Legal Question in Business Law in California

Customer used it, Now wants a refund.

A customer of mine bought a scooter, used it once or twice, and wanted to return it the next day saying it was too fast. Our store policy is, ''All sales are final'' (we're a small business). The customer understood our policy and decided to wait for a different model. The model he wanted is still yet to arrive, and it has been 2 months. He wants a full refund but we had to lower the price on his returned scooter (even started once, 2-stroke engines are considered used after). What should I do?


Asked on 5/28/03, 2:43 am

2 Answers from Attorneys

Michael Olden Law Offices of Michael A. Olden

Re: Customer used it, Now wants a refund.

You may not really like the answer to this question but it is now at the point of the business decision as well as customer service and satisfaction. Legally if you properly post notice in a conspicuous place that "all sales are final" and have a statement to this effect upon the receipt, and I would suggest telling the customer before they purchase the item then it is not returnable. Initially, I take it you were willing to accept its return as long as your customer was going to purchase another scooter. There are insufficient facts which you've told me applicable to the return and purchase of another scooter. This of course is the customer satisfaction question. The situation is exacerbated because it's now two months and the new scooter has not been sent. It would seem to me you would have had to reduced the price of the old scooter immediately, but, if you tested it, and was only out of one day and did not appear to have unreasonable wear and tear it should have been able to a been sold at a significant amount of its retail price under reasonable circumstances. I do not know what you should do now because the answer may have an effect upon the store's reputation. It is a business decision which you must make taking into consideration in your own profit desires as well as customer satisfaction. If I were a charge in a Small Claims Court that is different but you are not at that stage. You can only make the business decision in the best interest of you and your own business.

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Answered on 5/28/03, 12:02 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Customer used it, Now wants a refund.

I'm in general agreement with the prior answer. Your "no returns" policy is probably enforceable, but so much has happened subsequently that there is a high probability of the policy being legally superseded by a waiver, a "novation" (new contract replacing old one), possible breach of your possible promise to deliver a suitable replacement, etc. etc.

The circumstances could be a good bar examination question, allowing bar candidates to write lengthy answers discussing all the possibilities from both (customer and seller) points of view.

My guess is that a court would attempt to weigh the actual fiancial harm to you resulting from the customer's return, deduct that from the amount paid, and require restitution of the balance to the customer.

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Answered on 5/28/03, 4:19 pm


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