In a layaway arrangement (covered by R.C. 1317.21 to R.C. 1317.24) the seller agrees to hold certain goods for the buyer and delivers the goods based on payment arrangements.
Layaway Arrangements of $500 or Less
Layaway agreements for goods costing $500 or less do not need to be in writing. Buyers may cancel such agreements at any time, but they must do so in writing. If the buyer fails to make a payment when due, the seller must notify the buyer of the default in writing. The buyer has 10 days to correct the default. After 10 days, if the buyer does not fix the default, the seller is entitled to $25 or 10 percent of the value of the goods, whichever is less.
Layaway Arrangements of $500 or More
If the layaway arrangement costs more than $500, the buyer must receive a copy of the written contract upon the buyer’s first payment. Buyers may cancel at any time, but they must do so in writing. The buyer may not be penalized for cancelling within the first five days, and the buyer’s down payment, deposit, or partial payment must be returned. Thereafter (or if the buyer defaults), the buyer may be penalized by up to 50 percent of the total amount the buyer has already paid.