October 27, 2007

Expect a DoJ Suit

Via Instapundit, we discover that Apple is no longer accepting Cash for IPhones.

Professor Reynolds properly says, "So much for that 'legal tender' thing." But I think that this is going to draw some government interest. Refusing to accept a note that the government has said is "Legal tender for all debts, public and private" is a direct and palpable challenge to the authority of that government.

I would not be the least bit surprised to discover that the Department of Justice is going to sue Apple to force them to accept the notes that the government has said must be accepted.

Or perhaps I'm wrong, and the government will say, "What a great idea. Let's eliminate cash and put everyone on a national credit system!"

Posted by at October 27, 2007 11:52 AM | TrackBack

Comments  (We reserve the right to edit and/or delete any comments. If your comment is blocked or won't post, e-mail us and we'll post it for you.)

Wow...just wow! This is the most insanely ludicrous thing I've read in a very long time. Requiring credit or debit cards to purchase this sets a dangerous precedent I hope the DOJ will quash.

I hope Bill O'Reilly picks this for his "Most Ridiculous Item" on Monday.

Posted by: Mike Matthews at October 27, 2007 02:05 PM

It is legal to limit when cash is acceptable - bills of a certain size and whatnot. There may be a question as to whether it's legal to refuse tender for a specific item because you suspect it's going to be resold. If Apple accepts cash for iPods, it should accept it for iPhones.

Posted by: Brud Lee at October 28, 2007 12:01 PM

This statute means that all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor. There is, however, no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise. For example, a bus line may prohibit payment of fares in pennies or dollar bills. In addition, movie theaters, convenience stores and gas stations may refuse to accept large denomination currency (usually notes above $20) as a matter of policy.

From the US Treasury site.

So, Apple is well within their legal rights to do this. And frankly it should be legal, as it's a private transaction and they can set terms as they see fit.

Posted by: Paul Smith at October 28, 2007 04:27 PM

i hope the someone sues apple and the governament take some action soon.
apple shoul put big sign in front the stores:
"your cash is not good here"
by the way apple should be a cashless company for everything they sell.

Posted by: Ricardo Rizzo at October 28, 2007 08:51 PM