Legal Question in Business Law in Ohio
Is it illegal for a company to ask me to match a bid of a competitor? I own my own company and placed a bid for some promotional items. The client later came back to me and asked if I could lower my bid (by $13) to match the competitors bid. They value my business and know that I can get the job done. I would say that I am one of their preferred vendors. Is this illegal for them to ask me or for me to match a bid in any way?
2 Answers from Attorneys
Dear Bidder: If you want the job or business, you decide whether or not to cut your price to meet the lower bidder. You may also ask to have your Attorney see the actual lower bid before agreeing, since the buyer may be "blowing smoke" in your ear.
Retain an experienced Attorney to assist and advise you.
Good luck. Sincerely, J,. Norman Stark
Bid shopping is generally frowned upon, but is not always illegal.
Depending upon whom the ultimate purchaser of the materials is, it may be a crime, and depending upon what is written in the other company's bid, it may violate the bid terms, and could expose the company who wants you to do this to a lawsuit, and possibly yourself if you knew about the terms of the bid. Without knowing specifics, I cannot advise you about this. Generally it is not illegal, but in some cases it can be illegal. You should contact an attorney in your area to determine if this is illegal, and even if legal, whether it makes sense to do.
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