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.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
