In a message dated 1/16/01 10:28:29 PM Central Standard Time, skolnik@attglobal.net writes: << I need some perspective. In the retail piano business, how common is the practice of extracting non-refundable deposits from customers? Many replies, either yea or nay, would be most illuminating. Thanks. David Skolnik >> Depends on how much the deposit is, and what the conditions are. We have a "hold" plan. A customer wants a piano, but needs another day to think it over, to ask the husband, to see if it will fit, etc. We ask for a 2% deposit. This assures that the piano he/she wants will not be sold to anyone else. If the customer calls back on the next business day to cancel, he/she gets her money back. If he/she doesn't call back, we keep the money. The customer then has 30 days to either purchase the piano on which the hold was put, if it is still available, or apply the deposit towards another piano. If we don't hear back from them after 30 days, the customer looses the deposit. If a customer puts down a deposit to purchase a piano, and signs a sales agreement, which states that all sales are final, then the customer is obligated to buy the piano. If the customer decides not to buy the piano, that is his/her choice, and legally, the store can keep the deposit. However, most stores, including me, will refund the deposit, out of good will. However, and this is very important, a store does not have to give the deposit back if the customer found a "better deal" at another store. I had an incident this summer where this happened. A customer put down half the price of the piano as a deposit, and then wanted his money back because he said he could buy a similar piano for less money at another store. My lawyer said that is against the law. I don't the exact ruling, but it is "pitting" one store against another for the lowest price. A customer can make verbal "deals" to get the lowest price, but once a contract is signed, it's considered a "done deal." Willem
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