The following words and phrases as used in this chapter shall have the meaning hereinbelow expressed:(a) Multi-level distribution company. — Means any natural or [juridical] person who grants in exchange for an economic retribution, a franchise or concession for the distribution and/or sale of properties or services, to dealers who serve as intermediaries to enlist other dealers to the program and where other benefits or economic incentives are also offered for the purpose of promoting said enlistment.(b) Dealer. — Means any natural or [juridical] person to whom is granted a franchise or concession for the distribution and/or sale of properties or services as dealer, agent or participant for the purpose of developing a market therefor in Puerto Rico.(c) Distribution contract. — Means the relationship established between a dealer and a multi-level distribution company whereby the dealer takes charge of the distribution and/or sale of properties or services in Puerto Rico.(d) Benefit. — Means any retribution, wage, incentive, commission, dividend, consideration, bonus, agent’s fee, reimbursement, deduction or any other type of profit with regard to a distribution contract. enefit. — Means any retribution, wage, incentive, commission, dividend, consideration, bonus, agent’s fee, reimbursement, deduction or any other type of profit with regard to a distribution contract. History —June 5, 1973, No. 96, p. 409, § 1.
Puerto Rico Legal Code