Legal Question in Civil Litigation in Arizona

I own a limo company in Phoenix. I recently had a client make a reservation and then cancel it 2 weeks later. The cancellation was about 6 days prior to the reservation date. We tell our client our cancellation policy when they make the reservation and also send it to them at the top and bottom of their confirmation email. The policy is cancellations outside of 14 days of the reservation date the client would forfeit 50% of the reservation total and there are no cancellations within 14 days of the reservation date. This client cancelled her reservation 6 days prior to service well within that time frame. She sent us an email asking us to cancel by replying to her confirmation email again stating the policy at the top and bottom.

Though we didn't have to I offered her a 30% company credit as a courtesy to her which she refused and she began to negotiate with me. That got no where and she is disputing the charges with her credit card company and I warned her that we would pursue this civilly.

My question is what am I legally required to do to make each client aware of the cancellation policy.

Thanks for your help,

Jimmy


Asked on 12/17/10, 3:57 pm

1 Answer from Attorneys
Donald W. Hudspeth The Law Offices of Donald W. Hudspeth, P.C.

First, a general comment. I find that many disputes handled by my office arise out of what I call "legal brick house" problems; that is, the company is using "homemade" or offline contracts or procedures that have not been tailored for them or updated. (Also, the fact that someone else is using it does not mean the document or procedure is good (often is a "lowest common denominator" thing).

Now, for your question: The trick is to convert the oral into the written. You did not tell me how the reservation was made, but I would assume by phone or email from website. If by phone then ask for email address, fax number and if you have to their mailing address, then confirm the reservation by the most appropriate means. If you use email ask for a "delivered receipt" (in Tools in Outlook).

Also, include in your email or written receipt a reference to the terms and conditions on the Website, "incorporated by this reference." Have client click accept if make a reservation On line. Or, if reservation is by phone then include reference to the terms and conditions in your "Confirmation" and as stated On your Website @ _____. State that acceptance of the terms is a condition for the reservation, etc.

There is more but you should probably book a consultation with your legal counsel to go over your documents and procedures. It will save you money in the long run - maybe right away. (Dr.'s office visits are cheaper than hospitals.)

Good luck!

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Answered on 12/23/10, 6:41 am


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