CHAPTER 741*
CONTINGENT TRANSACTIONS

      *Sec. 42-144 et seq. cited. 241 C. 278.

      Contingent transactions statutes, Secs. 42-144-42-150 cited. 44 CS 569.


Table of Contents

Sec. 42-144. Definitions.
Sec. 42-145. Contingent consideration void.
Sec. 42-146. Commissioner's powers to enforce.
Sec. 42-147. Conciliation and voluntary compliance.
Sec. 42-148. Judicial enforcement.
Sec. 42-149. Injunctive relief, costs, other remedies.
Sec. 42-150. Powers granted under chapter not exclusive.
Secs. 42-150a to 42-150t.

      Sec. 42-144. Definitions. As used in this chapter:

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

      (b) "Merchandise" includes any objects, wares, goods, commodities, intangibles, securities, bonds, debentures, stocks, real estate or services;

      (c) "Services" includes any supply of accommodations, work, repair or other needs, instruction or education, including any type of training course in any field such as personality improvement, self motivation, salesmanship and similar fields;

      (d) "Rights or privileges" includes the right or privilege to market, distribute, wholesale or retail, merchandise or services or to procure others to do so;

      (e) "Procure" includes obtaining, providing, inducing, suggesting, soliciting, recruiting, training, supervising, advancing in position, or aiding or abetting any of the activities specified in this subsection;

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

      (g) "Sale" includes any sale, offer of sale or attempt to sell any merchandise, services, or rights or privileges for any consideration, or aiding or abetting any of the activities specified in this section;

      (h) "Trade and commerce" means the advertising, offering for sale, sale or distribution of services and property, tangible or intangible, and any other article, commodity or thing of value wherever situate, and shall include any trade or commerce directly or indirectly affecting the people of this state;

      (i) "Commissioner" means the Commissioner of Consumer Protection.

      (P.A. 73-493, S. 1; P.A. 95-79, S. 164, 189; June 30 Sp. Sess. P.A. 03-6, S. 146(c); P.A. 04-189, S. 1.)

      History: P.A. 95-79 redefined "person" to include a limited liability company, effective May 31, 1995; June 30 Sp. Sess. P.A. 03-6 replaced Commissioner of Consumer Protection with Commissioner of Agriculture and Consumer Protection, effective July 1, 2004; P.A. 04-189 repealed Sec. 146 of June 30 Sp. Sess. P.A. 03-6, thereby reversing the merger of the Departments of Agriculture and Consumer Protection, effective June 1, 2004.

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      Sec. 42-145. Contingent consideration void. The advertisement for sale, lease or rent, or the actual sale, lease or rental of any merchandise, service or rights or privileges at a price or with a rebate or payment or other consideration to the purchaser which is contingent upon the procurement of prospective customers procured by the purchaser, or the procurement of sales, leases or rentals of merchandise, services, rights or privileges, to other persons procured by the purchaser, is declared to be an unlawful practice rendering any obligation incurred by the buyer in connection therewith, completely void and a nullity. The rights and obligations of any contract relating to such contingent price, rebate or payment shall be interdependent and inseverable from the rights and obligations relating to the sale, lease or rental.

      (P.A. 73-493, S. 2.)

      Cited. 241 C. 278.

      Statute prohibits both "horizontal" and "vertical" pyramiding. 32 CS 279. Cited. 44 CS 569.


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      Sec. 42-146. Commissioner's powers to enforce. (a) In the discharge of the duties imposed by this chapter: (1) The commissioner or his duly authorized agent or agents shall at all reasonable times have access to records and documentary evidence of any person being investigated for the purposes of examining such records and documentary evidence and making copies thereof; and (2) the commissioner shall have the power to administer oaths and affirmations and to issue subpoenas requiring the attendance of witnesses and the production of records, correspondence, documents or other evidence in connection therewith.

      (b) In case of contumacy or refusal to obey a subpoena issued to any person, the Superior Court, upon application by the commissioner, shall have jurisdiction to order such person to appear and produce evidence or to give testimony touching the matter under investigation or in question, and any failure to obey such order may be punished by said court as a contempt thereof. No person shall be excused from attending and testifying or from producing books, records, correspondence, documents or other evidence in obedience to the subpoena of the commissioner, on the ground that the testimony or evidence required of him may tend to incriminate him or subject him to a penalty or forfeiture; but no individual shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter or thing concerning which he is compelled, after having claimed his privilege against self-incrimination, to testify or produce evidence, except that such individual so testifying shall not be exempt from prosecution and punishment for perjury committed in so testifying. Complaints, orders and other processes and papers of the commissioner may be served personally, by registered or certified mail, by telegraph or by leaving a copy thereof at the principal office or place of business of the person required to be served. The verified return of service shall be proof of such service. Witnesses summoned by the commissioner shall be paid the same fees and mileage allowances that are paid witnesses in the courts of this state, and witnesses whose depositions are taken and the person taking the same shall severally be entitled to the same fees as are paid for like services in the courts of this state. All processes of any court to which an application or petition may be made under this chapter may be served in the judicial district wherein the person or persons required to be served reside or may be found.

      (c) Any person who, without just cause, fails to attend and testify or to answer any lawful inquiry or to produce records, correspondence, documents or other evidence, if it is within his power to do so, in obedience to a subpoena issued to him under this section, shall be fined not more than two hundred dollars and imprisoned not more than six months or both.

      (P.A. 73-493, S. 4; P.A. 78-280, S. 2, 127.)

      History: P.A. 78-280 substituted "judicial district" for "county" in Subsec. (b) re serving of process.

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      Sec. 42-147. Conciliation and voluntary compliance. In the administration of this chapter, the commissioner shall set up prehearing conciliation procedures and may accept an assurance of voluntary compliance with respect to any method, act or practice deemed in violation of this chapter from any person alleged to be engaged or to have been engaged in such method, act or practice. Such assurance may provide for restitution to aggrieved persons. Any such assurance of voluntary compliance shall not be considered an admission of violation for any purpose. Matters thus closed may at any time be reopened by the Attorney General or commissioner for further proceedings in the public interest.

      (P.A. 73-493, S. 5.)

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      Sec. 42-148. Judicial enforcement. Whenever the commissioner has reason to believe that any person has been engaged or is engaged in any act or acts prohibited by this chapter, said commissioner may proceed as provided in section 42-147 or 42-150 or may request the Attorney General to apply in the name of the state of Connecticut to the Superior Court for any order enjoining the continuance of such act or acts, on a temporary or permanent basis, or of any fraudulent or illegal acts, or for an order directing restitution in appropriate instances, or both. The court may award the relief applied for or so much as it may deem proper including accounting and such other relief as may be granted in equity. In such action the commissioner shall be responsible for all necessary investigative support.

      (P.A. 73-493, S. 3.)

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      Sec. 42-149. Injunctive relief, costs, other remedies. (a) A person likely to be damaged by any practice of another prohibited by this chapter may be granted an injunction enjoining such practice under the principles of equity and on terms that the court considers reasonable. Proof of monetary damage, loss of profits, competition, actual confusion or misunderstanding or intent to deceive is not required. Relief granted for the copying of an article shall be limited to the prevention of confusion or misunderstanding as to source.

      (b) Costs or attorneys' fees may be assessed against a defendant if the court finds that he was wilfully engaged in a deceptive trade practice.

      (c) The relief provided in this section is in addition to remedies otherwise available against the same conduct under the common law or other statutes of this state.

      (P.A. 73-493, S. 7.)

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      Sec. 42-150. Powers granted under chapter not exclusive. Nothing contained in this chapter shall be construed as a limitation upon the power or authority of the state, the Attorney General or the commissioner to seek administrative, legal or equitable relief as provided by other statutes or at common law.

      (P.A. 73-493, S. 6.)

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      Secs. 42-150a to 42-150t. Reserved for future use.

      Note: Chapters 741a and 741b are also reserved for future use.

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