Civil law

Other

Does Clara have a right to buy a cell phone?

The answer to this question is a bit complicated. First, some cell phone companies refuse to sign service contracts with minors (people under 18). They’re allowed to do this.

But under the law, minors do have a right to buy things to meet their “ordinary” or “usual” needs like food, transportation and clothing. So the first step is to check whether something was bought to meet an ordinary need.

Next, you have to look at two other factors that can affect the legality of purchases by someone under 18: age and judgement. In other words, is the person who made the purchase able to make sound decisions and understand the financial consequences of buying something?

In Clara’s case, let’s assume that a cell phone company was willing to let her sign the contract on her own and that communicating by telephone is considered an “ordinary” need for a girl of her age. But is a $250 cell phone with an extended warranty and a pricey monthly package really an “ordinary” need?

You also have to ask if Clara understood the financial consequences of buying the expensive phone. It’s important to look at whether she has a job that lets her pay her bill every month and whether she saved up money or budgeted for this monthly expense.

As you can see, the right to make purchases will be different for every young person. It depends on maturity level and ability to understand the consequences of the purchase.

It’s unlikely a sales clerk will stop your 11-year-old half brother from buying a slushy in the local dépanneur. But if he tries to buy a swimming pool for the backyard, the seller will probably insist that he come back with your parents!

Can Clara’s parents cancel the cell phone purchase?

Just because a purchase was made by someone under 18, does not mean the contract will be cancelled. However, the purchase can be cancelled or the amount paid partially refunded if it is considered to be a case of “lesion”.

Lesion means that a contract signed between two people gives one person many more advantages than the other person. For example, if an unsuspecting person paid $5,000 for an old computer with no CD burner or sound card, the seller ends up in a much better position than the buyer and it is a case of lesion.

Lesion also exists when one person agrees to pay more than he can really afford or agrees to a price that is much too expensive for what he is getting in return, and he suffers as a result. In Clara’s case, despite all the benefits she might get from her phone, she really won’t be able to pay her $100 monthly fees because she doesn’t work and only gets a small allowance from her parents.

What should Clara’s parents do to cancel the contract?

Parents whose child has signed a contract can call the merchant (or the credit card company) and try to cancel the contract, but unfortunately, the company can say no.

If the company refuses, your father, mother or guardian will have to go to court, which costs time and money! In Clara’s case, the judge would look at her situation and assess whether she had understood the financial consequences of buying the phone and was able pay the monthly fees. The judge would then decide whether or not to cancel the contract.

Can Clara have a credit card in her own name?

Yes and no. Most credit card companies require that an adult be named as the main holder of the card. Did you know that the age at which a person is considered to be an adult varies from province to province? If you think 18 is a long time to wait, imagine that in New Brunswick or British Columbia you have to be 19 before owning your very own credit card!

Some companies would allow Clara to be co-holder of a credit card issued to an adult - her mother or father for example. This adult is then responsible for paying any bills. A credit card company might also agree to issue Clara a card if an adult acted as her guarantor (“endorsed” her). If Clara couldn’t pay her bills, then the credit card company could demand payment from her guarantor. (You can bet this wouldn’t make that person very happy.)

If Clara can’t make her payments, do her parents have to pay for her?

No. Clara’s parents have a legal responsibility to house her, feed her and meet her basic needs, but not satisfy her every whim!

If the company made a contract with Clara and not her parents, he can’t ask her parents to pay him back, unless they acted on her behalf during the transaction or if they acted as her guarantor. (See the previous question).

If I want to cancel a contract and the company refuses, can I just cancel the automatic payment from my bank account?

No, this is not enough. Automatic payment is only a way to pay your bills. If you close your account or cancel the automatic payment, you are only letting the seller know that you want to change the way you pay. This doesn’t change the fact that you still have to pay your bills!

You have to be very careful. If you close your account without telling the company that is expecting the automatic payment, you will be late in your payments and interest will start to accumulate. In the end, it will cost you much more than what you owed in the beginning. If you keep refusing to pay, the company can sue you, and your parents won’t be responsible for whatever the court orders you to pay.

Here’s something else to think about: when you don’t pay your bills, it leaves a trail behind you. Have you ever heard of a credit record? Later on, when you need to take out a large loan, for a car for example, you could be turned down because you haven’t been reliable when it comes to paying your debts.

Are the extended warranties offered by merchants really necessary?

Sometimes. But often the legal warranty that automatically comes with something you buy is enough to ensure that if it breaks, you can bring it back for a refund or replacement.

Since this legal warranty is automatic and free, not many people know it exists. You don’t have to ask for it: it is set out in the law. This warranty guarantees that a new product will work properly for a reasonable length of time. The length of time depends on the type of product. For example, it’s not normal that an MP3 player would stop working after just two months.

The length of this warranty also depends on the amount you paid. For example, the legal warranty on a new home theatre system that cost $350 would not be as long as one on a $3,500 home theatre system. Also, if it’s your fault that the product doesn’t work, you’ll lose the warranty. So if, for example, you used your new digital camera underwater when it’s not meant to be underwater, the seller won’t have to give you a refund or exchange.

Under the legal warranty, it’s the seller who decides how to replace what you bought if it breaks for no reason. The seller can opt to get it repaired instead of replacing it with the latest model.

Before buying an extended warranty (also called a “conventional” warranty), check whether it’s worth paying for a little extra protection over and above the standard legal warranty. Sometimes it’s a good idea and sometimes it’s not. Before selling you an extended warranty, the seller must tell you that there is a free standard legal warranty and explain what it covers.

If the extended warranty you’re offered for your cell phone only lasts for a year, the legal warranty might be enough. But if you figure your sound system might stop working after four years, it might be worth it to “extend” the warranty a bit.

I regret buying something. Does the seller have to take it back and give me a refund?

No. Contrary to what a lot of people think, the seller doesn’t have to take back what you bought and refund your money. So be careful about buying something on the spur of the moment!

Every business has its own rules about returns, exchanges and refunds. Sometimes these rules are written on the bill, but sometimes they aren’t. Just in case, ask the seller to explain his rules on returns, exchanges and refunds for things bought in his store and to write them on the bill.