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Cancel This Sale! - The Three-Day Rule
By Jeffrey A. Babener
Excerpted from Network Marketing: What You Should Know, Jeffrey Babener, Legaline Publications
MLM consultant practice tips. An experienced MLM Legal Expert and MLM Law Advisor may become the most important part of an MLM Corporate team.   This person has experienced almost every MLM Business and Legal Issue and will likely provide experienced MLM Insight and guidance on MLM Business and MLM Law Related issues.    MLM Legal and MLMLegal.com and Babener and Associates provides expert MLM Consultant and MLM Consulting advise on MLM corporate, MLM software, MLM Compensation, MLM Taxes, etc. MLM Consulting is an important component for MLM startup.  Careful Choice of MLM Software is another component of MLM Corporate.  An MLM Consultant and MLM Law and MLM Legal is part of the MLM Startup Team.  MLM Compensation must be reviewed by an MLM Consulting standpoint by an MLM Consultant and MLM Legal and MLM Law professional and programmed by a MLM Software and MLM Technology provider.

The Nitty Gritty Details

The rule provides that the "Notice of Cancellation" form must be easily detachable from the receipt or invoice and must be provided in duplicate.   And it must be completed and furnished to the buyer at the time of the agreement.   The FTC has gone so far as to specify the size of type on the form.   Here's a brief summary of some of the requirements:

1. The purchaser must be informed that he may cancel the transaction without penalty or obligation within three business days from the date of sale.

2. The customer is informed that, if he does cancel the sale, any payments made will be returned within ten (10) business days following receipt by the seller of the cancellation notice.

3. If the customer cancels, he must make the merchandise available in substantially good condition to the seller at the customer's residence or the customer may, at his option, return the merchandise at the seller's expense and risk if the seller has a policy permitting such a method of return.

4. If the customer makes the merchandise available to the seller and the seller does not pick it up within 20 days of the date of a notice of cancellation, the customer may retain or dispose of the merchandise without further obligation.

5. If the customer does not make the merchandise available to the seller, he remains on the hook.

6. The customer may cancel the sale by mail or by personal delivery of the signed and dated cancellation notice or by any other written form of notice, including a telegram.

Several other specifics should be kept in mind for compliance with this FTC rule:

1. The seller must furnish the buyer with a receipt or copy of the sales order at the time of purchase.

2. The sales order must be signed by the purchaser.

3. The seller must orally inform the buyer at the time he signs the contract or purchases his goods of his right to cancel.

Obviously, there is an absolute prohibition to place a provision in the purchase order which provides that the buyer waives his right to cancel the FTC rule.

Multilevel marketing companies and distributors should also be aware that there are certain types of sales that are exempt from the door-to-door rule.

NETWORK MARKETING/MLM consultant practice tips. Every NETWORK MARKETING/MLM company should establish an NETWORK MARKETING/MLM distributor relations and NETWORK MARKETING/MLM compliance department.   Success in the NETWORK MARKETING/MLM field is dependent on continuous NETWORK MARKETING/MLM Support and NETWORK MARKETING/MLM Communications relationship that demonstrates ongoing support in NETWORK MARKETING/MLM Marketing issues and is clear on guidelines for compliance with NETWORK MARKETING/MLM Business and NETWORK MARKETING/MLM Law issues. NETWORK MARKETING/MLM Legal and NETWORK MARKETING/MLMLegal.com and Babener and Associates provides expert NETWORK MARKETING/MLM Consultant and NETWORK MARKETING/MLM Consulting advise on NETWORK MARKETING/MLM corporate, NETWORK MARKETING/MLM software, NETWORK MARKETING/MLM Compensation, NETWORK MARKETING/MLM Taxes, etc. NETWORK MARKETING/MLM Consulting is an important component for NETWORK MARKETING/MLM startup.  Careful Choice of NETWORK MARKETING/MLM Software is another component of NETWORK MARKETING/MLM Corporate.  An NETWORK MARKETING/MLM Consultant and NETWORK MARKETING/MLM Law and NETWORK MARKETING/MLM Legal is part of the NETWORK MARKETING/MLM Startup Team.  NETWORK MARKETING/MLM Compensation must be reviewed by an NETWORK MARKETING/MLM Consulting standpoint by an NETWORK MARKETING/MLM Consultant and NETWORK MARKETING/MLM Legal and NETWORK MARKETING/MLM Law professional and programmed by a NETWORK MARKETING/MLM Software and NETWORK MARKETING/MLM Technology provider.