Q: We ate at a popular dining spot. To my surprise, they do not accept cash. Had to pay with a credit card or buy a prepaid card. That’s legal?
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J.D., Buena Park
A: In California, it generally is legal for a private business to refuse cash, unless a state or local law requires otherwise. For example. one exception is Newport Beach, which has an ordinance requiring brick-and-mortar businesses to accept cash, and which precludes the imposition of a fee or condition on accepting cash.
There are various rationales offered to support a cashless operation, such as reduction of theft and security risks, and that the transactions go more quickly.
But it is reasonable to consider dining-out as creating a contract. For payment of a certain sum, with a possible gratuity, you can rightfully expect a good meal – cooked or made well, tasteful and in an adequate amount. This is part of the “offer and acceptance” — the bargain. If you knew upfront, if the restaurant informed you that cash would not be acceptable for payment, that’s one thing. If you only were told after the fact, you at least have an argument there is no consent, no meeting of the minds and no contract was formed. You still owe the money, but how that gets paid is going to play out.
Q: For years, I’ve seen a sign at the bar that says, “We refuse the right to refuse service to anyone.” What does that really allow them to do?
C.U., Hermosa Beach
A: A business that is open to the public is allowed to refuse service to someone who violates its rules (such as “no shoes, no shirt, no service”); comes in at closing time; or acts in a threatening manner, is notably intoxicated or puts others in danger. In sum, the business can legally maintain a level of decorum and rule.
What the business cannot do is refuse service on the basis of some form of discrimination (such as race, color, gender or disability).
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Bottom line, if the business has a truly legitimate reason to refuse service to someone, it can do so.
Q: A bit of a sore point here – I eat, get the bill, my choices for tip start at 15%. Am I required to pay a tip?
C.W., Corona
A: In general, a customer in California is not legally required to leave a tip at a restaurant. Tips are supposed to be voluntary. So I hope the choices you had on tipping included an option to set the amount or percentage of your choice.
In some instances, there is a mandatory service charge, but that should be clearly disclosed to the customer before the charge is incurred.
Ron Sokol has been a practicing attorney for more than 40 years, and has also served many times as a judge pro tem, mediator, and arbitrator. It is important to keep in mind that this column presents a summary of the law, and is not to be treated or considered legal advice, let alone a substitute for actual consultation with a qualified professional.
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