13-26-5 - Right of rescission -- Cancellation.
13-26-5. Right of rescission -- Cancellation.
(1) (a) Except as provided in Subsections (1)(b) and (c), in addition to any right tootherwise revoke an offer, a person making a purchase from a telephone soliciting businessrequired to be registered under this chapter may cancel the sale up to midnight of the thirdbusiness day after the receipt of the merchandise or premium, whichever is later, provided thesolicitor advises the purchaser of his cancellation rights under this chapter at the time anysolicitation is made.
(b) If the solicitor required to be registered under this chapter fails to orally advise apurchaser of the right to cancel under this section at the time of any solicitation, the purchaser'sright to cancel shall be extended to 90 days.
(c) If the solicitor required to be registered under this chapter fails to orally advise apurchaser of his true name, telephone number, and complete street address at the time of anysolicitation, the purchaser may cancel the sale at any time.
(2) Sales shall be cancelled by mailing a notice of cancellation to the telephone solicitor'scorrect street address, postage prepaid. If the telephone solicitor provided no correct streetaddress, cancellation can be accomplished by sending a notice of cancellation to the division'soffices, postage prepaid.
(3) (a) If a cancellation involves durable goods, as defined by rule, those goods shall bereturned to the seller.
(b) If expendable goods are involved, the purchaser shall return any unused portion ofthose goods.
(c) A reasonable attempt shall be made to return goods to the solicitor's correct streetaddress within seven days of exercising the right to cancel, providing the solicitor has providedthe purchaser with the address. If the solicitor has failed to give a correct address, no return isrequired to qualify for a full refund of the purchase price.
(d) If the purchaser has used any portion of the services or goods purchased, the solicitoror telephone soliciting business shall receive a reasonable allowance for value given. Thisallowance may be deducted from any refund due the purchaser.
(e) A solicitor shall be jointly and severally liable with the telephone soliciting businessfor any refund amount due following the cancellation of a sale made by the solicitor.
(4) For the purposes of this section, "business day" does not include Sunday or a federalor state holiday.
Amended by Chapter 189, 1994 General Session