Let’s face it – - everybody loves a gift card! Here’s the summarized law on gift cards sold after January 1, 1997.  California has thankfully developed a pro-consumer stance on this issue:

1.  No expiration dates!  (Exceptions:  for food/grocery, from nonprofit fundraisers, award programs, and prepaid calling cards.)  What I found fascinating is if you buy a gift card that can be used with multiple unaffiliated sellers of goods or services (for example, a card that can he used at any store in Victoria Gardens mall), then that type of gift card may have an expiration date, provided it is printed on the card.  Civil Code Section 1749.45, subd. (a).  Tricky.  This exception is particularly interesting because I’ve seen the “multiple seller” gift card creep up in popularity within the last few years.  The lesson is if you decide to purchase a multiple seller gift card, then be aware of the expiration date.

2.  A gift card cannot contain a service fee (some exceptions apply if value on card is $5.00 or less, and other stuff happens)

3.  Effective January 1, 2008, if you have a gift card with less than $10 value on it, you can redeem it for cash value. Civil Code Section 1749.5, subd. (b)(1).

4.  If the seller of the gift card goes bankrupt, you’re out of luck.  Technically you may have a claim against the bankruptcy estate.  Practically, you’re out of luck.

For more information, the gift card laws are at California Civil Code Sections 1749.45 – 1749.6 in your local law library.  Now gift away!

A few times per year friends and colleagues call me to ask the maximum limit to a small claims court claim.  They want to know if they must file in small claims court, or if they can file in superior court.  Here are the claim limits for California small claims courts, as of the date of this posting:  Individuals can file a claim not exceeding $7500.  Corporations can file a claim not exceeding $5,000.  If your claim exceeds these limits, then you’re looking at filing in superior court.

Remember that you cannot be represented by counsel in small claims court.  You can file as many claims as you want for more than $2500/ea. but you can only file two claims in a calendar year that request more than $2500. The filing fee is based on the amount of your claim and the number of the claims you have filed in the past 12 months; the fee will range between $30-$100.  The California Courts publish guidelines on their website that can answer your other questions:  http://www.courtinfo.ca.gov/selfhelp/smallclaims/scbasics.htm.  Good luck!