Seller Rights in a Store: Sales, Returns, and Employee Protection

A seller may check the grounds for a customer’s request, the condition of the goods, the circumstances of sale, and the cause of a defect. To use these options, a store should establish a clear process for receiving requests, record inspection results, and meet the deadlines that apply to the specific request. A refusal must be justified: a sign saying “goods cannot be returned” or a cashier’s personal decision does not replace the law.

Owners should define staff authority separately: who accepts goods, checks documents, approves refunds, and calls for help in an emergency. An employed seller is entitled to pay and safe working conditions, while labor legislation determines their liability for errors and stock shortages.

Identify whose rights need protection

In a retail contract, the seller is the entrepreneur or legal entity selling the goods. That party accepts payment and is responsible to the customer for performing the contract. The employee at the counter acts within the authority assigned to them. This division follows from Article 698 of the Civil Code of Ukraine (CCU).

This article explains the rules for sales in a retail store in Ukraine to customers buying goods for personal or household use. If a contract is concluded remotely or outside retail premises, check the special rules in Articles 12 and 13 of the Law of Ukraine “On Consumer Rights Protection” No. 1023-XII before deciding on a return. The CCU and the Law of Ukraine “On Consumer Rights Protection” No. 1023-XII apply to dealings with such customers. Employment relations between a store and its seller are governed by the Labour Code of Ukraine (LCU).

It is useful in practice to record in the job description which decisions an employee may make independently and which must be referred to a manager. For example, a cashier accepts requests and checks the sale, an administrator arranges a quality inspection, and an authorized person documents the decision. Internal procedures should ensure that the requested remedy is provided within the legal deadline, even when the owner is absent.

Use the rules of Law No. 1023-XII for returns and warranty claims. The general entry into force of Law No. 3153-IX has been postponed until martial law is terminated or lifted, under paragraph 1 of its Final and Transitional Provisions. Its rules should not be incorporated into the store’s current procedure.

When a store may refuse a sale

A retail contract is a public contract. Under Article 633 of the CCU, an entrepreneur cannot refuse a person without grounds if they are able to sell that person the relevant goods. Terms must be the same for consumers, except for benefits provided by law. Article 17 of Law No. 1023-XII also prohibits unjustified preferences and restrictions on customers’ rights.

Therefore, a customer’s previous complaint, appearance, or an employee’s personal dislike are not grounds for refusal. At the same time, a store must comply with legal restrictions on the sale of specific goods. If an age check is required for an item, the employee should follow a separate procedure for that category: check the required proof and explain why the sale cannot proceed.

State an objective reason specifically. For example, the requested item is actually out of stock, or the store is temporarily unable to lawfully process the payment because its cash register equipment has malfunctioned. Before halting payments, the manager should check whether a legally permitted backup procedure is available.

Under Article 5 of Law No. 265/95-VR, if a software cash register (software RRO) malfunctions, payment transactions must stop until the malfunction is fixed. Loss of connection to the fiscal server is handled differently: if a range of fiscal numbers has been obtained, offline mode may be used. Paragraph 13 of Section II of this Law allows the usual time limits for this mode to be exceeded during martial law. This provision does not allow the store to operate without an obtained range of numbers.

How to collect payment and meet the store’s obligations

Under Article 698 of the CCU, the buyer must accept and pay for the goods. For an ordinary checkout sale, it is advisable to set a procedure under which the employee hands over the purchase after payment is confirmed. If the terminal does not confirm the transaction, the cashier should check its status before charging again to avoid a duplicate debit.

Before the purchase, the seller must provide necessary, accessible, and reliable information about the goods. Articles 700 of the CCU and 15 of Law No. 1023-XII cover, among other things, their properties, price, terms of use, warranty, and how claims are accepted. The buyer has the right to inspect the goods and, depending on their nature and the rules of trade, check their properties or see a demonstration of how they work.

If the store has not made it possible to obtain complete and reliable information immediately at the point of sale, Part 3 of Article 700 of the CCU allows the buyer, within a reasonable time after concluding the contract, to withdraw from it and claim a refund, damages, and compensation for moral harm. Therefore, if a customer bases a return request on information that was not provided or was inaccurate, check what information the store gave before the purchase; the availability of an equivalent item for exchange does not, by itself, resolve that request.

Owners should arrange for price tags to be checked after price changes, and sellers should verify the product name, quantity, and amount due before completing the transaction. If a discrepancy arises, the employee should involve the responsible person and explain the result of the check to the customer.

When a store is required to use a cash register (RRO) or software cash register (software RRO), the transaction must be processed for the full amount and a payment document in the prescribed form must be provided. Article 3 of Law No. 265/95-VR provides for paper and electronic formats. Article 8 of Law No. 1023-XII requires a paper or electronic payment document to be issued or created no later than when the goods are handed over. The store must provide the required option to pay cashlessly in accordance with the law; Article 17 prohibits restricting it where this obligation applies.

How to exchange goods in good condition and check the grounds for a return

Article 9 of Law No. 1023-XII gives customers the right to exchange non-food goods in good condition for similar goods from the seller from whom they bought them. The reason may be an unsuitable size, style, color, dimensions, or another circumstance that prevents the buyer from using the item for its intended purpose.

The period is 14 days, excluding the day of purchase, unless the seller has announced a longer period. An exchange is available if the goods have not been used and their appearance, consumer properties, seals, and tags have been preserved, along with the proof of payment required by law.

1. Clarify whether a good-quality item is unsuitable for the customer or the customer is reporting a defect. Different rules apply to these cases.
2. Check the sale date and any longer exchange period announced by the store.
3. Inspect the goods together with the customer and record any specific signs of use or damage.
4. Compare the goods with the list in Appendix 3 to Resolution No. 172 of the Cabinet of Ministers of Ukraine.
5. Check whether similar goods are available for exchange and offer the option provided by law.

The list of good-quality goods that cannot be exchanged or returned under this rule includes, among other things, perfumes and cosmetics, underwear and bed linen, hosiery, gloves, soft children’s toys, and jewelry made from materials specified in the list. Before refusing, check the exact category wording in Appendix 3 to Resolution No. 172. This list applies to good-quality goods and does not remove obligations relating to defects.

When the customer may choose a refund

If similar goods are not available for exchange at the time, the customer chooses whether to buy other goods with a price adjustment, terminate the contract and receive a refund, or wait for similar goods to arrive. In the last case, the seller must notify the customer on the same day the goods arrive. The store cannot force the customer to accept a voucher instead of a refund.

Under Article 9, the refund is based on the price at the time of purchase and is paid on the day the contract is terminated. If that is not possible, the parties agree on another date, which cannot be more than seven days later. Seven days are therefore not an automatic extension for every return.

Example. A customer bought a sweater for UAH 1,200. The required size is unavailable for exchange, so the customer chooses another item priced at UAH 1,450. The difference is UAH 250: 1,450 − 1,200. If the customer chooses to terminate the contract under Article 9, they receive a refund of UAH 1,200.

What to do if the paper receipt is lost

Article 9 expressly provides for an electronic payment document and the option to identify it using a QR code, a two-dimensional code that a device can scan. Article 707 of the CCU refers to evidence that the goods were purchased from this seller. So start by checking for an electronic receipt and searching for the sale by date, item, and amount.

Document requirements depend on the reason for the request and the type of goods. For defects, Article 8 sets requirements for the payment document and, for goods covered by a warranty, for the technical passport or a replacement document marked with the sale date. For medicines and medical devices, the payment document required under Law No. 265/95-VR is needed. For technically complex household goods, that payment document is required together with the technical passport or a replacement document marked with the sale date.

For technically complex household goods, Parts 10–11 of Article 7 allow operating documents to be provided and warranty obligations to be issued electronically through the manufacturer’s official website. At the customer’s request, the seller must register the item on the manufacturer’s website at the time of sale and issue an electronic warranty. Therefore, before requiring a paper passport, check whether electronic documents and a warranty have been issued for the item.

At the consumer’s request, the seller must provide operating documents in paper form. If the customer has lost the technical passport or a replacement document, Part 11 of Article 8 provides for its restoration in accordance with the procedure established by law. Do not treat the absence of a paper receipt as universal grounds for refusal, or assume that any bank statement is automatically a sufficient set of documents.

What to do when a customer reports a defect

Under Article 8 of Law No. 1023-XII, if defects are found during the warranty period, a consumer may require a proportionate price reduction, free repair, or reimbursement of repair costs. For a significant defect caused by the manufacturer, seller, or service provider, or for counterfeit goods, the law provides a choice between terminating the contract and receiving a refund or replacing the goods.

Before deciding whether a defect is significant, check its definition in Clause 12 of Article 1 of Law No. 1023-XII. Difficulty using the goods is not enough: the defect must make their intended use impossible or unacceptable. It must have arisen through the fault of the manufacturer, seller, or service provider and, after being fixed, must recur for reasons beyond the consumer’s control. It must also have at least one of three features: it cannot be fixed at all, fixing it takes more than 14 calendar days, or it makes the goods substantially different from what the contract provided for.

A report of a breakdown alone is not enough to establish this. If necessary, an expert assessment confirms a significant defect under Part 1 of Article 8 of Law No. 1023-XII. Likewise, an external scratch does not prove that the customer caused the malfunction. The nature of the defect and its cause must be established. Part 1 of Article 708 of the CCU separately gives the buyer the right to choose repair, reimbursement of repair costs, replacement of the goods, a price reduction, or withdrawal from the contract with a refund if defects not disclosed by the seller or counterfeit goods are discovered within the prescribed time limits.

Therefore, when reviewing a request, also check the grounds under the CCU: the absence of a significant defect under Article 8 of Law No. 1023-XII is not, by itself, a sufficient reason to refuse without considering this provision. Sellers should not promise a refund in advance for every breakdown or force every customer to accept a repair.

The store must accept goods of inadequate quality. The buyer may submit a request to the seller at the place of purchase, the manufacturer, or an enterprise that handles such requests at the consumer’s location. At the consumer’s location, claims must also be satisfied by retail businesses and branches established by the seller’s owner that sell similar goods, or by enterprises assigned these functions under a contract.

The store should therefore check whether it must accept a request about a purchase made at another of its locations; it cannot make the customer’s direct contact with a service center the only way to handle a claim. The seller, manufacturer, or enterprise handling the request pays to transport bulky goods or goods weighing more than five kilograms, and to return them to the customer.

How to record acceptance and arrange an expert assessment

We recommend preparing an acceptance document in duplicate. Record the model, serial number if available, completeness, external condition, the customer’s description of the malfunction, their request, the handover date, and the documents received. Keep facts recorded during the inspection separate from assumptions about the cause of the breakdown.

The buyer has the right to take part in a quality inspection personally or through a representative. If it is necessary to determine the cause of a loss of quality during the warranty period, Article 17 of Law No. 1023-XII requires the seller to arrange an expert assessment within three days of receiving the consumer’s written consent. This deadline applies to arranging the assessment.

The seller pays for the expert assessment initially. If its findings prove that the defects arose after the goods were handed over because of improper use, storage, or transport, or the actions of third parties, the request is not granted and the consumer reimburses the assessment costs. Either party may challenge the findings in court. Under Part 14 of Article 8, if a request is refused on the grounds that the buyer violated the rules for use or storage, the seller or other responsible party must prove that violation.

Which deadlines to track

At the buyer’s written request, a temporary replacement item must be provided from a pool of loan goods and delivered for use during repairs if the relevant category is listed in Appendix 2 to Resolution No. 172. This includes, among other things, refrigerators, washing machines, vacuum cleaners, electric kettles, and mobile phones. Part 9 of Article 8 provides for a penalty of 1% of the goods’ value for each day the replacement item is late and for each day defects remain unrepaired beyond the prescribed period.

For refunds on defective goods, Article 8 sets out a separate calculation: if the price has increased, use the price at the time the request is made; if it has decreased, use the price at the time of purchase. When replacing goods with the same brand, model, article number, and modification, no price adjustment is made due to a price change. When replacing them with goods of another brand or model, the value of the defective goods for the adjustment is determined as follows: if their price has increased, use the price at the time of exchange; if it has decreased, use the price at the time of purchase.

If no warranty period or shelf life has been set for the goods, Part 5 of Article 7 of Law No. 1023-XII allows relevant claims to be made if defects are found within two years of the date the goods are handed over to the consumer. The absence of a warranty does not, by itself, justify refusal. When checking the claim period, also account for previous repairs and replacements: under Parts 6–7 of Article 7, the warranty is extended by the repair period, counted from the day the request to fix defects is made, and after replacement it starts again on the date of exchange.

If a component or part with a set warranty is replaced during repair, under Part 9 of Article 8 its warranty period starts on the day the goods are returned after repair. A request made after the warranty has expired also needs to be checked. Part 10 of Article 8 allows consumers, after the warranty has expired, to require the manufacturer or seller to fix defects caused by the manufacturer free of charge during the set service life, or, if none has been set, within ten years.

If this request is not met within 14 days or another period agreed by the parties under Part 9 of Article 8, the buyer may choose another remedy provided in Part 1 of this Article. The store should therefore track the repair deadline and consider the customer’s new request if it is missed. For seasonal goods, check the start of the warranty period under Appendix 1 to Resolution No. 172.

If the contract date and the handover date differ, under Part 4 of Article 7 the warranty is counted from the handover date, or, if the goods require special installation, connection, or assembly, from the date that work is done. If the relevant date cannot be established or the customer possessed the goods before concluding the contract, the period is counted from the contract date.

Under Part 3 of Article 7, the shelf-life period is treated as the warranty period. Check these circumstances before refusing on the grounds that the warranty has expired. A lack of necessary materials, components, or spare parts does not end a warranty obligation; this is expressly provided for in Part 9 of Article 7. For used non-food goods sold through retail consignment stores, Part 2 of Article 8 of Law No. 1023-XII provides for claims to be granted with the seller’s consent if the warranty period has not expired.

At the same time, Part 2 of Article 708 of the CCU gives a buyer of used non-food goods sold through a retail consignment store the right to make the claims provided for in that article if the buyer was told the goods had been used and the purchased goods have significant defects that the seller did not disclose. Before deciding, the store must check these circumstances; the seller’s lack of consent alone is not sufficient grounds for refusal without considering the CCU provisions.

If a customer has purchased an unfit food product, Part 8 of Article 8 requires the seller to replace it with a fit product or refund the money. The rules on exchanging good-quality non-food goods do not apply to this situation.

How sellers can claim reimbursement from the manufacturer

Part 12 of Article 8 of Law No. 1023-XII requires the manufacturer to reimburse the seller for all losses related to handling a consumer complaint about purchased goods. For goods manufactured outside Ukraine, Part 13 must also be taken into account: consumer claims provided for in Part 1 of this Article are satisfied at the expense of the seller or importer. Therefore, before seeking reimbursement, the owner should establish who is responsible for costs relating to the specific goods.

The seller or manufacturer must also reimburse an enterprise performing its functions, within one month, for losses related to satisfying the consumer claims provided for in this Article. Store owners should therefore keep records of the request, acceptance of the goods, remedy provided, and costs incurred, and use them to seek reimbursement from the responsible party.

How to accept a complaint and provide a clear response

For a disputed request, we recommend asking the customer to describe the circumstances and one specific remedy in writing. This helps identify the required action and deadline. For defect claims, Part 3 of Article 8 of Law No. 1023-XII provides for the consumer to choose one remedy, and, if it is not provided, to make another claim listed in Part 1 of this Article. Therefore, after failing to meet the original request, the store should consider the customer’s new request and check whether the legal grounds for granting it are met.

At the same time, the employee must accept an oral request and clarify its content, without making completion of an internal form an obstacle to exercising the customer’s rights.

1. Record the purchase date, item name, nature of the problem, and date it was found.
2. Clarify the request: exchange of a good-quality item, repair, price reduction, reimbursement of costs, replacement, or termination of the contract.
3. List the goods and documents received and agree on how to contact the customer.
4. Assign a responsible employee and identify the deadline for this specific action under Article 8, 9, or 17.
5. Give the customer a copy of the acceptance document and explain what will happen next.

A written response should state the facts established, documents reviewed, decision, its legal basis, and the next action. If refusing, give a specific reason and supporting evidence. For example, a claim that a good-quality item has been used should be linked to inspection findings; a conclusion about the cause of a malfunction should be based on an appropriate inspection or expert assessment.

Do not set one general “complaint review” deadline for every request if it effectively postpones an immediate exchange, repair, or refund. A written response and fulfilling the request are separate actions, and the legal deadline for fulfillment depends on the request.

Example conversation about an exchange

Customer: “I bought a jacket, but the size doesn’t fit. I want a refund.”

Seller: “Let’s check the purchase date, proof of payment, and the condition of the jacket. For good-quality goods, the law provides for an exchange for similar goods. I’ll check whether the right size is available. If it isn’t, you can choose a refund, another item with a price adjustment, or an exchange once the item arrives.”

Customer: “I don’t have the paper receipt.”

Seller: “Please check whether you still have the electronic receipt. I’ll also search for the sale by date, amount, and model to see which documents can confirm the purchase.”

How to act safely during aggression or suspected theft

For conflicts, we recommend a simple procedure: the seller speaks calmly, keeps a safe distance, and involves an administrator. If a customer threatens someone, tries to hit someone, or damages property, the employee should move to a safe place, call for help, and contact the police if necessary. The substance of the complaint can be recorded separately from the dangerous behavior.

A useful phrase is: “I’ll accept your request and call the administrator. Please stop threatening the employee and step away. If the danger continues, we’ll call the police.” The store should provide an accessible way to submit a complaint so that ending a dangerous conversation does not prevent it from being handled.

When theft is only suspected, store employees should not search the person or their bag, take their phone, documents, or personal belongings, block the exit, or forcibly detain the visitor. A practical procedure for staff is to notify the administrator and security, call the police if necessary, and report the facts. A seller’s job title does not give them authority to search or confiscate property.

We recommend recording the time of the incident, specific observations, and information about witnesses; preserving the relevant footage lawfully obtained; and keeping related records. Access to these materials should be limited to responsible staff, and they should be handed over to authorized bodies through lawful procedures. Employees should describe what they saw without making public accusations.

What employment rights an employed seller has

The employer must organize work and provide safe working conditions under Articles 141 and 153 of the LCU. For a store, this includes, among other things, functioning equipment, safe storage of goods, and occupational health and safety briefings and fire safety briefings. Employees should report unsafe equipment or another hazard in writing and keep proof that they did so.

Article 153 allows an employee to refuse assigned work if a workplace situation arises that is dangerous to the employee’s life or health, to people nearby, or to the environment. An employer cannot require work that poses an obvious danger to life. To act consistently, the seller should identify the specific danger, notify the manager immediately, and record the circumstances. A normal disagreement with a customer is not, by itself, such a situation.

Pay terms must be clearly communicated to the seller. Employees should know what makes up their earnings, how bonuses are calculated, and how to check their pay. If their pay is reduced because of a customer complaint or stock shortage, they should ask for an explanation of the grounds and calculation for the deduction.

Why owners cannot impose fines themselves

For an ordinary store employee, Article 147 of the LCU provides for a reprimand or dismissal on a lawful basis. An owner cannot create their own disciplinary penalty, such as a fine for lateness, a complaint, or a checkout error. Wage deductions are allowed only in cases established by law.

Before imposing a disciplinary penalty, the employer must request written explanations and take into account the seriousness of the misconduct, the circumstances, and the employee’s previous work. Only one disciplinary penalty may be imposed for one violation; it must be documented by an order and brought to the employee’s attention against signature. Article 148 sets a deadline of up to one month from discovering the misconduct, excluding time on temporary disability leave and vacation, and no later than six months from when it was committed.

How to assess liability for a stock shortage

Under Articles 130–132 of the LCU, the employer must establish direct actual damage, a breach of work duties, the employee’s fault, and a link between their actions and the damage. The employer must also create conditions for preserving the entrusted property. Under Article 130 of the LCU, an employee cannot be held liable for damage that falls within normal business risk or damage caused while acting in a state of necessity. When investigating a shortage or damage, owners must take these exceptions into account. A shortage by itself or employment as a seller does not mean automatic full material liability.

The general rule limits the liability of an employee who is not an officer to their average monthly earnings. Full liability is possible only on grounds provided by law, including Article 134. If the employer relies on a written agreement to establish full material liability, Clause 1 of Article 134 of the LCU requires that the agreement comply with Article 135-1 of the LCU. Before entering into an agreement on full material liability, the employer must check the requirements in Article 135-1 of the LCU regarding the employee’s age, the work actually performed, and the applicable list of positions and jobs.

The job title “seller” alone is not enough to justify such a decision. Signing an agreement does not remove the need to prove the employee’s fault and the other conditions for liability.

In practice, owners should start by checking shift handovers, incoming stock, sales, returns, transfers, and access to the goods. Sellers should provide their own explanations, note discrepancies, and keep copies of documents. This helps establish the cause of a shortage before deciding whether to recover losses.

Under Article 136, an order to recover damage up to the employee’s average monthly earnings must be issued within two weeks of discovering the damage and submitted for enforcement no earlier than seven days after the employee is notified. In other cases, this Article provides for court proceedings. Under Article 128, the general deduction limit for each payment is 20%; other limits apply only in cases specifically provided for by law. An employee may dispute the grounds and amount of a deduction.

Using Torgsoft to track sales and returns when reviewing requests

In Torgsoft’s “Returns” mode, staff can find a purchase using the barcode on a receipt issued through Torgsoft or select the relevant sale from a list, then specify the items and quantities to be returned. The documentation also describes selecting a sold item without a receipt. For an identified customer, the list shows only items they bought. By default, it covers the period set by the maximum return period and the current accounting center.

If the purchase was made at another accounting center, change the relevant filter; to view all centers, clear it. Before processing the transaction, the employee should check the details found against the goods and the decision made on the request. The maximum return period is set under “Settings” — “Parameters” — “General.” According to the documentation, returns in the software are possible within this period; if more time has passed since the purchase, the program will notify the user that the period has been exceeded.

Before processing a customer’s lawful claim, check this setting: it does not determine the extent of the customer’s rights.

To check discrepancies, the “Sales” form contains reports by day and sales over a period, while “Warehouse Status” lets staff review stock balances, goods movement, and the stock record card after receipt, sale, return, or transfer. When accounting for multiple centers and transfers, consider the license features: Torgsoft-Start supports one accounting center, and transfers between warehouses are unavailable with this license.

Managers should agree access rights and cash register workstation settings with the responsible staff. According to the “Returns” mode documentation, after activating the additional “Fiscal register integration” feature, the “Fiscal register” button becomes available with the “Void receipt” action in case of an error when printing a fiscal receipt. Accounting records and reports help check transactions, but do not, by themselves, establish the cause of a defect, whether a refusal is lawful, or whether the seller is at fault for a shortage.

Which rules to use when making a store decision

• Civil Code of Ukraine No. 435-IV: Articles 633, 698–700 — public retail contracts, payment, and information; Articles 707–708 — exchanges and rights relating to defective goods.
• Law of Ukraine “On Consumer Rights Protection” No. 1023-XII: Article 8 — defects, acceptance of goods, and deadlines; Article 9 — exchange of good-quality goods; Articles 15 and 17 — information, service, and expert assessment.
• Resolution No. 172 of the Cabinet of Ministers of Ukraine: Appendix 1 — seasonal warranties; Appendix 2 — goods provided as temporary replacements during repairs; Appendix 3 — list of good-quality goods that cannot be exchanged or returned.
• Law of Ukraine No. 265/95-VR on the use of cash registers: Article 3 — processing payments; Article 5 — malfunctions and offline operation; paragraph 13 of Section II — special time limits for offline mode.
• Labour Code of Ukraine No. 322-VIII: Articles 127–128 — deductions; 130–136 — material liability; 141 and 153 — work organization and safety; 147–149 — disciplinary penalties.
• Law of Ukraine No. 3153-IX: paragraph 1 of Section IX — conditions for entry into force, which should be checked before changing store procedures.