73 P.S. § 201-7 (2006)

§ 201-7. Contracts; effect of rescission

(a) 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

(b) 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.

................... (Date) ...................
Buyer's Signature

(c) 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.

(d) Each buyer shall be informed at the time he signs the contract or
purchases the goods or services, of his right to cancel.

(e) The cancellation period provided for in this section shall not begin
to run until buyer has been informed of his right to cancel and has been
provided with copies of the "Notice of Cancellation."

(f) Seller shall not misrepresent in any manner the buyer's right to

(g) Any valid notice of cancellation by a buyer shall be honored and
within ten business days after the receipt of such notice, seller shall (i)
refund all payments made under the contract or sale; (ii) return any goods
or property traded in, in substantially as good condition as when received
by the seller; (iii) 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.

(h) No note or other evidence of indebtedness shall be negotiated,
transferred, sold or assigned by the seller 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.

(i) Seller shall, within ten business days of receipt of the buyer's
notice of cancellation, notify him whether the seller intends to repossess
or to abandon any shipped or delivered goods. If seller elects to repossess,
he must do so within twenty days of the date of buyer's notice of
cancellation or forfeit all rights to the delivered goods.

(j) Rights afforded under this section may be waived only in
circumstances where 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.

(k) As used in this section, merchandise shall not be construed to mean
real property.

(l) The provisions of this section shall not apply to the sale or
contract for the sale of goods or services having a sale price of less than
twenty-five dollars ($ 25).

(l.1) This section shall not apply, however, to the sale of precious
metals, bonds or foreign currency when the value of the items can fluctuate

(m) A "Notice of Cancellation" which contains the form and content
required by rule or regulation of the Federal Trade Commission shall be
deemed to be in compliance with the requirements of this section.

(n) As used in this section, "bona fide emergency" means any condition existing on the buyer's residential real property which renders or has the capability to render the residential real property uninhabitable. The term includes, but shall not be limited to, conditions significantly affecting the heating system, electrical system, plumbing system, ventilation system, roof or outer walls of the residential real property.
(o) As used in this section, "immediate preliminary steps" means only those steps necessary to eliminate a clear and immediate danger that may cause death or serious bodily injury to the buyer, the seller or other persons. The term includes, but shall not be limited to, termination of the carrying of gas, oil or oil product, sewage or water through an underground pipe or the carrying of electric or communication service through an underground conductor, pipe or structure. The term shall not be construed as including any other steps necessary to repair and remedy the bona fide emergency.