A.R.S. tit. 44 ch. 15 — Arizona Revised Statutes Title 44 Chapter 15 — Home Solicitations And Referral Sales

44-5001. Definitions In this chapter, unless the context otherwise requires: 1. "Home solicitation sale": (a) Means a sale of goods or services in which the seller or the seller's representative personally solicits the sale without prior invitation, appointment or consent and the buyer's agreement or offer to purchase is made at a home other than that of the person soliciting the same and that agreement or offer to purchase is there given to the seller or the seller's representative. (b) Includes a cash sale that otherwise meets the definition of a home solicitation sale if the seller makes or provides a loan to the buyer or obtains or assists in obtaining a loan for the buyer to pay the purchase price. (c) Does not include a sale that is pursuant to a preexisting account with a seller whose primary business is selling goods or services at a fixed location or that is made pursuant to prior negotiations between the parties at a business establishment at a fixed location where goods or services are offered or exhibited for sale. 2. "Person": (a) Includes a corporation, company, partnership, firm, association, society or natural person. (b) When used to designate the party whose property may be the subject of a criminal or public offense, includes the United States, this state or any territory, state or country, any political subdivision of this state that may lawfully own any property, or a public or private corporation, partnership or association. (c) When used to designate the violator or offender of any law, includes a corporation, a partnership or any association of persons. 44-5002. Cancellation period; method of cancellation; intent; waiver void 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. For the purposes of this chapter, "business day" does not include Sundays or the federal holidays of New Year's Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans' Day, Thanksgiving Day, Christmas Day, or Washington's Birthday. B. Cancellation shall occur when the buyer gives written notice of cancellation in person or by telegram 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 the United States mail by either ordinary mail or registered mail. C. Notice of cancellation given by the buyer is effective if it indicates the intention on the part of the buyer not to be bound by the home solicitation sale. D. Any provision of a contract, offer or agreement that waives a buyer's right of cancellation under this section is void and has no effect. 44-5003. Referral sales, rebate or discount violations 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 that is to happen subsequent to the time the buyer agrees to buy. 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. 44-5004. Agreement requirements A. No agreement of the buyer in a home solicitation sale shall be effective unless the contract, receipt and all other documents pertaining to the contract are written in the same language used in the oral sales presentation. If a language which cannot be written is used in the oral sales presentation, such documents may be in English. B. No agreement of the buyer in a home solicitation sale shall be effective unless it is dated, signed by the buyer and contains a conspicuous notice in the language used in the oral sales presentation which if in English would be as follows: NOTICE TO BUYER 1. Do not sign this agreement if any of the spaces intended for the agreed terms to the extent of then available information are left blank. 2. You are entitled to a copy of this agreement at the time you sign it. 3. You may pay off the full unpaid balance due under this agreement at any time, and in so doing you shall be entitled to a full rebate of the unearned finance and insurance charges. 4. You may cancel this agreement 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. 5. It shall not be legal for the seller to enter your premises unlawfully or commit any breach of the peace to repossess goods purchased under this agreement. C. No agreement of the buyer in a home solicitation sale shall be effective unless the following completed form, in duplicate and in the language used in the oral sales presentation which, if in English, would be in the form set forth in this subsection, is attached to the contract or receipt: NOTICE OF CANCELLATION /enter date of transaction/ (date) 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. ______________________________ (date) ________________________________ (buyer's signature) 44-5005. Transfer A. A 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 pursuant to the provisions of this chapter and sections 44-144 and 44-145. 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 is subject to the provisions of title 44, chapter 15. 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 an action or suit against a buyer in respect thereof. 44-5006. Time limitation; disposition of goods A. Except as provided in this section, within ten days after a home solicitation sale has been canceled, 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. 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 until the seller has complied with the obligations imposed by this section. 44-5007. Buyer responsibility; services A. Except as provided in subsection C of section 44-5006, within twenty days after a home solicitation sale has been canceled, 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 following twenty-day period. 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 a cancellation fee of five per cent of the cash price, fifteen dollars, or the amount of the cash down payment, whichever is less. 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. D. The buyer may not cancel a home solicitation sale if he requests the seller to provide goods or services without delay because of an emergency and the seller in good faith makes a substantial beginning of performance before notice of cancellation, and the goods cannot be returned to the seller in substantially as good condition as when the buyer received them. 44-5008. Violation; classification Any person who violates any provision of this chapter shall be guilty of a class 3 misdemeanor.