Legal Question in Business Law in Texas

Unethical Undercutting

My husband and I own a small bussines. We repair vehicles for body shops and dealerships. My husband recently went to bid a job and took a guy with him that worked for us. We were given the job, however, while this guy was there working for us, in our uniform, he submitted another bid on his own behalf, undercutting us. He can do the job cheaper because he is not insured. We carry a $1,000,000.00 insurance policy to cover any damages to the vehicles. He did this at two different dealerships before we became aware of it. Is there anything we can do? How can we prevent it from happening in the future?


Asked on 12/24/01, 3:54 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Unethical Undercutting

First of all, fire him if you haven't already. Explain to the dealerships that you carry insurance that protects them, and ask that they make production of the insurance certificate a bid requirement.

Unless this mechanic has signed a non-compete agreement, there really isn't much else you can do. What he is doing is unethical, but not unlawful.

Read more
Answered on 12/26/01, 10:50 am


Related Questions & Answers

More Business Law questions and answers in Texas