Legal Question in Business Law in Florida

Definition of terms

I belong to a private cash leveraging activity that employs a ''one-up structure. This means that a person gives up their first new member to their sponsor as their qualification to be able to receive compensation.This is not a business. I have a prospective client who needs assurance that by using the one-up structure, it does NOT automatically imply that this activity is a business. Are there guidelines that govern this?


Asked on 8/15/07, 1:17 pm

1 Answer from Attorneys
Scott R. Jay Law Offices of Scott R. Jay

Re: Definition of terms

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

No. This is not law in the State of Florida that deals directly on point with an entitey such as you describe. I am not familiar with this type of entity and frankly, it may not be entirely legal under Florida law based on the description you have presented.

Scott R. Jay, Esq.

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Answered on 8/15/07, 11:13 pm


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