secret rebate

secret rebate

n. a kick-back of money by a business to a "preferred" customer, not offered to the public, or by a subcontractor to a contractor not shown on a job estimate. Both are illegal in most states as unfair business practices and may result in criminal penalties or refusal of a court to enforce a contract (written or oral) in which there is such a secret rebate. (See: rebate)

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References in classic literature ?
This railroad magnate broke his word as a citizen, as a gentleman, and as a Christian, when he granted a secret rebate, and he granted many secret rebates.
S sold printing press equipment in 1996 and issued a secret rebate.
It alleges a secret rebate through through false document dating and use of another supplier, disguised free installation, discounted controls and inkers, a misleading final- payment report, contract dates misreported to reflect a favorable exchange rate, a price "artificially inflated" by a promised future discount, and underreported expenses.
The judge also set a trial date of April 27, 2009, for AMD to argue that Intel forced major customers into exclusive deals and offered secret rebates to undercut AMD in the market for microprocessors that act as the brains of computers.
The elder Rockefeller's influence may have fostered such behavior in his son as bribing legislators, paying secret rebates to the railroads, and engaging in industrial espionage.