Legal Question in Credit and Debt Law in Arkansas
Trade reference
A business friend asked me to be a credit reference for his company to give to his suppliers. While I do regularly extend him credit, he has asked that I provide these trade credit references with higher amounts of credit extended to his company to better his chances of receiving larger credit lines. While maybe not ethical, is there any laws that deal with this issue?
1 Answer from Attorneys
Re: Trade reference
If someone relies on your false information, they might come after you if he defaults in his loan. They might very well claim that you engaged in a civil conspiracy with your friend to defraud them. You have actual knowledge that your friend is trying to do something that is at the least unethical and is probably unlawful. If you make yourself party to this, you risk serious repercussions.
Provide the truth. You can never get hurt telling the truth about a trade reference, but you could certainly get hurt by lying.
This answer is not based on any specific understanding of Arkansas law, but rather, on an understanding of the law in general. I am not an Arkansas lawyer. If you have questions that speak directly to AR law issues, consult an AR attorney.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
