Maryland § 14-227
Full text of Maryland Maryland Code § 14-227, with citation guidance and answers to common questions.
§ 14-227.
(a) (1) A person who sells or grants a franchise is civilly liable to the person who buys or is granted a franchise if the person who sells or grants a franchise offers to sell or sells a franchise:
(i) without the offer of the franchise being registered under this subtitle; or
(ii) by means of an untrue statement of a material fact or any omission to state a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading, if the person who buys or is granted a franchise does not know of the untruth or omission.
(2) In determining liability under this subsection, the person who sells or grants a franchise has the burden of proving that the person who sells or grants a franchise did not know and, in the exercise of reasonable care, could not have known of the untruth or omission.
(b) The person who buys or is granted a franchise may sue under this section to recover damages sustained by the grant of the franchise.
(c) A court may order the person who sells or grants a franchise to:
(1) rescind the franchise; and
(2) make restitution to the person who buys or is granted a franchise.
(d) (1) Joint and several liability under this section extends to:
(i) each person who directly or indirectly controls a person liable under this section;
(ii) each partner in a partnership liable under this section;
(iii) each principal officer or director of a corporation liable under this section;
(iv) each other person that has a similar status or performs similar functions as a person liable under this section; and
(v) each employee of a person liable under this section, if the employee materially aids in the act or transaction that is a violation under this subtitle.
(2) However, liability under this subsection does not extend to a person who did not have knowledge of or reasonable grounds to believe in the existence of the facts by which the liability is alleged to exist.
(e) An action under this section must be brought within 3 years after the grant of the franchise.
Frequently Asked Questions About Maryland § 14-227
What does Maryland Code § 14-227 cover?
Section 14-227 is part of the Maryland Code, the codified statutory law of Maryland. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Maryland § 14-227?
A common citation format is "Maryland Code § 14-227" (Maryland). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Maryland law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Maryland official source linked on this page or consult a licensed Maryland attorney.
How does Maryland § 14-227 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Maryland can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Maryland.