Iowa - TITLE XIV. PROPERTY
SUBTITLE 1. PERSONAL PROPERTY
CHAPTER 555A. DOOR-TO-DOOR SALES
Iowa Code § 555A.2 (2005)
555A.2 Contract.
Every seller shall furnish the buyer with a fully completed receipt or copy of
any contract pertaining to a door-to-door 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 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 boldface 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.
Iowa Code § 555A.3 (2005)
555A.3 Cancellation.
Every seller shall furnish each buyer, at the time the buyer signs the
door-to-door sales contract or otherwise agrees to buy consumer 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 boldface type the following
information and statements in the same language 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
canceled.
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 not agree to return the goods to the seller or if 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.
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)
555A.4 Duties of seller.
A seller shall:
1. Furnish two copies of the notice of cancellation to the buyer, and 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.
2. Not include in any 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 right to cancel the sale in accordance with the
provisions of this chapter.
3. 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.
4. Not misrepresent in any manner the buyer's right to cancel.
5. Honor any valid notice of cancellation by a buyer and within ten business
days after the receipt of notice shall refund all payments made under the
contract or sale, return any goods or property traded in, in substantially as
good condition as when received by the seller, and 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.
6. Not 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
seventh business day following the day the contract was signed or the goods or
services were purchased.
7. Within ten business days of receipt of the buyer's notice of cancellation
notify the buyer whether the seller intends to repossess or to abandon any
shipped or delivered goods.