                                 CODE OF VIRGINIA

CERTAIN REFERRAL TRANSACTIONS IN CONNECTION WITH CONSUMER SALES OR LEASES
PROHIBITED; EFFECT OF SUCH TRANSACTIONS (§ 18.2-242.1)

a. For the purpose of this section, the term &#8220;consumer sale or lease of
goods or services&#8221; means the sale or lease of goods or services which are
purchased or leased by a natural person primarily for a personal, family or
household purpose, and not for resale.

b. With respect to a consumer sale or lease of goods or services, no seller or
lessor shall give or offer to give a rebate or discount or otherwise pay or
offer to pay value to the buyer or lessee as an inducement for the sale or lease
in return for the buyer&#8217;s giving to the seller or lessor the names of
prospective buyers or lessees, or otherwise aiding the seller or lessor in
entering into a transaction with another buyer or lessee, if the earning of the
rebate, discount, or other value is contingent upon the occurrence of any sale,
lease, appointment, demonstration, interview, conference, seminar, bailment,
testimonial or endorsement subsequent to the time the buyer or lessee enters
into the agreement of sale or lease.

c. Agreements made in whole or in part pursuant to a referral transaction as
above described shall be void and unenforceable by the seller or lessor. The
buyer or lessee shall be entitled to retain the goods, services or money
received pursuant to a referral transaction without obligation to make any
further or future payments of any sort on the transaction total, or he shall be
entitled to avoid the transaction and to recover from the seller or lessor any
sums paid to the seller or lessor pursuant to the transaction.

HISTORY: Code 1950, § 59.1-68.02; 1975, c. 3; 1976, c. 641.