Difference between revisions of "Deposits in Consumer Transactions"

* '''If the deposit is too steep:''' The seller cannot keep a deposit disproportional to the value of the loss they will suffer if the consumer backs out of the transaction. For example, a court might find that a seller who keeps a deposit of 50% of the price of a new car is being unfair to the consumer. The dealer may have spent time and money to order the car, but it is likely the car could be sold to someone else to recoup that expense. If the consumer went to court over the matter, a judge would probably order that at least some of that 50% be paid back.


* '''If the seller breaches the agreement:''' The consumer is generally entitled to get their money back if the seller breaches the agreement. For example, if the seller cannot deliver a product, or cannot deliver it within a reasonable time as promised, the consumer is probably entitled to call off the deal and have the deposit returned. If the seller delivers an unsatisfactory product, the consumer is also entitled to have the deposit returned.


* '''If the seller promised a refund:''' The consumer may be entitled to a refund of the deposit if the deposit was given to a seller with an advertised policy of giving refunds, regardless of the reason.