Braddock v. Family Finance Corp. , 95 Idaho 256, 506 P2d 824 (1973)

Braddock v. Family Finance Corp.


The Court held that referral sales programs of the type in question do not constitute illegal lotteries under Idaho Law. An illegal lottery must give a return based solely on chance in Idaho. Cen-States Marketing sold stereos door-to-door. Purchasers also were given the opportunity to earn commissions based on referrals of other prospective stereo purchasers sent to Cen-States. Because there was skill involved in the selecting and referring of prospects and it was not purely by chance, the sales program was not an illegal lottery.

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Published In: Civil Procedure Updates, MLM / Direct Sales Updates, MLM Consulting / Network Marketing Updates

Reference Info:State, 9th Circuit, Idaho | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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