Legal Question in Business Law in Massachusetts
I am startin g computer repair business out of my home. Doing house calls to repair computers in customer home and offer computer drop off and pick up service for those customer who want to drop their computers at my home for me to repair.
If a customer refuses payment after computer repair has been successfully completed. Do i have the right to go to the location of the computer that i serviced to seize or confiscate and hold until the customer can make full payment of their service fee? If their used my computer drop off and pick up repairf service. Do i have the right to hold the computer in my home from being released without payment? if the customer doesnt pay for the computer after certain period of time. Would it be legal for me to sell their desktop or laptop to pay the service fee?
If its legal to go into home or building of serviced computer to confiscate is legal then what rules or policies are their to keep it legal? What would make it illegal?
Am i allowed to hold or not release the service computer from my business if the owner does refuses payment?
Would it be Legal for me to sell the customers computer after a period of time of them refudsing to pay their serivce fee?
I am drafting a agreement and achknoledgement paper that all customers must sign before each computer repair service so i am asking all these questions to make its legal and it stands.
1 Answer from Attorneys
No you cannot go and take the computer without a court order. I do not recommend holding the computer until the money for the repair is made without a properly executed bonding agreement. Likewise, you can be sued for not only the value of the computer but for the software and violation of privacy laws et cetera.
I suggest you set-up to take credit cards or debit cards. If someone does not pay, then take them to small claims court.
You are not a storage facility. The potential liability if you sell a computer that you do not own and do not have a valid security interest in retaining is a huge risk.