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LSDefine

Simple English definitions for legal terms

chain-referral scheme

Read a random definition: lex merciorum

A quick definition of chain-referral scheme:

A chain-referral scheme, also known as a pyramid scheme, is a type of scam where people are promised compensation for bringing in new members to the scheme. The more people they bring in, the more money they can make. However, these schemes are illegal in most states because they rely on constantly recruiting new members to pay off earlier members, and eventually, the scheme collapses, leaving many people with nothing. It's important to be cautious of any scheme that promises easy money for little effort.

A more thorough explanation:

A chain-referral scheme is a type of pyramid scheme where a person pays to join a program and receives compensation for introducing new people to the program. The person also receives compensation when those new people introduce others to the program. This creates a chain of people who are all paying to join and trying to recruit others to join as well.

For example, let's say John pays $100 to join a chain-referral scheme. He is then encouraged to recruit others to join the program and is promised a commission for each person he brings in. If John recruits Jane, he will receive a commission when she pays to join. If Jane then recruits Tom, John will also receive a commission when Tom pays to join. This continues down the chain, with each person trying to recruit others to join and earn commissions.

Chain-referral schemes are illegal in most states because they are considered a form of fraud. They rely on constantly recruiting new members to keep the scheme going, and eventually, there are not enough new members to sustain it. This means that most people who join a chain-referral scheme will lose money, while only a few at the top of the chain will make a profit.

chain-of-causation rule | chair

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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