§ 14A-2-504. Restoration of down payment - Retention of cancellation fee.

(1)  Except as provided in this section, within ten (10) days after a home solicitation sale has been cancelled or an offer to purchase revoked the seller must tender to the buyer any payments made by the buyer and any note or other evidence of indebtedness.

(2)  If the down payment includes goods traded in, the goods must be tendered in substantially as good condition as when received by the seller.  If the seller fails to tender the goods as provided by this section, the buyer may elect to recover an amount equal to the trade-in allowance stated in the agreement.

(3)  The seller may retain as a cancellation fee five percent (5%) of the cash price but not exceeding the amount of the cash down payment.  If the seller fails to comply with an obligation imposed by this section, or if the buyer avoids the sale on any ground independent of his right to cancel provided by the provisions on the buyer's right to cancel (subsection (1) of Section 2-502) or revokes his offer to purchase, the seller is not entitled to retain a cancellation fee.

(4)  Until the seller has complied with the obligations imposed by this section the buyer may retain possession of goods delivered to him by the seller and has a lien on the goods in his possession or control for any recovery to which he is entitled.

Added by Laws 1969, c. 352, § 2-504, eff. July 1, 1969.