Legal Question in Business Law in California
Acceptable payment method
The other day I walked into a Gas station and wanted to pay for gas in the following combination of American currency; two-one dollar bills, three dimes, six nickels and fifteen pennies. The lady (owner) at the register said that I could not pay with pennies because the bank that she deals with does not accept unrolled pennies. The question is it legal for a business to deny customers to pay for products with US currency.
3 Answers from Attorneys
Re: Acceptable payment method
no but what are you going to do sue her, give me a break, it is not good cust. serv. on her part and very inconvient on yours but i'm sure you had anoter quarter or something in the realm of real change --- more importantly why are you asking this question????????
Re: Acceptable payment method
The rule is that all U.S. bills and coins are "legal tender" for settlement of debts. If you had already pumped the gas and thus had become a "debtor," obliged to pay, the station owner must accept a reasonable combination of bills and coins, and her bank's requirements are none of your concern.
On the other hand, if you asked before pumping, "Will you accept pennies?" the proprietress could lawfully say no and then you would not be entitled to pump her gas unless you made other arrangements.
Compare, for example, the situation where the sign at the gas station says (for example) "After 10 p.m. no bills over $50 accepted." This is a reasonable limitation on the merchant's offer to do business.
There are also limitations on the right to pay large indebtedness with truckloads of pennies. These limits do not apply to paying 15 cents with pennies, however.
Re: Acceptable payment method
Anecdotally, a lawyer paid several hundred dollars in sanctions with pennies (rolled, though), a few years ago. The lawyer wanted to make a point. I remember the pennies, but forget what the point was. A credit card or fast-pass might work better, next time.
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