The District Court adopted the reasoning of the Ninth Circuit in Glen Turner and ruled that the distributorships of Bestline were securities because the profits that were derived from them were to come substantially from the efforts of others. The fact that Bestline sold household products did not effect the determination that the company essentially sold investment contracts. Also, Bestline did not constitute a traditional business franchise because the distributors did not acquire an exclusive bundle of rights that typically define a traditional franchise. There was no genuine issue of material fact and summary judgment was appropriate...
The full case is also available online at: http://www.mlmlegal.com/legal-cases/InReBestlineProductsSecuritiesandAntitrustLitigation.php
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