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<p>[QUOTE="hontonai, post: 656431, member: 4703"]I'd love to see a citation to a decided case allowing rejection of legal tender <u>in payment of a debt.</u></p><p><br /></p><p>You're right that there are no laws mandating acceptance of payment in any particular manner when making a purchase, and the constitution is silent on that point. However, once a "debt" is created, the effect of making tender of payment in "legal tender" is to cancel that debt, whether or not the tender is accepted. Since the teenagers were tendering payment of charges that had been previously incurred, they were tendering payment of a "debt", and had the right to recover their car whether or not the towing company accepted the tender.</p><p><br /></p><p>A comparison I used in 1960s law school contract classes to demonstrate the difference between "debt" and other "obligation to pay" is between MacDonald's and Denny's, two well-known restaurant chains. <ul> <li>A MacDonalds customer never owes the company a debt. He/she orders, pays, and only then receives the food.</li> <li>At Denny's on the other hand, the diner <i>does</i> become a debtor. He/she orders, receives the food thereby becoming indebted, and then pays the bill.</li> </ul><p></p><p>MacDonalds may legally require payment in any form it desires - even buttons can be required. Denny's cannot place limits on the patron's manner of payment, without cancellation of the debt. Even the rejection of bills larger than a specified amount would technically have that effect, although the customer could be given the option of paying in smaller bills or waiting a reasonable time for the company to process the payment, and arrange a refund of his/her change.</p><p><br /></p><p>Article 1, §8 of the US Constitution gives Congress the right to "coin money and regulate the value thereof", and Article 1, §10, clause 1, forbids any State from making "anything but gold and silver Coin a Tender in Payment of Debts". In Title 31, §5103 Congress has exercised its sole authority to declare that US coins, <i>in any amount</i> are legal tender for payment of debt. End result: When the teenagers (whether acting wisely or foolishly) tendered $88 in US coins, they expunged their debt and became entitled to possession of their car. If the towing company didn't want the cents, that's their option, but retaining possession of the car after that tender constituted conversion in civil court, grand theft auto in criminal court; and any judge in California or elsewhere in the United States would be bound to so determine.</p><p><br /></p><p>Now, all of that being said, there are still ramifications I haven't discussed, and perhaps now it becomes apparent why I have declined on other occasions to go into detail on legal issues. Attorneys are not long winded because they love to hear themselves talk, they are long winded because complex issues can't be summarized in a few words.</p><p><br /></p><p>BTW: This comment just ain't so <i>with respect to payment of debt</i>, although the first sentence is quite accurate with respect to other payments:[/QUOTE]</p><p><br /></p>
[QUOTE="hontonai, post: 656431, member: 4703"]I'd love to see a citation to a decided case allowing rejection of legal tender [u]in payment of a debt.[/u] You're right that there are no laws mandating acceptance of payment in any particular manner when making a purchase, and the constitution is silent on that point. However, once a "debt" is created, the effect of making tender of payment in "legal tender" is to cancel that debt, whether or not the tender is accepted. Since the teenagers were tendering payment of charges that had been previously incurred, they were tendering payment of a "debt", and had the right to recover their car whether or not the towing company accepted the tender. A comparison I used in 1960s law school contract classes to demonstrate the difference between "debt" and other "obligation to pay" is between MacDonald's and Denny's, two well-known restaurant chains. [list]A MacDonalds customer never owes the company a debt. He/she orders, pays, and only then receives the food.[*]At Denny's on the other hand, the diner [i]does[/i] become a debtor. He/she orders, receives the food thereby becoming indebted, and then pays the bill.[/list] MacDonalds may legally require payment in any form it desires - even buttons can be required. Denny's cannot place limits on the patron's manner of payment, without cancellation of the debt. Even the rejection of bills larger than a specified amount would technically have that effect, although the customer could be given the option of paying in smaller bills or waiting a reasonable time for the company to process the payment, and arrange a refund of his/her change. Article 1, §8 of the US Constitution gives Congress the right to "coin money and regulate the value thereof", and Article 1, §10, clause 1, forbids any State from making "anything but gold and silver Coin a Tender in Payment of Debts". In Title 31, §5103 Congress has exercised its sole authority to declare that US coins, [i]in any amount[/i] are legal tender for payment of debt. End result: When the teenagers (whether acting wisely or foolishly) tendered $88 in US coins, they expunged their debt and became entitled to possession of their car. If the towing company didn't want the cents, that's their option, but retaining possession of the car after that tender constituted conversion in civil court, grand theft auto in criminal court; and any judge in California or elsewhere in the United States would be bound to so determine. Now, all of that being said, there are still ramifications I haven't discussed, and perhaps now it becomes apparent why I have declined on other occasions to go into detail on legal issues. Attorneys are not long winded because they love to hear themselves talk, they are long winded because complex issues can't be summarized in a few words. BTW: This comment just ain't so [i]with respect to payment of debt[/i], although the first sentence is quite accurate with respect to other payments:[/QUOTE]
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