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The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us)



STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL


Opinion No. 5954

August 12, 1981

BEVERAGES:

Form of refund on returnable beverage containers

1976 PA Initiated Measure requires dealers to redeem returnable beverage containers with ready money, such as coin and paper money, and the dealer may not make the refund in merchandise or in credit slips to be used towards the purchase of merchandise.

Honorable James A. Barcia

State Representative

State Capitol

Lansing, Michigan

You have requested my opinion as to whether a dealer selling beverages in returnable beverage containers may redeem the beverage containers only in merchandise or in credit slips to be used toward the purchase of merchandise.

1976 PA Initiated Measure; MCLA 445.571 et seq; MSA 18.1206(11) et seq, provides for a system of deposits and refunds on all soft drink and malt beverages sold in returnable beverage containers within the State. As used in 1976 PA Initiated Measure, supra, Sec. 1, defines 'dealer' as follows:

'(f) 'Dealer' means a person who sells or offers for sale to consumers within this state a beverage in a beverage container, including an operator of a vending machine containing a beverage in a beverage container.'

As last amended by the Legislature by 1977 PA 270, 1976 Initiated Measure, supra, Sec. 2, in petinent part, sets forth the requirements which a dealer must observe in regard to refunds of deposits on returnable beverage containers:

'(2) A dealer who regularly sells beverages for consumption off the dealer's premises shall provide on the premises, or within 100 yards of the premises on which the dealer sells or offers for sale a beverage in a returnable container, a convenient means whereby the containers of any kind, size, and brand sold or offered for sale by the dealer may be returned by, and the deposit refunded in cash, to, a person whether or not the person is the original customer of that dealer, and whether or not the container was sold by that dealer.'

'(4) A dealer shall not refuse to accept from a person an empty returnable container of any kind, size, and brand sold by that dealer, nor refuse to pay to the person its full refund value in cash, except as provided in subsections (5) and (7).' (Emphasis added.)

The term 'cash' is not defined in 1976 Initiative Measure, supra. The commonly understood meaning of the term 'cash' is ready money, such as coin and paper money. Webster's Third New International Dictionary.

Courts have held the common meaning of the term 'cash' to be ready money. Kerlin v Young; 159 Ga 95; 125 SE 204 (1924) and People v Quiel, 68 Cal App 2d 679; 157 P2d 446 (1945). There is no indication that the people, in the enactment of 1976 Initiated Measure, Sec. 2(2) and (4), supra, intended such refunds to be payable in the forms of legal tender such as checks or draft. National Bank of Detroit, v Land Office Board, 300 Mich 240, 246; 1 NW2d 525 (1942).

Providing for the redemption of beverage containers only in merchandise or in credit slips to be used toward the purchase of merchandise would not meet the statutory requirement that such redemption must be for cash.

It is my opinion, therefore, that a dealer is prohibited from redeeming returnable beverage containers only in merchandise or in credit slips to be used toward the purchase of merchandise.

Frank J. Kelley

Attorney General


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