Legal Question in Business Law in California

Re: Lay away cancellation

assuming you signed a sales/security agreement you are responsible on the contract and if this was a motorcycle there would be no refund requirement if a bicycle then ynless they did not accept back within 7 days of sale no req to disclose refund policy

Re: Lay away cancellation

Your transaction would be governed by the provisions of California's version of the Uniform Commercial Code.

The UCC contains a statute of frauds requirement that any transaction for sale of goods is not enforceable against a party who didn't sign a written contract or at least some paper indicating that the (oral) contract exists. There are some exceptions, but if the sale was over $500 and there is nothing in writing, neither you nor the merchant can take legal action against the other, in all probability.

If the transaction were for less than $500, the oral contract could be enforced by either of you. The problem is establishing the terms of the contract. If the contract contains no provision regarding refunds, the question becomes whether a particular bicycle was "identified to the contract" -- if so, title probably passed, it's your bicycle and a payment is due.

If no particular bike was laid away, but only a bike of a particular description was to be taken from the inventory at time of payment and delivery, you are merely in contract to buy a bike. You don't own a bicycle, but you are liable for damages. The payment you already made probably exceeds the seller's damages for your breach, in which case you are theoretically entitled to some refund, but not every penny.

So, that's the law. As a practical matter, I suggest explaining the parts that are helpful to you to the seller, and see what you can negotiate.

There are other nuances, and this is not intended to be a full explanation of the law of contracts or remedies that might apply.

Re: Lay away cancellation

Assuming the down payment is less than $5,000.00, you could take the seller to Small Claims Court. Just the threat may be enough to have him return the downpayment. If not . . . go to Small Claims Court.