Legal Question in Business Law in California

California's non-expiring gift certificate law - Applicable to

Hi,

California currently has a law which prevents business owners from ''expiring'' gift certificates or charging surcharges on certificates which consumers have purchased. I have purchased a ''package'' deal of items, which I use up during the year. After the year, the remaining items will expire, however. Does this law also cover these ''package'' deals, making them non-expiring? If not, is the business required to escheat this to the state?

Thanks!


Asked on 5/20/03, 2:51 pm

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

Re: California's non-expiring gift certificate law - Applicable to

This is a tough question, and one where there might be litigation. I think the answer depends upon charactristics of the deal that can't be told in just a few words in a bulletin board question.

Most situation I can think of that meet your criteria would NOT be gift certificates, but some might be. Many situations that would fall within your description would probably escheat, but I can conjure up facts and situations that would fall within your description that would not be subject to escheat, e.g. "requirements" contracts and options.

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Answered on 5/20/03, 3:35 pm


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