Mississippi § 75-24-71 - Definitions.

§ 75-24-71. Definitions.

As used in Sections 75-24-71through 75-24-77, the following words and phrases shall have the meaningsas described in this section, unless the context clearly indicatesotherwise: “Bona fide inventoryrepurchase program” means a program by which an entity repurchasesfrom a salesperson current and marketable inventory in the possessionof the salesperson, upon request and upon commercially reasonableterms, when the salesperson’s business relationship is terminated. “Commerciallyreasonable terms” means the repurchase of current and marketableinventory within twelve (12) months after the date of purchase atnot less than ninety percent (90%) of the original net cost, lessappropriate set-offs and legal claims, if any. “Compensation”means a payment of any money, thing of value, or financial benefitconferred in return for inducing another person to participate ina pyramid promotional scheme. “Consideration”as used in Sections 75-24-71 through 75-24-77 means the payment ofcash or the purchase of goods, services, or intangible property. Theterm does not include the purchase of goods or services furnishedat cost to be used in making sales and not for resale, or time andeffort spent in pursuit of sales or recruiting activities. “Inventory”includes both goods and services, including company-produced promotionalmaterials, sales aids, and sales kits that an entity requires independentsalespersons to purchase. “Inventory loading”means the requirement or encouragement by a plan or operation thatits independent salesperson purchase inventory in an amount that exceedsthe amount that the salesperson can expect to resell for ultimateconsumption or to use or consume in a reasonable time period, or both. “Promote”means to contrive, prepare, establish, plan, operate, advertise, orotherwise induce or attempt to induce another person to participatein a pyramid promotional scheme. “Pyramid promotionalscheme” means any plan or operation by which a person givesconsideration for the opportunity to receive compensation that isderived primarily from the introduction of other persons into theplan or operation rather than from the sale and consumption of goods,services, or intangible property by a participant or other personsintroduced into the plan or operation. The term includes any planor operation under which the number of people who may participateis limited either expressly or by the application of conditions affectingthe eligibility of a person to receive compensation under the planor operation, or any plan or operation under which a person, on givingany consideration, obtains any goods, services, or intangible propertyin addition to the right to receive compensation.