TITLE 26 Trade Regulation And Practice
CHAPTER 481C Door-to-Door Sale
HRS § 481C-1 (2006)
§ 481C-1. Definitions.
In this chapter, unless the context or subject matter otherwise requires:
(1) (A) "Door-to-door sale" means (i) a sale of goods or services solicited in
person and signed by the buyer at a place other than the seller's business
address shown on the contract; or (ii) a sale of goods or services solicited in
person or by mail, telephone; or public or private notice or advertisement if
the solicitation includes an offer of a gift, prize, premiums, stamps, coupons,
tickets or other redeemable devices as an inducement for the person solicited or
a member of the person's immediate family to go to the seller's place of
business, whether the buyer signs at the seller's place of business or
elsewhere.
(B) The term "door-to-door sale" does not include a transaction:
(i) Made pursuant to prior negotiations in the course of a visit by the buyer to
a retail business establishment having a fixed permanent location where the
goods are exhibited or the services are offered for sale on a continuing basis;
or
(ii) In which the buyer has initiated the contact and the goods or services are
needed to meet a bona fide immediate personal emergency of the buyer, and the
buyer furnishes the seller with a separate dated and signed personal statement
in the buyer's handwriting describing the situation requiring immediate remedy
and expressly acknowledging and waiving the right to cancel the sale within
three business days; or
(iii) Conducted and consummated entirely by mail or telephone; and without any
other contact between the buyer and the seller or its representative prior to
delivery of the goods or performance of the services; or
(iv) In which 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. If in the course of such a
visit, the seller sells the buyer the right to receive 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 would not fall within this exclusion.
(2) "Goods" means all chattels personal, other than money and things in action,
except as herein provided, and includes emblements, growing crops, and things
which attach to or form a part of land which are agreed to be severed before
sale under the contract and things which at the time of sale or subsequently are
to be so affixed to real property as to become a part thereof, whether or not
severable therefrom. The term includes merchandise certificates or coupons,
issued by a seller, to be used in their face amount in lieu of cash in exchange
for goods sold by such a seller. The term also includes services as herein
defined.
(3) "Services" means work, labor, or service of any kind whether purchased
primarily for personal, family or household use, and whether or not furnished in
connection with the delivery, installation, servicing, repair, or improvement of
goods, and includes repairs, alterations, or improvements upon or in connection
with real property.
(4) "Seller" means any person, partnership, corporation, association, or other
group, however organized, engaged in the door-to-door sale of goods or services.
(5) "Sale" means and includes any sale with a purchase price of $5 or more, or
$25 if the merchandise is capable of being delivered at one time, other than for
resale, of goods to a buyer pursuant to a contract. It does not include a sale
to a business establishment.
(6) "Contract" means and includes any agreement, including a conditional sales
contract or any other form of instrument, evidencing an obligation to pay the
purchase price, or moneys advanced in payment of the purchase price of goods, by
payment thereof in one payment, or more than one payment made in installments
over a period of time, whether or not the contract contains a title retention
provision.
(7) "Cash sale price" means the cash sale price stated in a contract for which
the seller would sell to the buyer, and the buyer would buy from the seller, the
goods which are the subject matter of the contract if the sale were a sale for
cash instead of by payments made in installments over a period of time. The cash
sale price may include taxes, registration, license, and other fees and charges
for accessories and their installation and for delivering, servicing, repairing,
or improving the goods.
(8) "Business day" means any calendar day, except Saturday, Sunday, or any state
or federal holiday.
HRS § 481C-2 (2006)
§ 481C-2. Deceptive trade practice.
In connection with any door-to-door sale, it constitutes an unfair or deceptive
act or practice for the seller to:
(1) Fail to furnish the buyer with a fully completed receipt or copy of any
contract pertaining to such sale at the time of its execution, which is in the
same language as that principally used in the oral sales presentation and which
shows the date of the transaction and contains the name and address of the
seller, and which gives a description of the goods, including make, model, and
identification number or marks, if any, 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 DAYAFTER
THE DATE OF THIS TRANSACTION. SEE THE ATTACHED NOTICE
OF CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT.
(2) Fail to furnish each buyer, at the time the buyer signs the door-to-door
sales contract or otherwise agrees to buy goods or services from the seller, 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 as that used in the contract:
NOTICE OF CANCELLATION
(3) Fail, before furnishing copies of the "Notice of Cancellation" to the buyer,
to complete both copies 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.
(4) Include in any door-to-door contract or receipt any confession of judgment
or any waiver of any of the rights to which the buyer is entitled under this
chapter including specifically the buyer's right to cancel the sale in
accordance with the provisions of this chapter.
(5) Fail to inform each buyer orally, at the time the buyer signs the contract
or purchases the goods or services, of the buyer's right to cancel.
(6) Misrepresent in any manner the buyer's right to cancel.
(7) Fail or refuse to honor any valid notice of cancellation by a buyer and
within ten business days after the receipt of such notice, to (A) refund all
payments made under the contract or sale; (B) return any goods or property
traded in, in substantially as good condition as when received by the seller;
(C) cancel and return any negotiable instrument executed by the buyer in
connection with the contract or sale and take any action necessary or
appropriate to terminate promptly any security interest created in the
transaction.
(8) Negotiate, transfer, sell, or assign any note or other evidence of
indebtedness to a finance company or other third party prior to midnight of the
fifth business day following the day the contract was signed or the goods or
services were purchased.
(9) Fail, within ten business days of receipt of the buyer's notice of
cancellation, to notify the buyer whether the seller intends to repossess or to
abandon any shipped or delivered goods.
(10) Fail, if the seller's services result in the alteration of the property of
the buyer, to restore the property to substantially as good condition as it was
prior to the time the services were rendered.