Legal Question in Business Law in California

Can a business refuse to accept a gift card based on how it was obtained by the customer. We obtained a gift card (amongst other things) in a charity aution. We sold the gift card on ebay. When they tried to redeem, they were told it was non-transferable and non-sellable because of how it was distributed. Is this legal? California is the state in question. Also, can they disallow the use of multiple Gift Cards in a single purchase? Thank you!


Asked on 2/13/12, 6:38 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Gift cards, in general, do not expire and do not lose value simply because they change hands, whether by auction or otherwise. There are a few exceptions, such as the one in Civil Code subsection 1749.5(d)(2) for certain gift cards that are donated or sold below face value at a volume discount to nonprofit and charitable organizations for fundraising purposes if the expiration date is not more than 30 days after the date of sale. I suggest you look up the California Civil Code on line, read Section 1749.5 in its entirety, and decide whether your situation falls under the general case (no expiration) or if the card in question has expired or is non-transferable under the 1749.5(d)(2) exception.

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Answered on 2/14/12, 11:49 am


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