The graduate schools of business and economics preach "there is no free lunch." Psychologists will probably agree that in most cases this is true. However, those buying the lunch or receiving it may not see it that way. Those who are buying may believe they are giving the invitation and paying the bill through generosity, but they may not have really examined their deep motives. Those who are receiving the invitation may feel that it is being given out of friendship or appreciation rather than just as a way to obligate the buyer to award future business to the supplier.

Usually, salaried salespeople are reimbursed through their expense accounts when they pay for lunches or entertainment, or any other type of gratuity, and even the tax laws allow businesses to provide a certain amount of "gifts" or entertainment as normal business expense.

Free lunches and gratuities are problematic not only for ethical reasons, but also for practical business purposes as well. Buyers, either consciously or sub-consciously, are influenced by gifts from suppliers. In spite of denials by individuals, there is usually a subtle feeling of obligation placed on the recipient of either tangible or intangible favors. Most large organizations realize this and consequently have policies that either extremely curtail or entirely prohibit gratuities.

Nevertheless, in spite of policies, few can deny that the practice of the free lunch continues and it is not all bad. Meeting over a meal can facilitate communications and improve relationships. There is a fine line between offering and accepting all invitations and extreme discouragement of such practices. For example, some argue against accepting any offers from suppliers that are not current suppliers or that have little chance of obtaining business. Some permit acceptance of a meal in celebration at the conclusion of a favorable agreement.