Michigan Laws 445.2585 – Rebuttable presumption
Current as of: 2023 | Check for updates
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Terms Used In Michigan Laws 445.2585
- Inventory: means goods, including company-produced promotional materials, sales aids, and sales kits, that a plan or operation requires participants to purchase. See Michigan Laws 445.2582
- Inventory repurchase program: means a program that does all of the following:
(i) Upon request, repurchases all current and marketable inventory in the possession of a participant within 12 months after the date of purchase, at not less than 90% of the original net cost, less appropriate setoffs, if any, when the participant's business relation is terminated. See Michigan Laws 445.2582Pyramid promotional scheme: means any plan or operation in which an individual gives consideration for the opportunity to receive compensation that is derived primarily from recruiting other individuals into the plan or operation rather than from the sale of products or services to ultimate users or from the consumption or use of product or services by ultimate users. See Michigan Laws 445.2582
There is a rebuttable presumption that a plan or operation is not a pyramid promotional scheme if both of the following conditions are satisfied:
(a) The plan or operation does not cause inventory loading.
(b) The plan or operation implements an inventory repurchase program.