I'm pretty sure it's illegal for them not to accept cash. Also, hello!!! Gift cards. Buy a gift card with cash, then use the gift card to buy the iPhone...durka.
"QUESTION: I thought that United States currency was legal tender for all debts. Some businesses or governmental agencies say that they will only accept checks, money orders or credit cards as payment, and others will only accept currency notes in denominations of $20 or smaller. Isn't this illegal?
ANSWER: The pertinent portion of law that applies to your question is the Coinage Act of 1965, specifically Section 31 U.S.C. 5103, entitled "Legal tender," which states: "United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues."
This statute means that all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor. There is, however, no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise. For example, a bus line may prohibit payment of fares in pennies or dollar bills. In addition, movie theaters, convenience stores and gas stations may refuse to accept large denomination currency (usually notes above $20) as a matter of policy."
I think it is not illegal for a company to force a method of payment. I mean many stores enforce a CASH only policy. But i wont be surprised if someone files a lawsuit saying that Apple is voilated a persons civil rights... I mean they are clearly discriminating against some customers... It is not a secret that CC and credit cards are much more prevelant towards higher strata of our society. But does it mean that a person who has no CC or DC cannot buy a iPhone. I dont know why he would want to buy one... But still...
By the way do they accept JCB? Or is it just Visa / MC / Discover / AE?
I don't know that it's disgusting. I've been to many restaurants where they wouldn't accept anything BUT cash, and I didn't find that insulting. It's inconvenient, but not insulting.
Plus cell companies have been making arbitrary rules for years, now that Apple is in the cell game, you have to expect that they will too.
I think Apple is afraid about future sales of iphone in Europe - it can be worst, than any other manufacturer and one of the reasons of it is covered in that europeans buys it by Ebay in Usa, where iphone is much cheaper and without contracts.
actually most of the phone companies are trying similar tactics. Most US phones are subsidized by a service contract, they cost much more than the charged price to manufacture / distribute. Most pay-as-you-go phones have similar restrictions, nomore than 5 at a time, etc. This is nothing new.
Most overseas companies that have unlocking charge much more for the phone - a phone that is free with contract or 39.99 pay-as-you-go may cost $200 us in europe; that's why there is this pirate phone issue as people buy US subsidized phones and sell them overseas without connecting to the subsidizing service. iPhones and the necessary BACKBONE networks are paid for by the local carrier and that is part of the subsidy
"In some jurisdictions legal tender can be refused as payment if no debt exists prior to the time of payment (for example, where the obligation to pay arises substantially contemporaneously with the offer of payment). Consequently vending machines and transport staff do not have to accept the largest denomination of banknote for a single bus fare or bar of chocolate, and even shopkeepers can reject large banknotes — this is covered by the legal concept known as invitation to treat. However, restaurants that do not collect money until after a meal is served would have to accept that legal tender for payment of the debt incurred in purchasing the meal...
...The right, in many jurisdictions, of a trader to refuse to do business with any person means a purchaser cannot demand to make a purchase, and so declaring a legal tender other than for debts would not be effective." -en.wikipedia.org/wiki/Legal_tender
"In contract law, an invitation to treat (invitation to bargain in the U.S.) is an action by one party which may appear to be a contractual offer but which is actually inviting others to make an offer of their own. The distinction is important because if a legitimate contractual offer is accepted by another, a binding contract is immediately formed and the terms of the original offer cannot be further negotiated without both parties' consent. An invitation to treat may be seen as a request for expressions of interest.
A shop owner displaying their goods for sale is generally making an invitation to treat (Pharmaceutical Society of Great Britain v Boots Cash Chemists [1953] 1 QB 401). They are not obliged to sell the good to anyone who is willing to pay for them, even if additional signage such as "special offer" accompanies the display of the good. (But see bait and switch.) This distinction was legally relevant in Fisher v Bell [1961] 1 QB 394, where it was held that displaying a flicknife for sale in a shop did not contravene legislation which prohibited offering for sale such a weapon. The distinction also means that if a shop mistakenly displays a good for sale at a very low price it is not obliged to sell it for that amount.
The above is all applicable in the United States. Though the law specifies "private company," the law is trying to differentiate companies, private or public, from government agencies.
The only reason restaurants "enforce" a cash only policy is because they are either too lazy or don't generate enough revenue to justify having a merchant account. Those things are usually around $30/month plus a percentage of whatever you charge on it.
Remember Apple making fun of Big Brother in those old commercials? Now Apple IS Big Brother. They want to keep track of you. How about a barcode tattoo.
@ Paul: It is illegal for them to even print up the legal tender let alone refuse cash for purchases. It is litterally counterfeit to print off all of the fiat currency. In the constitution it dictates that you must have a commodity-backed currency, it can never become legal tender. And they lend all of the money out at interest which is why we pay income tax.
Anyone know how to stop getting emails for every follow-up comment? I know how I could have done it in the first place, so I'm asking about now, after the fact.
Don't buy a gift card! I just walked into the Cambridge, MA store with a gift card ($360 value) and some cash and was told I couldn't use either. Not even the gift card with a credit card. This is ridiculous.
Reader Comments (Page 1 of 1)
Bruno @ Oct 27th 2007 12:21AM
Is it legal in the US to refuse cash as payment?
Paul @ Oct 27th 2007 12:27AM
I'm pretty sure it's illegal for them not to accept cash. Also, hello!!! Gift cards. Buy a gift card with cash, then use the gift card to buy the iPhone...durka.
James P. @ Oct 27th 2007 12:46AM
Yeah -- next time I order from Amazon.com I'm gonna send CASH! Actually, they don't take cash (just money orders and such...).
Paul @ Oct 27th 2007 12:37AM
oop, my bad. They don't have to accept cash.
http://www.treas.gov/education/faq/currency/legal-tender.shtml
"QUESTION: I thought that United States currency was legal tender for all debts. Some businesses or governmental agencies say that they will only accept checks, money orders or credit cards as payment, and others will only accept currency notes in denominations of $20 or smaller. Isn't this illegal?
ANSWER: The pertinent portion of law that applies to your question is the Coinage Act of 1965, specifically Section 31 U.S.C. 5103, entitled "Legal tender," which states: "United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues."
This statute means that all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor. There is, however, no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise. For example, a bus line may prohibit payment of fares in pennies or dollar bills. In addition, movie theaters, convenience stores and gas stations may refuse to accept large denomination currency (usually notes above $20) as a matter of policy."
Duscrom @ Oct 27th 2007 2:25AM
Apple isn't a private company.. it's a publicly traded corporation...
Philometalist @ Oct 27th 2007 2:30AM
This is ridiculous and it only makes me want to buy an iPhone less.
IndiaTech @ Oct 27th 2007 2:30AM
I think it is not illegal for a company to force a method of payment. I mean many stores enforce a CASH only policy. But i wont be surprised if someone files a lawsuit saying that Apple is voilated a persons civil rights... I mean they are clearly discriminating against some customers...
It is not a secret that CC and credit cards are much more prevelant towards higher strata of our society. But does it mean that a person who has no CC or DC cannot buy a iPhone. I dont know why he would want to buy one... But still...
By the way do they accept JCB? Or is it just Visa / MC / Discover / AE?
And from when is Reselling illegal?
bignerd @ Oct 27th 2007 4:51AM
digg this...
http://digg.com/apple/Apple_Sets_Limits_Says_No_Cash
Mark @ Oct 27th 2007 5:40AM
Apple just gets more and more disgusting.
What next? Literally spit on customers' faces?
ssuk @ Oct 27th 2007 8:25AM
@ Philometalist - Well, it forces everyone to buy less iPhones... =P
Anyway, this is litterally like saying "We don't want your money". Which makes me seriously question Apple's business ethic...
LegendZ28 @ Oct 27th 2007 10:11AM
I don't know that it's disgusting. I've been to many restaurants where they wouldn't accept anything BUT cash, and I didn't find that insulting. It's inconvenient, but not insulting.
Plus cell companies have been making arbitrary rules for years, now that Apple is in the cell game, you have to expect that they will too.
Chris @ Oct 27th 2007 11:11AM
Ummm... how much is that in pubes?
elfjuice @ Oct 27th 2007 11:43AM
You wanna buy an iPhone? It's gonna cost you... alot! but I don't take cash, only girlie giggles!
fontendet24 @ Oct 27th 2007 2:33PM
I think Apple is afraid about future sales of iphone in Europe - it can be worst, than any other manufacturer and one of the reasons of it is covered in that europeans buys it by Ebay in Usa, where iphone is much cheaper and without contracts.
phone phreak @ Oct 27th 2007 3:59PM
actually most of the phone companies are trying similar tactics. Most US phones are subsidized by a service contract, they cost much more than the charged price to manufacture / distribute. Most pay-as-you-go phones have similar restrictions, nomore than 5 at a time, etc. This is nothing new.
Most overseas companies that have unlocking charge much more for the phone - a phone that is free with contract or 39.99 pay-as-you-go may cost $200 us in europe; that's why there is this pirate phone issue as people buy US subsidized phones and sell them overseas without connecting to the subsidizing service. iPhones and the necessary BACKBONE networks are paid for by the local carrier and that is part of the subsidy
Alex Brewer @ Oct 27th 2007 3:19PM
"In some jurisdictions legal tender can be refused as payment if no debt exists prior to the time of payment (for example, where the obligation to pay arises substantially contemporaneously with the offer of payment). Consequently vending machines and transport staff do not have to accept the largest denomination of banknote for a single bus fare or bar of chocolate, and even shopkeepers can reject large banknotes — this is covered by the legal concept known as invitation to treat. However, restaurants that do not collect money until after a meal is served would have to accept that legal tender for payment of the debt incurred in purchasing the meal...
...The right, in many jurisdictions, of a trader to refuse to do business with any person means a purchaser cannot demand to make a purchase, and so declaring a legal tender other than for debts would not be effective." -en.wikipedia.org/wiki/Legal_tender
"In contract law, an invitation to treat (invitation to bargain in the U.S.) is an action by one party which may appear to be a contractual offer but which is actually inviting others to make an offer of their own. The distinction is important because if a legitimate contractual offer is accepted by another, a binding contract is immediately formed and the terms of the original offer cannot be further negotiated without both parties' consent. An invitation to treat may be seen as a request for expressions of interest.
A shop owner displaying their goods for sale is generally making an invitation to treat (Pharmaceutical Society of Great Britain v Boots Cash Chemists [1953] 1 QB 401). They are not obliged to sell the good to anyone who is willing to pay for them, even if additional signage such as "special offer" accompanies the display of the good. (But see bait and switch.) This distinction was legally relevant in Fisher v Bell [1961] 1 QB 394, where it was held that displaying a flicknife for sale in a shop did not contravene legislation which prohibited offering for sale such a weapon. The distinction also means that if a shop mistakenly displays a good for sale at a very low price it is not obliged to sell it for that amount.
The above is all applicable in the United States. Though the law specifies "private company," the law is trying to differentiate companies, private or public, from government agencies.
AJC @ Oct 27th 2007 3:32PM
The only reason restaurants "enforce" a cash only policy is because they are either too lazy or don't generate enough revenue to justify having a merchant account. Those things are usually around $30/month plus a percentage of whatever you charge on it.
Mickey Jones @ Oct 27th 2007 3:56PM
Remember Apple making fun of Big Brother in those old commercials? Now Apple IS Big Brother. They want to keep track of you. How about a barcode tattoo.
Keep your cult phone to yourself, Steve.
jroc @ Oct 27th 2007 4:43PM
@ Paul: It is illegal for them to even print up the legal tender let alone refuse cash for purchases. It is litterally counterfeit to print off all of the fiat currency. In the constitution it dictates that you must have a commodity-backed currency, it can never become legal tender. And they lend all of the money out at interest which is why we pay income tax.
Bruno @ Oct 27th 2007 5:55PM
Anyone know how to stop getting emails for every follow-up comment? I know how I could have done it in the first place, so I'm asking about now, after the fact.
david @ Oct 27th 2007 7:54PM
simply put no it's not illegal. over on the ehmac.ca forums a lawyer cleared up all the buzz about this.
Peter Carr @ Nov 7th 2007 2:20PM
Don't buy a gift card!
I just walked into the Cambridge, MA store with a gift card ($360 value) and some cash and was told I couldn't use either. Not even the gift card with a credit card.
This is ridiculous.