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AN ACT concerning consumer protection;
relating to door-to-door sales;
10 amending K.S.A. 50-640
and repealing the existing section.
11
12 Be it enacted by the Legislature of the
State of Kansas:
13 Section 1. K.S.A.
50-640 is hereby amended to read as follows: 50-
14 640. (a) Except as provided in subsection
(c)(1)(C), in addition to any
15 right otherwise to revoke, a consumer has
the right to cancel a door-to-
16 door sale made within this state until
midnight of the third business day
17 after the day on which the consumer signs
an agreement or offer to pur-
18 chase which includes the disclosures
required by this section.
19 (b) In connection with
any door-to-door sale made within this state,
20 it constitutes an unfair and deceptive act
or practice within the meaning
21 of K.S.A. 50-626, and amendments thereto,
for any supplier to:
22 (1) Fail to furnish the
consumer with a fully completed receipt or
23 copy of any contract pertaining to such
sale at the time of its execution,
24 which is in the same language, Spanish for
example, as that principally
25 used in the oral sales presentation and
which shows the date of the trans-
26 action and contains the name and address of
the supplier, and in imme-
27 diate proximity to the space reserved in
the contract for the signature of
28 the consumer or on the front page of the
receipt if a contract is not used
29 and in boldface type of a minimum size of
10 points, a statement in
30 substantially the following form:
31 ``YOU THE BUYER, MAY CANCEL
THIS TRANSACTION AT ANY
32 TIME PRIOR TO MIDNIGHT OF THE THIRD
BUSINESS DAY AF-
33 TER THE DATE OF THIS TRANSACTION. SEE THE
ATTACHED
34 NOTICE OF CANCELLATION FORM FOR AN
EXPLANATION OF
35 THIS RIGHT.'' For purposes of the required
notices under this section,
36 the term ``buyer'' shall have the same
meaning as the term ``consumer.''
37 (2) Fail to furnish each
consumer, at the time the consumer signs the
38 door-to-door sales contract or otherwise
agrees to buy consumer property
39 or services from the supplier, a completed
form in duplicate, captioned
40 ``NOTICE OF CANCELLATION,'' which shall be
attached to the con-
41 tract or receipt and be easily detachable,
and which shall contain in 10-
42 point boldface type the following
information and statements in the same
43 language, Spanish for example, as that used
in the contract:
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1
NOTICE OF CANCELLATION
2
(Enter date of transaction)
3
________________
4 YOU MAY CANCEL THIS TRANSACTION,
WITHOUT ANY PENALTY OR OBLI-
5 GATION, WITHIN THREE BUSINESS DAYS
FROM THE ABOVE DATE.
6 IF YOU CANCEL, ANY
PROPERTY TRADED IN, ANY PAYMENTS MADE BY YOU
7 UNDER THE CONTRACT OR SALE, AND ANY
NEGOTIABLE INSTRUMENT EX-
8 ECUTED BY YOU WILL BE RETURNED WITHIN
10 BUSINESS DAYS FOLLOW-
9 ING RECEIPT BY THE SELLER OF YOUR
CANCELLATION NOTICE, AND ANY
10 SECURITY INTEREST ARISING OUT OF THE
TRANSACTION WILL BE CAN-
11 CELED.
12 IF YOU CANCEL, YOU MUST MAKE
AVAILABLE TO THE SELLER AT YOUR
13 RESIDENCE, IN SUBSTANTIALLY AS GOOD
CONDITION AS WHEN RECEIVED,
14 ANY PROPERTY DELIVERED TO YOU UNDER THIS
CONTRACT OR SALE; OR
15 YOU MAY, IF YOU WISH, COMPLY WITH THE
INSTRUCTIONS OF THE SELLER
16 REGARDING THE RETURN SHIPMENT OF THE
PROPERTY AT THE SELLER'S
17 EXPENSE AND RISK.
18 IF YOU DO MAKE THE PROPERTY
AVAILABLE TO THE SELLER, AND IF THE
19 SELLER DOES NOT PICK SUCH PROPERTY UP
WITHIN 20 DAYS OF THE DATE
20 OF YOUR NOTICE OF CANCELLATION, YOU MAY
RETAIN OR DISPOSE OF THE
21 PROPERTY WITHOUT ANY FURTHER OBLIGATION. IF
YOU FAIL TO MAKE
22 THE PROPERTY AVAILABLE TO THE SELLER, OR IF
YOU AGREE TO RETURN
23 THE PROPERTY TO THE SELLER AND FAIL TO DO
SO, THEN YOU REMAIN
24 LIABLE FOR PERFORMANCE OF ALL OBLIGATIONS
UNDER THE CONTRACT.
25 TO CANCEL THIS TRANSACTION,
MAIL OR DELIVER A SIGNED AND DATED
26 COPY OF THIS CANCELLATION NOTICE OR ANY
OTHER WRITTEN NOTICE,
27 OR SEND A TELEGRAM, TO
28
(Name of Seller)
29 AT
30
(Address of Seller's Place of Business)
31 NOT LATER THAN MIDNIGHT OF ________.
32
(Date)
33 I HEREBY CANCEL THIS TRANSACTION.
34
35
(Date)
(Buyer's
Signature)
36 (3) Fail, before
furnishing copies of the ``notice of cancellation'' to
37 the consumer, to complete both copies by
entering the name of the sup-
38 plier, the address of the supplier's place
of business, the date of the trans-
39 action, and the date, not earlier than the
third business day following the
40 date of the transaction, by which the
consumer may give notice of can-
41 cellation.
42 (4) Include in any
door-to-door sale contract or receipt any confession
43 of judgment or any waiver of any of the
rights to which the consumer is
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1 entitled under this section including
specifically such consumer's right to
2 cancel the sale in accordance with
the provisions of this section.
3 (5) Fail to inform
each consumer orally, at the time such consumer
4 signs the contract or purchases the
property or services, of such con-
5 sumer's right to cancel.
6 (6) Misrepresent
in any manner the consumer's right to cancel.
7 (7) Fail or refuse
to honor any valid notice of cancellation by a con-
8 sumer and within 10 business days
after the receipt of such notice, to (i)
9 refund all payments made under the
contract or sale; (ii) return any prop-
10 erty traded in, in substantially as good
condition as when received by the
11 supplier; (iii) cancel and return any
negotiable instrument executed by
12 the consumer in connection with the
contract or sale and take any action
13 necessary or appropriate to terminate
promptly any security interest cre-
14 ated in the transaction.
15 (8) Negotiate, transfer,
sell, or assign any note or other evidence of
16 indebtedness to a finance company or other
third party prior to midnight
17 of the fifth business day following the day
the contract was signed or the
18 property or services were purchased.
19 (9) Fail, within 10
business days of receipt of the consumer's notice
20 of cancellation, to notify the consumer
whether the supplier intends to
21 repossess or to abandon any shipped or
delivered property.
22 (c) For the purposes of
this section the following definitions shall
23 apply:
24 (1) ``Door-to-door
sale'' means a sale, lease or rental of consumer
25 property or services with a purchase price
of $25 or more, whether under
26 single or multiple consumer transactions,
in which the supplier or the
27 supplier's representative personally
solicits the sale, including those in
28 response to or following an invitation by
the consumer, and the con-
29 sumer's agreement or offer to purchase is
made at a place other than the
30 place of business of the supplier. The term
``door-to-door sale'' does not
31 include a transaction:
32 (A) Made pursuant to
prior negotiations in the course of a visit by
33 the consumer to a retail business
establishment having a fixed permanent
34 location where the property is exhibited or
the services are offered for
35 sale on a continuing basis; or
36 (B) in which the
consumer is accorded the right of rescission by the
37 provisions of the consumer credit
protection act (15 USCS 1635) or reg-
38 ulations issued pursuant thereto; or
39 (C) in which the
consumer has initiated the consumer transaction and
40 the property or services are needed to meet
a bona fide immediate per-
41 sonal emergency of the consumer, and the
consumer furnishes the sup-
42 plier with a separate dated and signed
personal statement in the con-
43 sumer's handwriting describing the
situation requiring immediate remedy
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1 and expressly acknowledging and
waiving the right to cancel the sale
2 within three business days; or
3 (D) conducted and
consummated entirely by mail or telephone; and
4 without any other contact between the
consumer and the supplier or its
5 representative prior to delivery of
the property or performance of the
6 services; or
7 (E) in which the
consumer has initiated the transaction and specifi-
8 cally requested the supplier to visit
the consumer's home for the purpose
9 of repairing or performing
maintenance upon the consumer's real or per-
10 sonal property. If in the course of such a
visit, the supplier sells the
11 consumer the right to receive additional
services or property other than
12 replacement parts necessarily used in
performing the maintenance or in
13 making the repairs, the sale of the
additional property or services would
14 not fall within this exclusion; or
15 (F) pertaining to the
sale or rental of real property, to the sale of
16 insurance or to the sale of securities or
commodities by a broker-dealer
17 registered with the securities and exchange
commission; or
18 (G) that occurs on
the state fairgrounds during the annual Kansas
19 state fair between a consumer and a
vendor who has been authorized by
20 the state fair management to do business
on the state fairgrounds.
21 (2) ``Place of
business'' means the main or permanent branch office
22 of a supplier.
23 (3) ``Purchase price''
means the total price paid or to be paid for the
24 consumer property or services, including
all interest and service charges.
25 (4) ``Business day''
means any calendar day except Sunday, or any
26 legal holiday as defined by K.S.A. 60-206
and amendments thereto.
27 Sec. 2. K.S.A.
50-640 is hereby repealed.
28 Sec. 3. This act
shall take effect and be in force from and after its
29 publication in the statute book.
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