Legal Question in Credit and Debt Law in New Jersey

Unfair Competition

I wanted to give 60 day terms to a customer, instead of the usual 30 day terms. My credit manager is telling me that I can not do this, nor give any discounts as this would create an unfair advantage to the customer. What law dictates that I can not compete or match what all of our competitors are doing? They give whatever terms or discounts that are necessary to get the business. Is there a federal law that prevents such ''discrimination''? What kind of leeway do I have to offer a potential customer a competitive program? Can I reward a customer with terms if he is a great source of referrals to our company? Thanks for clarifying the confusion.


Asked on 4/16/01, 10:47 pm

1 Answer from Attorneys
Robert Gleaner Robert A. Gleaner, P.C.

Re: Unfair Competition

We are not talking about two mega-corporations talking merger which may cause major effects to the national economy here. That may bring the antitrust laws into play. You are talking about giving some discounts to good customers. Not only is that not illegal - it's smart! So what if you give "unfair" (?) advantage to one customer. He's given you an advantage by paying early, hasn't he? Ask your credit manager to advise you of the law that he is aware of that prevents what you are suggesting. That should get to the bottom of the problem. Keep in mind that this advice is given based on the little bit of information that you have given me. Other facts may change my opinion. Further, you cannot rely on the advice of an attorney who has not been retained by you. If you have any doubts whatsoever, seek the advice of an attorney. If you want to discuss this with me further, call me at 856-546-8010. Mention LawGuru and your first consultation is free. Good Luck! Rob Gleaner

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Answered on 6/12/01, 6:55 am


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