Double damages, when
This law covers two situations. First, if someone gets tricked into joining a pyramid sales scheme, they can sue and get back twice the money they paid, plus court costs and lawyer fees. They have five years from when they paid to file that lawsuit. Second, if a business owner's franchise gets cancelled or ended without proper notice, they can sue the franchisor. If they win, a court can award them money for their losses, including loss of business reputation, plus court costs and other fair relief.
407.410. Double , when — limitation on s — of without notice grounds for of damages. — 1. Any contract made in violation of section 407.405 is and any person who, directly or through the use of s or intermediaries, induces or causes another person to participate in a will be to that person in in an amount equal to the sum of twice the amount of paid, and in the case of any successful action to such , the costs of the action together with a reasonable , as determined by the court. An action under this section may be brought in the having within five years from the date on which the consideration was paid.
2. A suffering damage as a result of the failure to give notice as required of the cancellation or of a franchise, may institute legal proceedings under the of sections 407.400 to 407.420 against the who or terminated his franchise in the circuit court for the in which the franchisor or his agent resides or can be located. When the franchisee in any such action in the circuit court, he may be awarded a recovery of damages to include , costs of the suit, and any that the court deems proper.
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Source & history notes
(L. 1974 H.B. 1132 § 3, A.L. 1975 H.B. 810 § 3) (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.).
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