Laws
Protecting Consumers
MIKE COX
ATTORNEY GENERAL
The following information is
presented on-line for informational use only and without warranty as to its
accuracy, timeliness, or completeness. It does not replace any official versions
of this information. (Mich Dept of Attorney General Web Site -
www.michigan.gov/ag)
MCL 445.931; MSA 19.418(31)
GIFT
PROMOTION ACT
Act 276 of 1986
AN ACT to allow for the buyer's
cancellation of certain sales contracts.
History: 1986, Act 276, Eff. Mar. 31, 1987.
The People of the State of Michigan enact:
MCL 445.931
BUYER'S
CANCELLATION OF SALES CONTRACTS
(GIFT PROMOTION ACT)
445.931 Cancellation of certain
sales contracts by buyer.
Sec. 1. (1) For a sale
of goods, services, or memberships whose value equals or exceeds $500.00, if the
buyer has been offered anything of more than $25.00 in value in exchange for
attending a sales promotion for those goods, services, or memberships, in
addition to any other right to revoke an offer, a buyer has the right to cancel
the sale and receive a complete refund until midnight of the third business day
after the day on which the buyer signed a contract or agreement to purchase.
(2) A contract or agreement to purchase which is subject to cancellation under
the provisions of subsection (1) shall prominently contain the following notice,
on its face, set in boldface at least 4 points larger than the type of the body
of the document. The seller shall enter on the blanks the date the buyer signs
the written agreement, the last date for mailing notice of cancellation, and the
seller's name and address.
NOTICE TO PURCHASER
You are entitled to cancel this agreement without penalty or obligation for any
reason within 3 business days from the date you signed this agreement. Any
payments made by you shall be returned within 10 business days following receipt
by the seller of your cancellation notice. You may mail or deliver a written
notice to the seller. If mailed, it must be postmarked before midnight of the
third business day after you sign the
agreement. Deliver or mail the notice to:
Name of
Seller___________________________________Date Signed_____________
Address of Last Cancellation
Seller___________________________________Date____________________
(3) Cancellation occurs when the buyer mails or delivers to the seller written
notification of cancellation. If mailed, a cancellation notice is given on the
date the notice is postmarked.
(4) A written notice given by the buyer for cancellation need not take a
particular form and is sufficient if it indicates by any form of written
expression the intention of the buyer not to be bound by the sale.
(5) A buyer shall not cancel a sale if the buyer requests the seller to provide
goods, services, or memberships without delay because of an emergency, and any
of the following apply:
(a) The seller in good faith makes a substantial beginning of performance of the
contract before the buyer gives notice of cancellation.
(b) The buyer furnishes the seller with a separate dated and signed personal
statement in the buyer's handwriting describing the situation requiring
immediate remedy and expressly acknowledging and waiving the right to cancel the
sale within 3 business days.
(c) The goods, services, or memberships cannot be returned to the seller in
substantially as good condition as when received by the buyer.
(6) This act does not limit or in any way affect a buyer's right to cancel a
sale under any other provision of law.
(7) If a gift is given to the prospective buyer as an inducement to attend a
sales promotion, regardless of intent, the prospective buyer shall have the
right to keep the gift without obligation whether or not a contract is canceled.
(8) For purposes of this section "business day" means Monday through
Friday and shall not include Saturday, Sunday, or the following business
holidays: New Year's day; Martin Luther King, Jr. day; Memorial day; July 4;
Labor day; Columbus day; Veterans' day; Thanksgiving day; and Christmas day.
History: 1986, Act 276, Eff. Mar. 31, 1987.