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Roger, Attorney
Category: Business Law
Satisfied Customers: 31660
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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If I sell a service, can the public school system also sell

Customer Question

If I sell a service, can the public school system also sell the same service and take away my customer base because they want to fundraise. Why are public schools allowed to compete for business activity, against main street business. How can they then collect taxes from my business. Am I not being asked to support my competition with tax money?
Submitted: 7 years ago.
Category: Business Law
Expert:  Roger replied 7 years ago.
Yes, the school can compete with you as monopolies are not allowed. Also, you do have to pay taxes for the school district. Just because your business competes with the school doesn't exempt you.
Customer: replied 7 years ago.
You speak of the school system as if they were a "for profit business themselves. Are they not a branch of the state gov? Can they hire out as a landscape service against the private and corporate landscapers. I understand a privateer or Corp can't monopolize against their competitors. But a branch of gov formed to provide public Ed? Can schools aquire a franchise to sell new cars, open a gas station, a hardware or lumber store?
Expert:  Roger replied 7 years ago.

School systems are subsidiaries of the state government. However, the school can do fund-raising to make extra money.


However, you're right that the schools can't open retail businesses. However, fund-raising is allowed.

Customer: replied 7 years ago.
Relist: Incomplete answer.
Tel me where fundraising ends and retail business begins. Tell me how public Ed is not a branch of State govmt. We have a State bd of Ed. A State dept of Ed. A State Superintendant. All answer to the Governor and laws made by the state and feds. All are paid from tax revenue. Public schools is part of govmt. Right or Wrong? Read my first communications and re- reply.
Expert:  Roger replied 7 years ago.

Yes, a school district is a sovereign entity - a branch of the state government.


Fund raising is short-term while a business is a continuous operation. If you think the school is acting improperly, your best option is to contact the state board of education and report what they're doing. If it is illegal, the state board of education will stop it.