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Door-to-Door Sales Act Flashcards

6 cards from real MHIC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Door-to-Door Sales Act flashcards as text
  1. Under Maryland's Door-to-Door Sales Act (Home Solicitation Sales Act), how many business days does a homeowner have to cancel a contract signed at their residence?

    Answer: 3 business days

    Maryland's Door-to-Door Sales Act gives consumers 3 business days to cancel any qualifying contract signed at their home without penalty. This 'cooling-off period' is designed to protect homeowners from high-pressure in-home sales tactics.

  2. The Maryland Door-to-Door Sales Act applies to home solicitation contracts of what minimum dollar amount?

    Answer: $25

    Maryland's Home Solicitation Sales Act applies to consumer transactions of $25 or more that are solicited and signed at the buyer's home. The low threshold is intentional — even modest in-home purchases trigger the cancellation right.

  3. Which of the following sales transactions is subject to Maryland's Door-to-Door Sales Act cancellation requirements?

    Answer: A $500 painting contract signed at the homeowner's kitchen table

    The Door-to-Door Sales Act applies to contracts of $25 or more that are solicited and signed at the buyer's home. A $500 painting contract signed at the homeowner's residence meets both criteria — the amount threshold and the in-home location.

  4. When a Maryland contractor completes a home solicitation sale, they are REQUIRED to provide the buyer with:

    Answer: A copy of the signed contract and a written notice of the right to cancel

    Maryland law requires that in any door-to-door sale, the contractor provide the customer with both a copy of the contract and a separate written notice of their right to cancel within 3 business days. Without these documents, the buyer's cancellation window remains open indefinitely.

  5. A homeowner cancels a $3,000 home improvement contract within the 3-day cooling-off period. The contractor had already purchased $500 in materials for the job. Under Maryland law, what is the contractor entitled to?

    Answer: Nothing — the contractor must return any deposit and cannot charge for materials not yet installed

    Under the Door-to-Door Sales Act, when a buyer cancels within the 3-day period, the contractor must return all deposits and cannot retain any funds or charge for materials purchased but not yet installed. The cancellation right is absolute during the cooling-off period.

  6. A contractor fails to include the required cancellation notice in a home solicitation sales contract in Maryland. What is the legal consequence?

    Answer: The buyer's right to cancel is extended until proper notice is provided

    If a contractor fails to include the required written notice of cancellation rights, the buyer's right to cancel is extended — they may cancel at any time until proper notice is given, even months or years later. This strong remedy incentivizes contractors to comply.