Q: I have a secondhand dealer licence in california. I bought $24,000 worth of coins (not tangible property) for $6000. The
Customer came back the next day, saying he wants to reverse the transaction.
He did not get a receipt, but signes a secondhand dealer report form. Law says that coins are not "tangible personal property". Doe that mean I don't have to hold those for 30 days?
Do I have to give him the coins back?
Can he sue me?
A: It sounds like you may have bought these coins with the knowledge that they were worth far more than you were paying him for them. If so, he may have a right to sue you for recission of the contract. If you took advantage of him because of your superior knowledge of the coins, you're very likely to be required by a court to unwind the transaction.
A: You are a merchant and held to the standard of a professional in the coin industry and must act in good-faith and fair dealing. If you did this, then, in order to rescind the contract, he must show; mistake or misrepresentation and the knowledge that you knew he was mistaken. I would consult a local business lawyer and provide more detailed facts.
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