Is it a unfair business practice ? Say a company send out information for a quotation on a small contracting jobs ( from a couple of thousands to tens of thousands of dollar worth ) to just one company and that company alone all the time. It is the kind of contracting jobs that many companies can perform. It is not a special contracts that no one knows how to do.
2006-10-04 06:17:48 · 4 answers · asked by Just_curious 4 in Politics & Government ➔ Law & Ethics
Let's say it is a publicly traded company.
2006-10-04 07:55:39 · update #1
Based strictly on your question it isn't illegal, but it may be unfair. It depends on the company. A small private company, for example, has every right to prefer to deal with one single supplier, even if it is run by the boss's brother in law.
A larger limited company which has shareholders and is run by executive directors may have a policy of putting work out to tender and in that case the tenders should be awarded on the merit of the tender though not necesserily to the lowest bidder on price.
If the management of the larger company are working on a company policy of putting work out to tender but allow only one company to quote, then it is not a real tender, it is a sham and you could only assume that the person deciding on which tender to accept is doing so for a personal reason.
If the personal reason is to defraud his company then that is illegal. If it is because that person is being bribed for his 'assistance' by the company making the tender, then that is illegal.
The shareholders and the company requiring tender bids would also have the right to take such a corrupt employee or director to court for abusing their position of trust.
A competitor of the company being awarded the tenders every time may also have the right to take that company to court under fair trading legislation depending on the law where you are.
2006-10-04 06:44:41 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If it was a government contract then it would be illegal, but in the private business sector a business has the right to do business with whomever they want to and there is not anything anyone can do about it............except maybe the board of directors if they don't agree with the policy. Now, why any company would want to do that is beyond me, I would think that they would want to try to get a lower price on any service they have performed for them.
2006-10-04 13:28:02 · answer #2 · answered by Scotty 6 · 0⤊ 0⤋
As a business I have the right to contract whomever I want for my business. The only time you get into an issue is if it is publicily traded company. Then the stock holders can take issue with this. If it is private then I can waste my money however I want.
2006-10-04 13:20:28 · answer #3 · answered by needhelp 3 · 1⤊ 0⤋
If this is a large company and it's a local division maybe you can complain to headquarters. I doubt it's illegal but unethical I'd say yes. Spend a little time and see who's letting and receiving and determine if there is any family connection. Kick backs now that should be a different item.
Of course it maybe they just like that company and see no reason to change.
2006-10-04 13:22:31 · answer #4 · answered by madjer21755 5 · 1⤊ 0⤋