Benchmark Institute is a training and performance development
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legal services to low-income communities.
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Home Solicitation Contracts
[Home Solicitation Act,
California Civil Code §§ 1689.5 - 1689.3.] |
 Home
solicitation sales refer to consumer credit sales solicited by a seller
and entered into by a buyer at a place other than the seller's place of
business, commonly known as a door-to-door sale. The main thrust of a home
solicitation sale law is the buyer's right to cancel a contract within a
specified period of time and in accordance with a prescribed method.
Home solicitation sale provisions may appear as a separate state law, as
part of a state retail installment sales law or UDAP law. All laws require
a personal solicitation and the buyer's agreement or offer to purchase
must occur at the buyer's residence. Sellers may avoid the law by having
the buyer sign the contract or offer to purchase at some place other than
the buyer's residence. Laws also may exclude transactions conducted by
mail or telephone.
The laws may exclude cash sales, sales under a designated amount,
insurance sales, or buyer initiated sales. The transactions governed under
these laws also may be subject to rescission rights under Regulation Z.
Most laws give buyers the right to cancel and prescribe the method to
notify sellers of cancellation. Sellers usually must include the buyers
right to cancel along with the agreement or offer to purchase.
Cancellation usually occurs when the buyer notifies seller in writing at
the seller's address stated in the agreement or offer to purchase. No
particular form is required and notice is effective when deposited in
mailbox properly addressed with postage prepaid.
Buyers do not have rights to cancel when they require sellers to provide
goods or services without delay in order to safeguard the health and
safety of any person or to prevent damage to property. The request must be
a separately dated and signed statement (not a printed form) and must
describe the emergency requiring immediate remedy.
FTC Cooling Off Period
The FTC rule concerning a cooling off period for door-to-door sales
provides a three-day right to cancel covered transactions. Any state
provisions that provide less protection than the federal law are invalid.
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About Consumer
Law
Governing Laws
Unfair and Deceptive Acts & Practices
Truth In Lending
Retail Installment Sales Acts
Home Solicitation Contracts
Debt Collection
Garnishment |
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![[Home Solicitation Act, California Civil Code §§ 1689.5 - 1689.3.]](consumer_law.jpg){kind=link}