Quixtar Wins Abstention vs. TEAM in California
TEAM Dealt Serious Legal Blow
"[T]he court GRANTS Quixtar's motion to dismiss on declaratory relief abstention grounds and the matter is hereby DISMISSED WITH PREJUDICE," Judge Feess declared in court documents.
TEAM is a leadership training company run by Orrin Woodward and Chris Brady. They once had a contract with Quixtar, a retail company that was once formerly known as Amway. Quixtar is a company that sells retail through people called Independent Business Owners (IBOs). They provide products for IBOs to sell and encourage sales by offering discounts and bonuses associated with number of products sold and number of people recruited into Quixtar's business. TEAM argued that they found some of Quixtar's business practices unethical and bordering against breaking the law and wanted their contract terminated.
The main portion of the contract that TEAM wanted terminated was the "no compete" clause which would have allowed TEAM to form their own company. TEAM has taken the battle nationwide in various state courts. In this California case, TEAM wanted the "no compete" clause removed by alleging that Quixtar was indeed operating an illegal pyramid scheme. "Pyramid scheme" refers to a business that makes a substantial amount of profit from recruiting other sellers to sell products as opposed to selling the products.
However, the court ruling argued against TEAM's opinion, agreeing with other rulings made in Michigan earlier this year. "the Michigan court has already enjoined Plaintiffs from violating the covenants not to compete and not to solicit and sent the case to arbitration," Judge Gary Feess noted. "[T]he Court agrees with the Michigan court and believes the parties' arbitration agreement is valid and binding, and will resolve the pending disputes between the parties."
Quixtar representative Mike Mohr was pleased with the decision. "We are grateful for the court's decision," he said. "Orrin Woodward mounted a cynical and toxic attack on our business after we terminated him, and did his best to hurt a lot of innocent people on his way out the door."
Quixtar is a subsidiary of Alticor Corporate Enterprises. Alticor and its related businesses operate in more than 80 territories and countries worldwide.
SOURCE:
PR Newswire
URLs:
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=109&STORY=/www/story/10-05-2007/0004677020&EDATE=
http://media.alticorblogs.com/wp-content/uploads/2007/10/ca_woodward_final.pdf
Published by Paul Bright
Paul Bright is a 10 year military veteran. He is also an accomplished website content producer with over 2,000 published works online through Yahoo! Voices, Demand Studios, Digital Journal and Examiner among... View profile
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7 Comments
Post a CommentI'm amazed at these uneducated opinions regarding TEAM that just keep popping up from the outside world. I've been with TEAM for 2 years and still haven't been ripped off nor have any of the 300+ people who I'm working with on the TEAM. The TEAM Leadership system is second to none. Here's the catch that only an educated mind would know.........you ready? Here's the secret: YOU ACTUALLY HAVE TO APPLY WHAT YOU LEARN AND NOT SIT ON YOUR DUFF AND EXPECT SOMETHING FOR NOTHING! Sorry, the truth hurts doesn't it??? If you're not willing to work for success and be the mainstream excuse maker for your lack of progress in life, go back to your XBOX or your TV set and continue on with your dead end education. Meanwhile, the TEAM will continue to do what we do best, CHANGE LIVES and Change Culture. God Bless
LOL - Now if only they could teach me how to spell! :)
Sorry, it was too long, here's the rest.
$100. + dollars on a textbook for English? The Team's Textbook you get for one low payment of $15.95 Wow, what a rip off. now I know why Robert Kiyosaki calls network marketing "The Business Shcool For Poeple Who Like Helpin People." That's what Team is all about, servent leadership, and helping others. Most people do not understand this, as they are only looking out for #1. Thats ok, TEAM is not for everyone, only LEADERS.
to Djz and Wake up,
I respect your opinion. You are right, Quixtar is the real deal. Just like 'Five and Dime', 'Burger Chef', 'K-Mart', and 'Woolworth's'. All of these were the 'real' deal. Bottom line, Quixtar's prices are too high. They have to lower their prices or 'The Big Q' will be right next to 'The Big K' in the history books. (and yes, I am still an IBO!) I wonder how much more work it will take to bring Quixtar's customer sales over 4%, much less the 10% that is required to not be a pyramid scheme. I am not sure what you want me to say about the tools. Yes, we make money on tools - it is a business. For the leadership training that I have recieved in my short time on the TEAM, it has far surpassed all my leadership training that I have recieved from the Army over the last 10 years. Oh, and when I went to a private college for a year it cost me over $14,000. But yes, I know, college is not in it to make money. $100. + dollars on a textbook for English? The Team'
Spartan: The judge said go away from my court TEAM: you have legal remedies via the arbitration agreement. TEAM is sad example of preying on its downline...selling a dream that FEW will ever achieve. Profitting from the pitch, not the product. Sure Q products are over priced, but TEAM leadership ALWAYS makes money selling the dream (via CDs, meetings, and books) If TEAM can't sell CDs to the downline, they are SOL.
SPARTAN, WAKE UP. Quixtar is the real deal. If it was so great when you were in and it was growing so well why weren't you man/women enough to win; rather then quiting and try to start something better...or should I say something that would take less work. Man up.
The interesting fact about this case is that the judge did NOT say that TEAM didn't have a solid arguement. He did NOT say that Quixtar was not an Illegal pyramid scheme. All the judge said was that this was already handeled at the lower level court (the one in Quixtar's back yard), and that he had to follow that judges ruling and send this to arbitration, even though that suit was filed after this one. One way or another, the end result is the same. TEAM is free, weather today, or 6 months from now. The TEAM, a Leadership Development Service Provider has been growing at a mind numbing rate! (At least my portion has, and the people that I know) It is sad that Quixtar couldn't just let us go, but then again, if you watch the movie "Amazing Grace" you can see that the Brit's didn't want to give up the slave trade, even though it was wrong, cause they would loose money. No worries, it ended anyway. No worries, the TEAM will be free anyway. Looking at this mathmatically, and proje