Can a business owner refuse specific Bills and Coins?

Question

I was reading an article article which outlines a Pizza Shop owner in Canada who is refusing to take $10 Bills with John A. MacDonald on them. For context John A. MacDonald(the first Prime Minister of Canada) was on all $10 bills until 2017, when the new series had the obverse replaced by Viola Desmond, of bills currently in circulation I would say roughly half are of the old variety, just based on my experience.

Forgetting all nuances and subtleties of current events and why this man made his decision; is this allowed? The bills are recognized as Canadian Currency, and as a business operating in Canada is there not an obligation to serve all Canadians fairly regardless of the person on the face of their currency, since they definitely did not make that choice themselves?

Of course many places do not accept $100 bills, but that is because of forgery. It seems to be that being able to deny someone business based on when their money was printed is awfully shakey ground, what if something terrible happened to me in 2020 and I refuse all coins minted that year?

Answer 1

Canada may have specific different laws, but in most countries any legal tender must be accepted for payment of a debt. There are subtleties; in the UK for example more than 20 one penny coins are not legal tender. Old coins or banknotes may cease to be legal tender at some point and can only be exchanged at a bank; it seems Canada's $10 bill is nowhere near that point.

The biggest "loophole" is that a business owner doesn't have to allow you to create a debt. Say you go shopping in a supermarket for $40. You take your shopping, you now have a $40 debt. You take four $10 bills and hand them over, your debt is paid. At that point this $10 bill must be accepted. However, the shop owner could refuse to let you take the shopping if he doesn't like your bills. So you have no debt, so he doesn't have to accept legal tender as a debt.

In a restaurant, where you typically eat your food, creating a debt, then he cannot refuse the $10 bill. And in a shop, this will not be good for his business. If my $10 bills are not accepted, then I will take advantage of my right to shop elsewhere.

Answer 2

CBC, the public Canadian broadcaster, quotes the Bank of Canada:

Even though it is legal currency, the Bank of Canada says it is not mandatory for Canadian businesses to accept cash.

According to the Bank of Canada, retailers don't have to take bills or coins "because both parties must agree on the payment method."

I find that surprising because it undermines the value of legal tender. There is, of course, a principle conflict between freedom of contract on one hand and the interest of societies (via their governments) to maintain the value and usability of their domestic currency on the other hand. Canada resolved it favoring freedom of contract. In the European Union the conflict is still not uniformly decided (see Report of the Euro Legal Tender Expert Group (ELTEG), undated, p. 6). The recommendation of that paper is about the opposite of the Canadian regulation: A business must accept cash unless both parties agree to use a different form of payment.

Answer 3

The Canadian Human Rights Act states

5 It is a discriminatory practice in the provision of goods, services, facilities or accommodation customarily available to the general public

(a) to deny, or to deny access to, any such good, service, facility or accommodation to any individual, or

(b) to differentiate adversely in relation to any individual,

on a prohibited ground of discrimination.

And the "prohibited ground of discrimination" is your usual fare of sex, race, national origin, ex-cons, or pregnant women. Can't refuse service to any person for those reasons.

But after searching Canadian laws for other reasons someone may refuse service, I couldn't find any. At the end of the day, the shop keeper owns the merchandise, and as such he and he alone determines the conditions under which it leaves his possession. If he doesn't like your money, then he doesn't have to accept it. Legal tender in Canada is simply regarded as notes printed by the Bank of Canada, and 'In legal terms, it means “the money approved in a country for paying debts.”', but contains no obligation in its definition to be accepted by Canadian citizens if a debt isn't owed.