THE CONTRACTUAL RELATIONS IN MULTI-LEVEL MARKETING COMPANIES

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MEHRBAKHSH MEHRDAD; ABBASI SARMADI MEHDI

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Paper Information

Journal: ISLAMIC LAW RESEARCH JOURNAL Year:2014 | Volume:15 | Issue:1 (39) Page(s): 119-149

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Information Journal Paper

Title

THE CONTRACTUAL RELATIONS IN MULTI-LEVEL MARKETING COMPANIES

Author(s)

MEHRBAKHSH MEHRDAD | ABBASI SARMADI MEHDI | Issue Writer Certificate

Keywords

MULTIQ2

LEVEL MARKETINGQ2

OVERALL COMMISSIONQ2

FISCAL EXCHANGED ACT CONDITIONQ1

IMPLIED CONTRACTQ2

QUASI CONTRACTQ2

Abstract

In a MLM company, distributors whole buy the products and retail to end users out of a fixed commercial location. In addition to margin, they get retail commission for every sale. Also every distributor is able to recruit, train and sponsor new distributors – directly and indirectly- and get a percentage as an OVERALL COMMISSION. In this way, there are two contracts between company and distributor in a MLM company. One is sales contract with a FISCAL EXCHANGED ACT CONDITION in implied which contains the products purchase contract by distributor and getting retail commission by selling it to end users. The other is proxy contract whereby distributor (as the company’s proxy) act to recruit, organize, sponsor and train continuously new distributors.In practice it isn’t convened any contract between distributors, but with respecting the way they interact, the governing contract between them which recognized by law, is quasi lease contract.

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APA: Copy

MEHRBAKHSH, MEHRDAD, & ABBASI SARMADI, MEHDI. (2014). THE CONTRACTUAL RELATIONS IN MULTI-LEVEL MARKETING COMPANIES. ISLAMIC LAW RESEARCH JOURNAL, 15(1 (39) ), 119-149. SID. https://sid.ir/paper/229490/en

Vancouver: Copy

MEHRBAKHSH MEHRDAD, ABBASI SARMADI MEHDI. THE CONTRACTUAL RELATIONS IN MULTI-LEVEL MARKETING COMPANIES. ISLAMIC LAW RESEARCH JOURNAL[Internet]. 2014;15(1 (39) ):119-149. Available from: https://sid.ir/paper/229490/en

IEEE: Copy

MEHRDAD MEHRBAKHSH, and MEHDI ABBASI SARMADI, “THE CONTRACTUAL RELATIONS IN MULTI-LEVEL MARKETING COMPANIES,” ISLAMIC LAW RESEARCH JOURNAL, vol. 15, no. 1 (39) , pp. 119–149, 2014, [Online]. Available: https://sid.ir/paper/229490/en

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