6. She was also repairing scratched CDs for $5 a pop with the kids getting back the original CD, and her Wave file extraction (readable and working) and for an extra $3 they got an additional CD with the MP3s from the origional CD encoded as well.
As said before, THIS IS LEGAL!!!
If she had each person sign a statement that they legally owned a copy of every song that she put onto a comnpilation cd, then she would likewise be doing a legal service. (But we probably don't want to teach her the intricate loopholes of the law just yet.)
While everyone is mentioning the fact that what she is doing is illegal (or at least some of it), I must point out that she was performing the transactions at school. This is a quick way to get suspended. You need to point this out to her. Not only is she breaking the law (and is highly unlikely to have any run-ins with the feds), she can be subject to school punishment as well. Take it from someone who ran a counterfeiting ring in 7th grade and got 3 days suspension as the ringleader. (Long story) She must understand these consequences as well!
And for the record, as a card-carrying member of the AFM (American Federation of Musicians), I'm not happy with the way the RIAA is making us all look. Most of us professional musicians make money from live performances, NOT from recordings. That's where the big businesses make money, not us.