Legal Question in Business Law in California

My boss just got a call about a lady with a gift certificate from the previous owner of the business saying she wanted to use it with him and he wants to turn the woman down since it's a largeish amount and he won't be getting the money. She has threatened legal action on a gift certificate that is over 7 years old. Can he refuse her or does he have to take it


Asked on 7/19/17, 2:31 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Gift certificates and gift cards generally do not expire; see Civil Code section 1749.45. The new owner of an on-going business is therefore liable for honoring the certificate. His remedy, if he has one, is against the seller of the business if the likely existence of unused gift certificates wasn't disclosed as a liability of the business being sold.

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Answered on 7/19/17, 3:15 pm


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