Legal Question in Business Law in Michigan

Refunds

I sold a customer in MI a log bed and nightstands. The items were damaged in shipping. The customer signed the items were fine on arrival. After opening them she noted the items were damaged. She contacted me about it. I filed a claim with the shipping company. They would not pay the claim because she signed the items were in good condition upon receipt. The items were not badly damaged and repairable. Now she is wants me to refund her the total amount she paid for the items and shipping. I offered to replace the items, I paid the difference on the shipping and did all the leg work to try to settle the shipping claim. I am still willing to replace the items or pay for her repairs but to refund the total amount and have her keep the items does not sound quite right. What are my (as the seller of these items) rights.

Thanks,

Laura


Asked on 5/28/02, 5:26 pm

2 Answers from Attorneys
Phillip Oliver Oliver Law Firm, P.C.

Re: Refunds

There are couple different options for a buyer under the Uniform Commercial Code. The first option is to reject the goods, get a refund, and send them back. The second option is to keep the items and try to be reimbursed for what the damage will cost to repair. The third item is to accept what is not damaged, and ask that the damaged parts be replaced.

Your offer of replacing the items is very reasonable. She cannot ask to have a credit for the amount paid and still keep the items. If she wants a refund, she needs to return the items to you.

As for the shipping company, you can sue them for all the damage they caused because they did not ship the items properly. Whether they were damaged upon shipping or damaged by the buyer after opening will be a fact question for the judge or jury to determine. In any event, you can still sue them and collect your damages.

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Answered on 5/29/02, 3:26 pm
Charles Aspinwall Charles S. Aspinwall, J.D., LLC

Re: Refunds

It doesn't sound right because it is not right. She may keep the merchandise and be paid the cost of repairs, or she may return the merchandise for a refund less return shipping. These types of transactions are governed under the Uniform Commercial Code.

In future transactions insure the merchandise or make it clear that title transfers to the buyer upon placement with the shipper.

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Answered on 5/28/02, 5:33 pm


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