web analytics
December 20, 2014 / 28 Kislev, 5775
 
At a Glance
Judaism
Sponsored Post
8000 meals Celebrate Eight Days of Chanukah – With 8,000 Free Meals Daily to Israel’s Poor

Join Meir Panim’s campaign to “light up” Chanukah for families in need.



Overpriced!

Business-Halacha-logo

A week after Hurricane Sandy, the Blums still had no electricity. They had run extension cords to a neighbor’s house to power some basic items, like the fridge and telephone, but the protracted living without power was taking its toll on the family.

“I’ve just about had it,” Mrs. Blum said to her husband. “We need to buy a generator! I saw them in the store two weeks ago for about $750.”

Mr. Blum drove to the store but couldn’t find any generators. He inquired with the manager, who said: “I’m sorry, but we sold out last week.”

Mr. Blum tried a second and third store, but everywhere he went, the answer was the same: “We sold out last week, and won’t get restocked for at least another week.”

“We can’t keep going on like this,” Mrs. Blum said to her husband. “We’ve got to do something!”

That afternoon, Mr. Blum saw in an advertisement that someone had procured a limited stock of generators and was selling them. He immediately drove over to the address listed.

As he entered, Mr. Blum saw a sign: “The generators are being sold for $1,500 each. We apologize for the high price. No returns.”

“What?!” exclaimed Mr. Blum to the seller. “That’s twice the cost of local stores. Why so much?”

“It is much more than the stores here, but I can’t sell for the regular price,” said the seller. “I had to buy these from a store very far away and transport them here. That added a lot to my cost and labor.”

“That may account for adding 50 percent to the price,” said Mr. Blum, “but it doesn’t justify charging double!”

“I’m not interested in bargaining,” said the seller. “This is the price that I’m charging. You want to buy for $1,500, fine; you don’t want to, don’t.”

“But overcharging like that is a violation of the prohibition against ona’ah (price cheating),” argued Mr. Blum. “It even jeopardizes the validity of the sale!”

“How am I cheating you?” asked the seller. “I’m not deceiving you about the cost; I acknowledge the price is high.”

Feeling he had no choice, Mr. Blum bought the generator. On Shabbos, he met Rabbi Dayan and related what happened. “Was the seller permitted to charge way more than the generators were worth?” asked Mr. Blum.

“In general, there is a prohibition of ona’ah to overcharge an unknowing customer,” replied Rabbi Dayan. “Depending on the amount overcharged, the customer may be entitled to a refund or to cancel the purchase.” (See C.M. 247:2-4)

“What if the seller stipulates ‘No return’?” asked Mr. Blum.

“Even if the seller stipulates that the customer should have no ona’ah claim, the customer does not relinquish his legal redress if the seller did not state he is overcharging,” replied Rabbi Dayan. “However, if the seller states he is overcharging and says: ‘This item that I’m selling for 200 is worth only 100; I am selling on condition that you have no ona’ah claim’ – then the customer has no redress.” (227:21)

“Does the seller have to specify the true cost?” asked Mr. Blum. “What if he just states that he is charging more than the item is worth, on condition that there is no ona’ah claim?”

“This seems dependent on whether a person can forgo an undefined sum,” said Rabbi Dayan. “According to the Rambam one cannot, so it is necessary to specify the amounts; according to the Tur one can, so it is not necessary to specify.” (See SM”A 227:39, 232:16; P.C., Ona’ah 10:35)

“But still, is stating that the price is high sufficient to permit the seller to overcharge?” asked Mr. Blum. “What about the prohibition of ‘lo tonu‘ – do not aggrieve?”

“If the seller specifies the amount he is overcharging there is no prohibition,” answered Rabbi Dayan. “It also seems that there is no need to formally stipulate, ‘on condition…’ since the customer is clearly agreeing to forgo the amount overcharged. Since the seller is transparent about overcharging, but only willing to sell for this price, and the customer decides that it’s worthwhile for him to buy nonetheless – the seller has not cheated him.” (See Nesivos 264:8; Pischei Choshen, Ona’ah 10:34)

About the Author: Rabbi Meir Orlian is a faculty member of the Business Halacha Institute, headed by HaRav Chaim Kohn, a noted dayan. To receive BHI’s free newsletter, Business Weekly, send an e-mail to subscribe@businesshalacha.com. For questions regarding business halacha issues, or to bring a BHI lecturer to your business or shul, call the confidential hotline at 877-845-8455 or e-mail ask@businesshalacha.com.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

No Responses to “Overpriced!”

Comments are closed.

SocialTwist Tell-a-Friend

Current Top Story
Posted to Twitter in Ferguson, MO by St. Louis County Police: "Bricks thrown at police, 2 police cars burned, gun seized by police. Tonight was disappointing."  Their motto is, "To protect and serve."
Prosecutor in Ferguson Case: ‘Witnesses Lied Under Oath’
Latest Judaism Stories
Parsha-Perspective-Logo-NEW

To many of our brethren Chanukah has lost its meaning.

Parsha-Perspective-Logo-NEW

This ability to remain calm under pressure and continue to see the situation clearly is a hallmark of Yehuda’s leadership.

Torah-Hakehillah-121914

It would have been understandable for these great warriors to become dispirited.

Torah-Hakehillah-121914

The travail of Yosef was undoubtedly the greatest trauma of Yaakov’s life, which certainly knew its share of hardships.

Yosef, in interpreting the first set of dreams, performed in a manner that was clearly miraculous to all.

Chazal teach us that we need to be “sur may’rah v’asei tov,”avoid bad and do good.

When we celebrate the completion of learning a section of Torah, we recite the Hadran.

Fetal Immersion?
‘The Fetus Is A Limb Of Its Mother’
(Yevamos 78a)

Yosef proves he is a true leader; He is continually and fully engaged in the task of running Egypt

When the inability cannot be clearly attributed to either spouse, the halacha is the subject of debate among the Rishonim.

Those who reject our beliefs know in their souls Jewish power stems from our faith and our prayers.

He stepped outside, and, to his dismay, the menorah was missing. It had been stolen.

Though we Jews have deep obligations to all people our obligation to our fellow Jew is unique.

In a way that decision was the first in a series of miracles with which Hashem blessed us.

Question: If Abraham was commanded to circumcise his descendants on the eighth day, why do Arabs – who claim to descend from Abraham through Yishmael – wait until their children are 13 to circumcise them? I am aware that this is a matter of little consequence to our people. Nevertheless, this inconsistency is one that piques my curiosity.

M. Goldman
(Via E-mail)

Exploring the connection between Pharaoh’s dreams and the story of Joseph being sold into slavery.

More Articles from Rabbi Meir Orlian
Business-Halacha-logo

He stepped outside, and, to his dismay, the menorah was missing. It had been stolen.

Business-Halacha-logo

“I do not owe anything,” Mr. Feder replied. “However, if I must come – I will.”

Mr. Weiss refused to listen and sued Mr. Cohen in civil court.

In the afternoon, he reached into his pocket to check for the money, but it was empty. “The $50 bill must have fallen out,” Alex exclaimed. “It’s got to be in one of the rooms I was just at.”

Dovid turned to the other people sitting at his table. “I’m revoking my hefker of the Chumash,” he announced. “I want to keep it.”

“That’s what I thought, so I returned the money to Aharon,” said Reuven. “But this morning, Shimon, who owes me $70, told me he left $70 for me under the table last week! Now I don’t know whether the $70 was connected to the note, and was Aharon’s for the purchase of sefarim, or was repayment to me from Shimon, unrelated to the note.”

On Tuesday, Mr. Ross picked up the bris kit. While driving home, he was stopped by armed thugs. They forced him out of the car and drove off with the bris kit inside.

“ ‘We’re almost out of stamps,’ I said. ‘I’ll be happy to run over to the post office and pick up a supply.’ ”

Printed from: http://www.jewishpress.com/judaism/halacha-hashkafa/overpriced/2012/11/22/

Scan this QR code to visit this page online: