2010 Maryland Code
BUSINESS REGULATION
TITLE 14 - BUSINESS OPPORTUNITIES, FRANCHISES, AND MULTILEVEL DISTRIBUTION COMPANIES
Subtitle 3 - Multilevel Distribution Companies
Section 14-302 - Repurchases required.
§ 14-302. Repurchases required.
(a) In general.- A multilevel distribution company may not require a participant in its marketing program to buy goods or services or pay any other consideration to participate in the marketing program unless the multilevel distribution company agrees to repurchase the goods:
(1) that are in resalable condition; and
(2) that the participant has been unable to sell 3 months after receipt of the goods first ordered.
(b) Contracts of participation.- A multilevel distribution company shall state in writing in each contract of participation in its marketing program that:
(1) a participant may cancel the contract for any reason within 3 months after the date of receipt of goods or services first ordered by written notice to the multilevel distribution company; and
(2) on cancellation, the multilevel distribution company shall repurchase the goods.
(c) Repurchase price.- The repurchase price shall be at least 90% of the original price paid by the participant.
[An. Code 1957, art. 23, § 180A; 1992, ch. 4, § 2.]
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