Merchant Exception: Merchants can enforce a deal even without a written agreement by sending a written confirmation of the terms within a reasonable time, as long as the other merchant doesn’t object within ten days. This allows merchants to hold each other accountable for their promises, but they must still provide evidence of the initial agreement.
The merchant exception is a provision that pertains to contracts for the sale of goods between merchants. It allows an oral agreement to be legally binding if a written confirmation of the terms is sent within a reasonable timeframe and the recipient does not raise any objections within ten days of receiving it. For instance, if a car dealer and a parts supplier agree on a price for a shipment of parts over the phone, the parts supplier can send a written confirmation of the agreement to the car dealer. If the car dealer does not object within ten days, the agreement is considered enforceable even though it was not initially in writing. It is important to note that the merchant exception solely applies to the statute of frauds, which mandates certain contracts to be in writing for enforceability. The parties involved still need to provide evidence that an agreement was indeed reached.
The merchant exception is a legal provision that allows merchants to charge customers a fee for using certain payment methods, such as credit cards, to cover the costs associated with processing those payments.
No, merchants cannot charge any amount they want. The fee charged must be reasonable and cannot exceed the actual cost incurred by the merchant for processing the payment.
Yes, there are restrictions on which payment methods can be subject to the merchant exception. Generally, it applies to credit card payments, but it may not apply to other forms of payment, such as debit cards or cash.
No, merchants cannot charge the same fee for all payment methods. The fee charged must be directly related to the actual cost incurred by the merchant for processing each specific payment method.
Yes, merchants are legally required to disclose the fee charged under the merchant exception to customers before they make a purchase. This allows customers to make an informed decision about their preferred payment method.
Yes, merchants have the right to refuse certain payment methods if they choose not to charge a fee under the merchant exception. However, they must clearly communicate this policy to customers to avoid any confusion or misunderstandings.
Customers can dispute the fee charged under the merchant exception if they believe it is unreasonable or exceeds the actual cost incurred by the merchant for processing the payment. They can contact the merchant directly or seek assistance from relevant consumer protection agencies.
Yes, there can be legal consequences for merchants who violate the rules of the merchant exception. They may face penalties, fines, or legal action from regulatory authorities or affected customers.
Merchants should provide prior notice to customers if they intend to change the fee charged under the merchant exception. This allows customers to be aware of any changes and make informed decisions about their payment method.
The specific regulations or laws governing the merchant exception may vary depending on the jurisdiction. It is important for merchants to familiarize themselves with the applicable laws and regulations in their region to ensure compliance.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/merchant-exception/
- Modern Language Association (MLA):Merchant Exception. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/merchant-exception/.
- Chicago Manual of Style (CMS):Merchant Exception. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/merchant-exception/ (accessed: May 09 2024).
- American Psychological Association (APA):Merchant Exception. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/merchant-exception/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts