A participant in an endless chain scheme, as defined in § 327 of the Penal Code, may rescind the contract upon which the scheme is based, and may recover all consideration paid pursuant to the scheme, less any amounts paid or consideration provided to the participant pursuant to the scheme. In addition, the court may, upon motion, award reasonable attorney’s fees to a prevailing plaintiff.

(Added by Stats. 1989, Ch. 436, Sec. 1.)

Ask a litigation question, get an answer ASAP!
Thousands of highly rated, verified litigation lawyers.
Click here to chat with a lawyer about your rights.

Terms Used In California Civil Code 1689.2

  • Contract: A legal written agreement that becomes binding when signed.
  • Plaintiff: The person who files the complaint in a civil lawsuit.