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Fellow Weekly - Issue 107
WHAT'S THE LAW ™
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Encouraging intelligent and entertaining debate at your Shabbat table.
Fellow Weekly raises issues of business law and ethics through lively emails by featuring your real-life scenarios answered by our leading authorities and professionals.
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CHOSHEN MISHPAT CHINUCH INITIATIVE FUND
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Case # 208/ 209 Meds & The Baffled Babysitter XII!
Meds
Ear thermometers, surgical tape, single-use capillary blood sampling devices, sterilizing solutions and more...Two years passed since the Adlers relocated to Ramat Beit Shemesh. By now, Dr. Adler secured his permanent Israeli medical license, and set up his private practice as well. In due time, Adler became a loyal customer of RIMS (Rofeh Israeli Medical Suppliers).
On Thursday Sept 15th Yaron Avraham, a salesman for EMES (Emergency Medical Supplies); RIMS' competitor showed up during lunch; to convince Adler to switch suppliers and receive more for less.
The Baffled Babysitter
Wondering why she was experiencing a lull in her employment by the Greens, [See Issue 92] Bracha did some investigative research. Did Temima present herself to Mrs. Green as a more talented young lady and willing to work for less?
What is the law?
Please email us with your comments and answers at weekly@projectfellow.org
Read next week's issue for the answer!
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Case # 207: Rental Rage!
With real estate in Ramat Beit Shemesh at a premium, finding a suitable rental apartment was quite a challenge. In fact, Jerome and Betsy Adler finally settled on Nahal Shimshon Street only because a serious attempt to rent a place on Nahal Dolev Street fell apart at the last minute.
The failed attempt had already been on the negotiating table; they had even reached a verbal price agreement. Yet, before any contract was signed or security deposit could be transferred, they received a shocking phone call from the landlord.
"Jerome! I'm sorry to tell you, but I am reneging on the agreement. Last night, I received an email from my brother-in-law - your neighbors in Flatbush, the Brauns - requesting a long-term rental contract for their newlywed kids. I told them that while a long-term rental for a newlywed couple was definitely more appealing to me than a short-term rental to a family with three children, I had already settled on a price with you.
They then countered with an offer I could not refuse: payment of 10% more than the price I negotiated with you. All in all, the Braun option is more desirable for me than renting to you. I hope that you settle on another suitable apartment in time for your expected arrival next week. Bon Voyage!"
Needless to say, the Adlers were extremely chagrined.
May the Brauns negotiate on the apartment knowing that there was a verbal agreement between the landlord and the Adlers?
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What's the Law?
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The Answer
We present you here with a concise ruling. For a more intricate elucidation, please see the detailed explanation below.
As other apartments are clearly available, once the landlord agreed to rent the apartment to the Adlers, the Brauns must bother to find another alternative and may not enter negotiations with the landlord. Where other apartments are simply unavailable, according to Ashkenazic custom, the Brauns cannot be stopped; although it would be virtuous for them to defer it to the Adlers.
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Detailed Explanation
Rental Rage! invokes the following laws
1. If A has already extended "significant effort" towards obtaining readily available merchandise, a service, or a position from B; C is forbidden to endeavor to obtain it for him/herself.
If C does so, Beit Din may publicize that C is "evil" and administer punishments, but cannot force C to return the merchandise, the service, or the position to A [Choshen Mishpat 237:1, Pishchei Teshuva 2]. (Let C extend the effort and obtain a similar item somewhere else!)
2. Settling on a price is considered "significant effort". Unsettled negotiations are generally not deemed a "significant effort". This leeway is granted to protect the seller from locking him/herself into being forced into accepting a low ball offer out of fear of not being able to sell [see Aruch Hashulchan 237 for exceptions]. [Choshen Mishpat 237: 1, Rema].
3. C may enter his/her bid during an unsettled negotiation between A and B, when B has yet to decide to sell it to A.
If B decided to sell to A, A has reached a level of "significant effort" even if B and A are still haggling over an exact price. Hence, C may not offer a high bid until A walks away from the deal [Choshen Mishpat 237 Prisha 1].
4. Ashkenazic custom permits C to endeavor to obtain "one of a kind" articles or services which A has extended "significant effort" in obtaining; provided that A has not actualized a legal binding "acquisition" (kinyan). Nonetheless, Rav Moshe Feinstein rules that it is virtuous for C to attempt to follow the more stringent Sephardic custom and allow A to complete the transaction [Igros Moshe: Choshen Mishpat I 60].
5. If C was made aware that he/she inadvertently obtained an article or service, in which A had already invested "significant effort" in obtaining, will Beit Din encourage C to relinquish it for A?
Rabbi Moshe Feinstein zt"l [Igros Moshe: ibid.] dispels Chemdas Shlomo's argument and proves that the only way for C to purge him/herself from the title "rasha", is to return the merchandise, position or service to A.
Application
Initially, the Brauns were unaware that the landlord had committed to rent the apartment to the Adlers. However, once the landlord revealed the truth, and taking into account that other apartments are available, (even if they require significant effort obtain); the Brauns should not have continued to negotiate for the apartment. They should have deferred to the Adlers and will be deemed "reshaim" as long as they do not follow suit .
In a market offering no alternatives, according to Ashkenazic custom the Brauns cannot be stopped, though there is a merit in choosing the virtuous route and adhering to Sephardic prohibition.
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Note:
Although we aim to present the correct ruling, varying details are always important and decisively influence every individual case. Our readers are thus encouraged to present their personal cases to a competent authority and not solely rely on the information provided.
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