Legal Question in Business Law in California

I would say yes.

..........and I would say no. However, I'm not sure. Mr. Selik didn't cite any law for his opinion, and while he might be right, I didn't find anything in the California statutes on gift certificates that in any way makes them automatically redeemable for cash when the business moves, especially when the move isn't very far. See, e.g., California Civil Code sections 1749.45 thru 1749.6.

I agree there is probably no law that requires refunds, I do though own a small retail store and my advice is to take a look at the long term in terms of good will and reputation. So you refuse to refund the Money... At what cost? Bad reviews on the Internet? Them telling everyone they meet how inflexible you are? Staining your reputation? complaints to BBB?

Maybe the customers can't legitimately get there. Lets say they live in Pacifica or mill Valley and commute to work and visit your business while at work. But they cant get across the Bay during work hours so now you want them to travel from those places and you might not even be open...There is a difference here in the legal thing to do and what's in your best interest. Good will in a business is worth a lot of money and you could tank this very easily by hiding behind what's legal