Louisiana v. Pearaa

Is the Louisiana state statute imposing criminal liability for promoters of "endless chain" schemes unconstitutionally vague?

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The Louisiana Supreme Court held that the state statute prohibiting "endless chain" schemes was not unconstitutionally vague because a person of normal intelligence could understand the statute. Though the statute was admittedly lacking clarity, it adequately appraised the general public of the nature of the laws prohibitions and could not be held to be unconstitutionally vague. The statute made illegal any plan where one person sells to another the right to solicit others in that same way as the original purchaser.

The case and case summary are also available online at: http://www.mlmlegal.com/legal-cases/Louisiana_v_Pearaa.php

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Published In: Criminal Law Updates, MLM / Direct Sales Updates, MLM Consulting / Network Marketing Updates

Reference Info:State, 5th Circuit, Louisiana | 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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