Legal Question in Securities Law in California
I am in the process of closing a retail jewelry store in California and wanted to know is there a law in California that allows me to return certain items that I have purchased back to the vendors for credit with a small restocking fee.
1 Answer from Attorneys
No, your purchases of merchandise would be final and would not include a return privilege unless the purchase agreement specifically provided for this. The Uniform Commercial Code does have special provisions for "sale on approval" and "sale or return" (see, e.g., Calif. Commercial Code sections 2326(1)(a) and (b)). You might also look at the balance of 2326 and section 2327, which seem to govern consignments and the right of return. However, unless the vendor and you originally set up your purchases on a "sale on approval" or more likely, a "sale or return" basis, you would have no right to force the vendor to take the goods back and refund your purchase price.