06 031 013. Rule CF 113 - Telephonic Home Solicitation Sales
113.01. Definitions.
(a)
A "telephonic
home solicitation sale" is a sale or lease, or the offer for sale or lease,
of goods or services with a purchase price of $ 5.00 or more, whether under
single or multiple contracts, where the sale, lease or offer thereof is solicited
or consummated by a seller wholly or in part by telephone with a consumer at
the residence or place of business or employment of the consumer. A "telephonic
home solicitation sale" does not include the transactions listed in the
third sentence of 9 V.S.A. § 2451a(d).
(b)
"Business days"
mean Monday through Friday, excluding legal holidays listed in 1 V.S.A. §
371.
113.02. Required notices.
(a) In every telephonic
home solicitation sale, the seller shall furnish to the consumer a receipt or
contract pertaining to the sale and containing the date of the transaction,
the name and address of the seller, and in immediate proximity to the space
reserved in the contract for the signature of the consumer or on the front page
of the receipt if a contract is not used and in boldface 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 you receive both this contract or receipt and the complete notice of
cancellation explaining this right as required by Vermont law, which should
be attached.
The seller shall send
this receipt or contract to the consumer prior to charging the consumer's credit
card account, debiting the consumer's bank account, instructing the consumer
to send a check or money order, or otherwise initiating payment by the consumer
for the goods or services sold.
(b) In addition to the
notice described in subsection (a) of this section, in every telephonic home
solicitation sale, unless the consumer has made a handwritten and signed request
to the seller to provide goods or services without delay in an emergency pursuant
to 9 V.S.A. § 2454(a)(5), the seller shall send to the consumer, prior
to charging the consumer's credit card account or otherwise initiating payment
by the consumer, two copies of a notice of cancellation, which notice shall
be attached to the contract or receipt and easily detachable.
(1)
The notice of cancellation
shall contain the following information and statements, printed in not less
than ten point boldface type:
NOTICE OF CANCELLATION
You may cancel this transaction,
without any penalty or obligation, within three business days of receiving this
notice and a contract or receipt pertaining to the transaction.
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 canceled.
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 20 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] no later than midnight of the third business day after you
receive this notice and your contract or receipt.
(2)
Before sending copies
of the "Notice of Cancellation" to the buyer, the seller shall complete
both copies of the notice by entering the name of the seller and the address
of the seller's place of business.
(c)
In addition to the
written notices required by subsections (a) and (b) of this section, in any
telephonic home solicitation sale the seller shall, prior to the buyer's receipt
of the written notices, orally inform the buyer of his or her right to cancel
the transaction.
(d)
The cancellation period
of three business days shall run from the time the consumer receives the required
notices described in CF 113.02.
113.03. Cancellation.
Until the consumer has
received the notices described in CF 113.02, the consumer or any other person
obligated for any part of the purchase price in a telephonic home solicitation
sale may cancel the transaction by notifying the seller in any manner and by
any means of his or her intention to cancel.
113.04. Restoration of
payments.
Within ten days after
a telephonic home solicitation sale has been canceled, the seller shall tender
to the consumer any payments made by the consumer and any note or other evidence
of indebtedness. As to any payment made by credit card, tender may be accomplished
by issuing a credit to the consumer's account.
113.05. Violations.
A violation of this rule
shall be considered an unfair and deceptive act and practice in commerce under
9 V.S.A. § 2453(a).
113.06. Other requirements.
Except as expressly provided
herein, this rule shall not modify any obligations, rights, or legal liability
provided for in 9 V.S.A. § 2454.
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