diff --git a/app/models/spree/address.rb b/app/models/spree/address.rb
index 9bd500a41d..3538336d7d 100644
--- a/app/models/spree/address.rb
+++ b/app/models/spree/address.rb
@@ -15,7 +15,9 @@ module Spree
 
     validates :address1, :city, :country, :phone, presence: true
     validates :company, presence: true, unless: -> { first_name.blank? || last_name.blank? }
-    validates :firstname, :lastname, presence: true, unless: -> { company.present? }
+    validates :firstname, :lastname, presence: true, if: -> do
+      company.blank? || company == 'unused'
+    end
     validates :zipcode, presence: true, if: :require_zipcode?
 
     validate :state_validate
diff --git a/spec/system/consumer/split_checkout_spec.rb b/spec/system/consumer/split_checkout_spec.rb
index 37c0bb1c81..b911197b4f 100644
--- a/spec/system/consumer/split_checkout_spec.rb
+++ b/spec/system/consumer/split_checkout_spec.rb
@@ -68,9 +68,9 @@ describe "As a consumer, I want to checkout my order", js: true do
     it "should display error when fields are empty" do
       click_button "Next - Payment method"
       expect(page).to have_content("Saving failed, please update the highlighted fields")
-      expect(page).to have_css 'span.field_with_errors label', count: 4
-      expect(page).to have_css 'span.field_with_errors input', count: 4
-      expect(page).to have_css 'span.formError', count: 5
+      expect(page).to have_css 'span.field_with_errors label', count: 6
+      expect(page).to have_css 'span.field_with_errors input', count: 6
+      expect(page).to have_css 'span.formError', count: 7
     end
 
     it "should validate once each needed field is filled" do