New York General Business Code § 689

Action by the department of law
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§ 689. Action by the department of law. 1. Whenever the department\nshall believe from evidence satisfactory to it that any person has\nengaged in or is engaged in or is about to engage in any practice or\ntransaction heretofore referred to as and declared to be an unlawful or\na fraudulent practice, it may bring an action in the name and on behalf\nof the people of the state of New York against such person and any other\nperson theretofore concerned in or in any way participating in such\nunlawful or fraudulent practice, to enjoin such person or persons from\ncontinuing such unlawful and fraudulent practice or engaging therein or\ndoing any act or acts in furtherance thereof or, if the department\nshould believe from such evidence that such person actually has or is\nengaged in any such unlawful or fraudulent practice, it may include in\nsuch action an application to enjoin permanently such person and such\nother person as may have been or may be concerned with or in any way\nparticipating in such unlawful or fraudulent practice, from selling or\noffering for sale within or from this state as franchisor, franchise\nsales agent, franchise salesman, or a principal thereof, any franchise\noffered or to be offered or sold, or from continuing any such practice.\nIn said action an order or a judgment may be entered awarding the relief\napplied for or so much thereof as the court may deem proper. Upon a\nshowing by the department in its application for a permanent injunction\nhereunder that the defendant named in the action or an officer thereof\nhas refused to be sworn or to be examined or to answer a material\nquestion or to produce a book or paper relevant to the inquiry when duly\nordered to do so by the officer or judge duly conducting an inquiry into\nthe subject matter forming the basis of the application for such\ninjunction, such refusal shall be prima facie proof that such defendant\nis or has engaged in an unlawful or fraudulent practice as set forth in\nsuch application and a permanent injunction may issue from the supreme\ncourt without further showing by the department. In an action brought\nunder this section the court may award to the plaintiff a sum not in\nexcess of ten thousand dollars for each defendant as an additional\nallowance.\n  2. Upon a showing by the department, in an application for an\ninjunction, that any person engaged in the offer or sale of a franchise\nin this state has ever been convicted by a court of competent\njurisdiction in any state or county of any felony or of any other\ncriminal offense by any such court, whether or not constituting a\nfelony, involving franchises, securities or subdivided land, the supreme\ncourt after a hearing may issue a permanent injunction awarding the\nrelief applied for, or so much thereof as the court may deem proper,\nagainst such person shown to have been so convicted, in the form and\nmanner provided for in subdivision one of this section in the case of\none who actually has or is engaged in any unlawful or fraudulent\npractice.\n  3. If a franchise is offered or sold within the state of New York by a\nnon-resident person and such non-resident person has not filed pursuant\nto laws heretofore or hereafter existing the designation of a person\nupon whom process against him or it may be served or the designation of\nthe secretary of state as such person, pursuant to section thirteen\nhundred four of the business corporation law or other laws heretofore or\nhereafter existing, or in lieu thereof, an instrument in writing duly\nacknowledged and filed in the office of the secretary of state\ndesignating the secretary of state as the person upon whom may be served\nany subpoena, subpoena duces tecum or other process directed to such\nnon-resident person and issued in any investigation, examination or\nproceeding pending or about to be instituted under and pursuant to the\nprovisions of this article, the department may serve a notice upon such\nnon-resident person b

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