[vision-master]

The idea of someone parting with $1.5M and receiving a sea container full of aluminium foil and pipes in return, made me laugh - so thanks for that.

They wouldn't sell them, they could be sued or prosecuted for fraud. And they don't sell shares because of securities regulations.

But if they sell distributor licenses without any promises, I don't think the buyer has much legal recourse.

Just found this:
German E-Cat Licensee Reports Getting Refund on License
November 27, 2013
(But according to a commenter on that page: "He does not say 'we got our money back'.")

Uniform Commercial Code.........

Bill of Lading..........

[Keith_McClary]

They wouldn't sell them, they could be sued or prosecuted for fraud. And they don't sell shares because of securities regulations.

But if they sell distributor licenses without any promises, I don't think the buyer has much legal recourse.

Uniform Commercial Code.........

Nope, not in there. Franchises are regulated in some places, eg.:
http://www.ftc.gov/bcp/franchise/netdiscl.shtm

Fifteen states have franchise investment laws that require franchisors to provide pre-sale disclosures, known as a "Franchise Disclosure Document," to potential purchasers. Thirteen of these state laws treat the sale of a franchise like the sale of a security. They typically prohibit the offer or sale of a franchise within their state until a franchise offering circular has been filed on the public record with, and registered by, a designated state agency. Two of the fifteen states do not require a filing of offering circulars, as noted in the list of state offices below.

These state laws give franchise purchasers important legal rights, including the right to bring private lawsuits for violation of the state disclosure requirements. We encourage potential franchise purchasers who reside in these states to contact their state franchise law administrators for additional information about the protection these laws provide.

Laws vary in different countries.

They seem careful not to advertise any specific offers:
http://ecat.com/ecat-business
If you contact ecat and make a deal with them, it's not clear if you would be protected by these laws.

I wonder if ecat has filed these disclosures.

PS - lots of info here:
http://shutdownrossi.com/

[jedrider]

So many things about this raise suspicions. First of all, if this were possible, wouldn't this be huge news everywhere? Also, the continual stream of 200 kilowatts is weird. Why can you use some of the output to keep it running? Doesn't make any sense.

It should have a crank like a model T, then it would be useful

[PrestonSturges]

He can claim he has pre-orders and put that on his books as Accounts Payable ("AP") and then describe that as an asset, making the company look much more viable on paper.

[Quinny]

He'd need to Invoice first.

He can claim he has pre-orders and put that on his books as Accounts Payable ("AP") and then describe that as an asset, making the company look much more viable on paper.

[PrestonSturges]

He'd need to Invoice first.

He can claim he has pre-orders and put that on his books as Accounts Payable ("AP") and then describe that as an asset, making the company look much more viable on paper.

Press releases ignore "accounting best practices," but at what point does that risk actual prosecution for fraud?

[Keith_McClary]

He'd need to Invoice first.

He can claim he has pre-orders and put that on his books as Accounts Payable ("AP") and then describe that as an asset, making the company look much more viable on paper.

Press releases ignore "accounting best practices," but at what point does that risk actual prosecution for fraud?

Private businesses can make whatever deals they want with each other, usually with an Entire agreement clause

The purpose of an entire agreement clause is to make clear that the agreement between the parties is solely what is stated in the written contract, and to prevent the parties to the contract from subsequently raising claims that statements or representations made during contractual negotiations, and prior to the signing of the written contract, constitute additional terms of the agreement or some form of side agreement. That is, the parties include an entire agreement clause in the contract to prevent those pre-contract statements and representations from having any contractual force.

If Rossi is careful to have a well drafted clause and avoids anything fraudulent in the contract (or in listed attachments) he is pretty much safe.

Where he could get in trouble is making public offerings of shares or franchises. He is being careful not to cross that line:

On behalf of Andrea Rossi and Leonardo Corporation, ECAT.com is currently discussing business collaborations and other ventures with interested parties in the following areas:

Investments
Technology licensing
Third party applications
Reselling
Online affiliates

Please contact ECAT.com for more information using the ECAT Inquiry form on the right side.
http://ecat.com/ecat-business

[PrestonSturges]

Oooops!

Sorry I meant ACCOUNTS RECEIVABLE (AR).

Shame on me for messing that up, and shame on you guys for not catching it!