Legal Question in Business Law in North Carolina

Good Evening,

We own a small family business in North Carolina. In 2008 my partner (brother ) sold a company in CA. ONe of our reconditioned machines.

They were a new customer so paid in advance after seeing pictures and details of the machine. A few weeks after having it they suddenly decided they wanted to return it due to a minor cosmetic issue. We agreed but they would need to put it in the original crate and pay shipping which they did.

On arrival there was no internal or external damage to the crate to suggest shipping damage but when we removed the machine the piping had been torn out of it from obviously being turned over, the stainless cabinet was dented and scratched up and the control panel bolts had been undone and someone had been inside the controls.

We figured the damages at about half the price of the machine. The refund was to be $2800. The customer denied all of the damage but we told them this was the best we could do for them as they not only damaged a good machine.

We got a email today saying they "Want their money back" assuming they mean the whole orignal amount from 2008.

My partner is still considering sending them the $2800 partial refund but I am inclined to do something else as that money was spent a long time ago and will put us in a hardship now.

After this amount of time are they due anything more than maybe an equipment credit for other items or nothing at all?

Thank you in advance for your help.

Kindest Regards,

John


Asked on 11/05/10, 1:49 pm

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a franchise attorney, I will say the answer depends on two things. First, what does your contract say about returns? Second, assuming it is silent on this topic, to qualify for any refund merchandise must normally be returned in the same condition it was when it was sold, so you can resell it. It doesn't appear this is the case. I haven't reviewed all your facts and circumstances, but based on what you say, I would not offer to refund anything close to the full amount, if at all. A good negotiating position is to say they have to pick it up or arrange for shipping back to them, given the fact they damaged the goods, etc. It really boils down to what policy you adopt in this type of situation. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Attorney

Franchise Foundations APC

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Answered on 11/10/10, 6:22 pm


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