73 P.S. § 201-7
§ 201-7. Contracts; effect of rescission
(a)
Where goods or services having a sale price of twenty-five dollars ($ 25) or more are sold or
contracted to be sold to a buyer, as a result of, or in connection with, a contact with or call on the buyer
or resident at his residence either in person or by telephone, that consumer may avoid the contract or sale by
notifying, in writing, the seller within three full business days following the day on which the contract or
sale was made and by returning or holding available for return to the seller, in its original condition, any
merchandise received under the contract or sale. Such notice of rescission shall be effective upon depositing
the same in the United States mail or upon other service which gives the seller notice of rescission.
(b)
At the time of the sale or contract the buyer shall be provided with:
(1)
A fully completed receipt or copy of any contract pertaining to such sale, which is in the same
language (Spanish, English, etc.) as that principally used in the oral sales presentation, and also in
English, and which shows the date of the transaction and contains the name and address of the seller, and in
immediate proximity to the space reserved in the contract for the signature of the buyer or on the front page
of the receipt if a contract is not used and in bold face type of a minimum size of ten points, a statement in
substantially the following form:
"You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the
date of this transaction. See the attached notice of cancellation form for an explanation of this right."
(2)
A completed form in duplicate, captioned "Notice of Cancellation," which shall be attached to the
contract or receipt and easily detachable, and which shall contain in ten-point bold face type the following
information and statements in the same language (Spanish, English, etc.) as that used in the contract:
Notice of Cancellation
(Enter Date of Transaction)
You may cancel this transaction, without any penalty or obligation, within three business days from the
above date.
If you cancel, any property traded in, any payments made by you under the contract or sale, and any
negotiable instrument executed by you will be returned within ten business days following receipt by the
seller of your cancellation notice, and any security interest arising out of the transaction will be
cancelled.
If you cancel, you must make available to the seller at your residence in substantially as good condition
as when received, any goods delivered to you under this contract or sale; or you may, if you wish, comply with
the instructions of the seller regarding the return shipment of the goods at the seller's expense and risk.
If you do make the goods available to the seller and the seller does not pick them up within twenty days of
the date of your notice of cancellation, you may retain or dispose of the goods without any further
obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the
seller and fail to do so, then you remain liable for performance of all obligations under the contract.
To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice or any
other written notice, or send a telegram, to (name of seller), at (address of seller's place of business) not
later than midnight of (date).
I hereby cancel this transaction.
................... (Date) ...................
Buyer's Signature
(c)
Before furnishing copies of the "Notice of Cancellation" to the buyer, both copies shall be completed
by entering the name of the seller, the address of the seller's place of business, the date of the
transaction, and the date, not earlier than the third business day following the date of the transaction, by
which the buyer may give notice of cancellation.
(d)
Each buyer shall be informed at the time he signs the contract or purchases the goods or services, of
his right to cancel.
(e)
The cancellation period provided for in this section shall not begin to run until buyer has been
informed of his right to cancel and has been provided with copies of the "Notice of Cancellation."
(f)
Seller shall not misrepresent in any manner the buyer's right to cancel.
(g)
Any valid notice of cancellation by a buyer shall be honored and within ten business days after the
receipt of such notice, seller shall (i) refund all payments made under the contract or sale; (ii) return any
goods or property traded in, in substantially as good condition as when received by the seller; (iii) cancel
and return any negotiable instrument executed by the buyer in connection with the contract or sale and take
any action necessary or appropriate to terminate promptly any security interest created in the transaction.
(h)
No note or other evidence of indebtedness shall be negotiated, transferred, sold or assigned by the
seller to a finance company or other third party prior to midnight of the fifth business day following the day
the contract was signed or the goods or services were purchased.
(i)
Seller shall, within ten business days of receipt of the buyer's notice of cancellation, notify him
whether the seller intends to repossess or to abandon any shipped or delivered goods. If seller elects to
repossess, he must do so within twenty days of the date of buyer's notice of cancellation or forfeit all
rights to the delivered goods.
(j)
Rights afforded under this section may be waived only in circumstances where the goods or services are
needed to meet a bona fide immediate personal emergency of the buyer and the buyer furnishes the seller with a
separate dated and signed personal statement in the buyer's handwriting describing the situation requiring
immediate remedy and expressly acknowledging and waiving the right to cancel the sale within three business
days.
(k)
As used in this section, merchandise shall not be construed to mean real property.
(l)
The provisions of this section shall not apply to the sale or contract for the sale of goods or
services having a sale price of less than twenty-five dollars ($ 25).
(l.1) This section shall not apply, however, to the sale of precious metals, bonds or foreign currency when
the value of the items can fluctuate daily.
(m)
A "Notice of Cancellation" which contains the form and content required by rule or regulation of the
Federal Trade Commission shall be deemed to be in compliance with the requirements of this section.
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