Doing Business with Jews

As a general rule, a Jew is required to do business with Jews rather than with non-Jews. Although this might have some readers scratching their heads, it is actually based on an explicit verse from the Torah, as it says, “…When you sell…or buy…you are to buy from your own people…” (1)  We see from here that one is to give priority “to your people,” namely, fellow Jews, when doing business. One who does so fulfills a Torah commandment.(2)  This includes the world of goods, services, property, loans (3)  and rentals.(4)

The mitzva to do business with other Jews only applies when all other considerations are equal. There is much discussion, however, on what to do when a non-Jew is offering a better price than a Jew. According to most authorities, one is required to give priority to a Jew even if there is a small disadvantage in price. However, one is not required to suffer a loss in order to do business with a Jew, so only if it is a small difference in price, not if it is a big difference, (Every product according to its price).(5)

One whose entire livelihood is based on moneylending is permitted to give priority to non-Jews from who one may charge interest and make a profit, rather than to Jews from who no profit may be made. Indeed, it appears that there is no requirement to give priority to other Jews in matters where one’s livelihood is at stake.(6) So too, there is no requirement to lend or rent to a Jew who is unreliable or untrustworthy.(7)

There are some authorities rule that the requirement to give priority to Jews applies even when there is a considerable difference in price.(8) This approach, however, this is not l'ehalacha since it seems to be contradicted by a ruling in Shulchan Aruch where it says that one is permitted to sell one’s house to a non-Jew if he is offering a better price than a Jew. (9)

As such, some suggest that the “requirement” to do business with Jews is not truly binding, and is, rather, advisory in nature. Indeed, one source calls giving priority to Jews in business “derech eretz,” further implying that it is not an outright obligation. (10) Even so, a number of authorities rule that giving priority to Jews is binding halacha even though it is not cited in the Shulchan Aruch.(11)

There is no obligation to do business with a Jew who is buying or selling beyond normative market prices to his advantage. (12) So too, one may give priority to a non-Jew who is offering a better warranty, or better product. Nevertheless, when the price, and everything else is essentially equal, one is expected to give priority to a Jew even if it requires more effort to do business with him, such as in travel time, and the like, as long as it is not too much effort (13) and even if the non-Jew gives a better service.

1. Vayikra 25:14,15.

2. Sifra, Behar 3.

3. Bava Metzia 71a

4. Ahavat Chessed 5:6

5. Ahavat Chessed 5:5-7 note 9.

6. Maharam Schick, CM 31.

7. Aguda to Baהa Metzia 71a.

8. Teshuvot HaRema 10; Chatam Sofer, CM 79; Tashbetz 3:51.

9. CM 175:41.

10. Pesikta, Vayikra 25.

11.  Teshuvot Harema 10; Chinuch 337;  Shar Hatziun 648:76; Ahavat Chessed 5:6.

12 Ahavat Chesed 5, Footnote 12

13. Maharam Schick, CM 31.