Michigan Compiled Laws

Mich. Comp. Laws § 445.1405 (2026)

Criminal violation of act by personnel deemed violation by contractor; exception.

✓ current as of July 2026

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Act 332 of 1965

445.1405 Criminal violation of act by personnel deemed violation by contractor; exception.

Sec. 405.

A criminal violation of any of the provisions of this act by a director, manager, partner, officer, salesman, agent or employee of a contractor or financing agency is deemed a criminal violation by such contractor or financing agency, unless it shall appear that the individuals engaged in the management of the contractor or financing agency had no actual or constructive knowledge of the wrongful conduct or was reasonably unable to prevent the violation.

History: 1965, Act 332, Eff. Jan. 1, 1966

Notes of Decisions

Cited in 2 cases, 1997–1997 · leading case: Cook v. Little Caesar Enter., Inc., 972 F. Supp. 400 (E.D. Mich. 1997).

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Cook v. Little Caesar Enter., Inc., 972 F. Supp. 400 (E.D. Mich. 1997). “§ 445.1405; M.S.A. § 19.854(5). While this court found that Counts III and VI are not actionable under the common law of Michigan because they relate to future promises, it is not prepared to grant summary judgment on the same basis in Count IV.”

Franchise Mgmt. Unlimited, Inc v. Am.’s Favorite Chicken, 561 N.W.2d 123 (Mich. Ct. App. 1997). “[MCL 445.1405; MSA 19.854(5).] Section 31(1) provides a civil remedy for violations of § 5: A person who offers or sells a franchise in violation of section 5 or 8 is liable to the person purchasing the franchise for damages or rescission, with interest at 6% per year from the…”

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