I'm not a lawyer, but it was my understanding that by law all refundable deposits are to be held in escrow until the transaction is completed. That to say the deposits need to be kept separate from all other funds and not spent. I would assume it's everyone's policy that all deposits are refundable if the guitar is not delivered.
This is how I operate and I feel it is irresponsible not to do so. My deposit policy is such that they are non-refundable only if the client backs out of the agreement before the guitar is built. This is to insure an honest commitment on the part of the client. That said, it has never happened.
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Randy
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