Legal Definitions - layaway

Layaway refers to a retail agreement where a consumer makes a deposit on an item, and the seller sets that item aside, agreeing to sell it to the consumer at a future date once the full purchase price has been paid.

Under a layaway plan, the consumer typically makes an initial down payment and then continues to make periodic installment payments until the total cost of the item is covered. During this period, the seller holds the goods, ensuring they are reserved for the consumer. The consumer does not take possession of the goods until the entire agreed-upon price has been paid. This system allows consumers to secure items they wish to purchase without needing to pay the full amount upfront, while also ensuring the seller retains the item until payment is complete.

• Example 1: Securing a Holiday Gift
  A parent wants to buy a popular new gaming console for their child's birthday, which is three months away. They visit an electronics store that offers layaway. The parent makes a 10% down payment on the console, and the store places the item in a secure storage area, marking it as sold under the layaway plan. Over the next three months, the parent makes bi-weekly payments until the full price is paid. On the child's birthday, the parent picks up the console from the store.
  This illustrates layaway because the store held the specific item for the consumer, who made incremental payments over time, and only received the goods once the entire purchase price was satisfied.
• Example 2: Purchasing a Seasonal Item
  A customer finds a unique, high-quality winter coat on sale in early autumn. They love the coat but don't have the full amount available until their next paycheck in two weeks. To ensure the coat isn't sold out by then, they put it on layaway at the department store with a small deposit. The store tags the coat and removes it from the sales floor. Two weeks later, the customer returns, pays the remaining balance, and takes the coat home.
  This demonstrates layaway as the agreement allowed the customer to secure a specific item, preventing it from being sold to another buyer, by making an initial payment and completing the purchase at a later date.
• Example 3: Furnishing a New Home
  A young couple is moving into a new apartment and finds a dining room set they adore at a furniture store. The set is expensive, and they need a few months to save up the full amount. The store offers a six-month layaway plan. The couple makes a significant down payment, and the store marks the dining set as reserved in their warehouse. They then make monthly payments for the next five months. Once the final payment is made, the store arranges for the delivery of their dining room set to their new apartment.
  This example shows layaway being used for a larger, more expensive purchase, involving a longer payment schedule and the store holding the goods until the entire financial obligation is met.