Legal Question in Business Law in California

Well, first of all, it's very easy to sue someone and force them to defend. All you have to do is draw up some halfway credible papers and pay a several hundred dollar filing fee. This forces the defendant to mount a defense, or face losing by default. Therefore, we recommend avoiding suits, when possible and whether winnable or not, by negotiation, compromise, or whatever.

As to the merits of a suit, the answer here will probably depend upon the terms of the contract between the buyer and you, under which the deposit was requested and accepted, and the applicable provisions of the Uniform Commercial Code.

Not being privy to the contract, I can only guess why a deposit was given or what remedy may be available for a temporary shipment delay due to the item being out of stock. However, here it rather seems as though the buyer may have a legitimate claim for a refund, based upon the seller's inability to make timely shipment. There are so many unknowns here, one caanot say for sure. The seller probably should make a refund or otherwise appease the buyer in order to reduce the risk of a suit.

Anybody can sue anybody for anything. The small claims courts are flooded with nonsense cases. Winning is a different issue. If you refuse to refund a deposit when requested, they could sue with a chance of winning, subject to your written terms and conditions of sale, which you have right??.