Section 122.02. Definitions.

 

(1)  "Chain distributor scheme" is a sales device whereby a person, upon a condition that the person make an investment, is granted a license or right to recruit for profit one or more additional persons who also are granted such license or right upon condition of making an investment and may further perpetuate the chain of persons who are granted such license or right upon such condition. A limitation as to the number of persons who may participate, or the presence of additional conditions affecting eligibility for the above license or right to recruit or the receipt of profits therefrom, does not change the identity of the scheme as a chain distributor scheme.

(2)  "Investment" is any acquisition, for a consideration other than personal services, of personal property, tangible or intangible, for profit or business purposes, and includes, without limitation, franchises, business opportunities and services. It does not include real estate, securities registered under ch. 551 , Stats. , or sales demonstration equipment and materials furnished at cost for use in making sales and not for resale.

(3)  "Person" includes partnerships, corporations and associations.

History: Cr. Register, March, 1970, No. 171 , eff. 4-1-70; correction in (1) made under s. 13.93 (2m) (b) 5., Stats., Register, April, 1993, No. 448 .