Question

Regarding door-to-door sales, which of the following is required by the Federal Trade Commission’s Cooling-Off Rule?

Multiple Choice

• That consumers have three days within which to cancel purchases made from salespeople who come to their homes.

• That the consumer be notified in writing in the same language in which the oral negotiations were conducted.

• That consumers have three days within which to cancel purchases made from salespeople who come to their homes and that the salesperson notify the consumer in writing in the same language in which oral negotiations were conducted that the transaction may be canceled, but not that notification also be made verbally.

• That the salesperson notify the consumer, both verbally and in writing, that the sales transaction may be canceled.

• That consumers have three days within which to cancel purchases made from salespeople who come to their homes; that the salesperson notify the consumer, both verbally and in writing, that the sales transaction may be canceled; and that the consumer be notified in writing in the same language in which the oral negotiations were conducted.

Which of the following is not a requirement of the Federal Trade Commission’s 1984 Used Motor Vehicle Registration Rule?

Multiple Choice

• The buyer’s guide label must include notice of a 30-day or 3,000-mile (whichever comes first) warranty on the car.

• A dealer must attach a buyer’s guide label to any used car he or she is attempting to sell.

• The buyer’s guide label must state that the car is being sold as is.

• The buyer’s guide label must warn the customer that the seller is not guaranteeing anything at all about the performance of the car.

• The buyer’s guide label must include a suggestion for the buyer to obtain an inspection of the used car before any decision to purchase.

Answer 1

1. Correct option: That consumers have three days within which to cancel purchases made from salespeople who come to their homes and that the salesperson notify the consumer in writing in the same language in which oral negotiations were conducted that the transaction may be canceled, but not that notification also be made verbally.

Reason: As per FTC coolong off rule, in case of door to door sale, oral as well as written written notification of buyer is required to the seller in 3 day period to cancel the transaction

2. The buyer’s guide label must warn the customer that the seller is not guaranteeing anything at all about the performance of the car.

This is not a requirement for for FTC registration rule