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Simple English definitions for legal terms

chain-referral scheme

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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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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
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