Selling an item without disclosing its defect
Q: Sometimes a few items in a batch of stock are slightly damaged. Do we have to tell the customers about the damage before selling the items to them?
Business and Dealings
Sleeping partner fixing his share of the profit more than his capital investment
Q: Ayyoob and Junaid each contributed R200 000 as their capital investment to start a business partnership. They both agreed that Ayyoob will work in the business and Junaid will be a sleeping partner. Is it permissible for Junaid to stipulate his share of the monthly profits as 60% (i.e. 10% more than his capital investment)?
Profit share of working partner exceeding his capital share
Q: Muhammad and Mahmood started a business partnership by each contributing R250 000 as capital. They have mutually agreed that Muhammad will work in the business and Mahmood will remain a sleeping partner. In exchange of the work he does, is it permissible for Muhammad to stipulate an extra 10% of the monthly profits for himself over and above his 50% share?
Increasing the price of the goods in place of goodwill
Q: The stock, fittings, etc. in my business are worth R300 000. Is it permissible for me to charge R50 000 goodwill and sell my business for R350 000?
Registering a company name
Q: Is it permissible to register a company name? Once registered, nobody has the right to use this name except myself. Also, what is the ruling regarding registering a product name under my name? After this, nobody can give their product this name except myself.
Packing products in the form of humans
Q: 1. Is it permissible to package water, milk, and all drinks in the form of humans and animals?
2. If not, is it permissible to drink the water, milk, and all drinks which are packaged in the form of humans and animals.
Reason for the impermissibility of copyright
Q: Why is it not permissible to stop people from making and selling pirate copies of CD’s which have a copyright? If they are not stopped, the original person who worked and made the CD will lose a lot of money.
Raffles where a fee is charged
Q: Is it permissible for one to enter into a competition where one is required to pay a fee and then stands a chance to win a prize? In the case where one does not win the prize, one will lose the fee that he had paid and receive nothing.
Accepting a box of chocolates with merry christmas greetings on it
Q: I have received a huge box of chocolates from my neighbour and it has the words "Merry Christmas" written on it. Is it permissible to eat the chocolates or not?
Phone Contracts
Q: What is the position of a phone contract in Islam? Is it regarded as a sale or ijaarah (hire) as one is buying a phone and also paying for minutes, data, and SMS?
Sometimes, if the person doesn’t use all the minutes, he will lose the remainder and it will not carry over to the next month. Are such contracts permissible?