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First Principles of Business Law |
| The regulation of undesirable business practices |
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5. Protection against unfair business practices |
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5.9 Pyramid schemes and referral selling |
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A is thinking of purchasing a new refrigerator from B for $2,500. B tells A that if he buys the fridge, B will give five 'opportunity coupons' to A. B tells A that he should give these coupons to five of his friends. If any of these friends should use their coupon to buy goods worth at least $2000 from B within six weeks of the date on the coupon, they will themselves receive five opportunity coupons, and A will be entitled to a refund of 10% of the price he has paid for his fridge, up to a maximum of 50%. A thinks this is a very fair deal and agrees to buy the fridge on these terms. Click here to see section 44. Click here to see section 45. Click here to see section 49. |
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