Does UICI™'s (hereafter also
called Unity) Acquisition programs violate South Carolina's Business Opportunity Sales Act? The answer is NO. Title
39, Chapter 57, does not apply to UICI™'s acquisition programs. Unity International Company, Inc.™, (hereafter
also called Unity) is not in the business of selling businesses, products and/or services. Unity exists to acquire businesses
and/or properties and any other lawful income producing asset/s. Unity’s Asset Acquisition Programs are not limited
in any manner, shape or form.
Unity’s governing principals
are based entirely on legality and the imagination of Unity's owner’s and/or their desire for legitimate long term profit
making potential. South Carolina’s Business Sales Act was written primarily for MLM companies, Network Marking companies
and companies selling vending machines or coin operated amusement machines and/or devices. Therefore, these business opportunities
must register with the Secretary of State whenever the opportunity requires a $250.00 or more enrollment fee for kits and/or
inventory. Unity is not a MLM or a Network Marketing corporation.
South Carolina law requires that
all business opportunities be registered with the Secretary of State’s Office before a seller places advertisements
or makes representations to prospective purchasers (S.C. Code of Laws §39-57-10 et seq.). A business opportunity
is defined as the sale or lease of any product, equipment, supply or service which is sold to the purchaser for the purpose
of enabling the purchaser to start a business, and for which the purchaser is required to pay the seller a fee which exceeds
$250.00. The seller must also represent:
(a) That he will provide locations or
assist the purchaser in finding locations for the use or operation of vending machines, racks, display cases or other similar
devices or currency-operated amusement machines or devices, on premises neither owned nor leased by the purchaser or seller;
or
(b)
That he will purchase any or all products made, produced, fabricated, grown, bred or modified by the purchaser using
in whole or in part, the supplies, services or chattels sold to the purchaser; or
(c)
That he guarantees that the purchaser will derive income from the business opportunity which exceeds the price paid
for the business opportunity; or that he will refund all or part of the price paid for the business opportunity, or repurchase
any of the products, equipment, supplies or chattels supplied by the seller, if the purchaser is unsatisfied; or
(d) The
seller will provide a sales program or marketing program which will enable the purchaser to derive income from the business
opportunity which exceeds the price paid; provided, that this does not apply to the sale of a marketing program made in conjunction
with the licensing of a registered trademark or service mark.
"Business opportunity" does not include
the sale of ongoing businesses when the owner of those businesses sells or intends to sell any portion thereof; provided,
a business is not considered an ongoing business unless it has filed income tax returns with the South Carolina Department
of Revenue for at least one year; nor does it include the sale of assets or substantially all of the assets of an ongoing
business; nor does it include payment for the not-for-profit sale of sales demonstration equipment, material or samples, or
where the payment is made for product inventory sold to the purchaser at a bona fide wholesale price; nor does it include
the sale or lease of any products, equipment, supplies, or services where the seller has a net worth on a consolidated basis,
according to its most recent audited financial statement, of not less than ten million dollars.
S.C. Code of Laws §39-57-30 requires that the seller of every “business opportunity” must file a copy of
the disclosure statement required by §39-57-30 before placing an advertisement or making other representations to prospective
purchasers in the State. In order to comply with the law, the seller of every “business opportunity” must
do the following:
(a)
Register with the Secretary of State’s Office on a biennial basis by completing
the Registration and/or Biennial Renewal Application of Business Opportunity Form;
(b) Submit a registration fee of $100;
(c) Submit a financial statement that is
not older than 13 months;
(d) If the seller is required by statute (§39-57-40) to obtain a surety bond
or establish a trust account, a copy of the bond or a copy of the formal notification by the depository that the trust account
is established must be submitted to the Secretary of State at the same time as the registration. {Click here to review & study the History Behind Unity's 1244 Stock.} {Click here to review why Unity's Incorporators Chose Franchising in 1996.}
Since 1996, Unity has “Substantially
Complied” with Title 39, Chapter 57 in all respect, even though Unity was not and is not required by South Carolina
law do so. It is simply a good business practice to abide by all State and/or Federal laws, whether Unity is required to do
so or not. {Click here to review & study the Business Opportunity Sales Act, Title 39, Chapter 57, SC Code of Laws.}
