Cooling-Off Provision under Connecticut Law

Connecticut is my home state . Connecticut Contract Rescission Statute was enacted in 1967 and it was amended in 1969. The length of cooling-off period is three business days and is applicable to sales made through installments and also for cash sales. If cooling-off provision is elected, then it is essential to send a notice to buyer and a buyer has to send his notice to seller through a registered or by a certified mail.

Further, Connecticut introduced a time-share statute in 1982 which permits a buyer to cancel his sales contract in three business days, also stipulates refund has to be made within 10 days, prescribes stringent disclosure requirements, formulates advertisements standards and mandates labeling of promotional offers. Suppose, if a person purchases a car, then there is no cooling-off period under Connecticut or other state laws as cooling-off provision is applicable on the purchase of an automobile.

It is to be observed that Connecticut cooling-off provision applies only to the unsolicited item purchase and that too purchased during a door-to-door canvas. Suppose, under Connecticut laws, if a buyer elects to annul his sales contract, a seller is to within 10 days to annul and return any negotiable instrument or promissory note signed by the buyer. Further, a seller has to refund the entire money collected from the buyer and to take delivery of the product sold and the buyer has to give back any trade-in received.

Further, within 20 days, the seller should arrange to collect the sold items or to reimburse the buyer the expenses incurred for returning the product. [United Way of Connecticut]. Cooling-Off Provision under Federal Law: Under federal law, a sale contract should have a clause explaining the right of the buyer to cancel the contract either on the front page or in the space just before the spot where he has to sign.

Further, under federal law, seller has to provide copies of cancellation form with the date of sale and the seller’s name and his mailing address and the last date for annulling the contract in writing. Conclusion If cooling-off provision is to be wholly efficacy, it is necessary to educate low-income consumers about the existence of cooling-off provision. Cooling-off provision has to be strengthened by widening its coverage thereby to minimize its circumvention by unscrupulous sellers.

Vermont’ law applies to all type of sales irrespective of where they are consummated or signed. The present law should be strengthened by plugging the loophole by permitting consumers to cancel even when delivery is made before the cancellation period lapses. Likewise, scrapping of ‘holder-in-due’ course doctrine would compel finance companies to be more vigilant especially when they discount installment contracts as they can not recover their dues on contracts induced by fraud or misrepresentation.