California Gift Certificate Law?

Question

I have a gift certificate from a company that has recently changed ownership.

The new owners insist that they do not have to honor the Gift Certificate, since they did not purchase the Gift Certificate liability from the old company.

Is this true under California Law?

Answer 1

There are too many different possibilities here for anyone to give you a clear answer.  Most times, when a business is sold, both the assets and liabilities are transferred to the new owner.  In that situation, unused gift certificates are considered a liability, and the new owner would have to honor them.  

But in other situations, the new owner would not be responsible for the gift certificate.  For example, if the old owners went through bankruptcy, the liabilities would be discharged, and a purchaser would buy only certain things (maybe the leases or real estate and the inventory).  

I don't know the companies involved or anything about the legal procedures that took place, so I can't tell you what happened in your situation.  

I suggest that you do two things. First, write a letter (snail mail) to the new owners, explain your situation, and ask for his help.  If you can find the actual names, try to address it to the president personally. Second, find out if your city or county has a consumer protection office.  If they do, get in touch with them and see if they can intervene.  Many times, even if there is no legal obligation, companies will try to do the right thing if they are confronted by an official request.

I know you were hoping for another answer, but I think this is the best you can do.  I wish you good luck.