A Client Wants a Refund and Their Trade-In Back — But It’s Already Sold. What Should the Owner Do?

JEFF MILTON, OWNER of Infinity Jewelers, loved his new location. Just eight months ago, he and his brother Andrew moved their third-generation store from its 25-year home in a dying mall to a great corner spot in their town’s newest outdoor lifestyle center. Though a number of their longtime customers flatly refused to make the move with them, the new location came complete with great visibility, walk-by traffic and exposure to a whole new clientele.

Jeff and Andrew worked hard to make the most of their new visibility and took care to create attractive vignettes in the display windows that dotted their storefront. Since the move, they’d actually made several significant sales to first-time customers whose interest was drawn to Infinity’s windows on their way to the coffee shop on their left or the women’s fashion clothing store on their right.

One morning in early July, Joel Greer, a prominent local attorney, stopped at one of the windows as he was walking past the store and looked at the magnificent ruby and diamond ring Andrew had just put on display. Mr. Greer had never shopped with Infinity before, but he was impressed by the bright, rich color of the ruby and he thought the ring would make a perfect 25th anniversary gift for his wife. When he went inside to take a closer look, Jeff explained that the ring was 18K white gold, and that it contained a 2.10-carat Burmese ruby accented by two oval cut diamonds, both G color and VS2 clarity, weighing 0.75 carats each.

The price on the ring, $27,700, didn’t seem to bother Mr. Greer, but he did ask if Jeff would consider taking an 8.00-carat diamond bracelet his wife no longer enjoyed wearing as a trade-in. Jeff agreed to look at the bracelet, and Mr. Greer brought it in the next day. The bracelet had been purchased at a reputable local competitor and was in keeping with Infinity’s quality standards, so Jeff agreed to take it in trade for a $6,000 credit toward the ruby ring.

A bit concerned about his wife’s track record of not liking his jewelry gift choices, Mr. Greer asked about Infinity’s return policy. Jeff explained that it was Infinity’s policy to take the best possible care of their customers — and that if Mrs. Greer were unhappy with the ring for any reason, he could bring it back for a refund or exchange. Satisfied that he was making a good choice, Mr. Greer left the bracelet, paid the difference and took the ring home.

Nearly five months passed, and it was just before Christmas when Mr. Greer and his wife came back into Infinity, complaining that Mrs. Greer was not at all happy with her ring. The diamonds looked dull to her and the white gold mounting had begun to yellow. She had taken it to another local jeweler (the one who had sold her the bracelet that Infinity had accepted in trade), where she was told that “good quality white gold” should not be changing color, especially so soon after purchase. She was also told that the reason for the diamonds’ dull appearance was that they were inferior in color, and the manufacturer failed to polish the setting under the diamonds. In addition to all of that, Mrs. Greer really did miss the diamond bracelet her husband had traded in. It was a present for their tenth anniversary, and though it was much smaller than the jewelry she typically wore lately, it still held a good deal of sentimental value for her. Though she and Joel had discussed the possibility of trading it in before he bought the ring, she really wasn’t ready to give it up. She wanted her bracelet back.

When Jeff explained that the Infinity return policy covered the purchase for 30 days, Mr. Greer reminded him of his stipulation during his sales presentation that if Mrs. Greer was not happy with the ring, he could bring it back for a refund. He noted that there was no mention of a specific time period associated with the refund policy, and since he was given nothing in writing to spell it out, his request was well within the bounds of reason.

Jeff felt that he needed to defend the quality of his merchandise, especially after learning in conversation that Mrs. Greer did wear the ring daily, including during the two hours she spent each morning swimming in the health club pool. In addition to discussing the impact of chlorine on gold, he also had to explain that Mrs. Greer’s bracelet had been sold out of Infinity’s estate showcase several weeks ago.

In an attempt to resolve the already dicey situation, Jeff offered to take the ring back and refund the Greers the full purchase price by check.

The Greers were not at all interested in Jeff’s explanations or his offer. All they wanted was to return the “inferior quality” ring and to get their money — and Mrs. Greer’s old bracelet — back. Mr. Greer stated emphatically that Jeff had no right to re-sell the bracelet, as his offer of a refund was left wide open. He demanded that Jeff contact the customer who purchased the bracelet and get it back, threatening to marshal his resources in legal action and in community influence if Jeff did not comply.

Stew B.
Natick, MA

And this is why I have my return policy on an 8 x 11 engraved plaque, clearly printed on my receipts and printed under the signature line on the credit card slip. Had the store done this, they’d be able to point to the agreement the client signed. Now it’s “he said-she said.” But, the scenario got me thinking. I have to develop a written policy to reflect the disposition of trade-ins used as tender and print that on store receipts as well.

Barbara W.
San Diego, CA

I am so sorry, Mrs. Greer, that you are not happy with the purchase and trade-in deal your husband worked out five months ago. I wish you had brought it to my attention sooner.

Let us make a new setting in platinum. The metal will not yellow and we will let you look at the mounting before setting the stones to ensure it is up to your standards. Please feel free to come in at your convenience for inspection and cleaning of the ring whenever you feel like it, as diamonds are natural oil and dirt catchers. Even hand lotion can dull a stone. I was not aware you were a swimmer. What a great way to exercise.

Secondly, as there is nothing we can do about the bracelet since it has been sold, I would love to get similar bracelets in to look at, so you and your husband can pick one together. I will work out the financial aspect with your husband. We both want you to be happy.

Ira K.
Tallahassee, FL

The sale is gone.

Joel and his wife are unreasonable to think that the trade-in will sit in a vault forever, and Jeff’s offer for a full refund is as good as it will ever get. In fact, it’s more than he had to do.
In the future, when buying off the street (and yes, trade-ins are considered a buy by the police), the owner signs off the rights of ownership when the jeweler fills out the proper paperwork.

Stan G.
Charlotte, NC

No obligation of a refund here. One bad “customer” isn’t going to ruin their reputation. As far as a repeat situation goes, I wouldn’t do anything differently to avoid that. Touchy situation with the trade-in (and resold) bracelet, but:

1) If someone threatens legal action, I would say “see you in court, now please leave my store.”

2) Five months passed … what do the Greers expect? If she really loved the bracelet, the idea of a trade would never have happened or she would have been in the store to recover it immediately if he had acted without her knowledge.

If the Greers were decent people, I’d bend over backwards to “rewind” the deal and offer a premium credit or refund to the buyer of the bracelet and get it back. Since they are not decent people, anyone they know probably already realizes that and I’d let three generations of happy customers stand up for my reputation versus one miserable couple.

Drue S.
Albany, NY

First and foremost, they must have the return policy printed on their receipts. We do and that eliminates any customer coming in after 30 days. If a client is being very difficult, we may allow an exchange after 30 days, but only if the piece truly was not worn. We stipulate that on our receipts also.

In this case, I think it’s unreasonable for the purchaser to expect the store to hold the bracelet indefinitely, and unfortunately, since it’s been sold, now what? The owners put together another bracelet and give the money back? Also, since the ring shows wear and tear, the clients are being unreasonable.

This one is a puzzler! And one that may require a lawyer. Do any of us get to borrow a car or any other large purchase for six months?

Bruce A.
Sherwood Park, AB

This issue pivots around the sales receipt provided to Joel Greer at the finalization of the original sale. It should have indicated the two distinct parts of payment, cash and credit for the bracelet, with the latter succinctly covered by stating that it was now the property of Infinity Jewelers. Jeff is being more than reasonable with his offer of a full refund, well over what his state may require under their consumer laws. Worrying about defending the quality of his merchandise is a battle not worth fighting; however, battling this unreasonable customer is! If it means a day in front of a judge, Jeff should step up to that plate. If it is the Better Business Bureau, his very reasonable offer will stand him in good stead, as will a social media response if the Greers choose to go that direction. He needs only to tell his incredible offer in the same reasonable tone that he has employed thus far.

Marcus M.
Midland, TX

Jeff is not obligated to refund these animals and there is no way he can save the sale, but he can definitely save his reputation. This clown “Mr. Greer” is an unreasonable bully who is using his attorney power to intimidate Jeff. Jeff should stay firm in his return/exchange policy and with the sale of the bracelet to another customer. This jerk is trying to get him to cave and Jeff needs to show some backbone and stay strong. FIRE THE CUSTOMER! Mr. Greer might threaten a lawsuit, but I really don’t see how he has much ground to stand on. From now on, though, Jeff and Andrew are unfortunately going to have to put everything in writing. It stinks that this is what business has come to, but it’s because of bullies like Mr. Greer.

Barbara P.
Conroe, TX

Oh, how many scavengers are out there today. In my opinion, Jeff has no obligation whatsoever to refund anything to this man who touts that he is an “attorney.” The ring has been worn for five months, whether she swam in it or stuck it in a box in her closet. It can no longer be sold as new. And as far as the bracelet, he had no obligation to sit on merchandise that was traded in, as he has to replenish his merchandise as well.

I would not accept the ring back. I would not offer to try to sell it for him because it’s a losing situation. If he knew his wife loved the bracelet so much, he should have just bought her the ring and left the bracelet at home.

I would tell the guy, “I’m so sorry you made the decision to bring in your wife’s bracelet to trade. I was not required to hold the bracelet, and that was not in writing, either.”

Alan P.
Wilmington, NC

He messed up by not explaining the return policy. He will never forget it again. He should make a new bracelet and offer to give that to her or try to buy back the old one ASAP.

Joe D.
Columbus, OH

Unfortunately, the retailer sounds like he’s going to eat this one. He made an exception to the standard return policy as a condition of the sale. So he is right to take the ring back. As far as the bracelet is concerned, however, I think you could easily argue that they accepted the bracelet’s value as part of the sale as well, and there was no promise of returning it as part of the return. So writing them a check for the full sale amount (including the trade-in value of the bracelet) is correct. They might want to contact the buyer of the bracelet and offer to replace it with a new one of comparable quality at no charge to get out of this mess, but depending on what they sold it for, that could be an expensive remedy, just to save themselves from the bad reviews.

Buddy B.
Merion, PA

The customer is always right. However, in this case, the client is dead wrong. There is no jury that would find the jewelry store liable; I would defend to the end.

Gregory I.
Johnson City, TN

The receipt must have in writing the return policy. Also, a clear dialog with the customer about how long they will hold the trade-in piece in case the purchase is returned; usually the length of the return timeframe.

Gabi M.
Tewksbury, MA

If there isn’t a return policy and no customer signature on said return policy, then there is no argument. Even when a business has a perfectly clear policy list, customers still try to find loopholes. There’s no excuse to not have one in this day and age. If I was in Jeff’s position, I would do my best to get that bracelet back, issue a refund, and take the loss. After that, I would create a thorough policy list and make sure it gets printed and signed with every future transaction.

Dennis F.
Poughkeepsie, NY

Jeff cannot go back to the purchaser of the bracelet. Did he refund the original price of the ring less the $6,000 credit for the bracelet or the full amount? Jeff should request the matter go into mediation. If that fails, he should get a good attorney. This is a classic example of balancing giving a customer too much information versus not. He definitely should have discussed and written his return policy and made it clear that the bracelet was going to be resold.

Tim W.
Yorktown, VA

I believe that the store owner was well within his legal rights to sell the traded bracelet. It was obviously held long enough to cover any normal return and sold to recoup the money that was not paid for the ring. We would have returned the entire purchase price and this was right thing to do.

Now, he could find a diamond bracelet that was equivalent to the quality that was sold and offer it for a price that would not generate much profit to try to satisfy the new client and try to keep it close to the traded value. The customer could use the traded money received to buy it back. In the end, he was refunded more than what was paid, so there is not any loss on the customer’s behalf. We would never contact the estate customer and ask to buy it back.

Steve W.
Clearwater, FL

Obviously, the jeweler in this case did nothing wrong and the client is being totally unreasonable. For him to expect the jeweler not to sell the trade-in bracelet is unreasonable, and furthermore, no one would ever contact the client that you’ve already sold the bracelet to and ask for it back. I think he went above and beyond just to refund the ring after six months. On his receipts, he should have his return policy clearly printed out.

Ralph H.
Connersville, IN

The key word here is “attorney”. Hire this bozo to file a major libel suit against your competitor and make that part of the deal. He’s already given you all the evidence you need to prove financial loss and loss to your reputation (and the competitor lied). Whether or not you are required to comply with these ridiculous demands depends on the law in your state and how much of a fight you want. The bigger the sale, the more important the “notice of policies.” Better put up signage, and add your “policies” to stationery, sales slips, repair envelopes, etc. and have customers sign them, especially on a big sale. Of course, this is not “right,” but we all screw this up sometimes; hindsight’s 20/20. Oh, and can this customer mess you up in court? You better believe it. Good luck; maybe this is not such a friendly town after all.