Section § 1791

Explanation

This section is all about defining terms related to consumer goods and their sales, leases, and services. It clarifies what counts as consumer goods, like new products for personal use (but not clothes or consumables), and describes different roles in selling these goods, such as buyers, sellers, distributors, and manufacturers. The section also defines things like leases, assistive devices for people with disabilities, service contracts, and specific types of household and electronic products. Additionally, it specifies how certain terms, like 'clear and conspicuous' in communication, should be interpreted.

As used in this chapter:
(a)CA Civil Law Code § 1791(a) “Consumer goods” means any new product or part thereof that is used, bought, or leased for use primarily for personal, family, or household purposes, except for clothing and consumables. “Consumer goods” shall include new and used assistive devices sold at retail.
(b)CA Civil Law Code § 1791(b) “Buyer” or “retail buyer” means any individual who buys consumer goods from a person engaged in the business of manufacturing, distributing, or selling consumer goods at retail. As used in this subdivision, “person” means any individual, partnership, corporation, limited liability company, association, or other legal entity that engages in any of these businesses.
(c)CA Civil Law Code § 1791(c) “Clothing” means any wearing apparel, worn for any purpose, including under and outer garments, shoes, and accessories composed primarily of woven material, natural or synthetic yarn, fiber, or leather or similar fabric.
(d)CA Civil Law Code § 1791(d) “Consumables” means any product that is intended for consumption by individuals, or use by individuals for purposes of personal care or in the performance of services ordinarily rendered within the household, and that usually is consumed or expended in the course of consumption or use.
(e)CA Civil Law Code § 1791(e) “Distributor” means any individual, partnership, corporation, association, or other legal relationship that stands between the manufacturer and the retail seller in purchases, consignments, or contracts for sale of consumer goods.
(f)CA Civil Law Code § 1791(f) “Independent repair or service facility” or “independent service dealer” means any individual, partnership, corporation, association, or other legal entity, not an employee or subsidiary of a manufacturer or distributor, that engages in the business of servicing and repairing consumer goods.
(g)CA Civil Law Code § 1791(g) “Lease” means any contract for the lease or bailment for the use of consumer goods by an individual, for a term exceeding four months, primarily for personal, family, or household purposes, whether or not it is agreed that the lessee bears the risk of the consumer goods’ depreciation.
(h)CA Civil Law Code § 1791(h) “Lessee” means an individual who leases consumer goods under a lease.
(i)CA Civil Law Code § 1791(i) “Lessor” means a person who regularly leases consumer goods under a lease.
(j)CA Civil Law Code § 1791(j) “Manufacturer” means any individual, partnership, corporation, association, or other legal relationship that manufactures, assembles, or produces consumer goods.
(k)CA Civil Law Code § 1791(k) “Place of business” means, for the purposes of any retail seller that sells consumer goods by catalog or mail order, the distribution point for consumer goods.
(l)CA Civil Law Code § 1791(l) “Retail seller,” “seller,” or “retailer” means any individual, partnership, corporation, association, or other legal relationship that engages in the business of selling or leasing consumer goods to retail buyers.
(m)CA Civil Law Code § 1791(m) “Return to the retail seller” means, for the purposes of any retail seller that sells consumer goods by catalog or mail order, the retail seller’s place of business, as defined in subdivision (k).
(n)CA Civil Law Code § 1791(n) “Sale” means either of the following:
(1)CA Civil Law Code § 1791(n)(1) The passing of title from the seller to the buyer for a price.
(2)CA Civil Law Code § 1791(n)(2) A consignment for sale.
(o)CA Civil Law Code § 1791(o) “Service contract” means a contract in writing to perform, over a fixed period of time or for a specified duration, services relating to the maintenance or repair of a consumer product, except that this term does not include a policy of automobile insurance, as defined in Section 116 of the Insurance Code.
(p)CA Civil Law Code § 1791(p) “Assistive device” means any instrument, apparatus, or contrivance, including any component or part thereof or accessory thereto, that is used or intended to be used, to assist an individual with a disability in the mitigation or treatment of an injury or disease or to assist or affect or replace the structure or any function of the body of an individual with a disability, except that this term does not include prescriptive lenses and other ophthalmic goods unless they are sold or dispensed to a blind person, as defined in Section 19153 of the Welfare and Institutions Code and unless they are intended to assist the limited vision of the person so disabled.
(q)CA Civil Law Code § 1791(q) “Catalog or similar sale” means a sale in which neither the seller nor any employee or agent of the seller nor any person related to the seller nor any person with a financial interest in the sale participates in the diagnosis of the buyer’s condition or in the selection or fitting of the device.
(r)CA Civil Law Code § 1791(r) “Home appliance” means any refrigerator, freezer, range, microwave oven, washer, dryer, dishwasher, garbage disposal, trash compactor, or room air-conditioner normally used or sold for personal, family, or household purposes.
(s)CA Civil Law Code § 1791(s) “Home electronic product” means any television, radio, antenna rotator, audio or video recorder or playback equipment, video camera, video game, video monitor, computer equipment, telephone, telecommunications equipment, electronic alarm system, electronic appliance control system, or other kind of electronic product, if it is normally used or sold for personal, family, or household purposes. The term includes any electronic accessory that is normally used or sold with a home electronic product for one of those purposes. The term excludes any single product with a wholesale price to the retail seller of less than fifty dollars ($50).
(t)CA Civil Law Code § 1791(t) “Member of the Armed Forces” means a person on full-time active duty in the Army, Navy, Marine Corps, Air Force, National Guard, Space Force, or Coast Guard. Full-time active duty shall also include active military service at a military service school designated by law or the Adjutant General of the Military Department concerned.
(u)CA Civil Law Code § 1791(u) “Clear and conspicuous” and “clearly and conspicuously” means a larger type than the surrounding text, or in a contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols or other marks, in a manner that clearly calls attention to the language. For an audio disclosure, “clear and conspicuous” and “clearly and conspicuously” means in a volume and cadence sufficient to be readily audible and understandable.
(v)CA Civil Law Code § 1791(v) “Motor home” has the same meaning as defined in Section 1793.22.
(w)CA Civil Law Code § 1791(w) “Mobilehome” means a vehicle as defined in Section 18008 of the Health and Safety Code.
(x)CA Civil Law Code § 1791(x) “Travel trailer” means a vehicular unit without motive power that is designed to be towed or carried by a motor vehicle. “Travel trailer” does not include a mobilehome.

Section § 1791.1

Explanation

This section talks about the 'implied warranty of merchantability' and 'implied warranty of fitness' for consumer goods. The implied warranty of merchantability ensures products meet certain standards like being fit for ordinary use, properly packaged, and as advertised. The implied warranty of fitness applies when a seller knows the specific purpose the buyer needs a product for, and the buyer relies on the seller's expertise. These warranties must last at least 60 days but no more than a year from purchase, unless a longer express warranty is available. If the implied warranties are breached, the buyer has certain legal remedies.

As used in this chapter:
(a)CA Civil Law Code § 1791.1(a) “Implied warranty of merchantability” or “implied warranty that goods are merchantable” means that the consumer goods meet each of the following:
(1)CA Civil Law Code § 1791.1(a)(1) Pass without objection in the trade under the contract description.
(2)CA Civil Law Code § 1791.1(a)(2) Are fit for the ordinary purposes for which such goods are used.
(3)CA Civil Law Code § 1791.1(a)(3) Are adequately contained, packaged, and labeled.
(4)CA Civil Law Code § 1791.1(a)(4) Conform to the promises or affirmations of fact made on the container or label.
(b)CA Civil Law Code § 1791.1(b) “Implied warranty of fitness” means (1) that when the retailer, distributor, or manufacturer has reason to know any particular purpose for which the consumer goods are required, and further, that the buyer is relying on the skill and judgment of the seller to select and furnish suitable goods, then there is an implied warranty that the goods shall be fit for such purpose and (2) that when there is a sale of an assistive device sold at retail in this state, then there is an implied warranty by the retailer that the device is specifically fit for the particular needs of the buyer.
(c)CA Civil Law Code § 1791.1(c) The duration of the implied warranty of merchantability and where present the implied warranty of fitness shall be coextensive in duration with an express warranty which accompanies the consumer goods, provided the duration of the express warranty is reasonable; but in no event shall such implied warranty have a duration of less than 60 days nor more than one year following the sale of new consumer goods to a retail buyer. Where no duration for an express warranty is stated with respect to consumer goods, or parts thereof, the duration of the implied warranty shall be the maximum period prescribed above.
(d)CA Civil Law Code § 1791.1(d) Any buyer of consumer goods injured by a breach of the implied warranty of merchantability and where applicable by a breach of the implied warranty of fitness has the remedies provided in Chapter 6 (commencing with Section 2601) and Chapter 7 (commencing with Section 2701) of Division 2 of the Commercial Code, and, in any action brought under such provisions, Section 1794 of this chapter shall apply.

Section § 1791.2

Explanation

This law defines what an 'express warranty' is in relation to consumer goods. It involves a written promise from the manufacturer, distributor, or retailer at the time of sale that they will ensure the product works as expected, or they will compensate if it doesn't. This can also mean that a product must match any sample or model shown to the consumer. Specific terms like 'warrant' or 'guarantee' aren't necessary to create a legal warranty, but if they are used, they result in one. However, simple statements about product value or general claims about customer satisfaction don't count as express warranties.

(a)CA Civil Law Code § 1791.2(a) “Express warranty” means:
(1)CA Civil Law Code § 1791.2(a)(1) A written statement arising out of a sale to the consumer of a consumer good pursuant to which the manufacturer, distributor, or retailer undertakes to preserve or maintain the utility or performance of the consumer good or provide compensation if there is a failure in utility or performance; or
(2)CA Civil Law Code § 1791.2(a)(2) In the event of any sample or model, that the whole of the goods conforms to such sample or model.
(b)CA Civil Law Code § 1791.2(b) It is not necessary to the creation of an express warranty that formal words such as “warrant” or “guarantee” be used, but if such words are used then an express warranty is created. An affirmation merely of the value of the goods or a statement purporting to be merely an opinion or commendation of the goods does not create a warranty.
(c)CA Civil Law Code § 1791.2(c) Statements or representations such as expressions of general policy concerning customer satisfaction which are not subject to any limitation do not create an express warranty.

Section § 1791.3

Explanation

This law section explains that when a product is sold "as is" or "with all faults," the manufacturer, distributor, and retailer are letting consumers know that they are not providing any guarantees about the product's condition or quality. Essentially, the buyer accepts the product with any existing issues, and no warranties will apply.

As used in this chapter, a sale “as is” or “with all faults” means that the manufacturer, distributor, and retailer disclaim all implied warranties that would otherwise attach to the sale of consumer goods under the provisions of this chapter.

Section § 1798.3

Explanation

This section of the California Civil Code defines specific terms that are important when discussing personal information managed by agencies. "Personal information" refers to data identifying or describing someone, like their name, address, or social security number. The term "agency" includes state entities, but excludes the California Legislature, certain judicial agencies, and local agencies among others. "Disclose" means to share or communicate information, while "maintain" involves managing or using data. The section defines various terms including "individual," "record," "system of records," and "commercial purpose," clarifying the entities involved and the scope of activities when handling personal information.

As used in this chapter:
(a)CA Civil Law Code § 1798.3(a) The term “personal information” means any information that is maintained by an agency that identifies or describes an individual, including, but not limited to, the individual’s name, social security number, physical description, home address, home telephone number, education, financial matters, and medical or employment history. It includes statements made by, or attributed to, the individual.
(b)CA Civil Law Code § 1798.3(b) The term “agency” means every state office, officer, department, division, bureau, board, commission, or other state agency, except that the term agency shall not include:
(1)CA Civil Law Code § 1798.3(b)(1) The California Legislature.
(2)CA Civil Law Code § 1798.3(b)(2) Any agency established under Article VI of the California Constitution.
(3)CA Civil Law Code § 1798.3(b)(3) The State Compensation Insurance Fund, except as to any records that contain personal information about the employees of the State Compensation Insurance Fund.
(4)CA Civil Law Code § 1798.3(b)(4) A local agency, as defined in Section 7920.510 of the Government Code.
(c)CA Civil Law Code § 1798.3(c) The term “disclose” means to disclose, release, transfer, disseminate, or otherwise communicate all or any part of any record orally, in writing, or by electronic or any other means to any person or entity.
(d)CA Civil Law Code § 1798.3(d) The term “individual” means a natural person.
(e)CA Civil Law Code § 1798.3(e) The term “maintain” includes maintain, acquire, use, or disclose.
(f)CA Civil Law Code § 1798.3(f) The term “person” means any natural person, corporation, partnership, limited liability company, firm, or association.
(g)CA Civil Law Code § 1798.3(g) The term “record” means any file or grouping of information about an individual that is maintained by an agency by reference to an identifying particular such as the individual’s name, photograph, finger or voice print, or a number or symbol assigned to the individual.
(h)CA Civil Law Code § 1798.3(h) The term “system of records” means one or more records, which pertain to one or more individuals, which is maintained by any agency, from which information is retrieved by the name of an individual or by some identifying number, symbol, or other identifying particular assigned to the individual.
(i)CA Civil Law Code § 1798.3(i) The term “governmental entity,” except as used in Section 1798.26, means any branch of the federal government or of the local government.
(j)CA Civil Law Code § 1798.3(j) The term “commercial purpose” means any purpose that has financial gain as a major objective. It does not include the gathering or dissemination of newsworthy facts by a publisher or broadcaster.
(k)CA Civil Law Code § 1798.3(k) The term “regulatory agency” means the Department of Financial Protection and Innovation, the Department of Insurance, the Bureau of Real Estate, and agencies of the United States or of any other state responsible for regulating financial institutions.

Section § 1802

Explanation

This section basically says that unless there's a specific reason not to, the definitions in this article should be used to understand the rest of the chapter.

Unless the context or subject matter otherwise requires, the definitions given in this article govern the construction of this chapter.

Section § 1802.1

Explanation

This law defines what "goods" are in terms of property purchased for personal or household use. It includes physical items and certain products that become part of real estate, like fixtures. However, it excludes vehicles that need to be registered and items sold with or leased alongside such vehicles under specific contracts. It does count trailers sold with boats, unless exempted by another rule. Here, trailers refer to those made to carry boats exclusively.

“Goods” means tangible chattels bought for use primarily for personal, family or household purposes, including certificates or coupons exchangeable for such goods, and including goods which, at the time of the sale or subsequently are to be so affixed to real property as to become a part of such real property whether or not severable therefrom, but does not include any vehicle required to be registered under the Vehicle Code, nor any goods sold or leased with such a vehicle if sold under a contract governed by Section 2982 or leased under a contract governed by Section 2985.7. “Goods” also includes a trailer which is sold in conjunction with a vessel, as defined in subdivision (a) of Section 9840 of the Vehicle Code, unless the sales transaction is exempted under Section 1801.4. As used in this section, “trailer” means a vehicle designed solely for carrying vessels.

Section § 1802.10

Explanation

This section explains that a "finance charge" is the extra cost a buyer agrees to pay when buying something on installment, kind of like a payment plan. It doesn't include costs for things like insurance, late fees, lawyer fees, court costs, or costs for maintaining or securing the purchased item that may come up after the contract is signed.

“Finance charge” means the amount however denominated or expressed which the retail buyer contracts to pay or pays for the privilege of purchasing goods or services to be paid for by the buyer in installments. “Finance charge” does not include the amounts, if any, charged for insurance premiums, including premiums of the kind and to the extent described in paragraph (2) of subsection (e) of Section 226.4 of Regulation Z, delinquency charges, attorney’s fees, court costs, collection expenses, official fees, extension or deferral agreement charges as provided by Section 1807.1, or amounts for insurance, repairs to or preservation of the goods, or preservation of the holder’s security interest therein advanced by the holder subsequent to the execution of a contract.

Section § 1802.11

Explanation

This law section explains two financial terms used in retail installment sales. 'Amount financed' refers to a specific financial detail that must be disclosed according to another section of the law. 'Unpaid balance' means the total price of goods or services in the sale, plus any insurance or fees included, minus the buyer's down payment.

(a)CA Civil Law Code § 1802.11(a) “Amount financed” means the amount required to be disclosed pursuant to paragraph (7) of subdivision (c) of Section 1803.3.
(b)CA Civil Law Code § 1802.11(b) “Unpaid balance” means the cash price of the goods or services which are the subject matter of the retail installment sale, plus the amounts, if any, included in a retail installment sale for insurance and official fees, minus the amount of the buyer’s downpayment in money or goods.

Section § 1802.12

Explanation

The 'total of payments' refers to the total amount a borrower needs to pay, as detailed under certain financial disclosure regulations. This total can include part of the downpayment if it's postponed until the second scheduled payment, as long as no interest is charged on this deferred amount.

“Total of payments” means the amount required to be disclosed pursuant to subdivision (h) of Section 226.18 of Regulation Z. The term includes any portion of the downpayment deferred until not later than the second otherwise scheduled payment and which is not subject to a finance charge.

Section § 1802.13

Explanation
This law specifies that a 'holder' is typically a retail seller who holds a retail installment contract or account from a buyer. If the contract is sold to a financing agency or another party, that party becomes the holder. Importantly, it does not include lenders who merely use the contracts as security for a loan.
“Holder” means the retail seller who acquires a retail installment contract or installment account executed, incurred or entered into by a retail buyer, or if the contract or installment account is purchased by a financing agency or other assignee, the financing agency or other assignee. The term does not include the pledgee of or the holder of a security interest in an aggregate number of such contracts or installment accounts to secure a bona fide loan thereon.

Section § 1802.14

Explanation

In simple terms, 'official fees' refer to the payments that are legally required and made to public officials to secure a lien or other type of claim on goods sold on an installment basis. This can include fees related to licensing, certificates of title, and vehicle registration.

“Official fees” means the fees required by law and actually to be paid to the appropriate public officer to perfect a lien or other security interest, on or in goods, retained or taken by a seller under a retail installment contract or installment account, and license, certificate of title, and registration fees imposed by law.

Section § 1802.15

Explanation

This section defines the word "person" very broadly. It includes not just individual people, but also partnerships, corporations, limited liability companies, associations, and any other organized groups.

“Person” means an individual, partnership, corporation, limited liability company, association or other group, however organized.

Section § 1802.16

Explanation

A 'financing agency' in California is anyone involved in buying retail installment contracts or installment accounts from retail sellers. This includes banks, trust companies, private bankers, and investment companies, if they are engaged in this activity.

“Financing agency” means a person engaged in this State in whole or in part in the business of purchasing retail installment contracts, or installment accounts from one or more retail sellers. The term includes but is not limited to a bank, trust company, private banker, or investment company, if so engaged.

Section § 1802.17

Explanation

This law defines a 'billing cycle' as the period between the dates of regular monthly billing statements.

“Billing cycle” means the time interval between regular monthly billing statement dates.

Section § 1802.18

Explanation

This section explains that 'Regulation Z' refers to the set of rules and guidelines created by the Federal Reserve Board under the Truth in Lending Act. It includes any official interpretations or approvals related to this act, which are issued by authorized members or employees of the Federal Reserve.

“Regulation Z” means any rule, regulation, or interpretation promulgated by the Board of Governors of the Federal Reserve System (“Board”) under the Federal Truth in Lending Act, as amended (15 U.S.C. 1601, et seq.), and any interpretation or approval issued by an official or employee of the Federal Reserve System duly authorized by the board under the Truth in Lending Act, as amended, to issue such interpretations or approvals.

Section § 1802.19

Explanation

This law section specifies when a retail installment contract or account is considered to be made in California, making it subject to state laws. If a seller offers to sell in California or a buyer who lives in California makes or accepts an offer to buy within the state, the contract is considered made there. Additionally, if sales communication from outside California reaches a California resident, it's seen as an offer within the state. Likewise, if a California resident sends a buying request to an out-of-state seller, it's considered an offer to buy in California.

(a)CA Civil Law Code § 1802.19(a) For the purposes of this chapter, a retail installment contract, contract, retail installment account, installment account, or revolving account shall be deemed to have been made in this state and, therefore, subject to the provisions of this chapter, if either the seller offers or agrees in this state to sell to a buyer who is a resident of this state or if such buyer accepts or makes the offer in this state to buy, regardless of the situs of the contract as specified therein.
(b)CA Civil Law Code § 1802.19(b) Any solicitation or communication to sell, oral or written, originating outside of this state, but forwarded to, and received in this state by, a buyer who is a resident of this state, shall be deemed to be an offer or agreement to sell in this state.
(c)CA Civil Law Code § 1802.19(c) Any solicitation or communication to buy, oral or written, originating within this state, from a buyer who is a resident of this state, but forwarded to, and received by, a retail seller outside of this state, shall be deemed to be an acceptance or offer to buy in this state.

Section § 1802.2

Explanation

This law defines 'services' as any kind of work or labor provided that isn't intended for commercial or business purposes. This can include services related to selling or fixing goods, repairing motor vehicles (but not those service contracts sold with vehicles), improving real estate, or providing insurance. However, it does not cover medical services by doctors or dentists, or any services where costs and prices need official approval or filing with the federal government.

“Services” means work, labor and services, for other than a commercial or business use, including services furnished in connection with the sale or repair of goods as defined in Section 1802.1 or furnished in connection with the repair of motor vehicles (except for service contracts as defined by subdivision (p) of Section 2981 which are sold in conjunction with the sale or lease of a vehicle required to be registered under the Vehicle Code) or in connection with the improvement of real property or the providing of insurance, but does not include the services of physicians or dentists, nor services for which the tariffs, rates, charges, costs or expenses, including in each instance the deferred payment price, are required by law to be filed with and approved by the federal government or any official, department, division, commission or agency of the United States.

Section § 1802.20

Explanation

This law explains how to calculate a finance charge using a simple interest method. It describes two methods: one uses a 365-day year to calculate actual days passed, which sellers can adjust for leap years. The other method is for contracts before 1988, using a 360-day year with each month having 30 days, assuming all payments are made on time.

“Simple-interest basis” means the determination of a finance charge, other than an administrative finance charge, by applying a constant rate to the unpaid balance as it changes from time to time, either:
(a)CA Civil Law Code § 1802.20(a) Calculated on the basis of a 365-day year and actual days elapsed (although the seller may, but need not, adjust its calculations to account for leap years); reference in this chapter to the “365-day basis” shall mean this method of determining the finance charge, or
(b)CA Civil Law Code § 1802.20(b) For contracts entered into prior to January 1, 1988, calculated on the basis of a 360-day year consisting of 12 months of 30 days each and on the assumption that all payments will be received by the seller on their respective due dates; reference in this chapter to the “360-day basis” shall mean this method of determining the finance charge.

Section § 1802.21

Explanation

The 'precomputed basis' is a way to calculate a finance charge on a loan. It involves multiplying the initial amount owed by a rate, and then multiplying that result by the total number of payment periods from the start of the finance charge until the final scheduled payment.

“Precomputed basis” means the determination of a finance charge by multiplying the original unpaid balance of the contract by a rate and multiplying that product by the number of payment periods elapsing between the date on which the finance charge begins to be assessed and the date of the last scheduled payment.

Section § 1802.3

Explanation

This law defines a 'retail seller' or 'seller' as someone who sells goods or provides services directly to consumers.

“Retail seller” or “seller” means a person engaged in the business of selling goods or furnishing services to retail buyers.

Section § 1802.4

Explanation

This law defines a 'retail buyer' as someone who purchases goods or services from a retailer with a payment plan and not mainly to sell them again. It's about shoppers who plan to use what they buy themselves, not resell it.

“Retail buyer” or “buyer” means a person who buys goods or obtains services from a retail seller in a retail installment sale and not principally for the purpose of resale.

Section § 1802.5

Explanation

This law explains that a 'retail installment sale' is when a store sells goods or provides services to a customer and allows them to pay for it over time through multiple payments instead of all at once.

“Retail installment sale” or “sale” means the sale of goods or the furnishing of services by a retail seller to a retail buyer for a deferred payment price payable in installments.

Section § 1802.6

Explanation

This law defines a 'retail installment contract' as any agreement for a retail sale where the buyer pays back in installments. It applies whether the contract includes holding onto the title until paid off or not. It covers situations where a buyer agrees to pay finance charges or gets a discount for using cash or a credit card. It also includes deals where goods or services would have been cheaper or better quality if bought with cash. If a contract involves more than four installments, it falls under this definition. It further includes security agreements or leases where you eventually own the item if you make all the payments as agreed.

“Retail installment contract” or “contract” means any contract for a retail installment sale between a buyer and seller, entered into or performed in this state, which provides for (a) repayment in installments, whether or not such contract contains a title retention provision, and in which the buyer agrees to pay a finance charge, or in which the buyer does not agree to pay a finance charge but the goods or services are available at a lesser price if paid for by either cash or credit card, or in which the buyer would have received any additional goods or services or any higher quality goods or services at no added cost over the total amount payable in installments if the sale had been for cash, or (b) which provides for payment in more than four installments. When taken or given in connection with a retail installment sale, the term includes but is not limited to a security agreement and a contract for the bailment or leasing of goods by which the bailee or lessee contracts to pay as compensation for their use a sum substantially equivalent to or in excess of their value and by which it is agreed that the bailee or lessee will become, or for no other or for a nominal consideration has the option of becoming, the owner of the goods upon full compliance with the terms of the contract.

Section § 1802.7

Explanation

This law section defines what a 'retail installment account' is. Basically, it's an account created when you agree in California to pay off purchases from a store over time, with payments being made in installments. The agreement can include a finance charge, which is a cost for borrowing that is calculated as a percentage of what you owe, but it's not a fixed amount or added directly to the loan.

“Retail installment account” or “installment account” or “revolving account” means an account established by an agreement entered into in this state, pursuant to which the buyer promises to pay, in installments, to a retail seller, his outstanding balance incurred in retail installment sales, whether or not a security interest in the goods sold is retained by the seller, and which provides for a finance charge which is expressed as a percent of the periodic balances to accrue thereafter providing such charge is not capitalized or stated as a dollar amount in such agreement.

Section § 1802.8

Explanation

This section defines 'cash price' in a retail installment contract as the price a buyer would pay in cash today for goods or services if it wasn't an installment sale. This includes taxes and any costs for additional accessories or services.

“Cash price” means the cash price stated in a retail installment contract for which the seller would sell or furnish to the buyer and the buyer would buy or obtain from the seller the goods or services which are the subject matter of a retail installment contract if the sale were a sale for cash instead of a retail installment sale. The cash price shall include any taxes and cash prices for accessories and services, if any, included in a retail installment sale.

Section § 1802.9

Explanation

The term “total sale price” includes everything a buyer is expected to pay for a product or service. This means the item's base cost, any insurance, official fees, and the finance charge are all part of the total price.

“Total sale price” means the total of the cash price of the goods or services, the amounts, if any, included for insurance, official fees, and the finance charge.

Section § 1822

Explanation

If someone is holding something for you, they must give it back to you when you ask, unless they have a legal right to keep it as collateral (a lien), the true owner has told them not to give it back, or the law prevents them from doing so. They must also follow certain notification rules if applicable.

A depositary must deliver the thing to the person for whose benefit it was deposited, on demand, whether the deposit was made for a specified time or not, unless he has a lien upon the thing deposited, or has been forbidden or prevented from doing so by the real owner thereof, or by the act of the law, and has given the notice required by Section 1825.

Section § 1823

Explanation

Basically, if you leave something with someone for safekeeping, they don't have to give it back to you unless you actually ask for it, even if you agreed to keep it there for a set period.

A depositary is not bound to deliver a thing deposited without demand, even where the deposit is made for a specified time.

Section § 1824

Explanation

If someone is holding something for you, they can choose to give it back to you either from their home or their workplace, whichever is easier for them.

A depositary must deliver the thing deposited at his residence or place of business, as may be most convenient for him.

Section § 1825

Explanation

If someone is holding something for you—like if you left a valuable item with them—and something legally happens that might affect your ownership or their ability to return it to you, they must let you know right away. This is to ensure you're aware of any issues that could impact your property.

A depositary must give prompt notice to the person for whose benefit the deposit was made, of any proceedings taken adversely to his interest in the thing deposited, which may tend to excuse the depositary from delivering the thing to him.

Section § 1826

Explanation

If someone is holding onto an item for someone else but thinks it might actually belong to another person, they can notify this potential rightful owner. If the notified person doesn’t claim the item and prove ownership in a reasonable amount of time, and also doesn’t protect the holder from any claims by the person who initially deposited the item, the holder isn't liable if they return the item to the original depositor or make a decision affecting their situation regarding the item.

A depositary, who believes that a thing deposited with him is wrongfully detained from its true owner, may give him notice of the deposit; and if within a reasonable time afterwards he does not claim it, and sufficiently establish his right thereto, and indemnify the depositary against the claim of the depositor, the depositary is exonerated from liability to the person to whom he gave the notice, upon returning the thing to the depositor, or assuming, in good faith, a new obligation changing his position in respect to the thing, to his prejudice.

Section § 1827

Explanation

If two or more people share ownership of something stored with someone else and can't agree on how it should be returned, the person holding it can give each person their share, as long as it doesn't damage the item.

If a thing deposited is owned jointly or in common by persons who cannot agree upon the manner of its delivery, the depositary may deliver to each his proper share thereof, if it can be done without injury to the thing.

Section § 1828

Explanation

This law says that if a bank account is set up in the names of two or more people, with instructions that the money can be given to any one of them or the survivor(s), the bank can pay out the money to any one of those people or to the surviving person(s) if one passes away.

When a deposit is made in the name of two or more persons, deliverable or payable to either or to their survivor or survivors, such deposit or any part thereof, or increase thereof, may be delivered or paid to either of said persons or to the survivor or survivors in due course of business.

Section § 2304

Explanation

This law says that an agent can do anything on behalf of another person—who's called the principal—unless it's something the principal must personally handle themselves.

An agent may be authorized to do any acts which his principal might do, except those to which the latter is bound to give his personal attention.

Section § 2305

Explanation

This section says that if the law allows someone to do something, or have something done to them, they can have their agent do it or be involved instead. This is okay unless it's clearly stated otherwise.

Every act which, according to this Code, may be done by or to any person, may be done by or to the agent of such person for that purpose, unless a contrary intention clearly appears.

Section § 2306

Explanation

This law says that an agent (someone acting on behalf of another person) can't legally do something that is fraudulent against the person they're representing, especially if the other person involved knows or even suspects it's a fraud.

An agent can never have authority, either actual or ostensible, to do an act which is, and is known or suspected by the person with whom he deals, to be a fraud upon the principal.

Section § 2307

Explanation

This law section explains that you can create an agency, which means having someone else act on your behalf, by either giving them permission beforehand or by agreeing to their actions after they've been taken.

An agency may be created, and an authority may be conferred, by a precedent authorization or a subsequent ratification.

Section § 2308

Explanation

This law says that even if there’s no payment or promise in return (consideration), an agent’s authority to act on behalf of someone (the principal) is still valid and enforceable.

A consideration is not necessary to make an authority, whether precedent or subsequent, binding upon the principal.

Section § 2309

Explanation

This law says that you can give permission verbally for most things. However, if you're giving someone the authority to make a contract that legally needs to be in writing, that permission must also be given in writing.

An oral authorization is sufficient for any purpose, except that an authority to enter into a contract required by law to be in writing can only be given by an instrument in writing.

Section § 2310

Explanation

This law says that if someone wants to approve or confirm something that was done without their permission, they need to do it the same way they would have given the original permission. Alternatively, they can simply accept or keep the benefits of the action, as long as they know about it.

A ratification can be made only in the manner that would have been necessary to confer an original authority for the act ratified, or where an oral authorization would suffice, by accepting or retaining the benefit of the act, with notice thereof.

Section § 2311

Explanation

If you agree to or confirm any part of a deal that can't be split into separate parts, you are agreeing to the entire deal.

Ratification of part of an indivisible transaction is a ratification of the whole.

Section § 2312

Explanation

This law says that for you to approve or 'ratify' something someone did on your behalf, you must have had the authority to let them do it in the first place.

A ratification is not valid unless, at the time of ratifying the act done, the principal has power to confer authority for such an act.

Section § 2313

Explanation

This law says that if someone does something they weren't allowed to do, it can't be made valid later if it harms someone else, unless that person agrees to it.

No unauthorized act can be made valid, retroactively, to the prejudice of third persons, without their consent.

Section § 2314

Explanation

You can undo a ratification, which means officially approving something that was already done, if you didn't have the necessary consent when you approved it, or if you didn't fully understand the important details of what you were approving. However, you can't rescind it for any other reasons.

A ratification may be rescinded when made without such consent as is required in a contract, or with an imperfect knowledge of the material facts of the transaction ratified, but not otherwise.

Section § 2315

Explanation

This law says that an agent can only do what they are either directly or seemingly given permission to do by the person they represent.

An agent has such authority as the principal, actually or ostensibly, confers upon him.

Section § 2316

Explanation

This law is about "actual authority," which is the power a person gives to someone else to act on their behalf. It happens when the person in charge (the principal) either clearly gives this power to the other person (the agent) or makes the agent reasonably believe they have this power, even without intending to.

Actual authority is such as a principal intentionally confers upon the agent, or intentionally, or by want of ordinary care, allows the agent to believe himself to possess.

Section § 2317

Explanation

In simple terms, ostensible authority occurs when someone in charge, like a boss, makes a third person reasonably think that an agent or representative has the power to act on their behalf. This can happen either because the boss intentionally gave this impression or because they weren't careful enough to prevent it.

Ostensible authority is such as a principal, intentionally or by want of ordinary care, causes or allows a third person to believe the agent to possess.

Section § 2318

Explanation

This law states that agents generally have the powers given to them by this set of rules, unless their principal—a person they represent—specifically takes away some of that power. However, other people can assume the agent still has those powers unless they know or should reasonably know about these restrictions.

Every agent has actually such authority as is defined by this Title, unless specially deprived thereof by his principal, and has even then such authority ostensibly, except as to persons who have actual or constructive notice of the restriction upon his authority.

Section § 2319

Explanation
This law gives agents the power to do what’s necessary for their agency job, like typical business actions, and they can also make statements about facts crucial to their authority, as long as the truth of those facts can't be easily checked by the other person.
An agent has authority:
1. To do everything necessary or proper and usual, in the ordinary course of business, for effecting the purpose of his agency; and,
2. To make a representation respecting any matter of fact, not including the terms of his authority, but upon which his right to use his authority depends, and the truth of which cannot be determined by the use of reasonable diligence on the part of the person to whom the representation is made.

Section § 2320

Explanation

An agent can ignore their principal's instructions if it's clearly better for the principal and they can't reach them in time to get new directions.

An agent has power to disobey instructions in dealing with the subject of the agency, in cases where it is clearly for the interest of his principal that he should do so, and there is not time to communicate with the principal.

Section § 2321

Explanation

This law is saying that if you receive authority or permission described in both broad and detailed terms, you should not assume you have more power than what's specifically stated. The detailed terms limit the general authority.

When an authority is given partly in general and partly in specific terms, the general authority gives no higher powers than those specifically mentioned.

Section § 2322

Explanation

Even if someone is given broad authority, there are still things they can't do. They can't act in their name unless it's usually done in business that way, they can't decide how much power they have, and they can't break any rules that apply to trustees.

An authority expressed in general terms, however broad, does not authorize an agent to do any of the following:
(a)CA Civil Law Code § 2322(a) Act in the agent’s own name, unless it is the usual course of business to do so.
(b)CA Civil Law Code § 2322(b) Define the scope of the agency.
(c)CA Civil Law Code § 2322(c) Violate a duty to which a trustee is subject under Section 16002, 16004, 16005, or 16009 of the Probate Code.

Section § 2323

Explanation
If someone is given permission to sell someone else's personal property, they also have the right to assure the buyer that the owner truly owns the item, and that the item is as described in terms of quality and quantity.
An authority to sell personal property includes authority to warrant the title of the principal, and the quality and quantity of the property.

Section § 2324

Explanation

If someone is given the power to sell and transfer ownership of real estate, they also have the power to make common assurances about the property, like promising it's free from any hidden problems.

An authority to sell and convey real property includes authority to give the usual convenants of warranty.

Section § 2325

Explanation
If someone is given the responsibility to sell something and is also entrusted with the item being sold by the owner, they are allowed to collect the payment for it.
A general agent to sell, who is intrusted by the principal with the possession of the thing sold, has authority to receive the price.

Section § 2326

Explanation
When a special agent is appointed to sell something, they can collect the payment at the time of delivery, but they cannot receive payment after that moment.
A special agent to sell has authority to receive the price on delivery of the thing sold, but not afterwards.

Section § 2881

Explanation
In simple terms, a lien can be established in two ways: either through an agreement between parties or automatically by the law itself.
A lien is created:
1. By contract of the parties; or,
2. By operation of law.

Section § 2882

Explanation
A lien doesn't automatically take effect just because of the law. It only comes into play when the specific action it is supposed to secure needs to be done.
No lien arises by mere operation of law until the time at which the act to be secured thereby ought to be performed.

Section § 2883

Explanation

This law explains that you can make an agreement to put a lien, which is a claim, on property that you don't own yet. Once you get that property, the lien becomes valid. However, if you expect to receive property from an estate (someone's assets after they die) and want to create a lien on that property, the lien doesn't count until you actually receive the property. If the estate property is sold and the sale order is recorded, any potential lien you expected under your agreement is canceled.

(a)CA Civil Law Code § 2883(a) An agreement may be made to create a lien upon property not yet acquired by the party agreeing to give the lien, or not yet in existence. In that case the lien agreed for attaches from the time when the party agreeing to give it acquires an interest in the thing, to the extent of such interest.
(b)CA Civil Law Code § 2883(b) For purposes of subdivision (a), an agreement by a beneficiary of an estate that is subject to administration, as provided in Division 7 (commencing with Section 7000) of the Probate Code, to create a lien upon real property in the estate that is undistributed at the time the agreement is entered into, shall create no lien upon the real property unless and until the real property is distributed to that beneficiary. Upon recordation of an order confirming the sale of the real property pursuant to Section 10313 of the Probate Code and the recording of a duly executed deed in accordance therewith, any expectancy of a lien in the real property under the agreement shall be extinguished.

Section § 2884

Explanation

A lien can be set up through a contract to immediately secure future obligations that haven't yet come into being.

A lien may be created by contract, to take immediate effect, as security for the performance of obligations not then in existence.

Section § 2885

Explanation

When a state agency files a tax lien on someone's real property, they must send a written notice to the property owner. If previous mail to that address was undelivered with no forwarding address, they aren't required to send this notice. Not sending the notice doesn't change the legal power or priority of the lien.

Any state agency, upon recording a state tax lien against real property, shall mail written notice of the recordation to the tax debtor, unless previous correspondence mailed to the address of record was returned undelivered with no forwarding address. Failure to notify the tax debtor shall not affect the constructive notice otherwise imparted by recordation, nor shall it affect the force, effect, or priority otherwise accorded such tax lien.