9 practice questions

Cancellation Rights & Consumer Protection

Some sales carry a right to cancel and some do not. These scenarios cover door-to-door sales, home show contracts, pressure on vulnerable homeowners, post-storm pricing, and the insurance schemes that turn a contractor into a defendant.

1. 01What must a door-to-door home improvement contract include?A notice of the consumer's right to cancel within 3 business days, under the Maryland Door-to-Door Sales Act, along with every element any home improvement contract needs. Without the notice, the consumer can cancel at any time.
2. 02Does every homeowner have a 3-day right to cancel?No. The 3-business-day right to cancel applies to contracts from unsolicited door-to-door sales. A contract the homeowner initiated and signed at your office has no automatic cancellation period, unless your contract provides one.
3. 03Does a home show sale carry a 3-day right to cancel?Generally not under the Maryland Door-to-Door Sales Act, but the FTC Cooling-Off Rule may cover sales at temporary locations such as expo booths. The safest practice is a 3-day cancellation notice in every contract.
4. 04What should you do about a pressured sale to an elderly homeowner?Void the contract, verify the actual condition of the work, and hold the salesperson accountable. Fabricating urgency to sell an elderly homeowner unneeded work is predatory, and misrepresenting the condition is fraud.
5. 05What happens when a contractor is accused of exploiting an elderly client?Serious consequences, even with a refund: an MHIC disciplinary hearing, Attorney General consumer protection action, possible elder abuse prosecution, and lasting reputation damage. Full refund and cooperation may reduce penalties.

6. 06Can contractors raise prices after a storm in Maryland?Not to exploitative levels. Maryland Commercial Law §13-301 bars unfair or deceptive trade practices, and price gouging rules apply during declared emergencies. You can charge a fair premium for emergency scheduling.
7. 07Is writing a second contract for the insurance company fraud?Yes. A second, inflated contract for the insurance company is insurance fraud, a crime in Maryland for both you and the homeowner, and it ends in license revocation. Write one honest contract at one price.
8. 08Can you sign an invoice for more than the work you did?No. Signing an invoice or completion certificate for more than the work you did is insurance fraud, even on the homeowner's policy. Invoice only for the work you actually performed.
9. 09How does COMAR regulate model home and referral offers?COMAR 09.08.01.10 regulates both. Presenting a job as a model or demonstration home to imply a discount you don't give is deceptive, and referral offers must meet specific disclosure requirements.