Legal Question in Business Law in Florida

Is it legal to guarantee income potential?

I am wondering if it is legal to guarantee someone's income potential with a

money back guarantee.

In other words, if you don't succeed within a certain time period in making

a certain amount of money, you will have your initial investment refunded to

you.

I have competition offering this income guarantee and I've heard that they

do not honor it as they have a loophole for not delivering on their guarantee.

That aside, I thought that such guarantees were not ethical or legal because

no one can assure a person that they will make a certain amount of money.

It's all up to the individuals personal effort.

Please let me know if there is a law or business guideline that would

address this issue. I have searched through the Magnuson-Moss Act and the FTC and

do not see this issue specifically spelled out.

Thank you for your help,


Asked on 10/18/07, 12:10 pm

1 Answer from Attorneys
Scott R. Jay Law Offices of Scott R. Jay

Re: Is it legal to guarantee income potential?

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

Without doing serious research, I am not aware of any law that would prohibit a guarantee of a certain income. If the guarantee was not legitimate, that would be a violation of various different civil laws and possible criminal ones too. If you want an attorney to research the topic, you will need to retain counsel to spend the time to do an exhaustive search for you.

Scott R. Jay, Esq.

Read more
Answered on 10/18/07, 10:53 pm


Related Questions & Answers

More Business Law questions and answers in Florida