§481B-5.5  Returns for refunds,
merchandise credits, and exchanges.  (a)  As used in this section, unless
the context otherwise requires:



"Ancillary charges" includes all
charges paid to the merchant that are necessary for the use of the goods for
their purchased purpose and all sums paid for agreements for service, warranty,
or replacement.



"Conspicuous sign" means a sign
posted in the merchant's place of business in a location reasonably calculated
to bring the sign to the attention of purchasers before a purchaser makes a
purchase.



"Exchange" means a transaction
between a merchant and a purchaser in which a previously purchased item is
exchanged for another item.



"Full amount of the payment" includes
the amount paid for the returned goods, including any ancillary charges or
taxes incident to the purchase of the returned goods, and without any deduction
for restocking of the merchant's inventory, or for administration of the
refund, exchange, or merchandise credit.



"Merchandise credit" means the crediting
to the purchaser of the full amount of the payment upon return of the goods and
allowing the purchaser to purchase goods from the merchant with the merchandise
credit, or applying to the purchaser's credit account with the merchant, in the
amount of the merchandise credit.



"Merchant" means any person engaged
in the business of offering goods for sale to purchasers at retail.



"Proof of purchase" means a sales
slip, receipt, credit card slip, or any other documentation that substantiates
the sale of the goods from the merchant and the amount of payment.



"Purchaser" means a natural person
who is returning goods that were purchased or received primarily for personal,
family, or household purposes.



"Refund" means the return to the
purchaser of the full amount of the payment upon return of the goods, in
accordance with this section.



"Repacking and transportation
charges" means the charges for repacking, pick up, and transportation of
goods previously delivered, unpacked, and set up by the merchant at the direction
of the purchaser.



"Return" or "return of
goods" means the acceptance by the merchant of goods from a purchaser,
whether for refund, merchandise credit, or exchange, and includes the
cancellation of a custom or special order before the merchant is obligated to
make payment on the order and the cancellation of a layaway.



(b)  Except as provided in this section, all
merchants shall accept the return of goods for refund, merchandise credit, or
exchange, giving purchasers rights that are no less than those provided in this
section.  The merchant may:



(1)  Choose one of the following policies by posting a
conspicuous sign notifying purchasers of any one of the following limitations:



(A)  Refunds only;



(B)  Refunds or merchandise credit only;



(C)  Exchanges or merchandise credit only; or



(D)  No refunds, merchandise credits, or
exchanges; and



(2)  Place specific limitations on the policy adopted
by posting a conspicuous sign notifying the purchasers of any limitations
allowed by subsections (c), (d), (e), and (f).



(c)  Any merchant who does not accept the
return of goods shall post conspicuous signs bearing the words "All sales
final", or "No returns for refunds, merchandise credits, or
exchanges", or words or phrases of similar import, to inform customers
that no return of goods shall be accepted.



(d)  Any merchant who limits the period during
which goods may be returned to less than sixty days after the date of purchase
or delivery shall post conspicuous signs informing purchasers of the limitation
of the period during which the return of goods shall be accepted.



(e)  Any merchant who excludes a certain
category or type of goods from its return policy shall post one or more
conspicuous signs identifying that type of goods.



(f)  Any merchant who excludes custom or
specially ordered goods from its return policy shall post conspicuous signs, or
otherwise notify the purchaser, with the purchaser's written acknowledgment, of
the return policy.  For custom or specially ordered goods, the policy may allow
the merchant to accept the return of the goods and to charge the purchaser for
the cost of shipping if the charge is disclosed prior to the purchase.



(g)  Any person engaged in the business of
offering goods for sale at retail who fails to post a conspicuous sign as
required by this section shall accept the return of goods from purchasers and
make refunds in accordance with subsection (h).



(h)  All merchants, except as provided in
subsection (c), shall handle returns for refunds in the following manner:



(1)  If payment was made in cash, the refund shall be
made in cash at the time of the return of goods, except that if the amount to
be returned exceeds $25, cash refunds may be made by check issued within ten
days of the date of the return;



(2)  If payment was made by check, the refund shall be
made in cash upon acceptance of the returned goods by the merchant, or by check
issued within ten days of the acceptance of the returned goods by the merchant,
except that if the purchaser's check has not cleared the bank on which it was
drawn, the refund may be delayed for no more than ten days after the date the
purchaser's check has cleared; provided that the merchant shall have complied
with this provision if the check is mailed to the purchaser at the address provided
by the purchaser within the ten-day period;



(3)  If payment was made by credit card, the refund
shall be made by credit to the purchaser's credit card account; provided that
the merchant shall initiate the submittal of the charge card credit memo or other
appropriate documentation to the merchant's financial institution within five
banking business days after the return of goods or, at the merchant's option,
the refund may be made in cash at the time of the return of the goods or by
check issued and mailed within ten days of the acceptance of the returned
goods; or



(4)  If payment was made by charging a credit account
administered by the merchant, the refund shall be made by credit to the
purchaser's credit account initiated at the time of the return of the goods.



(i)  All merchants, except as provided in
subsection (c), shall handle returns for merchandise credit in the following
manner:



(1)  If the purchaser does not select goods in
exchange for the returned goods within thirty days of the return, the merchant
shall make a full refund to the purchaser in cash or in accordance with
subsection (h).  The merchant shall not be required to return cash in exchange
for a merchandise credit issued pursuant to this paragraph if the merchant
posts a conspicuous sign to notify purchasers that the merchandise credit
cannot be turned into cash;



(2)  The merchandise credit shall be valid for a
minimum of two years; and



(3)  Before exchanging the merchandise credit for cash
or, in the case of a purchaser selecting goods in exchange costing less than
the amount of the merchandise credit, refunding the difference in cash, the
merchant may require proof of purchase and require the surrender of the credit
memo.



(j)  All merchants, except as provided in
subsection (c), shall handle returns for exchanges in the following manner:



(1)  If the exchange involves an exchange for only
size or color, the exchange shall be made without regard to the full amount of
payment; provided that the merchant may make an appropriate adjustment if the
differing size or color normally sells at a different price; and



(2)  If the exchange does not involve an exchange for
only size or color, then if the full amount of the payment for the goods
received in exchange is less than the full amount of the payment for the
returned goods, the merchant shall issue a refund or merchandise credit in the
amount of the difference.



(k)  In determining the full amount of the
payment for returns for reasons other than damaged or defective goods, a
deduction for repacking and transportation charges may be made from the full
amount of the payment, if the deduction is disclosed to the purchaser prior to
the purchase.



(l)  Any return policies adopted by the
merchant pursuant to this section that limits the purchaser's ability to obtain
a refund shall not apply if the goods were damaged or defective prior to the
time of sale, unless the merchant was aware of the damage or defect and
notified the purchaser of the damage or defect in writing prior to the time of
sale.



(m)  A merchant is not required to accept a
return if:



(1)  There is no proof of purchase, by sales slips,
receipts, or other evidence of purchase of the goods returned;



(2)  The purchaser has retained the goods in excess of
sixty days after the purchase;



(3)  The goods have been used or damaged after sale,
or altered by the purchaser at the time of or after the sale; or



(4)  The goods are of a type which are unsuitable for
resale, pursuant to any applicable law.



(n)  The following constitute unfair methods of
competition and unfair or deceptive acts or practices in the conduct of any
trade or commerce under section 480-2:



(1)  Any violation of this section; and



(2)  Any act or policy that causes a compromise of the
purchaser's rights and protections established by this section. [L 1997, c 79,
§1; am L 2008, c 19, §14]