O'Connor v. Televideo System, Inc

In O'Connor v. Televideo System, Inc. (1990) 218 Cal. App. 3d 709, the Court explained that the usury laws do not apply to bona fide credit sales of goods or services (the so-called time-price doctrine). In that case, the plaintiff performed computer circuit board assembly work for defendant. When the work was complete, plaintiff sent invoices to defendant stating that payments were due within 30 days and that any payments not made within that time were subject to a late charge of one and one-half percent per month or 18 percent per year.