Stores Not Required by State Law to Give Refunds or Exchanges


Van O'Steen

The days immediately following Christmas are among the busiest of the year for retailers.

The combination of gift returns and post-holiday sales explain this brisk activity. Even a soft economy will not reduce by much the large number of transactions merchants can expect between Christmas and the New Year.

Some merchandise sold in December will find its way back to the seller, either because it is defective or its recipient does not want it.

Most retailers have a liberal refund or exchange policy regarding merchandise purchased from them. Most extend their policy to gift recipients.

Arizona law generally imposes no duty on a merchant to make refunds or exchanges. A sale is a contract. When money and merchandise are exchanged, the contract is complete. Unless an item is defective or otherwise unsuitable for its intended purpose, the merchant generally may refuse to accept a return.

Fortunately for consumers, most retailers have a policy more charitable than the law requires. Good customer relations - not law - compels most merchants to have liberal return policies. However, a less profitable year for retailers may have some impact on these policies.

Because the law requires no return policy at all, a seller who offers only to exchange merchandise legally is within his or her rights. Purchasers or gift recipients generally cannot insist on a cash refund for items they do not want. Defective products are treated somewhat differently.

If a merchant fails to satisfy you regarding defective items, first determine your rights under any written warranty that came with the product. You may resolve the problem this way.

Do not assume, however, that a manufacturer's responsibility for its product relieves the seller of liability. The law does not require that you return a defective item directly to the manufacturer. The seller remains responsible for products he or she sells.

If your informal attempts fail to resolve a problem with a defective product, you may have to go to court. Many of these disputes can be resolved in Arizona's informal Small Claims Division courts.

If you have problems with a gift, be patient but be persistent. To avoid problems next year, ask about the return policy before you buy. If it is too restrictive, consider shopping elsewhere.

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