THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY SWANGER, BEAR, CALTAGIRONE, DeLUCA, DONATUCCI, GINGRICH, GOODMAN, GROVE, HORNAMAN, JOSEPHS, KAUFFMAN, KOTIK, KULA, McGEEHAN, MICOZZIE, MIRABITO, MOUL, MURT, PETRARCA, READSHAW, REICHLEY, ROCK, VULAKOVICH AND WHITE, MARCH 14, 2011

REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, MARCH 14, 2011  

AN ACT

Amending the act of December 17, 1968 (P.L.1224, No.387),

entitled "An act prohibiting unfair methods of competition

and unfair or deceptive acts or practices in the conduct of

any trade or commerce, giving the Attorney General and

District Attorneys certain powers and duties and providing

penalties," further providing for contracts and effect of

rescission.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 7(a), (b), (c) and (j.1) of the act of

December 17, 1968 (P.L.1224, No.387), known as the Unfair Trade

Practices and Consumer Protection Law, reenacted and amended

November 24, 1976 (P.L.1166, No.260), and amended or added

December 4, 1996 (P.L.906, No.146) and November 30, 2004

(P.L.1553, No.196), are amended and the section is amended by

adding a subsection to read:

Section 7.  Contracts; Effect of Rescission.--(a)  [Where]

(1)  Except as otherwise provided in paragraph (2), where goods

or services having a sale price of twenty-five dollars ($25) or

more are sold or contracted to be sold to a buyer, as a result

of, or in connection with, a contact with or call on the buyer

or resident at his residence either in person or by telephone,

that consumer may avoid the contract or sale by notifying, in

writing, the seller within three full business days following

the day on which the contract or sale was made and by returning

or holding available for return to the seller, in its original

condition, any merchandise received under the contract or sale.

Such notice of rescission shall be effective upon depositing the

same in the United States mail or upon other service which gives

the seller notice of rescission.

(2)  Where goods or services having a sale price of twenty-

five dollars ($25) or more are sold or contracted to be sold to

a buyer who is at least 65 years of age, as a result of, or in

connection with, a contact with or call on the buyer or resident

at his residence either in person or by telephone, that consumer

may avoid the contract or sale by notifying, in writing, the

seller within 15 full business days following the day on which

the contract or sale was made and by returning or holding

available for return to the seller, in its original condition,

any merchandise received under the contract or sale. Such notice

of rescission shall be effective upon depositing the same in the

United States mail or upon other service which gives the seller

notice of rescission.

(b)  [At] Except as otherwise provided under subsection

(b.1), at the time of the sale or contract the buyer shall be

provided with:

(1)  A fully completed receipt or copy of any contract

pertaining to such sale, which is in the same language (Spanish,

English, etc.) as that principally used in the oral sales

presentation, and also in English, and which shows the date of

the transaction and contains 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 bold face 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)  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 bold face type the following information and statements in

the same language (Spanish, English, etc.) as that used in the

contract:

Notice of Cancellation

(Enter 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 your notice 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.

(b.1)  For a buyer who is at least 65 years of age, the

statement required by subsection (b.1) shall be in the same

form, except that the right to cancel shall state the fifteenth

business day and the notice of cancellation required by

subsection (b)(2) shall be in the same form, except that the

right to cancel shall state the time period of fifteen business

days.

(c)  [Before] (1)  Except as otherwise provided in paragraph

(2), before furnishing copies of the "Notice of Cancellation" to

the buyer, both copies shall be completed 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.

(2)  Before furnishing copies of the "Notice of Cancellation"

to a buyer who is at least 65 years of age, both copies shall be

completed 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 fifteenth business day following the

date of the transaction, by which the buyer may give notice of

cancellation.

* * *

(j.1)  (1)  Rights afforded under this section may be waived

only through the execution of an emergency authorization form:

(i)  where goods or services have a sale price of twenty-five

dollars ($25) or more;

(ii)  are contracted to be sold to a buyer as a result of or

in connection with a contact made by the buyer to the seller;

and

(iii)  the goods or services contracted for are needed to

remedy a bona fide emergency on the buyer's residential real

property. Nothing in this subsection shall prohibit a seller

contacted by a buyer as a result of a bona fide emergency from

taking any immediate preliminary steps necessary to remedy a

clear and immediate danger that may cause death or serious

bodily injury to the buyer, the seller or other persons without

having to obtain the emergency authorization form.

(2)  To obtain a waiver under this section, the seller must

furnish the buyer with an emergency work authorization form as

well as a written estimate of the goods or the performance of

services. This authorization will allow the seller to

immediately proceed with the delivery of the goods or the

performance of the services necessary to remedy the bona fide

emergency.

(3)  [The] Except as otherwise provided in paragraph (3.1),

the emergency work authorization form provided for in this

section shall be:

(i)  on a preprinted card at least four inches by six inches

in size; and

(ii)  the writing thereon must be in at least ten-point bold

face type in the following form:

Emergency Work Authorization

(Enter Date of Transaction)

You, the buyer, having initiated the contract for the

goods and services of (enter the name of the seller), the

seller, for the remediation of a bona fide emergency hereby

authorize the seller to immediately proceed with the delivery

of goods or the performance of services necessary to remedy

the bona fide emergency. By providing the seller with this

authorization, you agree to make full payment for the goods

or services provided. You agree not to exercise the rights

afforded you by the Unfair Trade Practices and Consumer

Protection Law to cancel the contract within three business

days from the above date.

You, the buyer, attest that the attached estimate is an

accurate description of the goods and services which will be

provided by the seller for the correction of the bona fide

emergency:

(3.1) For a buyer who is at least 65 years of age, the

emergency work authorization form required under paragraph (3)

(ii) shall state fifteen business days instead of three business

days.

* * *

Section 2.  This act shall take effect in 60 days.