We put down a deposit on a showroom model table but decided t ocancel, are we required by law to pay a 25% restock fee if the tble never left the store?

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We put down a deposit on a showroom model table but decided t ocancel, are we required by law to pay a 25% restock fee if the tble never left the store?

The total amount is $499 and we paid a cash deposit of $70. Then 10 days later I called to cancel the order and they said that they will charge a 25% restock fee. The furniture store never asked me to sign the order so the receipt of the order does not have my signature. The receipt it says the following: “No cancellations or partial cancellation of orders. I No refunds on deposits and no exchanges. All sales are final no exchanges, no refunds of any kind. There will be a 25% restocking charge in the event sale is cancelled by buyer.”

Asked on June 20, 2013 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

It is legal for them to charge a restocking fee, since as a general matter, a store or other merchant does not ever have to let a customer cancel except and only to the extent that either 1) there is a cancellation policy--in which case, the store can enforce whatever its policy was; or 2) the cancellation was due to something the store did wrong--such as not having the correct product or shipping you one that was damaged. You do not indicate that the store was doing anything wrong, which means that they may enforce whatever their cancellation policy is. Remember: in many cases, if you cancel without a valid legal reason (i.e. store fault), they could try to sue you for the full profit they would have made on the sale, so having to pay a 25% "restocking fee" is actually less than you might have had to pay.


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