Legal Question in Business Law in Maryland

Re: Invoicing

Without knowing the purpose behind why the company is asking you to sign the letter, it is not possible to answer the question of whether their request is legal. For example, if they are asking you to sign a letter for purposes of obtaining bonding or insurance then the company's actions are legal. This point assumes that they are not pressing you or otherwise extorting a false statement from you to unlawfully pursue an lawful objective. On the other hand, if they are perpetrating a fraud or other illegal activity and then the company is asking you to sign such a letter so that they may hold your affirmation out to the public to further their scheme, then such action is not legal. Generally, such a request is appropriate where it is contrainted to matters relevant to the company's operations and does not infringe on personal freedom or liberty.

As to the second matter, it may acceptable to invoice for products still in the warehouse. There are numerous situations where this would apply. For example, it is acceptable where the contract indicates that goods are to be specifically designated for a particular customer. Also acceptable is invoicing for work-in-progress where the customer is billed on a basis of completion to the works. On the other hand, where the contract stipulates that performance is to include delivery and then company is billing for goods not delivered, then this would be illegal under such a contract. Without the specific contract that applies, no answer can be given.

Lastly, if you are not aware of any illegal purpose of the company, and you are not knowledgable of a contractual provision that makes the invoicing illegal, signing such a letter should not impugn your veracity. On the other hand, knowledge of any of the above, as well as other illegal activities, and signing such a statement could constitute the rendering of a false statement. Both civil and criminal penalties can be brought to bear for the act of rendering a false statement.

You could seek answers to these questions on your own or you may decide that it is beneficial to have an attorney inquire into the matter. I am available if you would like to obtain my service and can be reached at(410) 799-9002.

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Re: Invoicing

You have a loyalty dilemma. As an employee you have a duty of loyalty to your employer. If the customer, through their own auditing finds discrepancies and sues your employer they will seek as much evidence as they can obtain through discovery. If you are directly involved in how the inventory moves and there is a suit, you may be asked to testify.

You have a sense of integrity which is apparent from this note. It boils down to this; sign and be an accomplice to fraud or don't sign, get fired, and sleep well. I recommend getting a copy of the statement they want you to sign along with any accompanying documents. If they fire you for not signing, then you can sue them.