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Statutes of Newfoundland 1997


CHAPTER 7

CHAPTER 7

TO AMEND THE DIRECT SELLERS ACT

(Assented to May 20, 1997)

Analysis

1. S.5 Amdt.
Exceptions to licensing

2. S.22 R&S
Cancellation of contract

3. S.26 Amdt.
Content of contract

4. S.26.1 Added
Cancellation rights

Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:


RSN1990 cD-24 as amended

1. Paragraphs 5(2)(e) and (f) and subsection 5(3) of the Direct Sellers Act are repealed.

2. Section 22 of the Act is repealed and the following substituted:

Cancellation of contract

22. (1) A direct sales contract may be cancelled

(a) within 10 days after a copy of the contract is received; or

(b) within one year from the date of entering the contract where

(i) the direct seller does not comply with legislative or regulatory requirements regarding licensing or registration, including financial security requirements or conditions on his or her licence or registration at the time the contract was made, within 30 days of the date stated in the contract, or where the goods or services have not been received, unless delivery has been accepted after the 30 days have passed,

(ii) the direct seller does not meet the requirements for the content of the contract as specified in subsection 26(1),

(iii) within 30 days of the supply date specified in the contract, or the amended supply date agreed upon, the service has not started or the goods and services have not been received and delivery has not been accepted, after the 30 days have lapsed.

(2) Where a direct sales contract is cancelled, the direct seller shall, within 15 days of the cancellation, refund to the consumer all money and return to the consumer any trade-in or an amount equal to the value of the trade-in received under the contract.

(3) In the case of a contract respecting goods, the consumer shall, upon receiving the refund and return of the trade-in, or an amount equal to the value of the trade-in, return the goods to the direct seller.

(4) The value of the trade-in mentioned in subsection (1) shall be the greater of

(a) the market value of the goods when taken in trade; or

(b) the price or value of the goods as set out in the direct sales contract.

(5) Where the consideration for a contract does not exceed $200 and

(a) services specified in the contract have been rendered at the premises of the purchaser prior to the rescission of the contract; or

(b) perishable goods specified in the contract have been delivered and accepted by the purchaser,

the vendor shall be entitled to and may retain from money received under the contract an amount, not exceeding $50, that may be reasonably charged for the services rendered and for the goods which have deteriorated or been consumed.

(6) Cancellation of a contract shall be by notice and

(a) a notice of cancellation is adequate if, however expressed, it indicates the intention of the consumer to cancel the contract;

(b) where a consumer cancels a direct sales contract, the consumer shall send or deliver the cancellation notice to the direct seller using a method where the consumer can provide evidence he or she cancelled the contract and the date on which this occurred, including but not limited to registered mail, fax or personal delivery; or

(c) where a method of sending or delivering the cancellation notice other than personal delivery is used, the cancellation is considered to be given when sent.

(7) A breach of an administrative requirement that does not affect a consumerís interests shall not result in extended cancellation rights.

(8) These provisions do not affect any other remedy or right the consumer may have at law.

3. Subsection 26(1) of the Act is repealed and the following substituted:

Content of contract

26. (1) A written contract shall include

(a) the consumerís name and address;

(b) the direct sellerís name, business address, telephone number and, where applicable, fax number;

(c) where applicable, the salespersonís name;

(d) the date and place of the contract;

(e) a description of the goods and services, sufficient to identify them;

(f) a statement of cancellation rights that conforms with the requirements of section 26.1;

(g) itemized prices of the goods or services, or both;

(h) the total amount of the contract;

(i) the terms of payment;

(j) in the case of a contract for the future delivery of goods, future provision of services or goods together with services, the delivery date for the goods or start date for the services or both;

(k) in the case of a contract for the future provision of services or goods together with services, the completion date for supplying the services or the goods together with services;

(l) subject to subsection (1.1), where credit is extended

(i) a statement of any security taken for payment, and

(ii) the cost of credit in accordance with provincial cost of credit disclosure legislation;

(m) where goods are taken in trade, a description of and the value of the trade-in; and

(n) the signatures of both parties.

(1.1) Where credit is extended or arranged by the direct seller and the credit contract is separate from or attached to the direct sales contract, the credit contract is conditional on the direct sales contract and where the direct sales contract is cancelled, that cancellation has the effect of cancelling the credit contract.

4. The Act is further amended by adding the following after section 26:

Cancellation rights

26.1 (1) A statement of cancellation rights shall

(a) contain the words specified in subsection 26(1);

(b) show the heading in not less than 12 point bold type;

(c) show the statement of 10 day cancellation rights in 12 point type; and

(d) show the remainder of the information in not less than 10 point type.

(2) Where the statement of cancellation rights is not on the face of the contract, there shall be a notice on the face of the contract, in not less than 12 point bold type, referring to the location of the statement of cancellation rights.

(3) Where the statement of cancellation rights is a separate document from the contract, the statement shall include the direct sellerís name, business address, telephone number and, where applicable, fax number.

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