Delaware Code Title 6 Sec. 2561 – Definitions
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.
6 Del. C. 1953, § ?2561; 59 Del. Laws, c. 86, § ?1; 70 Del. Laws, c. 186, § ?1;
Terms Used In Delaware Code Title 6 Sec. 2561
- 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.
- Franchise: means a contract or other arrangement governing the business relationship within this State between a franchised distributor and a franchisor where the franchised distributor is required to pay more than $100 to enter into such contract or other arrangement; provided, however, that a franchised distributor as defined under paragraph (2)(d) of this section shall not be required to have paid any consideration to enter into such contract or other arrangement. See Delaware Code Title 6 Sec. 2551
- 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 an individual, corporation, trust, estate, partnership, unincorporated association, or any other legal or commercial entity. See Delaware Code Title 6 Sec. 2561
- 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. See Delaware Code Title 6 Sec. 2561