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Law Pro
Law Pro, Attorney
Category: Business Law
Satisfied Customers: 24869
Experience:  20 years experience in business law - sole proprietor, partnership, and corporations
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Is it legal and or ethical for a business to issue checks to

Resolved Question:

Is it legal and or ethical for a business to issue checks to pay vendors, but hold the check for months until cash flow increases before mailing the check out?
Submitted: 6 years ago.
Category: Business Law
Expert:  Law Pro replied 6 years ago.
No - it's not illegal or unethical. In fact, it's good business practices or they would be liable for writing bad checks to issue such knowing they wouldn't be honored by teh bank.

It's then the vendors' decision as to whether or not to supply and work with the company on an ongoing basis. I have dealt with large company who state that they only pay after 90 days regardless of what we wanted. It was then our choice whether or not we wanted to perform work or supply materials for them.
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