Can an organization charge a vendor a 'royalty' fee? Is this legal?

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Can an organization charge a vendor a 'royalty' fee? Is this legal?

This is what I am looking at..."Each preferred vendor will be charged a royalty to help cover ORGANIZATION administrative cost. The royalty fee is a percentage of the total net paid dollar- volume sold to ORGANIZATIONs. The percentage amount is discussed and agreed upon by both parties. Additionally, you will agree to offer all ORGANIZATIONs specified discounts on all sales of your company’s products and services." Would this be illegal under the 'Anti-Kick Back' law of 1972 or some other law?

2007-02-16 02:30:02 · 1 answers · asked by Jeff P 2 in Business & Finance ➔ Corporations

Forget the Anti-Kickback Law thing...I forgot it only applies to Federal Health Care Programs.

2007-02-16 02:49:35 · update #1

1 answers

Welcome to Walmart.

2007-02-16 02:38:12 · answer #1 · answered by YahooGuru2u 6 · 0⤊ 0⤋