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Deposits
Is
there a specific regulation governing deposits?
Yes.
Administrative Rule 109:4-3-07 governs how
a supplier should handle customer deposits.
Must
I provide a customer with a written receipt if
they give me a deposit?
Yes.
You must provide a written receipt which
must be:
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Dated;
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Describe the goods, including model,
model year, make and color;
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State the trade-in allowance;
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State the time during which the option
is binding;
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State whether or not the deposit is
refundable and under what conditions;
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State any additional costs, such as
delivery charges.
When
can a dealer keep a consumer’s deposit?
The
Consumer Sales Practices Act provides that the
written deposit receipt must indicate whether a
deposit is refundable and under what conditions.
A supplier should not keep a deposit if, at
the time of deposit, it did not indicate that the
deposit was non-refundable or if the consumer
meets the conditions which were described in the
receipt to allow a refund.
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