As an R Solution Independent Business Owner (IBO) you have responsibilities to maintain under our Rules of Conduct listed in the Table of Contents below.
Table of Contents
Part 1: Code of Ethics
Part 2: Rules and Regulations
Part 3: Partnerships Are Discouraged
Part 4: Pyramid and Direct Selling Regulations
Part 5: Contractual Relationship
Part 6: Term, Death, and Inheritance
Part 7: Responsibilities and Obligations
Part 8: Presentation, Sponsoring, and Support
Part 9: Preservation of the Line of Sponsorship
Part 10: TradeMarks and Copyrighted Works
Part 11: Complying and Remedies for Breach-->
As an IBO, I agree to conduct my business according to the following principles. I will uphold and follow the Rules of Conduct observing not only the letter, but also the spirit, of these Rules. I will present the R Pledge, Realty Adviser and Vendor services and the business opportunity in a truthful and honest manner, and I will make only such claims as are sanction by R Solution. I will conduct myself in such a manner as to reflect only the highest standards of integrity, honesty, and responsibility, because I recognize that my actions as an IBO have far-reaching effects, not only on my own business, but on that of other IBO’s as well.
The age required to become an IBO and enjoy full rights and privileges, including the right to be a sponsor and register others into the business is 18 years old.
As an IBO, you are not an employee, agent, or legal representative of R Solution, but rather a self employed independent contractor authorized by R Solution to sell its products and services and register others to do the same. R Solution exercised no control over the amount of time you devote to the business or the amount of income you derive from it. You should not, at anytime, represent to anyone that you are an employee of R Solution.
Do not ask lenders or other parties to call R Solution to verify your income or financial status because R Solution will not be able to provide this information.
R Solution strongly discourages partnerships between individual other than spouses as a way to conduct an R Solution independent business. There are inherent shortcomings in the partnership form as a way of doing business that often result in serious personal legal consequences to the individual partners.
R Solution recommends that two IBO’s operate separate businesses, with one sponsoring the other. The IBO’s, if they wish, may operate their separate business as a single business so far as they themselves are concerned, while maintaining two separate businesses on R Solution books.
The R Solution IBO Compensation Plan is NOT a pyramid scheme or chain distribution scheme. A pyramid is a scheme in which an individual pays for the right to recruit additional persons into the scheme who, in turn, receive the same right to receive profits from recruiting others when there is no product or service. Three common elements of a pyramid scheme have been identified as: 1) a large required initial investment or purchase of inventory; 2) direct payment for recruiting others into the scheme; and 3) little or no emphasis on selling a product or providing a service.
The Rules of Conduct (Rules) form an important part of the Contract between R Solution and the IBOs. IBOs own and operate their own Independent Business. R Solution recognizes the value of the contributions that IBOs who have achieved business goals can make to the development of other IBOs whom they sponsor and support under the Rules. The Rules are designed to ensure that all IBOs have the support that they need to continue to develop their business with R Solution.
Under the IBO Contract, IBOs receive substantial benefits in accordance with the Rules. As a part of its commitment to support the opportunity made available to IBOs, R Solution invests substantial resources in goodwill and in the Line of Sponsorship.
All IBOs and R Solution share a competitive advantage and business interest in maintaining and protecting these assets and interest. The Rules provide important safeguards for IBOs and R Solution in this regard, as well as contractual rights and obligations.
R Solution LLC. (R Solution) has a contract with each IBO that includes all of the terms in the IBO Application Agreement form and the Rules. As part of the IBO Contract, IBO’s have an obligation to comply with the Rules. All claims arising from or relating to the IBO Contract, shall be governed by Arizona Law.
To become an authorized IBO, the Member must be 18 years of age and must check the box on the IBO Application acknowledging that they have read, understand and agree to the Business Overview including the Compensation plan and the Rules of Conduct. R Solution reserves the right to accept or reject any IBO Application.
If a married couple couple wishes to become IBOs, they must register together as a single IBO Business. Spouses may not sponsor each other. If one spouse is already an IBO, the other spouse, upon electing to become an IBO, must join their spouse’s IBO Business.
The term of the IBO Contract shall be one year. The Contract shall automatically renew on the anniversary date. An IBO may terminate their IBO Contract at anytime by written notice to R Solution. Death and Inheritance. An IBOs business can be passed on to a deceased IBO’s spouse, heirs, or other beneficiary.
In cases where the IBOs Business is owned jointly, such as a husband and wife or partnership, and one spouse or partner dies, unless they have previously arranged otherwise, R Solution will recognize the surviving spouse or partner(s) as the owner(s) of the IBOs Business. The survivor(s) must forward a certified copy of the death certificate in order for R Solution to change its records.
In cases where the IBOs Business is operated as an entity and one of the owners of the entity dies, the entity will continue to operate the IBOs Business, provided the entity remains in full compliance with the Rules. The entity shall notify R Solution of the change in ownership or control of the entity by submitting the currently applicable Entity Agreement reflecting the proposed changes, and any proposed changes in the ownership or control of the entity require the express approval of R Solution in writing.
In cases where an IBO disposes of an IBOs Business in a will, R Solution will recognize the terms of the transfer, provided the beneficiary is an IBO who is in compliance with the Rules.
If there is no qualified IBO in a position to operate an IBOs Business due to probate or other court procedures, R Solution will have the option of entering into a servicing agreement with another IBO, preferably upline in the Line of Sponsorship, to manage the IBOs Business until the proceedings are complete.
Duty of Good Faith: Under the terms of the IBO Contract, R Solution and all IBOs agree to perform their obligations in accordance with the duty of good faith and fair dealing. An IBO will be held accountable for the actions of a partner, family member or third party acting or purporting to act on behalf of the IBO, so far as the Rules of Conduct are concerned. An IBO shall not aid and abet another IBO to violate the Rules of Conduct. IBOs shall not conduct any activity that could jeopardize the reputation of R Solution or IBOs.
Unsolicited Electronic Messages: No IBO shall send, transmit, or otherwise communicate any unsolicited electronic messages relating to R Solution, its business opportunity, products or services to persons with whom the IBO does not have a pre-existing personal or business relationship. (This includes, but is not limited to, sending messages through newsgroups, purchased mailing lists, “safelists,” or other lists of individuals or entities with whom or which the IBO does not have a preexisting relationship.) Advertising: IBOs may advertise only with the express approval of R Solution in writing.
Statements About Products, Services, and the Opportunity: An IBO shall make only truthful and accurate statements about the business opportunity, products and services offered through or by R Solution. IBOs shall not make any claims about products or services offered through or by R Solution other than those claims found in R Solution authorized information. Compliance with Applicable Laws, Regulations, and Codes: IBOs shall comply with all laws, regulations, and codes that apply to the operation of their IBO Business wherever said business may be conducted. IBOs shall not directly or indirectly encourage, or aid and abet any person to violate any laws, regulations, codes, or terms of the IBO Contract. No IBO may operate any illegal or unlawful business enterprise, or engage or participate in any deceptive, illegal or unlawful trade practices.
IBO Relationship: IBOs are independent contractors. IBOs shall not state or imply that they are employees, agents or legal representatives of R Solution, its affiliates, and/or other IBOs. IBOs shall not represent or imply, either directly or indirectly, that registration creates an employment relationship between themselves and the IBOs whom they have sponsored or who have sponsored them.
Franchises and Territories: IBOs shall not represent to anyone that there are franchises or exclusive territories available.
Enticement to Change Position in the Line of Sponsorship: Under no circumstances shall an IBO, directly or indirectly, solicit, assist, attempt to induce, or encourage, another IBO to request a change in position in the Line of Sponsorship.
Activity Outside The Region or Activity Outside The Market Where The IBO Is Registered: IBOs who engage, directly or indirectly, in any activity related to the R Solution business in a jurisdiction outside of the Region must do so in a manner that complies with the letter and spirit of the applicable laws, regulations, rules, policies and procedures of the R Solution affiliate in that jurisdiction, regardless of whether they are registered IBOs in that jurisdiction. Failure to do so shall be a breach of the IBO Contract. Sound Business Practices: IBOs shall operate their IBO Business in a financially responsible and solvent manner. R Solution reserves the right to offset bonus and commission payments for amounts an IBO owes to R Solution. If an IBO or any member partner in his or her IBO Business files a petition for bankruptcy or has bankruptcy proceedings commenced against him or her, or has any assets seized by court order or taken in execution of an unsatisfied judgment debt, the IBO must immediately inform R Solution.
Personal/Business Information Update: All IBOs are responsible for communicating any updates or changes to their personal information (e.g., name, address, email address and telephone numbers, etc.) or business information (e.g., business name, address, email address, telephone numbers, addition/deletion of partner, change of business status, etc.) to R Solution.
Inviting: When inviting a Prospect to hear a presentation regarding R Solution, an IBO must make it clear that what is being described or offered is an opportunity. When describing the opportunity: (a) an IBO’s statements must be truthful, accurate and not misleading; (b) the roles of a balanced business (retail sales, personal use and sponsoring) must be accurately described; and (c) all income representations must be limited to income from the Compensation Plan, based on actual experience or from R Solution-authorized materials, and provide realistic income potential. IBOs must not register or sponsor new IBOs in a way that manipulates the new IBO’s position in the Line of Sponsorship. The sponsor must be an IBO in full compliance with the Rules of Conduct.
Training and Motivation: The sponsor must be able to train and motivate the IBOs whom he or she has sponsored and maintain frequent contact with all of them. IBOs may assist this obligation by use of Training and Support in the Back Office.
Confidentiality of the Line of Sponsorship: R Solution protects the Line of Sponsorship and Line of Sponsorship Information for the benefit of R Solution and of all IBOs. R Solution keeps Line of Sponsorship Information proprietary and confidential and treats it as a trade secret. R Solution is the exclusive owner of all Line of Sponsorship Information, which is derived, compiled, configured, and maintained through the expenditure of considerable time, effort, and resources by R Solution and its IBOs. IBOs can use R Solution’s goodwill and Line of Sponsorship Information only for the purposes permitted under the IBO Contract.
IBOs acknowledge, and agree not to challenge, that: (i) Line of Sponsorship Information is confidential and a valuable trade secret owned by R Solution; (ii) Line of Sponsorship Information is owned exclusively by R Solution; and (iii) IBOs do not own any rights in Line of Sponsorship Information. IBOs agree not to challenge or interfere with R Solution’s authority to license or sublicense Line of Sponsorship Information. IBOs shall not assert or seek any rights or protection of any kind in Line of Sponsorship Information other than those limited rights or protections that may be specifically granted by this Rule.
An IBO may use Line of Sponsorship Information only with R Solution’s prior written permission, which may be expressed through general publication (to all IBOs) or through a specific writing to one or more IBOs. Any permission granted by R Solution shall constitute a limited non-exclusive, non-transferable, and revocable license by R Solution for an IBO to use Line of Sponsorship Information only as necessary to facilitate his or her IBO Business as permitted under these Rules of Conduct. R Solution reserves the right to deny or revoke any such license, upon reasonable notice to the IBO stating the reason(s) for such denial or revocation, whenever, in the reasonable opinion of R Solution, such is necessary to protect the confidentiality or value of Line of Sponsorship Information.
All IBOs shall maintain Line of Sponsorship Information in strictest confidence, and shall take all reasonable steps and appropriate measures to safeguard Line of Sponsorship Information and maintain the confidentiality thereof. An IBO shall not compile, organize, access, create lists of, or otherwise use or disclose Line of Sponsorship Information except as authorized by R Solution. An IBO also shall not disclose Line of Sponsorship Information to any third party, or use Line of Sponsorship Information in connection with any other businesses or to compete, directly or indirectly, with the R Solution business.
An IBO shall promptly return any and all Line of Sponsorship Information to R Solution upon resignation or termination of his or her IBO Business and shall immediately discontinue any further use thereof.
Every IBO acknowledges that use or disclosure of Line of Sponsorship Information, other than as authorized by R Solution, will cause significant and irreparable harm to R Solution, warranting an award of injunctive relief, including a temporary restraining order and/or a preliminary injunction, specific performance, and damages including costs, attorneys’ fees, and disgorgement of all profits made as a result of such unauthorized use or disclosure.
An IBO’s obligations under this Rule shall survive and remain enforceable following the voluntary or involuntary resignation or termination of that IBO’s Business.
Non-Solicitation (current IBOs): Every IBO agrees that he or she will not, on his or her own behalf or on behalf of any person or entity, directly or indirectly, encourage, solicit, or otherwise attempt to recruit or persuade (i) any IBO or (ii) any person who has been an IBO within the past two calendar years, to own, manage, operate, consult for, serve in a Key Position in, or participate as an independent distributor in (a) any other direct sales program using a multilevel or network marketing structure, or (b) any other enterprise that markets, through independent distributors, products or services functionally interchangeable with those offered through or by R Solution.
Non-Solicitation (former IBOs): Every IBO agrees that, during the twenty-four-month period following the resignation or termination of that IBO’s Business, he or she shall not, on his or her own behalf or on behalf of any person or entity, directly or indirectly, encourage, solicit, or otherwise attempt to recruit or persuade (i) any IBO or (ii) any person who has been an IBO within the past two calendar years, to own, manage, operate, consult for, serve in a Key Position in, or participate as an independent distributor in (a) any other direct sales program using a multilevel or network marketing structure, or (b) any other enterprise that markets, through independent distributors, products or services functionally interchangeable with those offered through or by R Solution.
Other Business Activities: Except as provided in these Rules, IBOs may engage in other business ventures, including other selling activities, involving products, services, or business opportunities. However, IBOs may not take advantage of their knowledge of or association with other IBOs whom they did not personally register, including their knowledge resulting from or relating to Line of Sponsorship Information, in order to promote and expand such other business ventures.
Every IBO agrees not to solicit, directly or indirectly, other IBOs whom he or she did not personally sponsor in order to sell, offer to sell, or promote other products, services, business opportunities, investments, securities, or loans not offered through or by R Solution. Every IBO agrees not to sell, offer to sell, or promote any other business opportunities, products, or services in connection with the Compensation Plan.Approval of Certain IBO Contract Changes: The sale of an ownership interest in an IBOs Business, transferring an IBOs Business, merging IBO
Businesses, separating or dividing an IBO Business, or assignment of any rights or obligations under an IBO Contract require express approval of R Solution in writing. None of the foregoing may be used to manipulate the Line of Sponsorship.
Individual Transfers: An individual transfer involves the transfer of an IBO without any Teamline IBOs (Teamline meaning IBOs below you in the Matrix). Any IBO who wants to change his or her sponsor must submit a written request to R Solution accompanied by (1) a written release signed by all the IBOs Supportline (Supportline meaning IBOs above you in the Matrix) in the Line of Sponsorship, (2) a written acceptance from the new IBO sponsor, and (3) a statement indicating the business reason for the transfer request. Upon R Solution’s express approval in writing of the request, the written acceptance from the new sponsor confirms that they will incur all responsibilities of the transferring IBO.
Group Transfers: An IBO who wishes to transfer to a different sponsor with one or more Teamline IBOs may do so only with the express approval of R Solution in writing. In addition, an IBO must submit a written request to R Solution accompanied by (a) written consent from all IBOs Supportline in the Line of Sponsorship up to and including the first qualified Solution, (b) written consent of all IBOs whom the transferring IBO wishes to transfer with him or her, (c) written consent by the new sponsor and his or her Supportline qualified Solution to which the requesting IBO wants to be transferred, and (d) a statement indicating the business reason for the transfer request.
Six-Month Inactivity: An IBO who wishes to transfer to a different sponsor but is unable to obtain the necessary consents may not register under a new sponsor until the IBO has terminated his or her IBO Contract and has been inactive for a period of 6 months or longer. Following the lapse of the inactive period, the former IBO may register as a new IBO under a new sponsor. During the period of inactivity, a person shall not conduct any of the activities of an IBO under his or her name, or in the name of another person or IBO Business.
Sale of an IBO Business: An IBO who owns and operates an IBO Business may sell his or her ownership interest only with the express approval of R Solution in writing. When an IBO Business is sold, it will remain in its same position in the Line of Sponsorship.
Two IBO Businesses Rule: An IBO may own or have an ownership interest in only one IBO Business except: (a) where two IBOs marry; (b) where an existing IBO Business purchases another IBO Business; or (c) where the IBO Business is, or will be, passed on to a deceased person’s spouse, heirs, or other beneficiary.
Disposition of an IBO Business: If an IBO resigns, terminates his or her IBO Business, dies without transferring the IBO Business, or is terminated by R Solution, R Solution shall decide the future of the IBO Business in accordance with these Rules.
R Solution’s Marks and Copyrighted Works are important and valuable business assets of R Solution. The Marks help identify the source and reputation of R Solution’s products and services worldwide and distinguish them from those of competitors. R Solution makes commercially reasonable efforts to protect the Marks from improper use, including through the Rules of Conduct, accreditation of Approved Providers, and a corporate identity program that requires the correct and consistent use of the Marks, both in appearance and substance.
Use of Marks and Copyrighted Works: An IBO may Use R Solution’s Marks
and Copyrighted Works only with R Solution’s prior written permission,
which may be expressed through general publication (to all IBOs) or
through a specific writing to one or more IBOs. Without limitation, R
Solution may require conformity with specifications, may require that
materials that Use R Solution’s Marks and/or Copyrighted Works be
sourced from R Solution or an R Solution-approved supplier, and may
otherwise condition Use of its Marks and Copyrighted Works. Any
permission granted by R Solution shall constitute a limited, non-exclusive,
non-transferable and revocable license to Use such Marks and Copyrighted
Works solely in connection with the R Solution business in the Region.
Subject to conditions and specifications published or specifically provided
in writing from time to time, the Marks and Copyrighted Works may be
Used only on:
(a) exterior and interior office signs
(b) all forms of vehicle signs
(c) telephone listings
(d) promotional literature
(g) and business cards. Other proposed Uses will be considered upon request. Without limitation, R Solution will not authorize an IBO to use the Marks on imprinted checks.
(Remedies for Breach) Complying with the IBO Contract is essential for preserving a strong and viable business for IBOs and R Solution. IBOs and R Solution each have rights and responsibilities in case of a breach of the IBO Contract. R Solution’s Rights and Responsibilities: When R Solution detects a potential breach of the IBO Contract, it will first investigate as appropriate. Before taking enforcement action, R Solution shall attempt to contact the IBO in an effort to resolve the issue. If the communication does not resolve the issue, R Solution may take any enforce ment action authorized by the IBO Contract including, but not limited to, one or any combination of the following:
A written warning to an IBO, and/or Supportline or Teamline IBOs in the Line of Sponsorship. Retraining an IBO, and/or Supportline or Teamline IBOs in the Line of Sponsorship.
Suspending some or all of the rights of an IBO for a specified period of
time, or until certain conditions have been satisfied. Withdrawing or denying an award, trip, pin recognition or other incentive. Withholding any monthly or annual bonus or incentive payments.
Compensatory remedies, as applicable.
Transferring an IBO or a group of IBOs.
Terminating an IBO Contract.
IBO Rights and Responsibilities: If an IBO believes that another IBO has breached the IBO Contract, the IBO first should contact the IBO in question in an effort to resolve the issue. If an IBO believes that R Solution has breached the IBO Contract, the IBO first shall contact R Solution in an effort to resolve the issue. If discussion with either an IBO or R Solution does not resolve the issue, the IBO may file a written complaint with R Solution. The complaint should explain the issue in as much detail as possible, and include all supporting documents. R Solution will investigate as appropriate, and take enforcement or corrective action under the IBO Contract, if necessary.
Duty To Cooperate: All IBOs are required to respond to inquiries and otherwise cooperate in a timely fashion with any investigation conducted by R Solution. Failure to respond to inquiries or to otherwise cooperate in a timely fashion is a breach of the IBO Contract and may result in R Solution taking action against the IBO Business.
Non-Waiver. The failure of R Solution or any IBO to enforce any breach of any provision of the IBO Contract shall not constitute a waiver of any prior, concurrent, or subsequent breach of the same or any other provision of the IBO Contract.
Class Action Waiver: The Parties mutually waive any right to assert any Dispute as a class, collective or representative action, or to participate in any Dispute asserted as such.
Indemnity and Limitation of Liability
IBOs will indemnify and hold R Solution, and each of their shareholders, officers, directors and employees harmless from and against any claim, demand, liability, loss, action, causes of action, costs, or expenses, including, but not limited to, reasonable attorney’s fees, resulting or arising from, directly or indirectly, any acts or omissions by IBOs in conducting independent R Solution business, including without limitation, breach of representations and warranties, material breach of the Contract and other agreements between the parties, or any other claims or causes of action.
Confidential Information As a result of IBOs position, IBOs have access to Confidential Information that they acknowledge to be proprietary, highly sensitive and valuable to R Solution 's business, which information is available to IBOs solely and exclusively for purposes of furthering the sale of R Solution Products and services and prospecting, training and sponsoring third parties who wish to become IBOs, and to further build and promote their business. IBOs and R Solution agree and acknowledge that, but for IBOs agreement of confidentiality and nondisclosure, R Solution would not make Confidential Information available to IBOs. During any term of the Agreement, and for a period of four years after the termination or expiration of the Agreement, they will not, for any reason, on their own behalf, or on behalf of any other Person:
Disclose any Confidential Information related to or contained in the Network to any third party directly or indirectly; Disclose, directly or indirectly, the password or other access code to the Network; Use the Confidential Information to compete with R Solution , or for any purpose other than promoting R Solution ; Solicit any IBO of R Solution or of the Network, or in any manner attempt to influence or induce any IBO of R Solution , to alter their business relationship with R Solution ; Use or disclose to any Person any Confidential Information related to or contained in the Network that was obtained while the Agreement was in effect; or Recruit or attempt to recruit an existing IBO for another Direct Sales Company.
Upon non-renewal, resignation or termination of your IBO, you will promptly destroy or return to R Solution all Confidential Information.
Confidentiality of IBO Information
As a result of your position as an IBO, you may, at the sole discretion of R Solution , be provided access to information about other IBOs and their Teamline Organizations for the sole purpose of allowing you to provide business support to these IBOs and their Teamline Organizations. This information is highly confidential and you may not disclose information about an IBO and their Teamline Organization to other IBOs or to any other party. By accessing such information, you expressly agree to these restrictions and acknowledge that, but for your agreement of confidentiality and nondisclosure, R Solution would not make such information about other IBOs and their Teamline Organizations available to you.
All private, confidential and/or proprietary information disclosed to or discovered by you regarding R Solution including, without limitation, intellectual property rights, trade secrets, the Network, personal information, sales volumes and genealogy, manuals, protocols, policies, procedures, marketing, and strategic information, computer software, training materials, nonpublic financial information, and any copies, notes or abstracts of any such information, or any other information that R Solution considers proprietary, highly sensitive, or valuable to its business.
In consideration of R Solution ’s recognition, Bonuses, and other compensation that you receive as an IBO, you will not disparage R Solution , or any other company or person, including but not limited to other IBOs, R Solution ’s Products, the Sales Compensation Plan, the Policies and Procedures or R Solution employees. Disparagement may result in termination of your Independant Business.