§ 687. Fraudulent and unlawful practices. 1. It is unlawful for any
person to make any untrue statement of a material fact in any
application, notice, statement, prospectus or report filed with the
department under this article, or wilfully to omit to state in any such
application, notice, statement, prospectus or report any material fact
which is required to be stated therein, or to fail to notify the
department of any material change as required by this article.

2. It is unlawful for a person, in connection with the offer, sale or
purchase of any franchise, to directly or indirectly:

(a) Employ any device, scheme, or artifice to defraud.

(b) Make any untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements made, in the
light of the circumstances under which they were made, not misleading.
It is an affirmative defense to one accused of omitting to state such a
material fact that said omission was not an intentional act.

(c) Engage in any act, practice, or course of business which operates
or would operate as a fraud or deceit upon any person.

3. It is unlawful for any person to violate any provision of this
article, or any rule of the department promulgated hereunder, or any
condition to the effectiveness of the registration of an offering
prospectus or of an exemption from the registration provisions of this
article.

4. Any condition, stipulation, or provision purporting to bind any
person acquiring any franchise to waive compliance with any provision of
this law, or rule promulgated hereunder, shall be void.

5. It is unlawful to require a franchisee to assent to a release,
assignment, novation, waiver or estoppel which would relieve a person
from any duty or liability imposed by this article.