50-640. Door-to-door sales; cancellation; required disclosures; notice of cancellation; definition.
50-640
50-640. Door-to-door sales; cancellation; requireddisclosures; notice of cancellation; definition.(a) Except as provided in subsection (c)(1)(C), in addition to any rightotherwise to revoke, a consumer has the right to cancel a door-to-door salemade within this state until midnight of the third business day after the dayon which the consumer signs an agreement or offer to purchase which includesthe disclosures required by this section.
(b) In connection with any door-to-door sale made within this state, itconstitutes an unfair and deceptive act or practice within the meaning ofK.S.A. 50-626, and amendments thereto, for any supplier to:
(1) Fail to furnish the consumer with a fully completed receipt or copy ofany contract pertaining to such sale at the time of its execution, which isin the same language, Spanish for example, as that principally used in theoral sales presentation and which shows the date of the transaction andcontains the name and address of the supplier, and in immediate proximity tothe space reserved in the contract for the signature of the consumer or on thefront page of the receipt if a contract is not used and in boldface type of aminimum size of 10 points, a statement in substantially the following form:
"YOU THE BUYER, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TOMIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION. SEETHE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT."For purposes of the required notices under this section, the term "buyer"shall have the same meaning as the term "consumer."
(2) Fail to furnish each consumer, at the time the consumer signs thedoor-to-door sales contract or otherwise agrees to buy consumer property orservices from the supplier, a completed form in duplicate, captioned "NOTICE OFCANCELLATION," which shall be attached to the contract or receipt and beeasily detachable, and which shall contain in 10-point boldface type thefollowing information and statements in the same language, Spanish forexample, as that used in the contract:
(Enter date of transaction)
___________________________
YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY PENALTY OR OBLIGATION, WITHINTHREE BUSINESS DAYS FROM THE ABOVE DATE.
IF YOU CANCEL, ANY PROPERTY TRADED IN, ANY PAYMENTS MADE BY YOU UNDERTHE CONTRACT OR SALE, AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY YOU WILL BERETURNED WITHIN 10 BUSINESS DAYS FOLLOWING RECEIPT BY THE SELLER OF YOURCANCELLATION NOTICE, AND ANY SECURITY INTEREST ARISING OUT OF THETRANSACTION 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 PROPERTY DELIVERED TOYOU UNDER THIS CONTRACT OR SALE; OR YOU MAY, IF YOU WISH, COMPLY WITH THEINSTRUCTIONS OF THE SELLER REGARDING THE RETURN SHIPMENT OF THE PROPERTY ATTHE SELLER'S EXPENSE AND RISK.
IF YOU DO MAKE THE PROPERTY AVAILABLE TO THE SELLER, AND IF THE SELLER DOESNOT PICK SUCH PROPERTY UP WITHIN 20 DAYS OF THE DATE OF YOUR NOTICE OF CANCELLATION,YOU MAY RETAIN OR DISPOSE OF THE PROPERTY WITHOUT ANY FURTHER OBLIGATION. IFYOU FAIL TO MAKE THE PROPERTY AVAILABLE TO THE SELLER, OR IF YOU AGREE TORETURN THE PROPERTY TO THE SELLER AND FAIL TO DO SO, THEN YOU REMAIN LIABLEFOR PERFORMANCE OF ALL OBLIGATIONS UNDER THE CONTRACT.
TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND DATED COPY OFTHIS CANCELLATION NOTICE OR ANY OTHER WRITTENNOTICE, OR SEND A TELEGRAM, TO ______________ AT
(Name of Seller)
(Address of Seller's Place of Business)
NOT LATER THAN MIDNIGHT OF __________________.
(Date)
I HEREBY CANCEL THIS TRANSACTION.
(Date)
(Buyer's Signature)
(3) Fail, before furnishing copies of the "notice of cancellation" tothe consumer, to complete both copies by entering the name of the supplier, theaddress of the supplier's place of business, the date of the transaction, andthe date, not earlier than the third business day following the date of thetransaction, by which the consumer may give notice of cancellation.
(4) Include in any door-to-door sale contract or receipt any confessionof judgment or any waiver of any of the rights to which the consumer isentitled under this section including specifically such consumer's right tocancel the sale in accordance with the provisions of this section.
(5) Fail to inform each consumer orally, at the time such consumer signs thecontract or purchases the property or services, of such consumer's right tocancel.
(6) Misrepresent in any manner the consumer's right to cancel.
(7) Fail or refuse to honor any valid notice of cancellation by aconsumer and within 10 business days after the receipt of such notice, to (i)refund all payments made under the contract or sale; (ii) return any propertytraded in, in substantially as good condition as when received by the supplier;(iii) cancel and return any negotiable instrument executed by the consumer inconnection with the contract or sale and take any action necessary orappropriate to terminate promptly any security interest created in thetransaction.
(8) Negotiate, transfer, sell, or assign any note or other evidence ofindebtedness to a finance company or other third party prior to midnight ofthe fifth business day following the day the contract was signed or theproperty or services were purchased.
(9) Fail, within 10 business days of receipt of the consumer's noticeof cancellation, to notify the consumer whether the supplier intends torepossess or to abandon any shipped or delivered property.
(c) For the purposes of this section the following definitions shall apply:
(1) "Door-to-door sale" means a sale, lease or rental of consumer propertyor services with a purchase price of $25 or more, whether under single ormultiple consumer transactions, in which the supplier or the supplier'srepresentative personally solicits the sale, including those in response toor following an invitation by the consumer, and the consumer's agreement oroffer to purchase is made at a place other than the place of business of thesupplier. The term "door-to-door sale" does not include a transaction:
(A) Made pursuant to prior negotiations in the course of a visit by theconsumer to a retail business establishment having a fixed permanent locationwhere the property is exhibited or the services are offered for sale on acontinuing basis; or
(B) in which the consumer is accorded the right of rescission by theprovisions of the consumer credit protection act (15 USCS 1635) orregulations issued pursuant thereto; or
(C) in which the consumer has initiated the consumer transaction and theproperty or services are needed to meet a bona fide immediate personalemergency of the consumer, and the consumer furnishes the supplier with aseparate dated and signed personal statement in the consumer's handwritingdescribing the situation requiring immediate remedy and expressly acknowledgingand waiving the right to cancel the sale within three business days; or
(D) conducted and consummated entirely by mail or telephone; and withoutany other contact between the consumer and the supplier or its representativeprior to delivery of the property or performance of the services; or
(E) in which the consumer has initiated the transaction and specificallyrequested the supplier to visit the consumer's home for the purpose ofrepairing or performing maintenance upon the consumer's real or personalproperty. If in the course of such a visit, the supplier sells the consumerthe right to receive additional services or property other than replacementparts necessarily used in performing the maintenance or in making the repairs,the sale of the additional property or services would not fall within thisexclusion; or
(F) pertaining to the sale or rental of real property, to the sale ofinsurance or to the sale of securities or commodities by a broker-dealerregistered with the securities and exchange commission; or
(G) that occurs on the state fairgrounds during the annual Kansas state fairbetween a consumer and a vendor who has been authorized by the state fairmanagement to do business on thestate fairgrounds.
(2) "Place of business" means the main or permanent branch office of asupplier.
(3) "Purchase price" means the total price paid or to be paid for theconsumer property or services, including all interest and service charges.
(4) "Business day" means any calendar day except Sunday, or any legalholiday as defined by K.S.A. 60-206 and amendments thereto.
History: L. 1973, ch. 217, § 18; L. 1974, ch. 230, § 6;L. 1976, ch. 236, § 9; L. 1991, ch. 159, § 12;L. 1998, ch. 156, § 1; July 1.