Hawaii
Hawaii’s courts start from the old rule that the law dislikes forfeitures, and the word “non-refundable” carries no weight on its own. In Shanghai Investment v. Alteka, the Hawaii Supreme Court refused to let a seller keep a $5 million “nonrefundable” deposit: with no bad faith by the buyer, a kept sum has to bear a reasonable relation to the seller’s actual loss, and the seller never showed that relation. Both leading cases are real-estate deposits, so applying them to a shop is a reading, not a holding. A shop keeping a deposit should be ready to show what the no-show cost it: the blocked session, the design hours, a booking turned away.
Does a non-refundable deposit hold up in Hawaii?
The law’s word for a set sum agreed in advance is liquidated damages.
Hawaii follows the maxim that equity abhors forfeitures, meaning courts dislike making one side lose what it paid, and generally favors compensation where that does no injustice to the injured party. In Shanghai Investment Co. v. Alteka Co., the Hawaii Supreme Court adopted the rule of Gomez v. Pagaduan: when the buyer’s breach involves no bad faith, a seller may keep payments as liquidated damages only if they bear a reasonable relation to its actual damages. The seller in Shanghai held a $5 million deposit called nonrefundable, had a full and fair chance at trial to show that relation, failed to, and could not keep it.
“where the purchaser's breach does not involve bad faith conduct, a provision ... stating that in the event of purchaser's default the seller may elect to keep all payments as liquidated damages may be enforced ... if there is a reasonable relation between the amount of payments retained and the amount of seller's actual damages.” Shanghai Investment Co. v. Alteka Co., 92 Haw. 482 (2000), overruled on another point by Blair v. Ing, 96 Haw. 327 (2001) · Gomez v. Pagaduan, 1 Haw. App. 70 (1980)
Showing your refund policy
Hawaii’s refund-sign statute, HRS § 481B-5.5, reaches goods only: a merchant is anyone offering goods for sale at retail, and every duty in it runs to the return of goods. A merchant that takes no returns must post conspicuous signs saying so; one that posts no sign must accept returns and make refunds, and a violation is an unfair or deceptive act. It governs a shop’s over-the-counter aftercare products and jewelry, not a tattoo deposit.
“shall post conspicuous signs bearing the words 'All sales final', or 'No returns for refunds, merchandise credits, or exchanges'.” HRS § 481B-5.5
Body-art rules and money
Nothing about deposits, refunds, cancellations or client prices in Hawaii’s tattoo rule, Haw. Admin. R. ch. 11-17 (Tattoo Artist), read in full. Its only money is permit and license fees and a fine for false statements, and its records rule asks for no payment record.
This page summarizes public law in plain language, with the source each point comes from, read at the source on 2026-09-23. It is not legal advice.