Rebate, REE bayt, in mercantile law, is a discount, or reduction of the amount to be paid. Giving a certain percentage off for cash is a rebate. Many manufacturers of such items as television sets, household appliances, and automobiles offer rebates to improve sales. Sometimes a rebate is given to obtain favors or good will. It is unlawful for transportation companies to give rebates to shippers. Those who do are subject to heavy fines. See also Roosevelt, Theodore.