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July 3, 2008

Rabbi Dr. Abraham J. Twerski: A spiritual budget (TOUCHING!)

Jeff Jacoby: Israel still paying for its defeat

JWisdom:: Re-Jew-venating prayer, Part IV by Rabbi David Aaron

July 2, 2008

Jonathan Tobin: Appeasers Make Poor Patriots

The Kosher Gourmet By Kathleen Purvis: Slaw, y'all: For BBQs or Sabbath dinner, these southern recipes are something else!

JWisdom:: Rabbi Mordechai Becher: Jewish Rx for A Simpler Life

July 1, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir: Q. I think it's important to leave a legacy to my children. How much should I save towards this end?

Paul Greenberg:A President who is history deficient?

JWisdom:: Holocaust in the Perspective of Faith by Rabbi Nosson Scherman: Poland's Unique Antisemitism

June 30, 2008

Jonathan Rosenblum: Remembering the architect of Torah Judaism for the modern world

Abe Novick: Hulk: Still a Jew?

JWisdom: : Putting the Spirit Back into Spirituality, Part 2: The Abandoned Child

June 26, 2008

Rabbi Abraham J. Twerski: Quantum leap to evil

Caroline B. Glick: Victimized families must not be allowed to dictate policy

June 25, 2008

Rabbi Yonason Goldson: Today in Biblical History: King Jeroboam of Israel prevents pilgrimage to Jerusalem

Jonathan Tobin: Real Friends and Real Enemies

JWisdom: Raping of reason By Rabbi Sroy Levitansky

June 25, 2008

Steven Emerson: Kristof: Never Mind the Terrorists

Stratfor Intelligence Briefing: Mediterranean Flyover: Telegraphing an Israeli Punch?

JWisdom: Rabbi David Aaron: Re-Jew-venating prayer, Part III

June 24, 2008

Caroline B. Glick: What were they thinking!?

Frank J. Gaffney, Jr.: Guilty knowledge

JWisdom: Holocaust in the Perspective of Faith by Rabbi Nosson Scherman: Warping Innocence

June 23, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir: Diploma dilemma

Jeff Jacoby: A world without children

JWisdom: Rabbi Dovid Gross: Putting the Spirit Back into Spirituality --- Introduction

June 20, 2008

Rabbi A. Henach Leibowitz: Man: The Crowning Glory of Creation

Caroline B. Glick: Israel's darkest week

JWisdom: We aren't worthy? by Rabbi Sroy Levitansky

June 19, 2008

Rabbi Elazar Meisels: The saints who don't come marchin' in

Chris Christoff: Muslim woman demands an apology from Obama after camera snub

June 18, 2008

Jonathan Tobin: Still Dancing Around Jerusalem

The Kosher Gourmet by Steve Petusevsky: Chilled fruit and vegetable soups

JWisdom: Souls Need A Check Up? by Rabbi Mordechai Becher

June 17, 2008

Rabbi Avi Shafran: Baby Einstein

Caroline B. Glick: Bush's rhetoric, Bush's policies

JWisdom: Re-Jew-venating prayer, Part II by Rabbi David Aaron

June 16, 2008

Varda Branfman: Bob Dylan, won't you please come home?

Diana West: Academic dares to question the 'religion of peace'

JWisdom: Holocaust in the Perspective of Faith by Rabbi Nosson Scherman: Positive Backfire

June 13, 2008

Rabbi Berel Wein: Trading manna for whine

Caroline B. Glick: Peace with friends

JWisdom: From the mouths of … by Rabbi Sroy Levitansky

June 12, 2008

Michael Feldberg: Meet Paul Revere's pal, the Orthodox Jew who played a key role in laying Boston's cultural and business infrastructure

The Kosher Gourmet by Kathy Manweiler: No need to be tempted by Wendy's mandarin chicken salad

JWisdom: Re-Jew-venating prayer, Part I by Rabbi David Aaron

June 11, 2008

Rabbi Avi Shafran: What would Hillel say?

Jonathan Tobin: UNRWA and NGOs: The Real U.N. 'Insult'

JWisdom: Sara Yoheved Rigler: Greatness Made Simple: How a momentary decision shifted life's course and destination

June 6, 2008

Rabbi Pinchas Stolper: Revelation: The basis of faith

Binyamin L. Jolkovsky: Mere hours after becoming Israel's new 'best friend' Obama backtracks on status of Jerusalem

Caroline B. Glick: UN choosing to protect rogue nuclear programs

JWisdom: Sameness in difference by Rabbi Sroy Levitansky

June 5, 2008

David Lightman: Now Obama wants to be Israel's newest 'best friend'

Obama's remarks to AIPAC policy conference

The Kosher Gourmet By Ethel G. Hofman: Shavous cuisine: Ruby Fruit Soup, Lokshen Kugel with Cheese, Key Lime Curd, Calsone Casserole Frittata with Wild Mushrooms, Sun-dried tomatoes and Olives, Baked Tilapia with Pepper Cheese Cream and Brown Sugar Shortbread

JWisdom: Why a Jewish Jerusalem makes so many nervous by Rabbi Mordechai Becher

June 4, 2008

Jonathan Rosenblum: A different sort of 'religious broadcaster'

Jonathan Tobin: Misgivings on the Road to Damascus

JWisdom: 44 Years Without An Argument? by Sara Yoheved Rigler

June 3, 2008

Daniel Pipes: Obama vs. McCain on the Middle East

Everything's Relative: There is a crisis growing in Orthodox synagogues worldwide, reveals Jordan "Gorf" Gorfinkel

JWisdom: White Facades; Black Secrets by Rabbi Mordechai Becher

June 2, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir: Q: Lie to outsmart discriminator?

He writes the songs that make our souls sing:Gavriel Aryeh Sanders interviews Jewish music legend Ben Zion Shenker; includes stirring, uplifting song

JWisdom: Holocaust in the Perspective of Faith by Rabbi Nosson Scherman: Of laws and lives

March 22, 2007

J-Rhythms with Avraham Rosenblum: JWR's cutting-edge music program showcasing performers -- singers, song writers, musicians, and bands -- who learn and live the Torah lifestyle (OUR NEWEST IGODCAST !)

Oct. 29, 2003
Mortimer B. Zuckerman: Graffiti On History's Walls (MUST-READ!)

Jewish World Review March 17, 2008 / 10 Adar II 5768

Rebate or Kickback?

By Rabbi Dr. Asher Meir


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http://www.JewishWorldReview.com | Q: Our company makes bulk purchases on behalf of small stores who benefit from our concentrated purchases. Occasionally in addition to standard quantity discounts, we also get rebates. Who is entitled to these rebates — us or our customers?


A: There are two potential problems with your company keeping these rebates:


The first problem is your ability to do your job properly. Your customer is paying you to scout out and obtain the best merchandise for the lowest price. That's why you get a commission. When you obtain a rebate from the supplier, your judgment is liable to be colored; you will tend to favor suppliers who give rebates over others who may have better merchandise or prices.


The Torah tells us, "Don't take bribes, for a bribe blinds the eyes of the wise and distorts the words of the righteous" (Deuteronomy 16:19). The Torah is telling us that partiality towards one who gives a gift is practically speaking inevitable; even a wise and righteous person will find his judgment affected.


The second problem is that accepting the rebate could be considered "double dipping." You are getting paid by the customer to buy objects on his behalf; from that time on you are merely the agent of the final customer. Any rebates offered really belong to the customer, not you.


Your company undoubtedly already accepts this understanding regarding your own employees. After all, you asked if the rebate belongs to your company or the customer; it didn't occur to you that it should accrue to the individual purchasing agent who happened to carry out the purchase.


The Talmud discusses a similar case, in the following passage:


If they [the sellers] added one extra [item], it all belongs to the agent; so says Rabbi Yehuda. Rabbi Yosi says, they divide it. But did we not also teach: Rabbi Yosi says, it all belongs to the payer? Rami bar Chama said, there is no difficulty: This case is where there is a fixed [price], this one where there is no fixed [price]. (1)


If there is no fixed price for the purchase, then the "extra" item is not extra at all; it just means that the seller is selling for a lower-than-expected price and giving the customer more for the money. But if there is a fixed price for the item, then the extra could be seen as being something quite apart from the purchase; perhaps the seller decided to personally favor the agent. Even so, Rabbi Yosi concludes that the payer (customer) is still entitled to half, because the generosity of the seller was a result of his work on behalf of the customer.


How does this play out in your case? If the rebate is part of a publicized, equitable rebate program, it would be considered "no fixed price". This is not a special extra given to you, but rather a discount, perhaps temporary, in the price. If most customers don't get a rebate but you do, the possibility exists that this supplier esteems a special relationship he has with your firm, above and beyond relationships with other customers who make similar orders. In this case, your firm might be entitled to part of the rebate.


This is a complex case. A similar situation arose a few years ago regarding a gigantic hotel management firm; when the case reached court, Price Waterhouse Cooper Accountant Sean Hennessey told reporters that the status of the payment was not really clear: "One side calls it a kickback and the other calls it a rebate." (The judge looked askance at the buyer's actions and particularly their opaque accounting practices and ordered them to return tens of millions of dollars.)


The best response to these questionable, border-line cases is not to leave them to chance. When you negotiate your fee agreement with the customer, you should include an explicit clause stating how special, negotiated rebates (as opposed to equitably applied discounts) will be accounted for and split up. Whatever you decide to do in this particular case, it should be accounted for in a transparent way so you don't share the fate of the ill-fated hotel management firm.

SOURCES: (1) Babylonian Talmud, Kesubos 98b

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JWR contributor Rabbi Dr. Asher Meir, formerly of the Council of Economic Advisers in the Reagan administration, is Research Director of the Business Ethics Center of Jerusalem, Jerusalem College of Technology. To comment or pose a question, please click here.

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