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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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19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
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