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Del. Code tit. 6, § 2564

Contracts void; civil liability

Known as the Delaware Franchise Security Law

The act spans §§ 6–6 (56 sections).

6 Del

(a) Any contract made in violation of § 2563 of this title shall be void and any person who, directly or through the use of agents or intermediaries, induces or causes another person to participate in a pyramid or chain distribution scheme shall be liable to that person in an amount equal to the sum of:

(1) Twice the amount of any consideration paid; and

(2) In the case of any successful action to enforce such liability, the costs of the action together with a reasonable attorney’s fee, as determined by the court.

(b) An action under this section may be brought in any court in this State otherwise having jurisdiction over the dollar amount being sought by way of recovery within 1 year from the date on which the consideration was paid.

Official source: Delaware Code Online. Reproduced from public-domain Delaware statutes; confirm against the official source for the current text. Not legal advice.