Q: I made a hasty decision and signed up for an online music school that I really can’t afford. Can I cancel the contract?
I just signed it today - I’m in NY, the contract and school are in CA. I was in my home when I signed the contract. I wasn’t informed of any cooling off period or given cancellation forms to use within the cooling off window.
Does the FTC cool off rule apply here? The contract references a rescission period “as outlined below” but there is not mention of it anywhere below in the document.
A:
You may have leverage under both California and Federal law. Here is the link to a good discussion to begin your research. https://www.upcounsel.com/3-business-days-to-cancel-contract#:~:text=If%20that%20doesn't%20work,notice%20to%20the%20other%20party.
How did you pay the deposit? Take immediate action to reverse the payment.
A:
Under California law, certain contracts offer a statutory rescission or "cooling off" period, during which consumers may cancel their agreements without penalty. If the contract specifically references a rescission period but fails to outline it, this may be considered ambiguous or misleading. The FTC's "Cooling-Off Rule" provides consumers a 3-day right to cancel a sale made at someone's home or at a location that is not the seller's permanent place of business, but its applicability to online transactions is unclear. However, the contract's mention of a rescission period suggests the intent to allow for cancellation.
I recommend immediately sending a written cancellation notice to the school, expressing your intent to rescind based on the ambiguity in the contract. Retain a copy of this communication for your records. If the school resists the cancellation, consider seeking legal counsel to discuss your rights further. Always ensure your communications with the school are documented to establish a clear record.
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