Are there any consumer protections related to the sale of businesses?

In Florida, consumer protections related to the sale of businesses are outlined in Florida Statutes section 559.80. The law states that prior to entering into a contract for the sale of a business, the seller must provide written disclosure of any known material information about the business’s financial records. This includes information about outstanding debts, lawsuits, or other liabilities. Additionally, the statute requires that the seller must provide the buyer with a copy of the seller’s federal tax returns for the past three years prior to the sale and any other financial records the buyer requests. The statute also provides that the parties should enter into a “written agreement” detailing all aspects of the transaction and that the buyer has the right to review the business and its assets. The seller is required to provide the buyer with adequate access for this purpose, and the buyer may, with the seller’s consent, hire a professional to review any financial records prior to the sale. This ensures that the buyer is making an informed and educated decision about the business prior to the purchase. The statute also requires that the parties provide a written statement of the purchase price and any other terms of the sale, such as the payment schedule and any future obligations of the buyer. Finally, it states that if the sale is not completed, the seller must return any payments made by the buyer and must provide a written notification of the reasons for the termination of the sale. This protects the buyer from entering into a sale without adequate disclosure.

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Are there any consumer protections related to the sale of businesses?

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