Ok Scorp, lets clarify something here... you are talking about TWO different issues.
#1 - you are talking about criminal intent of issuing worthless checks with intent to commit a crime. In that matter I confirm there will be no CRIMINAL prosecution aginst the buyer. The electronic communication is just preliminary sales negotiations, not a legal and binding issue until the final deal has been COMPLETED.
#2 - you are talking about a contract agreement, which is NOT a criminal matter, it is a CIVIL complaint for which NO JAIL TIME or CRIMINAL RECORD can be imposed by the courts. These court hearings are intended to correct a wrong by someone which DEOS NOT violate the criminal statues of law. It is almost alway for MONETARY DAMAGES ONLY.
Now, as far as the old "Gentleman's Handshake Agreement" rule... well, some states still recognise that grandfathered law, some don't.
Yes, the check is prepayment of the amount owed, but the check is not legally binding UNTIL the buyer receives the goods or services for conversion to his own use.
The check can be returned or torn up at any time by the seller, and the goods not delivered to the buyer (as long as the check is not cashed)without repercussion from the buyer.
The buyer can "Stop Payment" on that check at any time as long as he HAS NOT RECEIVED any goods or services of value for that check payment.
I agree with your checklist, however the issues are "grey area" argument and does not fall under the criminal codes for prosecution of a crime.
Now, as far as filiing a claim on small claimes court, yes you can do that for CIVIL wrongs compalaint, but let me clue you into this...
IF the judge sides with you and makes the buyer pay up the $500 deposit the check was intended for, he will also force you to complete the original sales agreement and will force the buyer to pay up the entire sales amount in full within so many days, and before you must deliver the item to the buyer.
This is not a problem on your end, because that is what you wanted all along, but THAT IS ALL the judge can do... he CANNOT punish the buyer for issuing an issuficient funds check to HOLD the item until he could pay the remainder of the full amount, or the WHOLE amount upon receipt while asking you to return or tear up that check.
That worthless check is no more than an "I-Owe-You" note to hold that item, until a transfer of goods or services is completed... UNLESS, the original agreement was for a "Non-Refundable Deposit", in which that opens up another whole can of worms the judge will have to take into consideration. In some states that is legal, some it is not.
Hey, I appreciate the debate... I am just trying to help, no problem. Good luck on the civil case, and PLEASE let me know how it turns out. I am curious how the courts rule in your jurisdiction.
You will probably prevail in completing this sale in full, but don't expect a black-eye on the buyer when it is all said and done...
Jim