Requirement of Notice of Cancellation
To avoid the requirement of supplying the homeowner with a Right to Cancel the Contract, you must have one of the follow:
A fixed location in Ohio where your goods and services are regularly offered at a business establishment at a fixed location, open to the general public and the buyer initiates the contact between the parties for the purpose of negotiating a purchase.
The buyer has initiated the contact and specifically requested the seller to visit the buyer's home for the purpose of repairing or performing maintenance upon the buyer's personal property. (Note: If, in the course of such a visit, the seller sells the buyer 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 does not fall within this exclusion.)
If you do not qualify for these and the solicitation is at the buyer’s home you must provide a completed “NOTICE OF CANCELLATION.”
There are strict requirements for the presentment of this Notice and the language in this Notice. Failure to adhere to these requirements will result in a violation of the Ohio Consumer Sales Practices Act with three times the contract amount in damages (treble), attorneys' fees, and court costs. It is imperative to seek qualified counsel's advise on your business to ensure compliance with the statute.
There are some contracts in Ohio that allow consumers to revoke within three days of signing. These types of contracts include: Prepaid Entertainment Contracts and Home Solicitation Sales Contracts. (Defined below).
In both cases, the business owner must give the exact statutory written notice of the customer’s ability to cancel the contract. If the business does not comply with the strict written notice requirements, the customer can revoke at any time until proper notice is given. Further, if there is a dispute, the business could be held liable for the entire amount the customer paid, penalties, court costs, and attorneys' fees
Prepaid Entertainment : A contract under which the customer pays for or becomes obligated to pay for a service prior to receipt of those services. Some examples include: dance lessons, social referral services, martial arts training, health spa, or exercise membership. ORC Ann. 1345.41 (2005)
Home Solicitation Sale : A sale of consumer goods or services in which the seller or its agent solicits a consumer at their residence. This includes solicitations in response to an invitation by the consumer. ORC 1345.21(A).
There are some exceptions within these requirements. The rules and exceptions should be thoroughly evaluated before making any legally binding decisions.
Elliott Stapleton Attorney with CMRS Law