Legal Question in Consumer Law in California

Re: check endorsement....

Generally, when not much money is involved, the best way to settle is to have the one making the offer, put it in writing and then both parties sign.

That said, there is much confusion about restrictive endorsements. For California, you might be thinking of Civil Code 1526, which, last I checked, provided:

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(a) Where a claim is disputed or unliquidated and a check or

draft is tendered by the debtor in settlement thereof in full

discharge of the claim, and the words "payment in full" or other

words of similar meaning are notated on the check or draft, the

acceptance of the check or draft does not constitute an accord and

satisfaction if the creditor protests against accepting the tender in

full payment by striking out or otherwise deleting that notation or

if the acceptance of the check or draft was inadvertent or without

knowledge of the notation.

(b) Notwithstanding subdivision (a), the acceptance of a check or

draft constitutes an accord and satisfaction if a check or draft is

tendered pursuant to a composition or extension agreement between a

debtor and its creditors, and pursuant to that composition or

extension agreement, all creditors of the same class are accorded

similar treatment, and the creditor receives the check or draft with

knowledge of the restriction.

A creditor shall be conclusively presumed to have knowledge of the

restriction if a creditor either:

(1) Has, previous to the receipt of the check or draft, executed a

written consent to the composition or extension agreement.

(2) Has been given, not less than 15 days nor more than 90 days

prior to receipt of the check or draft, notice, in writing, that a

check or draft will be tendered with a restrictive endorsement and

that acceptance and cashing of the check or draft will constitute an

accord and satisfaction.

(c) Notwithstanding subdivision (a), the acceptance of a check or

draft by a creditor constitutes an accord and satisfaction when the

check or draft is issued pursuant to or in conjunction with a release

of a claim.

(d) For the purposes of paragraph (2) of subdivision (b), mailing

the notice by first-class mail, postage prepaid, addressed to the

address shown for the creditor on the debtor's books or such other

address as the creditor may designate in writing constitutes notice.

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Additionally, unless the amount is truly in dispute, the $3,000 might be taxable as income.

Re: check endorsement....

Probably not. creditboards.com