State and federal laws require businesses in Nevada to have competition. This is because it promotes variety in the workplace and keeps prices from skyrocketing. However, sometimes, it may be difficult for you to know when you are a successful force in the marketplace and when you are perpetrating unfair business competition.
Nevada state law specifies a number of actions that may be considered unfair business practices, and thus, are prohibited. These include the following:
- Making agreements not to sell to certain customers of competitors
- Price fixing
- Dividing markets
- Making agreements to sell goods or services in exchange for the purchase other goods or services
Furthermore, you are not permitted to merge or consolidate businesses if doing so will significantly lessen competition in the market, substantially restrain trade or result in a monopoly. State law prohibits you from monopolize trade or commerce in Nevada.
Violating unfair trade practices may have criminal and civil consequences. Perpetrating unfair business competition or conspiring to perpetrate these practices may be considered a category D felony. This offense is punishable by between one and four years in jail and a fine of up to $5,000. Civilly, you may have your ability to do business in the state suspended if you are found to be committing unfair trade practices. Additionally, you may be assessed a penalty and ordered to pay a certain percentage of the gross income you earned during the period when your alleged violation occurred.
This post has provided an overview of unfair business competition practices. It is important to keep in mind that each case is unique. Therefore, you should consider this only as general information and not take it as legal advice.