Deposit made for custom manufactured equipment

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Deposit made for custom manufactured equipment

A MN customer made a 50 deposit to get the
project rolling for a set of custom manufactured
truck wash brushes. He now wants to cancel
his order. I am a distributor who immediately
paid the manufacturer upon receipt of deposit
to start project. Do I have to give the customer
his deposit back?

Asked on March 30, 2017 under Business Law, Iowa

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

No, you do not need to issue a refund unless you had a refund policy (e.g. on your website; on any contract or bill of sale or receipt you issued; etc.) requiring a refund. The law does not itself requre refunds when a customer changes his mind; all sales are final (and deposits do not need to be returned) unless the vendor has a refund policy.


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