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Layaway Practices in California

The written layaway agreement must contain certain information

By Chris Micheli, February 26, 2023 3:53 pm

California law governs layaway practices in this state. Civil Code Division 3, Part 4, Title 1.4 was added by Chapter 825 in 1975. Title 1.4 contains Civil Code Sections 1749 to 1749.4 and it entitled “Layaway Practices.”

Civil Code Section 1749 requires any retail seller which permits consumers to lay away consumer goods to provide to any consumer entering into a layaway agreement with the seller a written statement of the terms and conditions of the agreement. In addition, that written layaway agreement must contain the following information:

  • The amount of the deposit received.
  • The length of time the goods will be held on layaway.
  • A specific description of the goods.
  • The total purchase price of the goods including a separate listing of any handling or processing charges.
  • Any other terms and conditions of the layaway agreement.
  • That the seller will refund any layaway deposit and subsequent payments if the goods have for any reason become no longer available in the same condition as at the time of the sale to the consumer.

Section 1749.1 defines the following terms: “consumer good,” “retail seller,” and “layaway.” Section 1749.2 provides that any waiver by the buyer of consumer goods of the provisions of this title, except as expressly, is deemed contrary to public policy and not be enforceable.

Sections 1749.3 specifies that the remedies provided are cumulative and not to be construed as restricting any remedy that is otherwise available. Section 1749.4 states that nothing in this title is to be construed to limit or reduce any legal obligations imposed any other applicable law.

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