Legal Question in Business Law in California
Hello! We have just moved from Denmark to California. We are opening an ice cream store and have a legal question. We will sell discount cards to our costumers. The way it works is that the costumer pay for example 20$ for the card. Then the costumer has a card that is worth 20$ of ice cream. But when he pays with the card he get 10% discount. Is it legal in California? Is there anything we need to be aware of? We would really appreciate if you can help us - thank you!
Best regards Mia
2 Answers from Attorneys
Just remember that prepaid cards like this may be subject to limitations rregarding expiration dates. If your cards carry no expiration date, you will be safe, but you'll have to honor them (or pay back the unused money) so long as you are in business. As a practical matter, most people will either use their cards or lose or forget them within a few years.
med venligt hilsen!
Bryan Whipple
The rules are found in California Civil Code sections 1749.5 and 1749.51, which you can read online here:
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=civ&group=01001-02000&file=1749.5-1749.51
If your cards never expire, can be cashed in at any time for their remaining balances, and have no fees attached, you will be safe. If you want to do anything different than that, then you should read and fully understand the detailed law.
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