Consumer's right to cancel transaction

[ASK_EDDIE]

This is for the state of Texas I'm sure other states have similar laws. basically they have 3 days to get out of a contract, they way it seems to read it includes jobs already installed.Thoughts and experiences,

 

[480sparky]

For those of us not in Texas, and not privvy to your contract's verbage, how about posting the text?

 

[ASK_EDDIE]

Its a little lengthy for a post but here is the link.

http://www.statutes.legis.state.tx.us/SOTWDocs/BC/htm/BC.601.htm

 

[Rick Christopherson]

The way I read this, it applies to door-to-door sales (such as is common for home security systems).

Sec. 601.002. APPLICABILITY OF CHAPTER; EXCEPTION. (a) This chapter applies only to a consumer transaction in which:
(1) the merchant or the merchant's agent engages in a personal solicitation of a sale to the consumer at a place other than the merchant's place of business;

What this means is that if the customer picks up the phone and calls your office to request work, you are not bound by this regulation. If you send out fliers (not personal solicitation) and the customer subsequently contacts you, you are not bound by this regulation.

On the other hand, if you approach a person's house (or even stop them on the street) and say, "I see you don't have outdoor lighting, I can install some for you." Then you would be bound.

 

[G0049]

Michigan has something similar. That's why, if you sign a contract with a door-to-door salesman for a home improvement, most of them won't start for three days. That way they don't have to worry about the home owner changing their minds.

 

[zbang]

My opinion isn't worth much on this, but all the the 3-day right-of-rescission things I've seen apply to specific salesman-initiated contracts (door-to-door, cold calls by phone, etc) and to specific types of transaction (like timeshared condos or basement waterproofing). None applied to generic customer-initiated sales.

 

[satcom]

Here is the way it works in New Jersey http://www.njleg.state.nj.us/2004/Bills/S2000/1881_I1.PDF. Page 4

 

[petersonra]

There is something similar in Illinois. Not sure just what contracts it applies to. I know it applies to mortgages as I just got refinanced a few months ago.

If you are selling something subject to such an arrangement you would be foolish to start work until the contract is actually in effect.

 

[renosteinke]

The provision you mention is part of the "Uniform Commercial Code," which is in the USC (United States Code), and has, I believe, been adopted by every state.

It does not apply to service contracts, etc. This is a situation where you need to know the exact purpose and wording of a rule; folks are always mis-applying this one.

If you're in a situation where you have performed work, and the customer does not wish to pay, you will have to exercise your usual remedies- Small Claims court, Lien, etc. At that point the customer will have to justify his action. He may try to cite this part of the USC. That's where you have to be prepared to rebut him.

 

[ASK_EDDIE]

I knew there was an amendment a few years ago but only found it a few days ago.
i assume since a licensed contractor in the state abids by a code ethics " or suppose to" there is the exception . this was passed in 2009.

http://www.legis.state.tx.us/tlodocs/81R/billtext/pdf/HB03129F.pdf#navpanes=0