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Article:
Know your Rights: Consumers Can Cancel Home
Solicitation Sale Contracts
Jacksonville Attorney - Lawyer,
providing experienced Consumer Protection, Family Law, Estate Law,
Employment Law, Business Law, and Bankruptcy Law legal
representation in Jacksonville, Hilliard, Duval County,
Nassau County and the surrounding Northeast Florida areas.
By Steven
M. Fahlgren, Esq., (904) 845-2255
One of the biggest
misconceptions held by consumers is that a consumer
always has three business days to cancel a signed
contract. Unfortunately for consumers, this is not the
general law. An exception does exist, however, for
transactions which result from home solicitation sales.
Under Florida law, these
are several requirements for a "home solicitation sale."
First, it must be a sale, lease, or rental of consumer
goods or services with a purchase price in excess of
$25.00 including any amount for interest, service
charges, finance charges, postage, freight, insurance,
and service or handling charges. Consumer goods are
further defined as those goods purchased or leased for
family, household or personal purposes. Finally, the
transaction must be concluded at a place other than the
seller's place of business, although the legislature has
created an exemption for motor vehicle tent sales.
When evaluating whether a
transaction is concluded at a person's home, courts
often distinguish between invitations by a potential
buyer and solicitations by a potential seller.
Transactions initiated by the buyer such as when an
individual invites someone to come to his or her home to
make a "pitch" are excluded under Florida's Act. One
example may include a potential buyer contacts a seller
and informs the seller of the buyer's intent to purchase
goods and services but still wants to discuss the terms
and prices. The key distinction seems to be whether the
seller solicited the sale without any request by the
buyer.
Similar to the Florida
Statute, the Federal Trade Commission has issued Federal
regulations providing for a cooling off period for home
solicitation sales. Like the Florida Act, the Federal
Trade Commission requires that the seller or his
representative personally solicit the sale for the rules
to apply. The Federal Trade Commission Rule provides
somewhat less protection than the Florida Act because
the Rule excludes sales which are conducted and
consummated entirely by mail or telephone without any
other contact between the buyer and the seller prior to
delivery of the goods or performance of the services.
If a transaction is a home
solicitation sale, the seller must provide the buyer
with a specific written notice that advises the buyer
that he or she has three business days in which to
cancel or rescind the sale. The failure to do so or the
misrepresentation of the buyer's right to cancel is a
crime and may subject the seller to a claim under
Florida's Deceptive and Unfair Trade Practices Act. The
Home Solicitation Sales Act and the FTC's Rule have been
interpreted to provide consumers with a continuing right
to cancel where the seller has not provided the consumer
with proper notice of the consumers right to cancel.
If a buyer cancels a home
solicitation sale, the seller has a limited time frame
in which to refund the down payment or return any goods
which were traded-in as a part of the transaction. Of
course, the buyer must, upon demand, tender the goods
back to the seller. If the seller fails to demand
possession of the goods within a reasonable time after
cancellation, the goods become the property of the buyer
without obligation to pay for them. Forty days is
presumed to be a reasonable time period. The buyer must
also take reasonably good care of the goods while they
are in the buyer's possession. Of course, these are
general guidelines. You should consult a consumer
attorney to determine the specific laws which apply to
your case.
Disclaimer: The above Article
is intended to give you, the consumer, insight into various legal topics. This
information is not intended as legal advice, but rather helpful topical
information.
 If
you require professional legal services regarding
Consumer Protection, Family Law, Estate Law,
Employment Law, Business Law, and Bankruptcy Law issues, be proactive in
protecting your legal
rights by seeking the legal advice of
an experienced
Jacksonville criminal defense attorney
& lawyer. Contact
The Law Offices of
Steven M. Fahlgren, P.A.,
by calling
904.845.2255.
Jacksonville Attorney - Lawyer,
providing experienced Consumer Protection, Family Law, Estate Law,
Employment Law, Business Law, and Bankruptcy Law legal
representation in Jacksonville, Hilliard, Duval County,
Nassau County and the surrounding Northeast Florida areas.
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