Legal Question in Business Law in Illinois

Re: Is it Legal or Not?

If someone else at your company initiates the purchase and is buying from you based solely upon what is best for the company, it is not illegal.

If you are the one doing the buying for your company, it is still probably not a violation of any duty you owe to your employer if the deal is as good as the company can get anywhere else. Still, it is not a good idea. There is certainly an appearance of impropriety about secretly profiting from the company's purchases, even if someone else would be making the same profit if you didn't. At the very least, your activities could cause you problems with your employer.

Assuming that your day job is more important than your sideline business, I would strongly discourage you from selling to your company without fulling disclosing the relationship.

David Staub, business attorney