Terms Used In Louisiana Revised Statutes > Title 51 > Chapter 1 > Part VIII > Subpart B - Pyramids

• Compensation: means the payment of money, a thing of value, or any financial benefit. See Louisiana Revised Statutes 51:361
• Consideration: means the payment of cash or purchase of goods, services, or intangible property. See Louisiana Revised Statutes 51:361
• Contract: A legal written agreement that becomes binding when signed.
• Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
• Intangible property: Property that has no intrinsic value, but is merely the evidence of value such as stock certificates, bonds, and promissory notes.
• Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
• Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
• Participant: means a person who contributes money into a pyramid promotional scheme. See Louisiana Revised Statutes 51:361
• Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
• person: includes a body of persons, whether incorporated or not. See Louisiana Revised Statutes 1:10
• Person: means an individual, a corporation, a partnership, or any association, or unincorporated organization. See Louisiana Revised Statutes 51:361
• Promote: means to contrive, direct, establish, or operate a pyramid promotional scheme. See Louisiana Revised Statutes 51:361
• Pyramid promotional scheme: means any plan or operation by which a participant gives consideration for the opportunity to receive compensation which is derived primarily from the person's introduction of other persons into a plan or operation rather than from the sale of goods, services, or intangible property by the participant or other persons introduced into the plan or operation. See Louisiana Revised Statutes 51:361
• Reasonable commercial terms: includes repurchase by the seller, at the participant's request, and upon termination of the business relationship or contract with the seller, of all unencumbered products purchased by the participant from the seller within the previous twelve months which are unused and in commercially resalable condition, provided that repurchase by the seller shall be for not less than ninety percent of the actual amount paid by the participant to the seller of the products, less any consideration received by the participant for purchase of the products which are being returned. See Louisiana Revised Statutes 51:361