Haram Business Transactions
Intro:
السلام عليكم و رحمة الله و بركاته
The religion of Islam has taught us everything that is necessary for the Duniyah and Akhirah.
The scholars have classified the rulings of the religion into four essentials- Imaan, Ibaadah, Akhlaq and Muamelaat.
Muamelaat includes our trades, transactions and business. The general principle is that all Muamelaat are Halal until proven to be Haram from The Quran and The Sunnah.
In sha Allah today we will see some examples of Haram Business Transactions.
Scene 1: (Buying and Selling Gold)
A1 enters a gold shop.
A1 to shopkeeper: Can I sell my 100 grams of old Gold?
A2 (the shopkeeper) : Yes you can. And do you want to buy new gold?
A1: Yes but after I get the cash by selling the 100 grams old Gold.
A2 explains to the audience:
It is proven that the Noble Prophet ﷺ said concerning gold: “Gold for gold, like for like, same for same, hand to hand.” (Sahih Muslim 2971)
It is not permissible to exchange old gold for good gold and pay the difference. This is haraam and is not permissible. It is also not allowed to exchange 100 grams old Gold with 70 or 80 grams of new Gold.
Based on this we say: If a woman has some worn-out gold or gold that people no longer wear, she can sell it in the market and take the money in her hand, then buy good gold of her choosing. This is the way taught by our Prophet ﷺ.
If a woman goes to the gold shop and has a pre-stated condition that she will buy from the same shop, this too is not allowed as the shop keeper will surely give her a better rate for the old gold.
Scene 2: Buying fruits and vegetables. (Hidden defects)
B1: Enters a fruit shop
B1 (To shopkeeper) : 1 kg of apple
B2 (shopkeeper): ( Weighs it exactly )
B1: 1kg banana
B2 (goes to cut good ones)
B1 : Not that (shows other ).
B2 : It is not for sale as it has small defect.
(shows the defects)
B1: Barakallaahu feek,– You are a honest shopkeeper, U didn’t cheat me by giving me the fruits which are spoilt.
The Prophet ﷺ said :” من غشنا فليس منا”
-“Whoever cheats is not from us ”
The are people who also cheat in weight, you weighed correctly.
Allah said ” ويل للمطففين”-“woe to those who give less”
B3: ( enters the shop)
Masha Allah , when did you start the shop ? You don’t sell cigerattes right ?
B2: No! The prophet prohibited the sale of things which are haraam to consume. The scholars have mentioned many reasons as to why cigarettes are Haram. If cigarettes are Haram it is Haram to sell them or advertise them.
Allaah says:
تعاونوا على البر والتقوى ولا تعاونوا على الإثم والعدوان
“Help you one another in Al‑Birr and At‑Taqwa (virtue, righteousness and piety); but do not help one another in sin and transgression”
[Surah Al-Maa’idah 5:2]
Scene 3: (Selling things which 1 possesses )
C1 : (enters a car dealer’s shop.)
C2 : (car dealer)
C1: I wanted to buy a car,
C2 : Which car u want to buy?
C1 : I heard that u have Jeep420?
C2 : No, I didn’t buy it yet, I’ll call you when it is arrived .
Because, it is 1 of the condition of business that a person must possess the commodity which he is selling .
Scene 3B:
D1: Comes with a second-hand car?
D2: Assalamualaikum brother, wow you bought a new car? For how much?
D1: No it’s a second hand car.
D2: Why didn’t you buy a new one?
D1: I couldn’t buy a new one by paying direct cash, the shopkeeper said that I needed to sign up for an interest based loan. Thus I got a second hand car.
D2: Alhamdulillah Allah saved you from Riba (Interest).
Ribaa (interest, usury) is haraam wherever it exists and whatever form it takes. It is haraam for both the owner of the capital and whoever borrows it from him with interest, whether the borrower is rich or poor.
Both are guilty of sin and indeed both of them are cursed. Whoever helps them in that, the one who writes down the contract and the one who witnesses it are also cursed, because of the general meaning of the aayahs and sound ahaadeeth which indicate that it is haraam.
It was narrated that Jaabir said: “The Messenger of Allah ﷺ cursed the one who consumes Ribaa, the one who pays it, the one who writes it down and the two who witness it. He said they are all the same.” (Narrated by Muslim).
D1: Yes brother, Alhamdulillah. We shouldn’t prefer a loan based new car and spoil our Akhirah.
Scene 4: (Auction, Najash)
E1: Auctioning a huge fish, let’s begin with Rs.500!
E2: Rs.550/-.
E3: Rs.600/-.
E2: Ok Rs.600, anyone more? Fine this will go for 600.
Oh brothers! From the forbidden types of business transactions is: An-Najash.
What is meant by an-Najash is when you display a product for sale by auctioning in a public auction. Then a person comes and bids up the price of the item, but he doesn’t intend to purchase the item, rather he only wants to raise the price for the customers intending to deceive the buyers. This is the same whether he agreed with the seller to do this or he did it on his own.
So whoever bids for a product and he doesn’t want to buy it, rather he only wants to raise its price for the customers, then this person is a Naajish, who has opposed the prohibition of Allaah’s Messenger ﷺ .
Doing this is Haraam, as the Prophet ﷺ said: “And do not perform Najash on each other.” ولا تَناجَشُوا
Scene 5:
F1: Brother, is multilevel marketing or networking Halal?
F2: No Akhi such marketing schemes are not allowed. Tell me how it is done!
F1: In this, I offer a person to buy an item and become a member of my network. And also entice him to sell it to more people and make them members and they keep doing the same. We outwardly sell the item, but we entice and encourage people by the commissions they get from the new members. This chain keeps continuing. More members means more commission!
F2: The scholars have mentioned that multilevel marketing schemes are Haram.
Because:
1– The buyer is not buying the product because he really needs it, but because he is attracted to the promise of commission. So this is a deceptive and cheating-based transaction.
2 – It is a kind of gharar (ambiguous transaction) that is forbidden in sharee’ah, because the participant does not know whether he will be successful in finding the number of purchasers (participants) required or not. No matter how long pyramid or network marketing lasts, it must inevitably reach an end, and when a person joins the pyramid he does not know whether he will be in a higher level and thus make a profit, or in the lower levels and thus make a loss
3 – These transactions involve consuming people’s wealth unlawfully, because these contracts benefit no one but the companies and some participants whom the company encourages with the aim of tricking others. This is what is forbidden in the Qur’aan, where Allaah says (interpretation of the meaning):
“O you who believe! Eat not up your property among yourselves unjustly”
[Surah al-Nisa’ 4:29]
4 –This transaction involves cheating, deceiving and tricking people, by showing the product as if that is the purpose of this transaction, when that is not the case, and by enticing them with the idea of large commission which people do not usually earn. This is the kind of deceit that is forbidden in sharee’ah.
The Prophet (peace and blessings of Allaah be upon him) said: “Whoever deceives us is not one of us.” Narrated by Muslim in his Saheeh.
F1– Jazakallahu khairan ya akhi.
_End.
-Abu Muaaz Mohammed Manna
Saheehus-Seerah 