The Court of Appeals upheld the district court ruling that the agreement in question was not an "investment contract". Plaintiffs paid T.V. Tempo for the right to publish a television programming guide in an exclusive territory. T.V. Tempo would provide training to the Plaintiffs and their employees, but the distribution, solicitation of advertising, collection of payments, and other operations of the enterprise were solely within the Plaintiff’s control. In addition, a percentage of the sales were remitted to T.V. Tempo. The Appeals Court held that because the agreement was structured to give Plaintiffs such substantial control over the course of the business, the profits were not to be derived "solely from the efforts of others," and the agreement was not an investment contract subject to the securities laws.
Full case and case summary are also available at: http://www.mlmlegal.com/legal-cases/Martin_v_TVTempo628F2d887_1980.php
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.