The case holding that it does not constitute an act of paying economic benefits to the recruitment of assistant salesmen under Article 45 (1) 11 of the Door-to-Door Sales, etc. Act.

The case holding that if the amount paid by the defendant to multi-stage salesmen in the course of operating the company was purchased or sold by a multi-stage salesman, the bonus is set according to the ratio set within the statutory limit to the sales amount, and the sales amount was distributed to multi-stage salesmen according to the class, it shall be included within the scope of the bonus permitted to be paid to multi-stage salesmen under the Door-to-Door Sales, etc. Act, and in general, the reason for payment of the amount to multi-stage salesmen is not equivalent to the economic interest of multi-stage salesmen itself, even though the amount is not equivalent to the economic interest of multi-stage salesmen.

Article 2 subparag. 10, Article 41, Article 45(1)11, and Article 59 of the Door-to-Door Sales, etc. Act

Defendant

Prosecutor

Seoul District Court Decision 97No6953 delivered on February 26, 1998

The appeal is dismissed.

We examine the prosecutor's grounds of appeal.

The court below held that the defendant registered multi-level marketing business with the trade name of non-indicted corporation: if the multi-level marketing applicant purchased goods equivalent to 2.8 million won per person after receiving education for one week, then the multi-level marketing salesperson is admitted as a multi-level marketing salesperson; if the multi-level marketing salesperson purchases goods with a total of 10 million won, 52% of the total bonus amount corresponding to 25% of the sales amount shall be given to the multi-level marketing salesperson; when the head of the division opens a multi-level marketing salesperson, 8% of the bonus amount shall be paid to the non-level marketing salesperson by giving the name of "non-indicted 1,000 won" to the non-indicted 50,000 won, 1,000 won of the bonus amount to the non-indicted 1,000 won, 2,000 won of the bonus amount to the non-indicted 9,000 won of the sales amount to the non-indicted 1,000 won of the above multi-level marketing.

Article 2 (10) 10 of the Door-to-Door Sales Act defines the "support allowance" as the economic benefit paid to a multi-level salesman for the management of organization and education and training related to the sale of goods or provision of services to a multi-level salesman belonging to a multi-level salesman. Article 41 (1) and (3) of the same Act limits the total amount that a multi-level salesman can pay to a multi-level salesman within the scope prescribed by the Presidential Decree. In addition to retail profit that a multi-level salesman directly sells goods or provides services to a consumer, the economic benefit that a multi-level salesman paid to a multi-level salesman shall be regarded as a support allowance regardless of its name. Article 45 (1) 11 of the same Act prohibits a multi-level salesman from paying economic benefit to a multi-level salesman or paying a multi-level salesman other economic benefit than a support allowance to a multi-level salesman. In light of the purport and records of the relevant legal provision and records, the above amount that the defendant paid to a multi-level salesman when he purchases or sells goods to a multi-level salesman.

In this view, the judgment of the court below that the defendant's act of paying the above amount does not constitute a prohibited act stipulated in the above Act is just, and there is no error of law by misunderstanding the legal principles as to the bonus stipulated in the above Act, and therefore, the ground of appeal

Therefore, the appeal is dismissed. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Chocheon-sung (Presiding Justice)