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Unfair Competition: Difference between revisions
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#If the new business will charge lower prices or sell higher quality, some say that we cannot stop him from opening.<ref>Tur 156 explains that the Chachomim didn't protect the seller at the expense of all the consumers. Aruch Hashulchan 156:11, Pitchei Choshen Hilchot Geneva ViHonaa 9:8, Mishpitei Hatorah 2:10. This is based on the Rosh (Baba Batra 2:12), quoting the Ri ibn Megash. Although the Beit Yosef quotes that the Ramban disagrees, the Rosh is mentioned as a yesh omrim in the Rama 156:7. See Rabbi Moshe Sternbuch (Teshuvot Vihanhagot 1:800) on opening a competing restaurant.</ref> | #If the new business will charge lower prices or sell higher quality, some say that we cannot stop him from opening.<ref>Tur 156 explains that the Chachomim didn't protect the seller at the expense of all the consumers. Aruch Hashulchan 156:11, Pitchei Choshen Hilchot Geneva ViHonaa 9:8, Mishpitei Hatorah 2:10. This is based on the Rosh (Baba Batra 2:12), quoting the Ri ibn Megash. Although the Beit Yosef quotes that the Ramban disagrees, the Rosh is mentioned as a yesh omrim in the Rama 156:7. See Rabbi Moshe Sternbuch (Teshuvot Vihanhagot 1:800) on opening a competing restaurant.</ref> | ||
#One business may even advertise and offer incentives to attract customers.<ref>S”A CM 228:18, [http://www.dailyhalacha.com/m/halacha.aspx?id=1465 Rabbi Eli Mansour Dailyhalacha.com], Pitchei Choshen Hilchot Geneva ViHona’a 9:3. However, one may not speak lashon hara about his competitor’s product (Chafetz Chaim Hilchot Lashon Hara Klal 5: Halacha 7). See [http://www.yutorah.org/lectures/lecture.cfm/735658/rabbi-aaron-levine/advertising-and-promotional-activities-as-regulated-by-jewish-law/ Advertising and Promotional Activities as Regulated by Jewish Law] by Rabbi Dr. Aaron Levine </ref> | #One business may even advertise and offer incentives to attract customers.<ref>S”A CM 228:18, [http://www.dailyhalacha.com/m/halacha.aspx?id=1465 Rabbi Eli Mansour Dailyhalacha.com], Pitchei Choshen Hilchot Geneva ViHona’a 9:3. However, one may not speak lashon hara about his competitor’s product (Chafetz Chaim Hilchot Lashon Hara Klal 5: Halacha 7). See [http://www.yutorah.org/lectures/lecture.cfm/735658/rabbi-aaron-levine/advertising-and-promotional-activities-as-regulated-by-jewish-law/ Advertising and Promotional Activities as Regulated by Jewish Law] by Rabbi Dr. Aaron Levine </ref> | ||
#Whenever the newcomer is permitted to enter the market, he is prohibited to compete in an unfair manner, such as by selling below cost.<ref>Pitchei Choshen Hilchot Geneva ViHona’a 9:3, Aruch Hashulchan 156:11, Erech Shai 228:18. Rav Moshe Feinstein (Iggerot Moshe Y.D. 3:134) says that if the original store is overcharging, it is not a problem to open a new store and charge the proper (lower) price. | #Whenever the newcomer is permitted to enter the market, he is prohibited to compete in an unfair manner, such as by selling below cost.<ref>Pitchei Choshen Hilchot Geneva ViHona’a 9:3, Aruch Hashulchan 156:11, Erech Shai 228:18. Rav Moshe Feinstein (Iggerot Moshe Y.D. 3:134) says that if the original store is overcharging on basic necessities, it is not a problem to open a new store and charge the proper (lower) price. Rav Moshe is discussing a funeral home/chapel that is overcharging. </ref> | ||
#If there is a specific day that is reserved for people to come and shop there, nobody can prevent anyone else from opening.<ref>Shulchan Aruch C.M. 156:7 based on Bava Basra 22a about Yom HaShuk. Rashi explains that on this day people come from all over, so the residents of the city don't have priority. [http://www.workplacehalacha.com/category/choshen-mishpat/hasagas-gevul-unfair-competition/ Rabbi Wasserman] applied this same concept to areas like the diamond district as well.</ref> | #If there is a specific day that is reserved for people to come and shop there, nobody can prevent anyone else from opening.<ref>Shulchan Aruch C.M. 156:7 based on Bava Basra 22a about Yom HaShuk. Rashi explains that on this day people come from all over, so the residents of the city don't have priority. [http://www.workplacehalacha.com/category/choshen-mishpat/hasagas-gevul-unfair-competition/ Rabbi Wasserman] applied this same concept to areas like the diamond district as well.</ref> | ||
#As a customer, some say that one should not buy from an establishment that opened when it was forbidden to do so.<ref>Shut Maharik Shoresh 187. Pitchei Choshen Hilchot Geneva ViHona’a 9:1 quoting from Shut Harama 10</ref> Others argue that once the store is open, a consumer may purchase at either establishment.<ref>Shut Nachalah L'Yehoshua 29</ref> | #As a customer, some say that one should not buy from an establishment that opened when it was forbidden to do so.<ref>Shut Maharik Shoresh 187. Pitchei Choshen Hilchot Geneva ViHona’a 9:1 quoting from Shut Harama 10</ref> Others argue that once the store is open, a consumer may purchase at either establishment.<ref>Shut Nachalah L'Yehoshua 29</ref> | ||
