hearings and make recommendations
pursuant to the provisions of section 536.037, RSMo. The secretary of
state shall publish in the Missouri Register, as soon as practicable,
notice of the suspension or revocation. (L. 1995 H.B. 333 § 1 subsecs. 18
to 24)

1. As used in sections 407.980 to 407.987, the term "convenience
business" means any place of business that is primarily engaged in the
retail sale of groceries, or both groceries and gasoline, and is open for
business at any time between the hours of 11:00 p.m. and 5:00 a.m. The
term "convenience business" does not include:

(1) A business that is solely or primarily a restaurant;

(2) A business that has at least ten thousand square feet of retail floor
space; or

(3) A business which is owned by a person who owns a business at no other
location.

2. A political subdivision of this state may not adopt, for convenience
businesses, security standards which differ from those contained in
sections 407.980 to 407.987 and all such differing standards are hereby
preempted and superseded by state statute. (L. 1995 S.B. 446 § 4, A.L.
1997 H.B. 141)

1. Prior to January 1, 1997, for the protection of employees and
the consumer public at late-night convenience businesses, every operator
of a convenience business shall ensure that such operator's convenience
business is equipped with the following:

(1) A bullet-resistant glass enclosure or security camera system capable
of recording and retrieving an image to assist law enforcement officials
in the identification and apprehension of a criminal offender and by
January 1, 1998, such system shall have at least one camera focused on
the cash register area;

(2) A drop safe or cash-management device for restricted access to cash
receipts;

(3) Lighting for parking areas and entrances at an intensity to provide
clear visibility under normal conditions, which can be satisfied by
canopy lighting within ten feet of the building;

(4) A conspicuous notice at the entrance which states that the cash
register contains limited funds;

(5) Height markers at the entrance of the convenience business which
display height measures; and

(6) A cash management policy to limit the cash on hand at all times after
11:00 p.m. and before 5:00 a.m.

2. Prior to January 1, 1998, for the protection of employees and the
consumer public at late-night convenience businesses, every operator of a
convenience business shall ensure that such operator's convenience
business is equipped with the following:

(1) A silent alarm system which shall be connected to a security company
or a local law enforcement agency; or

(2) A telephone, other than a pay telephone, accessible to employees at
all times.

3. After January 1, 1997, for the protection of employees and the
consumer public at late-night convenience businesses, every operator of a
convenience business shall ensure that:

(1) No window signs shall be located so as to obstruct the view from
outside the building to the cash register and sales transaction area; and

(2) No window tinting that significantly reduces exterior or interior
view in a normal line of sight.

4. For the purposes of sections 407.980 to 407.990, "operator" means any
individual proprietor or business entity responsible for the day-to-day
operation of the convenience business. (L. 1995 S.B. 446 § 5, A.L. 1997
H.B. 141)

The operator of a convenience business shall provide each
employee with training in proper robbery deterrence and safety within
sixty days of an employee's date of employment or if a person is an
employee on January 1, 1997, then by July 1, 1997. (L. 1995 S.B. 446 § 6,
A.L. 1997 H.B. 141)

Any person who violates any provision of sections 407.980 to
407.990 is guilty of a class C misdemeanor. (L. 1997 H.B. 141)

As used in sections 407.1025 to 407.1049, unless the context
otherwise requires, the following terms mean:

(1) "Administrative hearing commission", the body established in chapter
621, RSMo, to conduct administrative hearings;

(2) "All-terrain vehicle", any motorized vehicle manufactured and used
exclusively for off-highway use which is fifty inches or less in width,
with an unladen dry weight of six hundred pounds or less, traveling on
three, four or more low pressure tires, with a seat designed to be
straddled by the operator, and handlebars for steering control;

(3) "Coerce", to force a person to act in a given manner or to compel by
pressure or threat but shall not be construed to include the following:

(a) Good faith recommendations, exposition, argument, persuasion or
attempts at persuasion;

(b) Notice given in good faith to any franchisee of such franchisee's
violation of terms or provisions of such franchise or contractual
agreement;

(c) Any other conduct set forth in section 407.1043 as a defense to an
action brought pursuant to sections 407.1025 to 407.1049; or

(d) Any other conduct set forth in sections 407.1025 to 407.1049 that is
permitted of the franchisor or is expressly excluded from coercion or a
violation of sections 407.1025 to 407.1049;

(4) "Franchise", a written arrangement or contract for a definite or
indefinite period, in which a person grants to another person a license
to use, or the right to grant to others a license to use, a trade name,
trademark, service mark, or related characteristics, in which there is a
community of interest in the marketing of goods or services, or both, at
wholesale or retail, by agreement, lease or otherwise, and in which the
operation of the franchisee's business with respect to such franchise is
substantially reliant on the franchisor for the continued supply of
franchised new motorcycles or all-terrain vehicles, parts and accessories
for sale at wholesale or retail;

(5) "Franchisee", a person to whom a franchise is granted;

(6) "Franchisor", a person who grants a franchise to another person;

(7) "Motorcycle", a motor vehicle operated on two wheels;

(8) "New", when referring to motorcycles or all-terrain vehicles or
parts, means those motorcycles or all-terrain vehicles or parts which
have not been held except as inventory, as that term is defined in
subdivision (4) of section 400.9-109, RSMo;

(9) "Person", a sole proprietor, partnership, corporation, or any other
form of business organization. (L. 1998 H.B. 1055 § 1)

Any person who is engaged or engages directly or indirectly in
purposeful contacts within the state of Missouri in connection with the
offering, advertising, purchasing, selling, or contracting to purchase or
to sell new motorcycles or all-terrain vehicles, or who, being a
motorcycle or all-terrain vehicle franchisor, is transacting or transacts
any business with a motorcycle or all-terrain vehicle franchisee who
maintains a place of business within the state and with whom the person
has a franchise, shall be subject to the jurisdiction of the courts of
the state of Missouri, upon service of process in accordance with the
provisions of section 506.510, RSMo, irrespective of whether such person
is a manufacturer, importer, distributor or dealer in new motorcycles or
all- terrain vehicles. (L. 1998 H.B. 1055 § 2)

1. Any party seeking relief pursuant to the provisions of
sections 407.1025 to 407.1049 may file an application for a hearing with
the administrative hearing commission within the time periods specified
in this section. The application for a hearing shall comply with the
requirements for a request for agency action set forth in chapter 536,
RSMo. Simultaneously, with the filing of the application for a hearing
with the administrative hearing commission, the applicant shall send by
certified mail, return receipt requested, a copy of the application to
the party or parties against whom relief is sought. Within ten days of
receiving a timely application for a hearing, the administrative hearing
commission shall enter an order fixing a date, time and place for a
hearing on the record. Such hearing shall be within forty-five days of
the date of the order but the administrative hearing commission may
continue the hearing date up to twenty-five additional days by agreement
of the parties or upon a finding of good cause. The administrative
hearing commission shall send by certified mail, return receipt
requested, a copy of the order to the party seeking relief and to the
party or parties against whom relief is sought. The order shall also
state that the party against whom relief is sought shall not proceed with
the initiation of its activity or activities until the administrative
hearing commission issues its final decision or order.

2. Unless otherwise expressly provided in sections 407.1025 to 407.1049,
the provisions of chapter 536, RSMo, shall govern hearings and prehearing
procedures conducted pursuant to the authority of this section. The
administrative hearing commission shall issue a final decision or order,
in proceedings arising pursuant to the provisions of sections 407.1025 to
407.1049, within forty-five days from the conclusion of the hearing. Any
final decisions shall be subject to review pursuant to a petition for
review to be filed in the court of appeals in the district in which the
hearing, or any part of the hearing, is held and by delivery of copies of
the petition to each party of record, within thirty days after the
mailing or delivery of the final decision and notice of the final
decision in such a case. Review pursuant to this section shall be
exclusive and decisions of the administrative hearing commission
reviewable pursuant to this section shall not be reviewable in any other
proceeding, and no other official or court shall have power to review any
such decision by an action in the nature of mandamus or otherwise, except
pursuant to the provisions of this section. The party seeking review
shall be responsible for the filing of the transcript and record of all
proceedings before the administrative hearing commission with the
appropriate court of appeals.

3. Any franchisee receiving a notice from a franchisor pursuant to the
provisions of sections 407.1025 to 407.1049, or any franchisee adversely
affected by a franchisor's acts or proposed acts described in the
provisions of sections 407.1025 to 407.1049, shall be entitled to file an
application for a hearing before the administrative hearing commission
for a determination as to whether the franchisor has good cause for its
acts or proposed acts.

4. Not less than sixty days before the effective date of the initiation
of any enumerated act pursuant to subdivisions (5), (6), (7) and (14) of
section 407.1034, a franchisor shall give written notice to the affected
franchisee or franchisees, by certified mail, return receipt requested,
except as follows:

(1) Upon the initiation of an act pursuant to subdivision (5) of section
407.1034, such notice shall be given not less than fifteen days before
the effective date of such act only if the grounds for the notice include
the following:

(a) Transfer of any ownership or interest in the franchised dealership
without the consent of the motorcycle or all-terrain vehicle franchisor;

(b) Material misrepresentation by the motorcycle or all-terrain vehicle
franchisee in applying for the franchise;

(c) Insolvency of the motorcycle or all-terrain vehicle franchisee or the
filing of any petition by or against the motorcycle or all-terrain
vehicle franchisee under any bankruptcy or receivership law;

(d) Any unfair business practice by the motorcycle or all-terrain vehicle
franchisee after the motorcycle or all-terrain vehicle franchisor has
issued a written warning to the motorcycle or all-terrain vehicle
franchisee to desist from such practice;

(e) Conviction of the motorcycle or all-terrain vehicle franchisee of a
crime which is a felony;

(f) Failure of the motorcycle or all-terrain vehicle franchisee to
conduct customary sales and service operations during customary business
hours for at least seven consecutive business days unless such closing is
due to an act of God, strike or labor difficulty or other cause over
which the motorcycle or all-terrain vehicle franchisee has no control; or

(g) Revocation of the motorcycle or all-terrain vehicle franchisee's
license;

(2) Upon initiation of an act pursuant to subdivision (7) of section
407.1034, such notice shall be given within sixty days of the
franchisor's receipt of a written proposal to consummate such sale or
transfer and the receipt of all necessary information and documents
generally used by the franchisor to conduct its review. The franchisor's
notice of disapproval shall also specify the reasonable standard which
the franchisor contends is not satisfied and the reason the franchisor
contends such standard is not satisfied. Failure on the part of the
franchisor to provide such notice shall be conclusively deemed an
approval by the franchisor of the proposed sale or transfer to the
proposed transferee. A franchisee's application for a hearing shall be
filed with the administrative hearing commission within fifteen days from
receipt of such franchisor's notice;

(3) Pursuant to paragraphs (a) and (b) of subdivision (14) of section
407.1034, such notice shall be given within sixty days of the
franchisor's receipt of a deceased or incapacitated franchisee's
designated family member's intention to succeed to the franchise or
franchises or of the franchisor's receipt of the personal and financial
data of the designated family member, whichever is later.

5. A franchisor's notice to a franchisee or franchisees pursuant to
subdivisions (5), (6), (7) and (14) of section 407.1034 shall contain a
statement of the particular grounds supporting the intended action or
activity which shall include any reasonable standards which were not
satisfied. The notice shall also contain at a minimum, on the first page
thereof, a conspicuous statement which reads as follows: "NOTICE TO
FRANCHISEE: YOU MAY BE ENTITLED TO FILE A PROTEST WITH THE MISSOURI
ADMINISTRATIVE HEARING COMMISSION IN JEFFERSON CITY, MISSOURI, AND HAVE A
HEARING IN WHICH YOU MAY PROTEST THE CONTENTS OF THIS NOTICE. ANY ACTION
MUST BE FILED WITHIN FIFTEEN DAYS FROM RECEIPT OF THIS NOTICE."

6. When more than one application for a hearing is filed with the
administrative hearing commission, the administrative hearing commission
may consolidate the applications into one proceeding to expedite the
disposition of all relevant issues.

7. In all proceedings before the administrative hearing commission
pursuant to this section and section 407.1034, where the franchisor is
required to give notice pursuant to subsection 5 of this section, the
franchisor shall have the burden of proving by a preponderance of the
evidence that good cause exists for its actions. In all other actions,
the franchisee shall have the burden of proof. (L. 1998 H.B. 1055 § 3)

Notwithstanding the terms of any franchise agreement, the
performance, whether by act or omission, by a motorcycle or all-terrain
vehicle franchisor of any or all of the following acts enumerated in this
section are hereby defined as unlawful practices, the remedies for which
are set forth in section 407.1043:

(1) To engage in any conduct which is capricious, in bad faith, or
unconscionable and which causes damage to a motorcycle or all-terrain
vehicle franchisee or to the public; provided, that good faith conduct
engaged in by motorcycle or all-terrain vehicle franchisors as sellers of
new motorcycles, all-terrain vehicles or parts or as holders of security
interests therein, in pursuit of rights or remedies accorded to sellers
of goods or to holders of security interests pursuant to the provisions
of chapter 400, RSMo, uniform commercial code, shall not constitute
unfair practices pursuant to sections 407.1025 to 407.1049;

(2) To coerce any motorcycle or all-terrain vehicle franchisee to accept
delivery of any new motorcycle, motorcycles, all-terrain vehicles,
equipment, parts or accessories therefor, or any other commodity or
commodities which such motorcycle or all-terrain vehicle franchisee has
not ordered after such motorcycle or all-terrain vehicle franchisee has
rejected such commodity or commodities. It shall not be deemed a
violation of sections 407.1025 to 407.1049 for a motorcycle or
all-terrain vehicle franchisor to require a motorcycle or all-terrain
vehicle franchisee to have an inventory of parts, tools and equipment
reasonably necessary to service the motorcycles or all-terrain vehicles
sold by a motorcycle or all-terrain vehicle franchisor; or new
motorcycles or all-terrain vehicles reasonably necessary to meet the
demands of dealers or the public;

(3) To unreasonably refuse to deliver in reasonable quantities and within
a reasonable time after receipt of orders for new motorcycles or
all-terrain vehicles, such motorcycles or all-terrain vehicles as are so
ordered and as are covered by such franchise and as are specifically
publicly advertised by such motorcycle or all-terrain vehicle franchisor
to be available for immediate delivery; provided, however, the failure to
deliver any motorcycle or all-terrain vehicle shall not be considered a
violation of sections 407.1025 to 407.1049 if such failure is due to an
act of God, work stoppage, or delay due to a strike or labor difficulty,
shortage of products or materials, freight delays, embargo or other cause
of which such motorcycle or all-terrain vehicle franchisor has no control;

(4) To coerce any motorcycle or all-terrain vehicle franchisee to enter
into any agreement with such motorcycle or all-terrain vehicle franchisor
or to do any other act prejudicial to such motorcycle or all- terrain
vehicle franchisee, by threatening to cancel any franchise or any
contractual agreement existing between such motorcycle or all-terrain
vehicle franchisor and motorcycle or all-terrain vehicle franchisee;
provided, however, that notice in good faith to any motorcycle or all-
terrain vehicle franchisee of such motorcycle or all-terrain vehicle
franchisee's violation of any provisions of such franchise or contractual
agreement shall not constitute a violation of sections 407.1025 to
407.1049;

(5) To terminate, cancel or refuse to continue any franchise, directly or
indirectly through the actions of the franchisor, unless such new
motorcycle or all-terrain vehicle franchisee substantially defaults in
the performance of such franchisee's reasonable and lawful obligations
under such franchisee's franchise, or such new motorcycle or all-terrain
vehicle franchisor discontinues the sale in the state of Missouri of such
franchisor's products which are the subject of the franchise:

(a) Notwithstanding the terms of any franchise agreement to the contrary,
good cause to terminate, cancel or refuse to continue any franchise
agreement shall not be established based upon the fact that the
motorcycle or all-terrain vehicle franchisee owns, has an investment in,
participates in the management of or holds a franchise agreement for the
sale or service of another make or line of new motorcycles or all-terrain
vehicles or the motorcycle or all-terrain vehicle dealer has established
another make or line of new motorcycles or all-terrain vehicles or
service in the same dealership facilities as those of the motorcycle or
all-terrain vehicle franchisor prior to February 1, 1998, or such
establishment is approved in writing by the franchisee and the
franchisor. However, a franchisor may require a franchisee to maintain a
reasonable line of credit for each franchise and to comply with each
franchisor's reasonable requirements concerning capital, management and
facilities. If the franchise agreement requires the approval of the
franchisor, such approval shall be requested in writing by the franchisee
and the franchisor shall approve or disapprove such a request in writing
within sixty days of receipt of such request. A request from a franchisee
shall be deemed to have been approved if the franchisor fails to notify
the franchisee, in writing, of its disapproval within sixty days after
its receipt of the written request;

(b) In determining whether good cause exists, the administrative hearing
commission shall take into consideration the existing circumstances,
including, but not limited to, the following factors:

a. The franchisee's sales in relation to sales in the market;

b. The franchisee's investment and obligations;

c. Injury to the public welfare;

d. The adequacy of the franchisee's service facilities, equipment, parts
and personnel in relation to those of other franchisees of the same
line-make;

e. Whether warranties are being honored by the franchisee;

f. The parties' compliance with their franchise agreement;

g. The desire of a franchisor for market penetration or a market study,
if any, prepared by the franchisor or franchisee are two factors which
may be considered;

h. The harm to the franchisor;

(6) To prevent by contract or otherwise, any motorcycle or all- terrain
vehicle franchisee from changing the capital structure of the
franchisee's franchise of such motorcycle or all-terrain vehicle
franchisee or the means by or through which the franchisee finances the
operation of the franchisee's franchise, provided the motorcycle or
all-terrain vehicle franchisee at all times meets any reasonable capital
standards agreed to between the motorcycle or all-terrain vehicle
franchisee and the motorcycle or all-terrain vehicle franchisor and
grants to the motorcycle or all- terrain vehicle franchisor a purchase
money security interest in the new motorcycles or all-terrain vehicles,
new parts and accessories purchased from the motorcycle or all-terrain
vehicle franchisor;

(7) (a) Prevent, by contract or otherwise, any sale or transfer of a
franchisee's franchise or franchises or interest or management thereof;
provided, if the franchise specifically permits the franchisor to approve
or disapprove any such proposed sale or transfer, a franchisor shall only
be allowed to disapprove a proposed sale or transfer if the interest
being sold or transferred when added to any other interest owned by the
transferee constitutes fifty percent or more of the ownership interest in
the franchise and if the proposed transferee fails to satisfy any
standards of the franchisor which are in fact normally relied upon by the
franchisor prior to its entering into a franchise, and which relate to
the proposed management or ownership of the franchise operations or to
the qualification, capitalization, integrity or character of the proposed
transferee and which are reasonable. A franchisee may request, at any
time, that the franchisor provide a copy of the standards which are
normally relied upon by the franchisor to evaluate a proposed sale or
transfer and a proposed transferee;

(b) The franchisee and the prospective franchisee shall cooperate fully
with the franchisor in providing information relating to the prospective
transferee's qualifications, capitalization, integrity and character;

(c) In the event of a proposed sale or transfer of a franchise, the
franchisor shall be permitted to exercise a right of first refusal to
acquire the franchisee's assets or ownership if:

a. The franchise agreement permits the franchisor to exercise a right of
first refusal to acquire the franchisee's assets or ownership in the
event of a proposed sale or transfer;

b. Such sale or transfer is conditioned upon the franchisor or franchisee
entering a franchise agreement with the proposed transferee;

c. The exercise of the right of first refusal shall result in the
franchisee and the franchisee's owners receiving the same or greater
consideration and the same terms and conditions as contracted to receive
in connection with the proposed sale or transfer;

d. The sale or transfer does not involve the sale or transfer to an
immediate member or members of the family of one or more franchisee
owners, defined as a spouse, child, grandchild, spouse of a child or
grandchild, brother, sister or parent of the franchisee owner, or to the
qualified manager, defined as an individual who has been employed by the
franchisee for at least two years and who otherwise qualifies as a
franchisee operator, or a partnership or corporation controlled by such
persons; and

e. The franchisor agrees to pay the reasonable expenses, including
attorney's fees which do not exceed the usual, customary and reasonable
fees charged for similar work done for other clients, incurred by the
proposed transferee prior to the franchisor's exercise of its right of
first refusal in negotiating and implementing the contract for the
proposed sale or transfer of the franchise or the franchisee's assets.
Notwithstanding the foregoing, no payment of such expenses and attorney's
fees shall be required if the franchisee has not submitted or caused to
be submitted an accounting of those expenses within fourteen days of the
franchisee's receipt of the franchisor's written request for such an
accounting. Such accounting may be requested by a franchisor before
exercising its right of first refusal;

(d) For determining whether good cause exists for the purposes of this
subdivision, the administrative hearing commission shall take into
consideration the existing circumstances, including, but not limited to,
the following factors:

a. Whether the franchise agreement specifically permits the franchisor to
approve or disapprove any proposed sale or transfer;

b. Whether the interest to be sold or transferred when added to any other
interest owned by the proposed transferee constitutes fifty percent or
more of the ownership interest in the franchise;

c. Whether the proposed transferee fails to satisfy any standards of the
franchisor which are in fact normally relied upon by the franchisor prior
to its entering into a franchise, and which are related to the proposed
management or ownership of the franchise operations or to the
qualification, capitalization, integrity or character of the proposed
transferee which are reasonable;

d. Injury to the public welfare;

e. The harm to the franchisor;

(8) To prevent by contract or otherwise any motorcycle or all-terrain
vehicle franchisee from changing the executive management of motorcycle
or all-terrain vehicle franchisee's business, except that any attempt by
a motorcycle or all-terrain vehicle franchisor to demonstrate by giving
reasons that such change in executive management will be detrimental to
the distribution of the motorcycle or all-terrain vehicle franchisor's
motorcycles shall not constitute a violation of this subdivision;

(9) To impose unreasonable standards of performance upon a motorcycle or
all-terrain vehicle franchisee;

(10) To require a motorcycle or all-terrain vehicle franchisee at the
time of entering into a franchise arrangement to assent to a release,
assignment, novation, waiver or estoppel which would relieve any person
from liability imposed by sections 407.1025 to 407.1049;

(11) To prohibit directly or indirectly the right of free association
among motorcycle or all-terrain vehicle franchisees for any lawful
purpose;

(12) To provide any term or condition in any lease or other agreement
ancillary or collateral to a franchise, which term or condition directly
or indirectly violates the provisions of sections 407.1025 to 407.1049;

(13) Upon any termination, cancellation or refusal to continue any
franchise or any discontinuation of any line-make or parts or products
related to such line-make by a franchisor, fail to pay reasonable
compensation to a franchisee as follows:

(a) Any new, undamaged and unsold motorcycles or all-terrain vehicles in
the franchisee's inventory of either the current model year or purchased
from the franchisor within one hundred twenty days prior to receipt of a
notice of termination or nonrenewal, provided the motorcycle or
all-terrain vehicle has less than twenty miles registered on the
odometer, including mileage incurred in delivery from the franchisor or
in transporting the motorcycle or all-terrain vehicle between dealers for
sale, at the dealer's net acquisition cost;

(b) The current parts catalog cost to the dealer of each new, unused,
undamaged and unsold part or accessory if the part or accessory is in the
current parts catalog, less applicable allowances. If the part or
accessory was purchased by the franchisee from an outgoing authorized
franchisee, the franchisor shall purchase the part for either the price
in the current parts catalog or the franchisee's actual purchase price of
the part, whichever is less;

(c) The depreciated value determined pursuant to generally accepted
accounting principles of each undamaged sign owned by the franchisee
which bears a trademark or trade name used or claimed by the franchisor
if the sign was purchased from, or purchased at the request of, the
franchisor;

(d) The fair market value of all special tools, data processing equipment
and motorcycle or all-terrain vehicle service equipment owned by the
franchisee which were recommended in writing and designated as special
tools and equipment and purchased from, or purchased at the request of,
the franchisor within three years of the termination of the franchise, if
the tools and equipment are in usable and good condition, except for
reasonable wear and tear; and

(e) The franchisor shall pay the franchisee the amounts specified in this
subdivision within ninety days after the tender of the property subject
to the franchisee providing evidence of good and clear title upon return
of the property to the franchisor. Unless previous arrangements have been
made and agreed upon, the franchisee is under no obligation to provide
insurance for the property left after one hundred eighty days;

(14) To prevent or refuse to honor the succession to a franchise or
franchises by any legal heir or devisee under the will of a franchisee,
under any written instrument filed with the franchisor designating any
person as the person's successor franchisee, or pursuant to the laws of
descent and distribution of this state; provided:

(a) Any designated family member of a deceased or incapacitated
franchisee shall become the succeeding franchisee of such deceased or
incapacitated franchisee if such designated family member gives the
franchisor written notice of such family member's intention to succeed to
the franchise or franchises within forty-five days after the death or
incapacity of the franchisee, and agrees to be bound by all of the terms
and conditions of the current franchise agreement, and the designated
family member meets the current reasonable criteria generally applied by
the franchisor in qualifying franchisees. A franchisee may request, at
any time, that the franchisor provide a copy of such criteria generally
applied by the franchisor in qualifying franchisees;

(b) The franchisor may request from a designated family member such
personal and financial data as is reasonably necessary to determine
whether the existing franchise agreement should be honored. The
designated family member shall supply the personal and financial data
promptly upon the request;

(c) If the designated family member does not meet the reasonable criteria
generally applied by the franchisor in qualifying franchisees, the
discontinuance of the current franchise agreement shall take effect not
less than ninety days after the date the franchisor serves the required
notice on the designated family member pursuant to subsection 5 of
section 407.1031;

(d) The provisions of this subdivision shall not preclude a franchisee
from designating any person as the person's successor by written
instrument filed with the franchisor, and if such an instrument is filed,
it alone shall determine the succession rights to the management and
operation of the franchise; and

(e) For determining whether good cause exists, the administrative hearing
commission shall take into consideration the existing circumstances,
including, but not limited to, the following factors:

a. Whether the franchise agreement specifically permits the franchisor to
approve or disapprove any successor;

b. Whether the proposed successor fails to satisfy any standards of the
franchisor which are in fact normally relied upon by the franchisor prior
to the successor entering into a franchise, and which relate to the
proposed management or ownership of the franchise operation or to the
qualification, capitalization, integrity or character of the proposed
successor and which are reasonable;

c. Injury to the public welfare;

d. The harm to the franchisor;

(15) To coerce, threaten, intimidate or require a franchisee under any
condition affecting or related to a franchise agreement, or to waive,
limit or disclaim a right that the franchisee may have pursuant to the
provisions of sections 407.1025 to 407.1049. Any contracts or agreements
which contain such provisions shall be deemed against the public policy
of the state of Missouri and are void and unenforceable. Nothing in this
section shall be construed to prohibit voluntary settlement agreements;

(16) To initiate any act enumerated in this subsection on grounds that it
has advised a franchisee of its intention to discontinue representation
at the time of a franchisee change. (L. 1998 H.B. 1055 § 4)

1. For purposes of this section, "relevant market area" means:

(1) For a proposed franchisee or franchisee who plans to relocate his or
her place of business in a county having a population which is greater
than one hundred thousand, the area within a radius of ten miles of the
intended site of the proposed or relocated franchisee. The ten-mile
distance shall be determined by measuring the distance between the
nearest surveyed boundary of the existing franchisee's principal place of
business and the nearest surveyed boundary line of the proposed or
relocated franchisee's principal place of business; or

(2) For a proposed franchisee or a franchisee who plans to relocate his
or her place of business in a county having a population which is not
greater than one hundred thousand, the area within a radius of twenty
miles of the intended site of the proposed or relocated franchisee, or
the county line, whichever is closer to the intended site. The
twenty-mile distance shall be determined by measuring the distance
between the nearest surveyed boundary line of the existing franchisee's
principal place of business and the nearest surveyed boundary line of the
proposed or relocated franchisee's principal place of business.

2. As used in this section, "relocate" and "relocation" shall not include
the relocation of a franchisee within two miles of its established place
of business.

3. As used in this section, "motor vehicle" shall include motorcycles and
all-terrain vehicles as defined in section 407.1025.

4. Before a franchisor enters into a franchise establishing or relocating
a franchisee within a relevant market area where the same line- make is
represented, the franchisor shall give written notice to each franchisee
of the same line-make in the relevant market area of its intention to
establish an additional franchisee or to relocate an existing franchisee
within that relevant market area.

5. Within thirty days after receiving the notice provided for in
subsection 4 of this section, or within thirty days after the end of any
appeal procedure provided by the franchisor, a franchisee may bring an
action pursuant to section 407.1031 to determine whether good cause
exists for the establishing or relocating of a proposed franchisee.

6. This section shall not apply to the reopening or replacement in a
relevant market area of a closed dealership that has been closed within
the preceding year, if the established place of business of the reopened
or replacement franchisee is within two miles of the established place of
business of the closed dealership.

7. In determining whether good cause exists for establishing or
relocating an additional franchisee for the same line-make, the court
shall take into consideration the existing circumstances, including but
not limited to the following:

(1) Permanency of the investment;

(2) Effect on the retail motor vehicle business and the consuming public
in the relevant market area;

(3) Whether it is injurious or beneficial to the public welfare;

(4) Whether the franchisees of the same line-make in that relevant market
area are providing adequate competition and convenient consumer care for
the motor vehicles of that line-make in the market area, including the
adequacy of the motor vehicle sales and qualified service personnel;

(5) Whether the establishment or relocation of the franchisee would
promote competition;

(6) Growth or decline of the population and the number of new motor
vehicle registrations in the relevant market area; and

(7) Effect on the relocating franchisee of a denial of its relocations
into the relevant market area.

8. The remedies and relief available pursuant to section 407.1049 shall
apply to this section. (L. 2003 H.B. 392)

When a franchised dealer or manufacturer proposes to establish
or relocate a motorcycle or all-terrain vehicle dealership within any
city not within a county, the dealer or manufacturer shall make
reasonable efforts to establish or relocate such dealership in an area
within such city that improves the equitable distribution of dealerships
within such city and is conveniently located to serve minorities who
reside in such city. (L. 1998 H.B. 1055 § 5)

The Missouri department of revenue, in approving licenses for
dealer franchises in any metropolitan statistical area with a population
of more than one million inhabitants as defined by the federal Office of
Management and Budget or its successor agency shall ensure that the
community of dealer franchises shall reflect an adequate percentage of
minority-owned businesses. (L. 1998 H.B. 1055 § 6)

It shall be a defense for a motorcycle or all-terrain vehicle
franchisor, to any action brought pursuant to sections 407.1025 to
407.1049 by a motorcycle or all-terrain vehicle franchisee, if it is
shown that such motorcycle or all-terrain vehicle franchisee has failed
to substantially comply with reasonable and lawful requirements imposed
by the franchise and other agreements ancillary or collateral thereto, or
if the motorcycle or all-terrain vehicle franchisee, or any of its
officers, have been convicted of a felony relevant to business honesty or
business practices, or if the motorcycle or all-terrain vehicle
franchisee has ceased conducting its business or has abandoned the
franchise, or is insolvent as that term is defined in subdivision (23) of
section 400.1-201, RSMo, or has filed a voluntary petition in bankruptcy,
or has made an assignment for benefit of creditors, or has been the
subject of an involuntary proceeding under the Federal Bankruptcy Act or
under any state insolvency law which is not vacated within twenty days
from the institution thereof, or there has been an appointment of a
receiver or other officer having similar powers for the motorcycle or
all-terrain vehicle franchisee or the motorcycle or all-terrain vehicle
franchisee's business who is not removed within twenty days from the
person's appointment, or there has been a levy under attachment,
execution or similar process which is not within ten days vacated or
removed by payment or bonding, and it shall be a defense to any action
brought pursuant to sections 407.1025 to 407.1049 that the complained of
conduct by a motorcycle or all-terrain vehicle franchisor was undertaken
in good faith in pursuit of rights or remedies accorded to a motorcycle
or all-terrain vehicle franchisor as a seller of goods or a holder of a
security interest pursuant to the provisions of chapter 400, RSMo. (L.
1998 H.B. 1055 § 7)

No franchisee or franchisor shall use any false, deceptive or
misleading advertising. (L. 1998 H.B. 1055 § 8)

1. The provisions of this section shall apply to franchisors
and franchisees engaged in the sale of motorcycles and all- terrain
vehicles.

2. Each franchisor shall specify in writing to each of its franchisees in
this state the franchisee's obligations for preparation, delivery, and
warranty service on its products. The franchisor shall compensate the
franchisee for warranty service required of the franchisee by the
franchisor.

3. The franchisor shall provide the franchisee with the schedule of
compensation to be paid to the franchisee for parts, work, and service,
and the time allowance for the performance of the work and service. The
schedule of compensation shall include reasonable compensation for
diagnostic work, as well as repair service and labor. Time allowances for
the diagnosis and performance of warranty work and service shall be
reasonable and adequate for the work performed. In the determination of
what constitutes reasonable compensation under this section, the
principal factor to be given consideration shall be the prevailing wage
rates being paid by the franchisees in the community in which the
franchisee is doing business, and in no event shall the compensation of a
franchisee for warranty labor be less than the rates charged by the
franchisee for like service to retail customers for nonwarranty service
and repairs, provided that such rates are reasonable.

4. A franchisor shall not:

(1) Fail to perform any warranty obligation;

(2) Fail to include in written notices of franchisor recalls to owners of
new motorcycles and all-terrain vehicles the expected date by which
necessary parts and equipment will be available to franchisees for the
correction of the defects; or

(3) Fail to compensate any of the franchisees in this state for repairs
effected by the recall.

5. All claims made by a franchisee pursuant to this section for labor and
parts shall be paid within thirty days after their approval. All claims
shall be either approved or disapproved by the franchisor within thirty
days after their receipt on a proper form generally used by the
franchisor and containing the usually required information therein. Any
claims not specifically disapproved in writing within thirty days after
the receipt of the form shall be considered to be approved and payment
shall be made within thirty days. A claim that has been approved and paid
may not be charged back to the franchisee unless the franchisor can show
that the claim was fraudulent, false, or unsubstantiated, except that a
charge back for false or fraudulent claims shall not be made more than
two years after payment, and a charge back for unsubstantiated claims
shall not be made more than fifteen months after payment. A franchisee
shall maintain all records of warranty repairs, including the related
time records of its employees, for at least two years following payment
of any warranty claim.

6. A franchisor shall compensate the franchisee for franchisor- sponsored
sales or service promotion events, programs, or activities in accordance
with established guidelines for such events, programs, or activities.

7. All claims made by a franchisee pursuant to subsection 5 of this
section for promotion events, programs, or activities shall be paid
within twenty-five days after their approval or program close, whichever
comes later. All claims except those of the type set forth in
subdivisions* (1) and (2) of this subsection shall be either approved or
disapproved by the franchisor within thirty days after their receipt on a
proper form generally used by the franchisor and containing the usually
required information therein. Any claim not specifically disapproved in
writing within thirty days after the receipt of this form shall be
considered to be approved, and payment shall be made within thirty days.
The franchisor has the right to charge back any claim for twelve months
after the later of either the close of the promotion event, program, or
activity, or the date of the payment. The provisions of this subsection
shall not apply to:

(1) Claims related to holdbacks, retail sales bonuses, or similar
programs in which the franchisor accrues a certain portion of the vehicle
sales price for the franchisee and then at a later point in time pays
that amount to the franchisee, in which event the franchisor shall
compensate a franchisee no later than forty-five days following the
payment date that the franchisor specified in the program;

(2) Claims related to franchisor's use of a "balance forward account" to
make reimbursement, in which event the franchisor shall compensate a
franchisee no later than seventy-five days following the date that the
franchisee properly registered the manufacturer's limited warranty for
the vehicle. (L. 2004 H.B. 1288)

*Word "subparagraphs" appears in original rolls.

In addition to the administrative relief provided in sections
407.1025 to 407.1049, any motorcycle or all-terrain vehicle franchisee
may bring an action in any court of competent jurisdiction against a
motorcycle or all-terrain vehicle franchisor with whom the franchisee has
a franchise, for an act or omission which constitutes an unlawful
practice as defined in section 407.1034 to recover damages sustained by
reason thereof, and, where appropriate, such motorcycle or all-terrain
vehicle franchisee shall be entitled to injunctive relief, but the
remedies set forth in this section shall not be deemed exclusive and
shall be in addition to any other remedies permitted by law. (L. 1998
H.B. 1055 § 9)

As used in sections 407.1060 to 407.1068, the following terms
mean:

(1) "Annuity issuer", an insurer that has issued an annuity contract to
be used to fund periodic payments pursuant to a structured settlement;

(2) "Code", the United States Internal Revenue Code, United States Code
Title 26, as amended from time to time;

(3) "Discounted present value", the fair present value of future
payments, as determined by discounting such payments to the present using
the most recently published applicable federal rate for determining the
present value of an annuity, as issued by the United States Internal
Revenue Service;

(4) "Disinterested counsel", legal counsel that has no business
relationship with any transferee of structured settlement payment rights,
will not receive any compensation directly or indirectly from any such
transferee in connection with representing the payee, and whose
compensation for representing the payee will not be affected by whether
the transfer occurs or does not occur;

(5) "Interested parties", with respect to any structured settlement, the
payee, any named beneficiary designated in the annuity contract or
structured settlement to receive payments following the payee's death,
or, if the named beneficiary is a minor, the named beneficiary's parent
or guardian, the annuity issuer, and the structured settlement obligor;

(6) "Payee", an individual who is receiving tax-free damage payments
pursuant to a structured settlement and who wants to make a transfer of
payment rights pursuant to the structured settlement agreement;

(7) "Qualified assignment agreement", an agreement providing for a
qualified assignment within the meaning of Section 130 of the Internal
Revenue Code, 26 U.S.C. Sec. 130, as amended from time to time;

(8) "Settled claim", the original tort claim resolved by a structured
settlement;

(9) "Structured settlement", an arrangement established by:

(a) a. Judgment or agreement in resolution of a tort claim providing for
the periodic payment of damages excludable from the gross income of the
recipient pursuant to Section 104(a)(2) of the Code; or

b. Agreement for the periodic payment of compensation pursuant to any
workers' compensation act that is excludable from the gross income of the
recipient pursuant to Section 104(a)(1) of the Code and which may be
assigned pursuant to state law; and

(b) Where the periodic payments are:

a. Of the character described in subparagraphs (A) and (B) of Section
130(c)(2) of the Code; and

b. Payable by a person who is a party to the suit or agreement or to the
workers' compensation claim or by a person who has assumed the liability
for such periodic payments pursuant to a qualified assignment in
accordance with Section 130 of the Code;

(10) "Structured settlement obligor", with respect to any structured
settlement, the party that has the continuing periodic payment obligation
to the payee pursuant to a structured settlement agreement or a qualified
assignment agreement;

(11) "Structured settlement payment rights", rights to receive periodic
payments, including lump sum payments pursuant to a structured
settlement, whether from the settlement obligor or the annuity issuer,
where:

(a) The payee is domiciled in this state; or

(b) The structured settlement was approved by a court of this state;

(12) "Transfer", any sale, assignment, pledge, hypothecation, or other
form of alienation or encumbrance made for consideration;

(13) "Transfer agreement", the agreement providing for transfer of
structured settlement payment rights from a payee to a transferee;

(14) "Transferee", a party acquiring or proposing to acquire structured
settlement payment rights through a transfer from a payee. (L. 1999 S.B.
1, et al. § 3)

No transfer of structured settlement payment rights shall be
effective and no structured settlement obligor or annuity issuer shall be
required to make any payment directly or indirectly to any transferee of
any transfer of structured settlement payment rights unless the transfer
has been approved in advance in an order of a court of competent
jurisdiction, based on the court's express findings that:

(1) The transfer complies with the requirements of sections 407.1060 to
407.1068 and does not contravene other applicable law;

(2) Not less than ten days prior to the date on which the payee entered
into the transfer agreement, the transferee has provided to the payee a
disclosure statement in bold type, no smaller than fourteen point,
setting forth:

(a) The amounts and due dates of the structured settlement payments to be
transferred;

(b) The aggregate amount of the payments;

(c) The discounted present value of the payments, together with the
discount rate or rates used in determining the discounted present value;

(d) The gross amount payable to the payee in exchange for the payments;
and

(e) An itemized listing of all brokers' commissions, service charges,
application or processing fees, closing costs, filing or administrative
charges, legal fees, notary fees and other commissions, fees, costs,
expenses and charges payable by the payee or deductible from the gross
amount otherwise payable to the payee;

(3) The transfer is in the best interest of the payee and the payee's
dependents;

(4) The transferee has given written notice of the transferee's name,
address and taxpayer identification number to all interested parties and
has filed a copy of the notice with the court;

(5) The payee has consented in writing to the transfer;

(6) The payee has been represented by disinterested counsel in connection
with the transfer or the payee understands the nature of the transaction
and the economic consequences of the transaction; and

(7) The payment to be made to the payee by the transferee is equal to the
fair market value of the structured settlement rights being transferred.
(L. 1999 S.B. 1, et al. § 4)

1. An application pursuant to sections 407.1060 to 407.1068 for
approval of a transfer of structured settlement payment rights may be
brought in the circuit court in the county in which the payee is
domiciled, or in any court which approved the structured settlement
agreement.

2. Not less than twenty days prior to the scheduled hearing on any
application for court approval of a transfer of structured settlement
payment rights pursuant to section 407.1062, the transferee shall file
with the court and serve on all interested parties a notice of the
proposed transfer and the application for its approval, including in the
notice:

(1) A copy of the transferee's application to the court;

(2) A copy of the disclosure statement required pursuant to subdivision
(2) of section 407.1062; and

(3) Notification of the time and place of the hearing and notification of
the manner in which and the time by which written responses to the
application may be filed by interested parties, which shall be not less
than ten days after service of the transferee's notice, in order to be
considered by the court.

3. The provisions of sections 407.1060 to 407.1068 may not be waived. (L.
1999 S.B. 1, et al. § 5)

1. A payee who enters into a transfer agreement shall have an
absolute, irrevocable right to rescind and cancel such transfer
agreement, with no penalty or other obligation, by giving written notice
of rescission to the transferee at any time during the five days
following the signing of the transfer agreement.

2. Any provision in a transfer agreement to pay liquidated damages,
penalties, fees, actual or punitive damages, attorneys' fees or costs of
any kind or nature to any person, firm, corporation or other entity which
will be a party or third-party beneficiary to the transfer or transfer
agreement shall be unenforceable.

3. Nothing contained in sections 407.1060 to 407.1068 shall be construed
to authorize any transfer of structured settlement payment rights or
other rights arising under a tort claim or a workers' compensation claim
in contravention of applicable law or to give effect to any transfer of
such rights that is invalid under applicable law.

4. Any provision in a transfer agreement that consents to jurisdiction in
the courts of another state, requires appointment of an agent for service
of process, confesses judgment, or selects a forum for resolution of
disputes arising out of a transfer agreement shall be unenforceable. (L.
1999 S.B. 1, et al. § 6)

The provisions of sections 407.1060 to 407.1068 shall apply to
any transfer of structured settlement payment rights pursuant to a
transfer agreement reached on or after August 28, 1999. (L. 1999 S.B. 1,
et al. § 7)

As used in sections 407.1070 to 407.1085, the following terms
shall mean:

(1) "Advertisement", as defined in section 407.010;

(2) "Caller identification service", a type of telephone service which
permits telephone subscribers to see the telephone number of incoming
telephone calls;

(3) "Consumer", a natural person who purchases, may purchase or is
solicited for purchase of merchandise or an investment opportunity by a
telemarketer through telemarketing;

(4) "Established business relationship", a prior or existing relationship
formed by a voluntary two-way communication between a seller or
telemarketer and a consumer with or without an exchange of consideration,
on the basis of an inquiry, application, purchase or transaction by the
consumer regarding products or services offered by such seller or
telemarketer, which relationship has not been previously terminated by
either party;

(5) "Fictitious name", any name, other than the legal name, used by a
seller or telemarketer;

(6) "Investment opportunity", anything tangible or intangible that is
offered for sale, sold or traded based wholly or in part on
representations, either express or implied, about past, present or future
income, profit or appreciation;

(7) "Material aspect or element", any factor likely to significantly
influence the consumer's choice of, or conduct regarding, merchandise;

(8) "Merchandise", any objects, wares, goods, commodities, intangibles,
real estate or services; except that merchandise shall not include any
services, goods or memberships given to a contributor by an entity,
organized pursuant to Chapter 501(c)(3) of the United States Internal
Revenue Code, while such entity is engaged in fund-raising to support the
charitable purpose for which the entity was established provided that a
bona fide member of such exempt organization makes the voice
communication;

(9) "Prize", anything offered or purportedly offered or given or
purportedly given to a consumer by chance. For purposes of this
definition, chance exists if a consumer is guaranteed to receive anything
of value and, at the time of the offer or purported offer, the
telemarketer does not identify the specific item that the consumer will
receive;

(10) "Promptly", at the beginning of any call initiated by a telemarketer
to a consumer;

(11) "Seller", any person who, in connection with a telemarketing
transaction, provides, offers to provide, or arranges for others to
provide merchandise to the consumer in exchange for consideration;

(12) "Telemarketer", any person, or any recorded, computer-generated,
electronically generated or other voice communication of any kind, who,
in connection with telemarketing, initiates or receives telephone calls
to or from a consumer. A telemarketer includes, but is not limited to,
any such person that is an owner, operator, officer, director or partner
to the management activities of a business;

(13) "Telemarketing", a plan, program or campaign which is conducted to
induce the purchase or lease of merchandise by use of one or more
telephones and which involves more than one telephone call. (L. 2000 S.B.
763)

1. A telemarketer shall disclose, promptly and in a clear and
conspicuous manner, to the consumer receiving the telephone call the
following:

(1) That the purpose of the telephone call is to make a sale;

(2) The telemarketer's identifiable name and the seller on whose behalf
the solicitation is being made;

(3) The nature of the merchandise or investment opportunity being sold;

(4) That no purchase or payment is necessary to be able to win a prize or
participate in a prize promotion if a prize promotion is offered. This
disclosure shall be made before or in conjunction with the description of
the prize to the consumer called; and

(5) If the telephone call is made by any recorded, computer- generated,
electronically generated or other voice communication of any kind. When
engaged in telemarketing, such voice communication shall, promptly at the
beginning of the telephone call, inform the consumer that the call is
being made by a recorded, computer-generated, electronically generated or
other type of voice communication, as the case may be.

2. Before a consumer pays for merchandise offered for sale through
telemarketing, the telemarketer shall disclose, in a clear and
conspicuous manner, the following:

(1) The seller or telemarketer's identifiable name and the address or
telephone number where the seller or telemarketer can be reached;

(2) The total cost and quantity of the merchandise that is the subject of
the telemarketing sales call;

(3) Any material restriction, limitation or condition to purchase,
receive or use the merchandise that is the subject of a telemarketing
sales call;

(4) Any material aspect of the nature or terms of the refund,
cancellation, exchange or repurchase policies, including the absence of
such policies;

(5) Any material aspect of an investment opportunity being offered,
including benefits, the price of the land or other investment, and the
location of the investment;

(6) Material elements of a prize promotion, including:

(a) The odds of being able to receive the prize and, if the odds are not
calculable in advance, the factors and methods used in calculating the
odds;

(b) That no purchase or payment of any kind is required to win a prize or
to participate in a prize promotion;

(c) The no-purchase or no-payment method of participating in the prize
promotion, with either instructions on how to participate or an address
or local or toll-free telephone number to which consumers may write or
call for information on how to participate; and

(d) All material conditions to receive or redeem the prize.

3. A telemarketer shall not misrepresent, directly or by implication, any
of the following:

(1) A description of the prize;

(2) Its market value;

(3) The actual number of each prize to be awarded;

(4) The date by which the prize will be awarded.

4. A telemarketer shall not misrepresent any material aspec