18.2-242.1 - Certain referral transactions in connection with consumer sales or leases prohibited; effect of such transactions. - Virginia Statutes

§ 18.2-242.1. Certain referral transactions in connection with consumer salesor leases prohibited; effect of such transactions.

(a) For the purpose of this section, the term "consumer sale or lease ofgoods or services" means the sale or lease of goods or services which arepurchased or leased by a natural person primarily for a personal, family orhousehold purpose, and not for resale.

(b) With respect to a consumer sale or lease of goods or services, no selleror lessor shall give or offer to give a rebate or discount or otherwise payor offer to pay value to the buyer or lessee as an inducement for the sale orlease in return for the buyer's giving to the seller or lessor the names ofprospective buyers or lessees, or otherwise aiding the seller or lessor inentering into a transaction with another buyer or lessee, if the earning ofthe rebate, discount, or other value is contingent upon the occurrence of anysale, lease, appointment, demonstration, interview, conference, seminar,bailment, testimonial or endorsement subsequent to the time the buyer orlessee enters into the agreement of sale or lease.

(c) Agreements made in whole or in part pursuant to a referral transaction asabove described shall be void and unenforceable by the seller or lessor. Thebuyer or lessee shall be entitled to retain the goods, services or moneyreceived pursuant to a referral transaction without obligation to make anyfurther or future payments of any sort on the transaction total, or he shallbe entitled to avoid the transaction and to recover from the seller or lessorany sums paid to the seller or lessor pursuant to the transaction.

(Code 1950, § 59.1-68.02; 1975, c. 3; 1976, c. 641.)