Door To Door Sales
N.J.S.A. 17:16C-61.5 — an installment sale made away from the seller's place of business can be rescinded until 5 p.m. of the third business day
A retail installment sale or contract for goods with a purchase price over $25, entered into somewhere other than the seller's place of business, may be rescinded by the buyer. The buyer sends the seller a notice of intent to rescind by certified mail, return receipt requested, postmarked not later than 5 p.m. of the third business day after the contract is signed, and gives up any goods already delivered. A business day is any day other than a Saturday, Sunday or holiday.
What the seller then owes. Within 10 business days after receiving the notice, the seller picks up the goods at its own expense, refunds all money the buyer paid, less reasonable charges for damage while the goods were with the buyer, and returns any trade in, less reasonable charges actually incurred in making it ready for sale. The seller keeps a record of each notice for at least 18 months.
At signing, the seller gives the buyer two copies of a receipt with the seller's name and place of business, a description of the goods, and the amount paid, carrying in at least 10-point bold type a notice of the right to rescind. The buyer may use the receipt itself as the notice by writing "I hereby rescind" with a name and address. No document given with it may waive the buyer's rights, and a seller that regularly deals in another language gives one copy in English and one in the buyer's principal language.
The right does not reach motor vehicles, boats and their accessories, or mail order, telephone and catalog sales, or a sale the buyer asked the seller to make away from its place of business. It does reach a sale made at a demonstration the buyer asked for, unless the buyer also asked to make the sale there. A cash sale that is not an installment sale is not covered here.
Sources for this section (3)
- N.J.S.A. 17:16C-61.5 — Rescission of a retail installment sale made away from the seller's place of business
- N.J.S.A. 17:16C-61.6 — The receipt and the notice of the right to rescind
- N.J.S.A. 17:16C-61.4 — Home solicitation sales; definitions
Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed New Jersey attorney.