State Ex Rel. Healy v. Consumer Business System, Inc.

This is an appeal by the state of Oregon from a decree dismissing its complaint for injunctive relief. The state sought to have the court below enjoin defendants, a foreign corporation and its president, from selling franchise contracts, manager contracts and representative contracts which the state alleged constituted “investment contracts” and had not been registered as securities.

The question on appeal is whether the fran eMse agreements sold by defendants to members of the public constitute “investment contracts” required to be registered as a security under OES eh 59.

Consumer Business…