§ 30-401. Definitions.
The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
Endless chain means and includes any plan or scheme wherein any person sells, transfers, assigns or issues to any person any right, property, ticket, coupon, certificate, contract or other token and wherein:
(1)
The purchaser, transferee or assignee thereof or the person to whom such token is issued undertakes or is permitted to undertake for himself or as the agent, representative or attorney of such person to sell, transfer, assign or issue to another any right, property, ticket, coupon, certificate, contract or other token which may under certain conditions entitle the purchaser or recipient thereof to any right, property, ticket, coupon, certificate, contract or other token; and,
(2)
The purchaser, transferee or assignee thereof from the original purchaser, assignee or transferee, or from a subsequent purchaser, assignee or transferee, is also given as a consideration for their entry into or participation in such plan or scheme and their purchase or receipt of such right, property, ticket, coupon, certificate, contract or other token the right, privilege or obligation of making further sales, assignments or transfers of any right, property, ticket, coupon, certificate, contract or other token.
(Code 1956, § 22-1)