Chapter 740 - Home Solicitation Sales Act

(a) “Home solicitation sale” means a sale, lease, or rental of consumer goods or services, whether under single or multiple contracts, in which the seller or his representative personally solicits the sale, including those in response to or following an invitation by the buyer, and the buyer's agreement or offer to purchase is made at a place other than the place of business of the seller. The term “home solicitation sale” does not include a transaction: (1) Made pursuant to prior negotiations in the course of a visit by the buyer to a retail business establishment having a fixed, permanent location where goods are exhibited or the services are offered for sale on a continuing basis; (2) in which the buyer has initiated the contact and the goods or services are needed to meet a bona fide immediate personal emergency of the buyer, and the buyer furnishes the seller with a separate dated and signed personal statement in the buyer's handwriting describing the situation requiring immediate remedy and expressly acknowledging and waiving the right to cancel the sale within three business days; (3) conducted and consummated entirely by mail or telephone and without any other contact between the buyer and the seller or its representative prior to delivery of the goods or performance of the services; (4) in which the buyer has initiated the contact and specifically requested the seller to visit his home for the purpose of repairing or performing maintenance upon the buyer's personal property. If in the course of such a visit, the seller sells the buyer the right to receive additional services or goods other than replacement parts necessarily used in performing the maintenance or in making the repairs, the sale of those additional goods or services shall not come within this exclusion; (5) pertaining to the sale or rental of real property, to the sale of insurance, to the sale of newspapers or to the sale of securities or commodities by a broker-dealer registered with the securities and exchange commission; (6) made pursuant to a home party plan sales and demonstration; or (7) in the case of consumer goods, other than magazine sales or subscriptions, where the purchase price, whether under single or multiple contracts, does not exceed twenty-five dollars.

(b) “Consumer goods or services” means goods or services purchased, leased, or rented primarily for personal, family, or household purposes, including courses of instruction or training regardless of the purpose for which they are taken.

(c) “Seller” means any person, partnership, corporation, limited liability company or association engaged in home solicitation sales of consumer goods or services.

(d) “Place of business” means the main or permanent branch office or local address of a seller.

(e) “Purchase price” means the total price paid or to be paid for the consumer goods or services, including all interest and service charges.

(f) “Business day” means any calendar day except Sunday or any of the following business holidays: New Year's Day, Washington's Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day and Christmas Day.

(P.A. 76-165, S. 1, 8; P.A. 95-79, S. 163, 189.)

History: P.A. 95-79 redefined “seller” to include a limited liability company, effective May 31, 1995.

Cited. 215 C. 336; 240 C. 58. Subsec. (a)(5): The real property exception to definition of “home solicitation sale” is not strictly limited to the sale or rental or real property, and a transaction is one “pertaining to the sale or rental of real property” if it is inextricably related to, or an integral adjunct or accessory to, the sale or rental, thus the sale, lease, or rental of consumers goods or services are excluded from the definition of a “home solicitation sale”. 340 C. 711.

Cited. 18 CA 463; 20 CA 625. Staging services agreement under which defendants leased furniture to make home more attractive for sale was exempt from provisions of section because it related to sale or rental of real property. 165 CA 305.

“Consumer goods and services” includes installation of driveway. 36 CS 271. Cited. Id., 506.

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Sec. 42-135. Notice in sales agreement. Seller to complete prior to signing by buyer. Section 42-135 is repealed.

(1967, P.A. 749, S. 3; 1969, P.A. 178, S. 1; 1972, P.A. 141; P.A. 76-165, S. 7, 8.)

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Sec. 42-135a. Notice in sales agreement. Notice of cancellation. Duties of seller. No agreement in a home solicitation sale shall be effective against the buyer if it is not signed and dated by the buyer or if the seller shall:

(1) Fail to furnish the buyer with a fully completed receipt or copy of all contracts and documents pertaining to such sale at the time of its execution, which contract shall be in the same language as that principally used in the oral sales presentation and which shall show the date of the transaction and shall contain the name and address of the seller, and in immediate proximity to the space reserved in the contract for the signature of the buyer, or on the front page of the receipt if a contract is not used, and in boldface type of a minimum size of ten points, a statement in substantially the following form:

YOU, THE BUYER, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION. SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT.

(2) Fail to furnish each buyer, at the time such buyer signs the home solicitation sales contract or otherwise agrees to buy consumer goods or services from the seller, a completed form in duplicate, captioned “NOTICE OF CANCELLATION”, which shall be attached to the contract or receipt and easily detachable, and which shall contain in ten-point boldface type the following information and statements in the same language as that used in the contract:

NOTICE OF CANCELLATION

.... (Date of Transaction)

YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY PENALTY OR OBLIGATION, WITHIN THREE BUSINESS DAYS FROM THE ABOVE DATE.

IF YOU CANCEL, ANY PROPERTY TRADED IN, ANY PAYMENTS MADE BY YOU UNDER THE CONTRACT OR SALE, AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY YOU WILL BE RETURNED WITHIN TEN BUSINESS DAYS FOLLOWING RECEIPT BY THE SELLER OF YOUR CANCELLATION NOTICE, AND ANY SECURITY INTEREST ARISING OUT OF THE TRANSACTION WILL BE CANCELLED.

IF YOU CANCEL, YOU MUST MAKE AVAILABLE TO THE SELLER AT YOUR RESIDENCE, IN SUBSTANTIALLY AS GOOD CONDITION AS WHEN RECEIVED, ANY GOODS DELIVERED TO YOU UNDER THIS CONTRACT OR SALE; OR YOU MAY, IF YOU WISH, COMPLY WITH THE INSTRUCTIONS OF THE SELLER REGARDING THE RETURN SHIPMENT OF THE GOODS AT THE SELLER'S EXPENSE AND RISK.

IF YOU DO MAKE THE GOODS AVAILABLE TO THE SELLER AND THE SELLER DOES NOT PICK THEM UP WITHIN TWENTY DAYS OF THE DATE OF CANCELLATION, YOU MAY RETAIN OR DISPOSE OF THE GOODS WITHOUT ANY FURTHER OBLIGATION. IF YOU FAIL TO MAKE THE GOODS AVAILABLE TO THE SELLER, OR IF YOU AGREE TO RETURN THE GOODS TO THE SELLER AND FAIL TO DO SO, THEN YOU REMAIN LIABLE FOR PERFORMANCE OF ALL OBLIGATIONS UNDER THE CONTRACT.

TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN NOTICE, OR SEND A TELEGRAM TO .... (Name of Seller) AT .... (Address of Seller's Place of Business) NOT LATER THAN MIDNIGHT OF .... (Date)

I HEREBY CANCEL THIS TRANSACTION.

.... (Date)

.... (Buyer's Signature)

(3) Fail, before furnishing copies of the “Notice of Cancellation” to the buyer, to complete both copies by entering the name of the seller, the address of the seller's place of business, the date of the transaction, and the date, not earlier than the third business day following the date of the transaction, by which the buyer may give notice of cancellation.

(4) Include in any home solicitation sale contract or receipt any confession of judgment or any waiver of any of the rights to which the buyer is entitled under this chapter, including specifically such buyer's right to cancel the sale in accordance with the provisions of this section.

(5) Fail to inform each buyer, orally, at the time such buyer signs the contract or purchases the goods or services, of such buyer's right to cancel.

(6) Misrepresent in any manner the buyer's right to cancel.

(7) Fail or refuse to honor any valid notice of cancellation by a buyer and within ten business days after the receipt of such notice, to (A) refund all payments made under the contract or sale; (B) return any goods or property traded in, in substantially as good condition as when received by the seller; (C) cancel and return any negotiable instrument executed by the buyer in connection with the contract or sale and take any action necessary or appropriate to terminate promptly any security interest created in the transaction; and (D) cancel and return any contract executed by the buyer in connection with the transaction.

(8) Negotiate, transfer, sell, or assign any note or other evidence of indebtedness to a finance company or other third party prior to midnight of the fifth business day following the date the contract was signed or the goods or services purchased.

(9) Fail, within ten business days of receipt of the buyer's notice of cancellation, to notify such buyer whether the seller intends to repossess or to abandon any shipped or delivered goods.

(P.A. 76-165, S. 2, 8; P.A. 78-331, S. 36, 58; P.A. 03-167, S. 4.)

History: P.A. 78-331 made technical correction; P.A. 03-167 replaced reference to agreement of the buyer with reference to home solicitation sale being effective against the buyer and made technical changes for the purpose of gender neutrality.

Cited. 215 C. 336; 224 C. 231; 232 C. 666.

Cited. 18 CA 463; Id., 581; 27 CA 162; 33 CA 294; 38 CA 420.

Cited. 36 CS 213; Id., 271; Id., 506.

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Sec. 42-136. Note or evidence of indebtedness given by buyer. (a) Any note or other evidence of indebtedness given by a buyer in respect of a home solicitation sale shall be dated not earlier than the date of the agreement or offer to purchase. Any transfer of a note or other evidence of indebtedness bearing the statement required by subsection (b) of this section shall be deemed an assignment only and any right, title or interest which the transferee may acquire thereby shall be subject to all claims and defenses of the buyer against the seller arising under the provisions of this chapter.

(b) Each note or other evidence of indebtedness given by a buyer in respect of a home solicitation sale shall bear on its face a conspicuous statement as follows: THIS INSTRUMENT IS BASED UPON A HOME SOLICITATION SALE, WHICH SALE IS SUBJECT TO THE PROVISIONS OF THE HOME SOLICITATION SALES ACT. THIS INSTRUMENT IS NOT NEGOTIABLE.

(c) Compliance with the requirements of this section shall be a condition precedent to any right of action by the seller or any transferee of an instrument bearing the statement required under subsection (b) of this section against the buyer upon such instrument and shall be pleaded and proved by any person who may institute action or suit against a buyer in respect thereof.

(d) A promissory note payable to order or bearer and otherwise negotiable in form issued in violation of this section may be enforced as a negotiable instrument by a holder in due course according to its terms.

(1967, P.A. 749, S. 5.)

Cited. 36 CS 213. Section does not require any specific size or boldness of type, indicating legislature did not establish any precise formula that would render a statement conspicuous. Id., 506.

Note made as evidence of indebtedness under a home solicitation sale contract was subject to defenses on the contract, hence when the contract was declared void, the note was uncollectible; transfer of note given by buyer in a home solicitation sale deemed an assignment; any rights, title or interest acquired by transferee are subject to all claims or defenses buyer may have against seller arising under the provisions of the act. 6 Conn. Cir. Ct. 745.

Subsec. (a):

Postdating of note not proscribed. 36 CS 506, 509.

Subsec. (b):

A conditional sales contract was not a “note or other evidence of indebtedness” and therefore notice requirements of statute were inapplicable. 36 CS 213. Language not subject to Uniform Commercial Code. Id., 506.

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Sec. 42-137. Cancellation rights of buyer. (a) In addition to any right otherwise to revoke an offer, the buyer may cancel a home solicitation sale until midnight of the third business day after the day on which the buyer signs an agreement subject to the provisions of this chapter.

(b) Cancellation shall occur when the buyer gives written notice of cancellation to the seller at the address specified for notice of cancellation provided by the seller or when such written notice bearing such address is deposited in a mail box.

(c) Notice of cancellation given by the buyer shall be effective if it indicates the intention on the part of the buyer not to be bound by the home solicitation sale.

(1967, P.A. 749, S. 2; 1969, P.A. 178, S. 2; P.A. 76-165, S. 3, 8.)

History: 1969 act changed deadline for buyer's cancellation from midnight of first day after signing agreement to midnight of third day and in exception re weekends changed deadline from midnight Monday to midnight Wednesday; P.A. 76-165 based deadline on “business” day rather than “calendar” days and deleted exception re weekend sales rendered obsolete by the change.

Cited. 158 C. 543.

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Sec. 42-138. Seller's obligations on cancellation. (a) Except as provided in this section, within ten business days after a home solicitation sale has been cancelled the seller shall tender to the buyer any payments made by the buyer and any note or other evidence of indebtedness.

(b) If the down payment includes goods traded in, the goods shall be tendered in substantially as good condition as when received. If the seller fails to tender the goods as provided by this section, the buyer may elect to recover an amount equal to the trade-in allowance stated in the agreement.

(c) Until the seller has complied with the obligations imposed by this section the buyer may retain possession of goods delivered to him by the seller and has a lien on the goods for any recovery to which he is entitled.

(1967, P.A. 749, S. 4; P.A. 76-165, S. 4, 8.)

History: P.A. 76-165 deleted former Subsec. (c) which had allowed seller to retain cancellation fee consisting of the lesser of 5% of cash price, $15 or amount of cash down payment and had specified situations in which seller was not allowed to retain the fee, relettering Subsec. (d) accordingly.

Cited. 6 Conn. Cir. Ct. 745.

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Sec. 42-139. Buyer's obligations on cancellation. (a) Except as provided in subsection (c) of section 42-138, within twenty days after a home solicitation sale has been cancelled the buyer, upon demand, shall tender to the seller any goods delivered by the seller pursuant to the sale, but he is not obligated to tender at any place other than his own address. If the seller fails to take possession of such goods within twenty days after cancellation the goods shall become the property of the buyer without obligation to pay for them.

(b) The buyer shall take reasonable care of the goods in his possession both prior to cancellation and during the twenty-day period following. During the twenty-day period after cancellation, except for the buyer's duty of care, the goods are at the seller's risk.

(c) If the seller has performed any services pursuant to a home solicitation sale prior to its cancellation, the seller is entitled to no compensation. If the seller's services result in the alteration of property of the buyer, the seller shall restore the property to substantially as good condition as it was in at the time the services were rendered.

(1967, P.A. 749, S. 6; P.A. 76-165, S. 5, 8.)

History: P.A. 76-165 substituted Subsec. “(c)” for “(d)” of Sec. 42-138 to reflect deletion of former Subsec. (c) and subsequent relettering of (d).

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Sec. 42-140. Offer of commission or rebate where buyer provides prospective purchasers' names illegal, when. No seller in a home solicitation sale shall offer to pay a commission or give a rebate or discount to the buyer in consideration of the buyer's giving to the seller the names of prospective purchasers or otherwise aiding the seller in making a sale to another person, if the earning of the commission, rebate or discount is contingent upon an event subsequent to the time the buyer agrees to buy.

(1967, P.A. 749, S. 7.)

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Sec. 42-141. Penalty. Violation made unfair or deceptive practice or act. (a) Any person who violates any provision of this chapter shall be guilty of a class C misdemeanor. Any sale made in respect to which a commission, rebate or discount is offered in violation of the provisions of this chapter shall be voidable at the option of the buyer.

(b) Violation of any of the provisions of sections 42-135a, or 42-137 to 42-139, inclusive, or failure to honor any provisions of the notice of cancellation required by this chapter shall constitute an unfair or deceptive act or practice as defined by section 42-110b.

(1967, P.A. 749, S. 8; P.A. 76-165, S. 6, 8; P.A. 12-80, S. 184.)

History: P.A. 76-165 added Subsec. (b); P.A. 12-80 amended Subsec. (a) to change penalty from a fine of not more than $500 or imprisonment of not more than 90 days or both to a class C misdemeanor.

Cited. 231 C. 707.

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Sec. 42-142. Sale of insurance excepted. Section 42-142 is repealed.

(1967, P.A. 749, S. 9; P.A. 76-165, S. 7, 8.)

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Sec. 42-143. Short title: Home Solicitation Sales Act. This chapter may be cited as the “Home Solicitation Sales Act”.

(1967, P.A. 749, S. 10.)

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