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PELTIER v. SPAGHETTI TREE, INC.

No. 82-864.

6 Ohio St. 3d 194 (1983)

PELTIER, DIR., DEPT. OF COMMERCE, ET AL., APPELLANTS, v. SPAGHETTI TREE, INC. ET AL., APPELLEES.

Supreme Court of Ohio.

Decided August 10, 1983.

Attorney(s) appearing for the Case

Mr. Anthony J. Celebrezze, Jr., attorney general, and Barry W. Moses, for appellants.

Mr. Terry Farmer, for appellees.

Messrs. Brownfield, Bowen & Bally, Mr. Lyman Brownfield, Blakemore, Rosen & Norris Co., L.P.A., and Mr. Donald S. Varion, Jr., for appellees.

Per Curiam.

The issue presented in this appeal is whether the selling of franchise agreements, the first agreement in the two-stage plan, is regulated by R.C. Chapter 1334 or Chapter 1707.

Appellants argue that the sale of the franchise agreement, used in the first phase of the Spaghetti Tree, Inc. plan, is a security. They contend that it comes within the definition of a security in R.C. 1707.01 (B) which...

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