Is there a problem of ribbis when a camp, which is registered as a limited liability company, offers a cheaper price to those who pay in full at an earlier date? I have seen two potential heterim – can these be relied upon/applied to summer camps? 1) Rav Elyashiv (quoted in R. Reisman’s “The Laws of Ribbis”, chapter 7 , footnote 30), allows early registration discounts for schools because school administrators are paid contractors to whom the rules for the sale of merchandise do not apply. 2) R. Moshe Feinstein (quoted in “The Laws of Ribbis” 7:22) allows paying ribbis to corporations. Thanks
Answer:
It would seem these heterim could be applied to a summer camp, with regards to the first heter, the “workers” would have to be working already at time of payment [which is likely the case]. Some suggest that if it is not advertised as en early bird discount, but rather two prices are stated, and the cheaper price is actually close to the going rate, then we can say that it the price and the later payment is a penalty fee.
The heter of corporations would certainly apply to this case. A Heter Iska may be used as well to avoid ribbis problems.
