§ 6-28-5 - Seller's obligations on cancellation. - Rhode Island Statutes

SECTION 6-28-5

   § 6-28-5  Seller's obligations oncancellation. – (a) Within twenty (20) days after a door-to-door sale has been cancelled, theseller shall tender to the buyer any payments made by the buyer and any note orother evidence of indebtedness. Any security interest arising out of thetransaction will be canceled.

   (b) If the down payment includes goods traded in, the goodsshall be tendered in substantially as good condition as when received. If theseller fails to tender the goods as provided by this section, the buyer mayelect to recover an amount equal to the trade-in allowance stated in theagreement.

   (c) The seller may retain as a cancellation fee five percent(5%) of the cash price, five dollars ($5.00), or the amount of the cash downpayment, whichever is least. If the seller fails to comply with an obligationimposed by this section, or if the buyer avoids the sale on any groundindependent of his right to cancel under § 6-28-3, the seller is notentitled to retain a cancellation fee.

   (d) Until the seller has complied with the obligationsimposed by this section, the buyer may retain possession of goods delivered tohim or her by the seller and has a lien on the goods for any recovery to whichthe buyer is entitled.