Hopefully, if your business is one which occasionally has to refund a customer, you have all the rules related to refunds in place, and therefore not require your commercial lawyer to represent you in a court case, due to a customer is suing you for a refund.
These rules are in place to not only protect customers but to protect businesses too, however, if they are not known or misunderstood, it can cause either party to feel they have been wronged by the other.
We have outlined the basics of each rule below, but please do not consider what we have written as legal text. If you have any queries about refunds, and their legal implications, please consult your commercial lawyers.
Rule #1: A customer is not entitled to a replacement or a cash refund, simply because they change their mind, and no longer want the item they have purchased. You might choose to have an exchange policy, but there is no legal obligation for you to refund because of a change of mind.
Rule #2: When the goods or services that you have sold the customer have a problem, then the customer is entitled, either to a replacement, or a refund. A replacement can be a like-for-like, or an alternative, if the customer is happy to accept it.