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STATE EX REL. HEALY v. CONSUMER BUSINESS SYS.

482 P.2d 549 (1971)

STATE of Oregon ex rel. Frank J. Healy, State Corporation Commissioner, Lee Johnson, Attorney General for Oregon and George Van Hoomissen, District Attorney for Multnomah County, Oregon, Appellants, v. CONSUMER BUSINESS SYSTEM, Inc., and Bob Jeanis, Respondents.

Court of Appeals of Oregon, Department 2.

Decided March 11, 1971.

Attorney(s) appearing for the Case

Peter S. Herman, Senior Counsel, Salem, argued the cause for appellants. With him on the briefs were Lee Johnson, Atty. Gen., Al J. Laue, Asst. Atty. Gen., and Jacob B. Tanzer, Sol. Gen., Salem.

Fred M. Aebi, Portland, argued the cause for respondents. With him on the brief were McMurry, Sherry, Nichols & Cox, and Garry P. McMurry, Portland.

Before SCHWAB, C.J., and LANGTRY, BRANCHFIELD, and HOLMAN, Judges.

SCHWAB, Chief Judge.

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 franchise agreements...

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