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  1. #1
    Join Date
    Sep 2016
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    13,916

    Default When are Kickbacks Illegal

    When it it illegal for a contractor to give money to a unit of government in exchange for getting a contract? For example, if a photographer bids on a contract with a municipal sports team to provide photographs to parents, can they commit to pay a percentage of the fees they receive from parents to the municipality? Can they be awarded the contract, even though a competitor provided a lower bid for the photo packages that did not include any payment to the city?

  2. #2
    Join Date
    Sep 2005
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    98,846

    Default Re: When are Kickbacks Illegal

    Although kickback laws apply in many contexts to prevent government employees from profiting from contracts, it is not unusual for government agencies or public organizations such as colleges to enter into contracts with vendors that return a benefit or percentage of the sale to the government. For example, colleges often enter into contracts with vending machine companies that give the company or a soda brand exclusive rights to place machines on campus, in return for a percentage of the sale. As a broad rule, such arrangements are permissible.

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