What is out recourse if a supplier is issuing credit instead of a refund?

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What is out recourse if a supplier is issuing credit instead of a refund?

We have a vendor or supplier that provide us product that has an item cost and a core cost associated with the item. We have returned the items to receive the core value for credit. We have since stopped purchasing from that vendor. They have issued the credit for the items but will not issue us a refund. They say their policy is to issue credit towards another purchase. We are talking about 20k worth of credits and we have no intention of make more purchases. Is this legal?

Asked on July 19, 2019 under Business Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

Did they have a refund policy entitling you to a refund? There is no right to a refund in the law, unless the product is nonconforming (not what you ordered) or defective. Otherwise, sales are final unless the seller has voluntarily adopted a policy allowing refunds. And if they adopt a "refund policy," they are free to offer "store credit" rather than cash back. 
So if they had an actual refund policy in effect allowing you get your money back in these circumtances, they have to honor it--if they don't, you could sue them for "breach of contract" (violation of their policy, which was incorporated into the agreement between you and them) for your money. Or if the product was nonconforming or defective, you could also sue. But otherwise, you are limited to whatever they choose to give you.


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