Legal Question in Business Law in California

Re: CA fule surcharges

I agree that reviewing your contract is the obvious starting point, if you have one. Look for the term or clause under which the price for the item is determined on a DELIVERED basis. If the contract specifies a set delivered price, or a price to be determined under a formula that otherwise precludes a fuel surcharge, then the fuel surcharge violates the contract and is not "legal" in that sense.

Very possibly, you don't have a written contract specifying price, but are just picking up the phone and calling in an order.

In either case, you probably agree, or already have agreed, to pay an unspecified delivery charge. The seller then prepays the carrier and recollects from you. The carrier's tariff will frequently include a fuel surcharge, which is a way of reflecting the rapidly-varying price of petroleum-derived fuels without re-issuing all their tariffs every time oil goes up $5 a barrel.

All of this is common, and unless you have a contract that provides for a pre-determined delivered price, the fuel surcharge is neither illegal nor does it breach your written contract or oral purchase order, or whatever you use.

Also, keep in mind that "illegal" usually means "in violation of a law" and my answer talks about it from the standpoint of a possible breach of a private contract. Breaching a contract is not illegal in the usual sense; it merely gives rise to a private right to sue for damages.

A fuel surcharge would be illegal, however, if charged by a common carrier in violation of its tariffs, because there are state and federal laws requiring carriers to publish tariffs and abide by them. This is probably not what happened here.

Re: CA fule surcharges

They are probably either going by a contract you have with them or hoping you will not challenge the additional charge. Our CA attorney can go over the facts with you and decide what you can do.

Re: CA fule surcharges

There is nothing specifically illegal about this under California and this type of surcharge is quite common. However, you need to look to the terms of your contract with your supplier to determine if the charge is authorized or not.