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Three Day Right to Cancel

Adobe PDF Document  Chapter 423 (PDF: external link) of the Wisconsin Consumer Act grants Wisconsin citizens the right to cancel certain consumer transactions within three business days. Consumer transactions are those purchases by individuals that are for personal, family or household purposes.

This provision applies to transactions valued in excess of $25.00 where the transaction was initiated by face-to-face solicitation away from the merchant’s regular place of business, or where the transaction is directed to the particular customer via conventional mail, electronic mail, or telephone solicitation. The right to cancel law covers transactions at fairs and trade shows as well.

Adobe PDF Document  Section 423.203 (PDF: external link) of the Wisconsin Consumer Act requires that the merchant give the customer two copies of a written notice setting forth the customer’s rights. If the merchant is in any way engaged in interstate commerce, however, the notice required by federal law must be given. Note that, for most merchants, the federal notice will be required. Compliance with the federal notice requirement will be considered as compliance with the WCA notice requirement.

Cancellation under this law must be in writing. The customer may send a letter, telegram or other writing indicating the desire to cancel. Usually, the customer can use one of the two copies of the notice of right to cancel by writing on it "I hereby cancel this contract" and mailing it to the seller. The notice must be mailed to the seller by midnight of the third business day following the transaction.

Within ten (10) days the seller must refund all payments made by the customer and cancel any contract signed by the customer. The customer is not liable for any finance or other charges and the transaction is void. Within twenty (20) days the seller must return any property traded-in by the customer. If the seller has delivered any property to the customer, the customer may keep it until the seller has returned all down payments and/or property to the customer. At that time the customer must make the property available to the seller. If the property is not picked-up within 20 days after the customer has made it available, the customer is entitled to keep the property without any obligation to pay for it.