76-6a-2. Definitions.
As used in this chapter:
(1) (a) "Compensation" means money, money bonuses, overrides, prizes, or other real or
personal property, tangible or intangible.
(b) "Compensation" does not include payment based on the sale of goods or services to
anyone purchasing the goods or services for actual personal use or consumption.
(2) "Consideration" does not include payment for sales demonstration equipment and
materials furnished at cost for use in making sales and not for resale, or time or effort spent in
selling or recruiting activities.
(3) "Person" includes a business trust, estate, trust, joint venture, or any other legal or
commercial entity.
(4) "Pyramid scheme" means any sales device or plan under which a person gives
consideration to another person in exchange for compensation or the right to receive
compensation which is derived primarily from the introduction of other persons into the sales
device or plan rather than from the sale of goods, services, or other property.
Amended by Chapter 247, 2006 General Session
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Last revised: Thursday, May 01, 2008