Many individuals have some awareness of the three-day rule and think of it generally as the right to cancel purchases from a door-to-door salesman.
The rule however is much more extensive and applies to many businesses, especially small construction contractors, that do not engage in traditional door-to-door sales.
The reason for the confusion is in how broadly the rule defines “consumer goods or services” and what constitutes a “door-to-door sale.”
A “Consumer Goods or Services” includes goods or services purchased, leased, or rented primarily for personal, family, or household purposes. This would include almost any home improvement or renovation.
Whereas a “door-to-door sale” is:
The fourth item – the agreement is made at a place other than the seller’s place of business is the most problematic for construction contractors and other small businesses who often meet customers at coffee shops, restaurants, or at a booth at a trade show or fairground.
The rule’s coverage is extensive and will apply to most transactions where the seller solicits the buyer and the parties do not meet at the seller’s place of business.
There are several exemptions to the definition of “door-to-door sale,” two of which should be noted by contractors:
The requirements of the Three-Day Rule will be covered in my next entry.
This blog post is offered for general information and educational purposes only. It is not offered as legal advice and does not constitute legal advice or opinion. Although I intend to keep this information current, I do not promise or guarantee that the information is correct, complete, or up-todate. You should not act or reply upon the information in this post without seeking the advice of an attorney.