A sales representative called on the Smiths at their home to sell them frozen food (steaks, chicken and veal) along with a small freezer for $1000. After a very persuasive sales pitch, the Smiths agreed. Two days later they regretted their decision, contacted the company, and stated that they had decided to rescind the contract and return the food and the freezer. May they?
A)No, it was an in-home sale and not unsolicited merchandise.
B)No, they executed a contract.
C)No, the Smiths have title to the food and the freezer.
D)Yes, the three-day in-home sales rule of the FTC allows the Smiths to rescind the contract.

Question

A sales representative called on the Smiths at their home to sell them frozen food (steaks, chicken and veal) along with a small freezer for $1000. After a very persuasive sales pitch, the Smiths agreed. Two days later they regretted their decision, contacted the company, and stated that they had decided to rescind the contract and return the food and the freezer. May they?​
A)No, it was an in-home sale and not unsolicited merchandise.
B)No, they executed a contract.
C)No, the Smiths have title to the food and the freezer.
D)Yes, the three-day in-home sales rule of the FTC allows the Smiths to rescind the contract.

Quizplus · Accepted Answer

The FTC's Cooling-Off Rule gives consumers three days to cancel purchases of $25 or more made at their home or a location that is not the seller's permanent place of business. This rule applies to the situation described, allowing the Smiths to rescind the contract.

A Sales Representative Called on the Smiths at Their Home