Is your Small Business in Compliance with the Ohio Home Solicitation Sales Act?
Is your Small Business in Compliance withthe Ohio Home Solicitation Sales Act?By Caroline Z. Worley Most states have laws that protect consumers of household goods/services frombeing taken advantage of during a home solicitation sale. In Ohio, when conductingsales that include meeting a prospective purchaser of services or goods at their homeand in other defined circumstances, the Home Solicitation Sales Act must be compliedwith. At the time a sales contract is explained and presented to customer, it must beaccompanied by a 3 day notice of the right to rescind the contract. If the Act is notcomplied with, the customer may rescind the transaction (even after services arecompleted or goods received) and is relieved of any obligation of payment. Otherrequirements under this Ohio law require a business to: Give customer a signed copy of the sales contract with 2 copies of a Notice ofCancellation attached; Complete both copies of the Notice of Cancellation and give tocustomer. Make your own copies of both the executed contract and the Notices ofCancellation; Inform each customer orally at the time the sales agreement ispresented/signed, of the 3 day right to cancel. The oral statement must be similar tothe attached written Notice of Cancellation. If customer exercises right of cancellationwithin the 3 day period, the within 10 days, Vendor must: refund all payments made;and notify customer whether Vendor intends to repossess any shipped or deliveredgoods; Retain all Notices of Cancellation in records and envelope in which it wasdelivered. If there is no date on the Notice of Cancellation, then Vendor must recorddate of delivery on the Notice of Cancellation. Vendor must not commence services during 3 day period in which the customermay cancel. Noncompliance with the above sections constitutes a deceptive act orpractice in connection with a consumer transaction. If you are not sure if yourbusiness is subject to the requirements of the Act, check the Ohio Attorney General’swebsite regarding consumer transactions:http://www.ohioattorneygeneral.gov/ConsumerLaws#Home_Solitication_Sales_ActCaroline Z. Worley is a small business attorney who represents owners, investors, and entrepreneurs inall aspects of commercial, corporate, and business law, contracts and negotiations, business litigation,and real estate. She owns Worley Law, LLC, located in Columbus, Ohio.