BUSINESS AND COMMERCE CODE
TITLE 4. MISCELLANEOUS COMMERCIAL PROVISIONS
CHAPTER 39. CANCELLATION OF CERTAIN CONSUMER TRANSACTIONS
Tex. Bus. & Com. Code § 39.003 (2006)
§ 39.003. Consumer's Right to Cancel
In addition to any other rights or remedies available, a consumer may cancel a consumer transaction to which this chapter applies not later than midnight of the third business day after the date the consumer signs an agreement or offer to purchase.
Tex. Bus. & Com. Code § 39.004 (2006)
§ 39.004. Notice by Merchant
(a) A merchant must provide a consumer with a complete receipt or copy of any contract pertaining to the consumer transaction at the time of its execution.
(b) The document provided under Subsection (a) must:
(1) be in the same language as that principally used in the oral sales
(2) show the date of the transaction;
(3) contain the name and address of the merchant; and
(4) contain in immediate proximity to the space reserved in the
contract for the signature of the consumer, or on the front page of the
receipt if a contract is not used, a statement in bold-faced type of a
minimum size of 10 points 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."
(c) The merchant must attach to the document provided under Subsection (a) a completed notice of cancellation form in duplicate. The form must:
(1) be easily detachable;
(2) be in the same language as the document provided under Subsection
(3) contain the following information and statements in 10-point
"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 10 BUSINESS DAYS FOLLOWING RECEIPT BY THE MERCHANT 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 MERCHANT 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 MERCHANT REGARDING THE RETURN SHIPMENT OF THE GOODS AT THE MERCHANT'S EXPENSE AND RISK.
"IF YOU DO NOT AGREE TO RETURN THE GOODS TO THE MERCHANT OR IF THE MERCHANT DOES NOT PICK THEM UP WITHIN 20 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 merchant), AT (address of merchant's place of business) NOT LATER THAN MIDNIGHT OF (date).
I HEREBY CANCEL THIS TRANSACTION.
(buyer's signature) "
(d) The use of the forms and notices of the right to cancel prescribed by the Federal Trade Commission's trade-regulation rule providing a cooling-off period for door-to-door sales constitutes compliance with this section.
(e) A consumer transaction in which the contract price does not exceed $ 200 complies with the notice requirements of this section if:
(1) the consumer may at any time cancel the order, refuse to accept
delivery of the goods without incurring any obligation to pay for them,
or return the goods to the merchant and receive a full refund of the
amount the consumer has paid; and
(2) the consumer's right to cancel the order, refuse delivery, or
return the goods without obligation or charge at any time is clearly
and conspicuously set forth on the face or reverse side of the sales
Tex. Bus. & Com. Code § 39.005 (2006)
§ 39.005. Merchant's Compensation
A merchant is not entitled to compensation for services performed under a consumer transaction if the consumer cancels the transaction under this chapter.
Tex. Bus. & Com. Code § 39.006 (2006)
§ 39.006. Retention of Goods or Real Property
Until a merchant has complied with this chapter, a consumer with possession of goods or right or title to real property delivered by the merchant:
(1) may retain possession of the goods or right or title to the real
(2) has a lien on the goods or real property to the extent of any
recovery to which the consumer is entitled.
Tex. Bus. & Com. Code § 39.007 (2006)
§ 39.007. Duty of Consumer
(a) Within a reasonable time after a cancellation under this chapter, the consumer on demand must tender to the merchant any goods or right or title to real property delivered by the merchant under the consumer transaction.
(b) The consumer is not obligated to tender goods at a place other than the consumer's residence.
(c) If the merchant fails to demand possession of the goods or the right or title to real property within a reasonable time after cancellation, the goods or real property become the property of the consumer without obligation to pay.
(d) Goods or real property in possession of the consumer are at the risk of the merchant, except that the consumer shall take reasonable care of the goods or the real property both before and for a reasonable time after cancellation.
(e) For purposes of this section, 20 days is presumed to be a reasonable time.
Tex. Bus. & Com. Code § 39.003 (2006) § 39.003. Consumer's Right to Cancel