Define: Cooling Off Rule

The Cooling Off Rule is a federal regulation that gives consumers the right to cancel certain sales contracts within a specific timeframe.

The Cooling Off Rule applies to sales contracts made at the buyer’s home, workplace, or at a seller’s temporary location, such as a hotel room or convention centre.

Under the Cooling Off Rule, you generally have three business days to cancel a sales contract. However, the specific timeframe may vary depending on the type of contract and state laws.

No, you do not need to provide a reason for cancelling a sales contract under the Cooling Off Rule. You have the right to cancel for any reason or no reason at all.

To cancel a sales contract, you typically need to notify the seller in writing within the specified cancellation period. It is recommended to send the cancellation notice via certified mail to have proof of delivery.

No, the seller cannot charge you a cancellation fee or any other penalty for cancelling a sales contract under the Cooling Off Rule.

Yes, there are certain exceptions to the Cooling Off Rule. For example, it does not apply to sales contracts for goods or services that are not primarily intended for personal, family, or household purposes.

The Cooling Off Rule does not apply to vehicle sales, including cars, motorcycles, or boats. However, some states may have separate laws that provide a cooling-off period for vehicle purchases.

If you properly cancel a sales contract under the Cooling Off Rule, the seller must refund any money you paid within ten business days of receiving your cancellation notice.

No, you cannot waive your rights under the Cooling Off Rule. Any provision in a sales contract that attempts to waive or limit your rights is considered void and unenforceable.