Legal Question in Business Law in California

Re: What is the limitations on goods sold and a customer seeking a refund

The law covering the sale of goods is the Uniform Commercial Code (UCC), The UCC takes the position that title to special-order goods passes to the buyer at the time the seller completes its delivery (section 2401) and the buyer's rights are limited to rejection of goods not conforming to the contract, sample or specification at delivery, or within a reasonable time for inspection after delivery. UCC section 2601, the "perfect tender rule."

The UCC also recognizes that there can be sales "on approval" or "on consignment" but only where the contract extends these privileges.

Once title passes to the buyer, the buyer owns the goods, and the seller has no obligation to buy them back unless such obligation exists in a valid contract - which could either be a separate contract or a provision in the original contract - but it's pretty obvious there is no such provision here.

A statute of limitations would not come into play here, because the customer had no right to a refund in the first place, hence there is no need to invoke a law cutting off the right. The time limit of possible importance here is the right to reject the goods upon arrival and inspection, if they failed to meet the perfect tender requirement, but that time would have expired long ago and apparently there was no complaint about the condition, quality, etc. at delivery anyway.

Re: What is the limitations on goods sold and a customer seeking a refund

The customer would only be entitled to a refund if you breached the contract. It sounds as though you performed as promised. It is not your fault that the company ordered more labels than it needed. I don't see any reason why you should feel obligated to give them anything, especially since you can't re-sell the labels to someone else.

Re: What is the limitations on goods sold and a customer seeking a refund

For pete's sake! Why would you think you have any obligation to refund for other than YOUR mistake or defective product? If I buy too much bread, will the market take it back after a while?