Del. Code 6, § 2561 : Commerce And Trade — Prohibited Trade Practices — Pyramid Or Chain Distribution Schemes — Definitions

  • Date:

Current through 2016 Legislative Session, Act 399

As used in this subchapter:

(1) "Person" includes an individual, corporation, trust, estate, partnership, unincorporated association, or any other legal or commercial entity.
(2) "Pyramid or chain distribution scheme" means a sales device whereby a person, upon a condition that the person part with money, property or any other thing of value, is granted a franchise license, distributorship or other right which person may further perpetuate the pyramid or chain of persons who are granted such franchise, license, distributorship or right upon such condition. A limitation as to the number of persons who may participate, or the presence of additional conditions upon the eligibility for such a franchise, license, distributorship or other right recruit or upon the receipt of profits therefrom, does not change the identity of the scheme as a pyramid or chain distribution scheme.
Del. C. § 2561
6 Del. C. 1953, § 2561; 59 Del. Laws, c. 86, § 1; 70 Del. Laws, c. 186, § 1.;
SECTIONS