North Dakota § 51-16.1-01 Definitions

North Dakota Statutes

§ 51-16.1-01 — Definitions

North Dakota § 51-16.1-01

Title 51Sales and Exchanges

Ch. 51-16.1Pyramid Promotional and Referral Sales Schemes

This text of North Dakota § 51-16.1-01 (Definitions) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 51-16.1-01 (2026).

Text

As used in this chapter, unless the context or subject matter otherwise requires:

1."Compensation" includes a payment based on a sale or distribution made to a person who either is a participant in a pyramid promotional scheme or has the right to become a participant upon payment.

2."Consideration" means the payment of cash or the purchase of goods, services, or intangible property but does not include:

a.The purchase of goods or services furnished at cost to be used in making sales and not for resale; or

b.Time and effort spent in pursuit of sales or recruiting activities.

3."Pyramid promotional scheme" means any plan or operation by which a participant gives consideration for the opportunity to receive compensation which is derived primarily from any person's introduction of other p

Free access — add to your briefcase to read the full text and ask questions with AI

As used in this chapter, unless the context or subject matter otherwise requires:
1. "Compensation" includes a payment based on a sale or distribution made to a person
who either is a participant in a pyramid promotional scheme or has the right to become
a participant upon payment.
2. "Consideration" means the payment of cash or the purchase of goods, services, or
intangible property but does not include:
a. The purchase of goods or services furnished at cost to be used in making sales
and not for resale; or
b. Time and effort spent in pursuit of sales or recruiting activities.
3. "Pyramid promotional scheme" means any plan or operation by which a participant
gives consideration for the opportunity to receive compensation which is derived
primarily from any person's introduction of other persons into participation in the plan
or operation rather than from the sale of goods, services, or intangible property by the
participant or other persons introduced into the plan or operation.