Delores Bierlein paid a $200 deposit toward the rental of the Silver Room at Alex's Continental Inn for her wedding reception. Later, Delores canceled the reception because her fiance was transferred from Ohio to New York. The inn refused to refund Delores's deposit. The consumer protection law of that state requires suppliers to furnish receipts when they receive deposits. Delores was not given a receipt for her $200 deposit. When she sued for the return of the $200 deposit, the question arose as to whether this transaction fell within the consumer protection law. Do you think it does? Explain.

Question

Finnegan Waller

Business

13 December, 18:53

Delores Bierlein paid a $200 deposit toward the rental of the Silver Room at Alex's Continental Inn for her wedding reception. Later, Delores canceled the reception because her fiance was transferred from Ohio to New York. The inn refused to refund Delores's deposit. The consumer protection law of that state requires suppliers to furnish receipts when they receive deposits. Delores was not given a receipt for her $200 deposit. When she sued for the return of the $200 deposit, the question arose as to whether this transaction fell within the consumer protection law. Do you think it does? Explain.

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Answers (2)

Know the Answer?

Angelique · Answer 1

It does not

Explanation:

In this question, we are asked to evaluate if a particular transaction carried out between a customer and an inn falls within the dictates of the local consumer protection law in the state.

Firstly, we look at what the local consumer protection law of the state talks about. It explicitly stated that customers should get receipts when suppliers receive deposits from them. Thus, this make the receipt act as the first thing to have if there would be any claim under the consumer protection law for the transaction carried out in the state.

Now, looking at the particular scenario we have, the customer paid for the room, but he was not issued a receipt. This makes the case not treatable within the consumer protection law of the state as the receipt which should have been a prerequisite for further exploration is not available

Lilyana · Answer 2

Answer: The case does not fall within Consumer Protection law

Explanation:

The transaction doesnot fall within the consumer protection law. There is a binding Contract between Alex's Continental and Delores Bierlein. Alex's Agreed to provide Delores Bierlein with the Use of the Silver and return for Payment. Alex's Continental Inn has not breached this contract because they did not deny Delores Bierlein her Right to use Silver room.

The receipt clause that is stipulated by the Consumer protection law, it is there to protect the customer / Client int the case where the supplier denies receiving payments from the customer. Alex's Continental doesnot deny receiving $200 from Delores Bierlein, They acknowledge the deposit of $200 she Made. The issue of not receiving the receipt is not relevant in this case.

The Case here is not the issue of a supplier denying payment which that would fall with in the Consumer protection law, Alex's Continental Inn Acknowledges all Payments made ($200 deposit). The real Issue is the fact that Delores Bierlein wants her deposit back.

Venues for hire usually have a no refund Policy, meaning a No refund policy on deposits is a common policy in the business of venue rentals simply because when you book a venue the reserve the the venue for you even if another person wants to book they are legally obliged to hold the venue for you.

Assuming Delores Bierlein was aware of the No refund policy, Alex's Continental did not deny her the use of the Silver, they are well within their right to refuse paying back refund.