Hello,

I am in the retail business in Texas.  A supplier I am dealing with
refuses to accept cash as payment for goods (each invoice runs a few
thousand dollars).  They will only accept cheque or money orders.

So my question is can they legally refuse to accept cash as payment? 
On US currency it does state that cash is ?legal tender for all debts
public and private.?

The supplier is firm on their new policy of no cash.  If I were to go
through the legal system would I have a good chance of winning the
case?

Thank You

It is my understanding that if the terms of payment are announced
before the transaction has been made, a company can do as it pleases.
If a business refuses chooses to sell something to you unless you make
payment in chicken toes, that's OK. No debt has been incurred, since
no sale has been made.

"According to the 'Legal Tender Statute' (section 5103 of title 31 of
the U.S. Code), 'United States coins and currency (including Federal
Reserve notes and circulating notes of Federal Reserve banks and
national banks) are legal tender for all debts, public charges, taxes,
and dues.' This means that all U.S. money, as identified above, when
tendered to a creditor legally satisfies a debt to the extent of the
amount (face value) tendered.

However, no federal law mandates that a person or an organization must
accept currency or coins as payment for goods or services not yet
provided."

http://www.federalreserve.gov/generalinfo/faq/faqcur.htm#2

Your insistence on using cash can raise suspicion.  Legitimate
businesses prefer safer instruments, such as checks or wire transfers.

In my comment above, for "If a business refuses chooses to sell
something..." please read "If a business refuses to sell something..."

My proofreading head must have been taking a nap while my typing head
was still functioning. ;-)

You can likely find a (boo-hiss) lawyer who will take your case if you
give the lawyer a big pile of cash up front. Your supplier will likely
knuckle under and accept cash from you to avoid lawyer intimidation
and possible court action. My advice is to humor the supplier by
paying with a bank draft, check or credit card.  Neil