Source: http://www.dca.ca.gov/publications/legal_guides/k-6.shtml
Timestamp: 2016-06-26 18:56:02
Document Index: 262166775

Matched Legal Cases: ['§ 1789', '§ 1812', '§ 1694', '§ 1689', '§ 1812', '§ 1689', '§ 1812', '§ 327', '§ 1689', '§ 1812', '§ 1695', '§ 1689', '§ 1689', '§ 10127', '§ 6010', '§ 1812', 'art 435', '§ 1812', '§ 1812', '§ 2945', '§ 1689', '§ 5613', '§ 1102', '§ 1812', '§ 1689', '§ 1794', '§ 1794', '§ 1794', 'art 435', '§ 1694', '§ 1689']

Consumer Transactions with Statutory Contract Cancellation Rights: Legal Guide K-6
CONSUMER TRANSACTIONS WITH STATUTORY
A number of laws give consumers a legal right to cancel contracts in specific transactions within a short time after the consumer signs the contract, and without giving the seller or other party a reason or having to show "legal cause." This Legal Guide includes a list of these transactions and the periods allowed for canceling them. Note that some cancellation periods are measured in business days.
A consumer-buyer can cancel these kinds of contracts for any reason (or for no reason) and need not explain. Typically, there is no penalty for canceling under these statutes. In order to cancel, the buyer need only send the seller written notice of cancellation within the period allowed by statute. (Most cancellation periods begin when the consumer receives written notification of his or her right to cancel.)
In order to cancel, the buyer must sign and date the cancellation notice, which must state that the buyer is canceling the contract. The buyer should send the notice to the seller by certified mail, return receipt requested, at the address that the seller has given in the sale documents. The buyer should keep a copy of the notice for his or her own records, and to be able to prove that the notice was given and what was said.
Generally, the buyer's notice of cancellation is effective when it is deposited in the mail with the proper address and postage. The buyer should note the exact date, time and place of mailing on the buyer's own copy.
Other cancellation rights may also be present, depending on the circumstances. See parts II and III below.
Credit Repair Services -- five day cancellation period (Civ. Code § 1789.16).
Dance Studio Services -- indefinite cancellation period (Civ. Code § 1812.54(b).
Dating Services -- three business day cancellation period (Civ. Code § 1694.1).
Dental Services Contracts -- three business day cancellation period (Civ. Code § 1689.3).
Discount Buying Services -- three day cancellation period (Civ. Code § 1812.118).
Door-to-Door Sales -- three business day cancellation period (Civ. Code § 1689.6(a)).
Electric Service Contract -- three business day cancellation period (PUC 395).
Employment Counseling Services -- three business day cancellation period (Civ. Code § 1812.511(a)(6)).
Endless Chain Scheme -- indefinite cancellation period when scheme is unlawful under Pen. Code § 327 (Civ. Code § 1689.2).
Funeral Contracts (pre-need) -- indefinite cancellation period (B&P 7737).
Health Studio Services -- five business day cancellation period (Civ. Code § 1812.85(b)).
Home Equity Sale During Foreclosure -- five business day cancellation period (Civ. Code § 1695.4(a)).
Home Improvements Contracts -- three business day cancellation period if a security interest results or may result (12 CFR 226.23)
Home Loans -- three business day cancellation period (12 CFR 226.23).
Home Repair or Restoration Contracts Following a Disaster -- seven business day cancellation period (unless contract is automatically void) (Civ. Code § 1689.6(c)).
Home-Secured Transactions -- three business day cancellation period (12 CFR 226.23).
Home Solicitation Sales -- three business day cancellation period (Civ. Code § 1689.6).
Immigration Consultant Services -- three day cancellation period (B&P 22442(f)).
Insurance (life under-$10,000) -- between 10- and 30-day cancellation period as determined by insurer (Ins. Code § 10127.7).
Insurance (disability, seniors, life) -- 30-day cancellation period (Ins. Code 786).
Insurance (property) -- indefinite cancellation period (Ins. Code § 6010(a)).
Job Listing Services -- three business day cancellation period (Civ. Code § 1812.516(a)(6)).
Legal Document Assistant -- 24 hour cancellation period (B&P 6410(e)).
Mail/Telephone Sales (when order has not been filled) -- 30 day cancellation period (B&P 17538(a), 16 CFR Part 435).
If buyer visits site -- three business day cancellation period (Civ. Code § 1812.303(a)).
If buyer does not visit site -- 10 business day cancellation period (Civ. Code § 1812.304(a)).
Mortgage Foreclosure Consultant Services -- three business day cancellation period (Civ. Code § 2945.3(e)).
Personal Emergency Response Unit -- seven business day cancellation period (Civ. Code § 1689.6(b)).
Private Child Support Collectors -- 15 business day cancellation period (Fam. Code § 5613(a)).
Real Estate Transfer -- delayed or materially amended Transfer Disclosure Statement -- three day (statement delivered personally) or five day (statement delivered by mail) cancellation period (Civ. Code § 1102.3(b)).
Seller Assisted Marketing Plans -- three business day cancellation period (Civ. Code § 1812.209(b)).
Seminar Sales -- three business day cancellation period (Civ. Code § 1689.20).
For used cars, home appliances, and home electronic products -- 30 day cancellation period (Civ. Code § 1794.41(a)(4)(A)).
For new motor vehicles -- 60 day cancellation period (Civ. Code § 1794.41(a)(4)(A)).
For any type of goods, pro-rata refund less cancellation fee -- indefinite cancellation period (Civ. Code § 1794.41(a)(4)(B)).
Telephone Sales (when order has not been filled) -- 30 day cancellation period (B&P 17538(a), 16 CFR Part 435).
Unlawful Detainer Assistants -- 24 hour cancellation period (B&P 6410(e)).
Water Treatment Devices -- three business day cancellation period (B&P 17577.3).
Weight-loss Services -- three business day cancellation period (Civ. Code § 1694.6(a)).
The consumer may also have other cancellation rights. Almost any consumer contract entered into in a consumer's home (or somewhere other than the seller's place of business) can be canceled by sending a written notice of cancellation to the seller by midnight of the third business day after the consumer signed the contract. In order for this rule to apply, the contract must be for consumer goods costing $25 or more. (Civ. Code §§ 1689-1689.12.)
A general discussion of other cancellation rights, which are generally applicable to all kinds of sales and contracts, follows.
Civ. Code § = Civil Code
Pen. Code § = Penal Code
Prepared by: Richard A. Elbrecht, Supervising Attorney, Legal Services Unit, and John C. Lamb, Senior Staff Counsel, Legal Services Unit, May 2003. July 2008 update by Michael Christensen, Legal Intern. January 2010 update by George Ritter, Senior Staff Counsel.