Simple English definitions for legal terms
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A double-breasted operation is when a business owner runs two different businesses, one that is unionized and one that is not. This allows the owner to compete for contracts from both types of businesses. It is also known as an open-shop-closed-shop operation.
Definition: A double-breasted operation is when a business owner runs both a union business and a nonunion business that offer similar services. This allows the owner to compete for contracts from both union and nonunion clients.
Example: A construction company owner may operate a unionized construction company and a separate nonunionized construction company. The unionized company would bid on contracts from clients who require union labor, while the nonunionized company would bid on contracts from clients who do not require union labor.
This arrangement allows the business owner to have access to a wider range of clients and contracts, but it can also create conflicts of interest and ethical concerns.
Explanation: The example illustrates how a double-breasted operation works in the construction industry. By operating both a union and nonunion company, the owner can bid on contracts from both types of clients. This allows the owner to maximize their profits and expand their business. However, this arrangement can also create conflicts of interest, as the owner may prioritize one company over the other or use one company to undercut the other in bidding wars.