Legal Question in Business Law in California
Referral reward or kickback?
A general contractor wants to solicit business from local home inspection firms by offering the home inspector a 5% ''reward'' in an attempt to get them to recommend the GC to home buyers or sellers who are in need of repair services -- essentially the reward would be paying them back 5% of the billed amount of work that was generated from the referral. Can this be construed as a kickback?
Asked on 1/24/05, 4:02 pm
1 Answer from Attorneys
Bryan Whipple
Bryan R. R. Whipple, Attorney at Law
Re: Referral reward or kickback?
Yes, I think this is what most folks would call a kickback.
Answered on 1/24/05, 4:47 pm
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