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The plaintiff (=pl) has had the only store that sells and services computers in a small urban neighborhood. Recently, the defendant (=def), a member of the same community, has opened up a very similar business on the same street, has advertised extensively, and is offering special deals. Pl is generally hurt by the competition and specifically cannot compete with what he claims are unsustainable prices designed to push him out of business. Def claims that he has a right to open a store wherever he likes and to provide his customers with attractive prices.
Ruling: The gemara (Bava Batra 20b) discusses the permissibility of opening a competing business close to an existing one. Rav Huna says that the existing business can prevent the competition with the claim that the competitor is ruining his livelihood. The gemara cites a baraita that says that all sorts of competition cannot be prevented, for a proprietor can tell his competition: "You do business on your property, and I will do business on my property." The Rambam (Shecheinim 6:8) and the Shulchan Aruch (Choshen Mishpat 156:5) rule that the original storeowner cannot prevent competition even from someone who comes from outside his neighborhood. (Regarding someone from a different country or a different city, the matter is somewhat more complicated- see Rama, ad loc.). Some Rishonim (see Mordechai, Bava Batra 516) place certain limitations, but they do not apply to our case.
The mishna cites a machloket on the use of tactics to encourage business, such as treats for children and low prices. Rabbi Yehuda considers these unfair business practices, but the Chachamim accept the practices. Chachamim’s explanation regarding the gifts is that other businesses can also do things to make their stores attractive. Price competition is good for society. The Shulchan Aruch (CM 228:18) and the Rama (CM 156:5) accept Chachamim’s opinion.
We do find certain limitations on competitive practice. The Rama (Shut 10) says that we accept Rav Huna’s opinion regarding stealing one’s livelihood in a case where the competitor has an unfair advantage (e.g., his store is closer to the entrance of a dead-end street). In general, competition that causes clear damage that does not allow the first store to continue operating is problematic.
Amongst Acharonim, some limit the use of low sales prices (Chatam Sofer, CM 175), while others are much more open to it (Divrei Chayim I, 18). The Aruch Hashulchan distinguishes between reasonable discounts and illogically low prices that destabilize the market system. Practically, we rule that unsustainable prices that are designed to put competition out of business are unfair in that they steal from another’s ability to continue his business (as opposed to lowering his income, which is permitted). Furthermore, in the long-term it can enable the competitor to obtain a monopoly, which at the end will cause higher prices.
Beit din looked into the specific discounts that def provided and determined that they are reasonable. They are only on certain items and are not so low that pl would not be able to respond with similar sales or improved service.
P'ninat Mishpat (829)
Various Rabbis
227 - Late Return of Flawed Furniture
228 - Unfair Competition?
229 - Late Return of Flawed Furniture
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Various Rabbis
Various Rabbis including those of of Yeshivat Bet El, such as Rabbi Chaim Katz, Rabbi Binyamin Bamberger and Rabbi Yitzchak Greenblat and others.
Moreshet Shaul Moreshet Shaul: A Crown and its Scepter – part II
Based on Siach Shaul, Pirkei Machshava V’Hadracha p. 294-5
P'ninat Mishpat P'ninat Mishpat: Did Any Furniture Go to the Buyer? – part II
based on ruling 84093 of the Eretz Hemdah-Gazit Rabbinical Courts
P'ninat Mishpat P'ninat Mishpat: Tuition Payment after Withdrawing Student
based on ruling 85142 of the Eretz Hemdah-Gazit Rabbinical Courts
Kuzari -Rabbi Ari Shvat Kuzari class 8- "Answering Questions on the Kuzari's Proof from Mass Revelation
Rabbis in Midrash
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Kuzari -Rabbi Ari Shvat Kuzari class 9 - "Seeing is Believing" (parag. 21-30)
These paragraphs elaborate on the theme that seeing and knowing is better than any attempt to prove logically, and begins explaining the difference between Israel and gentiles.
Ein Aya Various Universal Stages of the Geula Process
Rav Kook examines the various stages of redemption, explaining how (in addition to the obvious oft-mentioned stages of ingathering the exiles, reviving the Hebrew language, army, state etc.) the messianic dream of world prosperity, the State of Israel and world unity can and are realistically and logically gradually coming true.
Kuzari -Rabbi Ari Shvat Kuzari class 8- "Answering Questions on the Kuzari's Proof from Mass Revelation
How do we know that the "claim" of mass revelation to 2,000,000 witnesses at Mt. Sinai is really true? This important class answers all of the questions skeptics ask about this claim of the Kuzari.
Ein Aya Armies Still Necessary for Balance & the War Against Wars
Rav Kook explains why the world was originally divided into the various seemingly contradicting ideologies and cultures, in order to develop each one respectively. Swords or armies symbolize how each respective ideology defends themselves, as well as deters their opposing ideologies and cultures. On the other hand, the messianic era will be one of peace, and Rav Kook explains the transition to that stage, which mankind is already undergoing.
The Land of Israel LGBT'S IN ISRAEL
The question was asked, how can one make Aliyah with the LGBT parades?
Kuzari -Rabbi Ari Shvat Kuzari class 7 - Five Accumulative Proofs of G-d
As a preparation for the Kuzari's classic proof of G-d from the mass-revelation at Sinai, we start here with 5 other directions to strengthen our belief which also contribute to what the Kuzari will present as well.
Ein Aya Muscle & Meaning: The Dual Nature of Gevurah (Physical Strength)
Is physical strength and fitness a necessity or an ideal? Although it if often totally overlooked among topics of Judaism, Rav Kook writes that it clearly is also a necessity to deter the many enemies of Israel, but even in Y'mot HaMashiach, in the Messianic era, to a certain extent, it's ideal continues even after our enemies will have been finished off.
