[net.misc] legal tender

dickey@wxlvax.UUCP (Tom Dickey) (01/13/84)

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Due to the large number of replies related to the legality of using coins
to pay large bills, I am attempting to clarify it.

Coins are NOT legal tender.  This term indicates that the seller is legally
obligated to accept the money in that form.  Dollar bills are marked legal
tender so that there is no question.

Coinage is only legal tender when it is given in a relatively minimal amount.
The minimum number of coins, for example, is always legal tender (e.g.,
75 cents as 3 quarters, 20 cents as 2 dimes).  This is extended to permit
one degree of freedom when the buyer does not have exact change (e.g.,
using 5 pennies for a nickel, a quarter to approximate 20 cents, etc.)

When one examines this, the rule is commonsense: It is designed to ensure
that no one has to accept payment in a large number of coins.  The dollar
bill, however, is the basis of our currency; hence it is always legal
tender to ensure that it is always acceptable as payment.  This does not,
however, require the seller to count it by himself.  You may be stuck
helping him count it, not because it is not acceptable, but because he
must ensure for himself that you have paid him the correct amount.


T.Dickey (ITT/Advanced Technology Center)