Under the FTC cooling-off regulation for door-to-door sales, the right to cancel must be communicated by when?

• A. Midnight of the third business day after the date of transaction
• B. Midnight of the seventh business day after the date of transaction
• C. Immediately upon signing the contract
• D. Within 30 days after the date of transaction

Answer: (A)

Under the FTC cooling-off rule for door-to-door sales, you’re given a short window to rethink the purchase. The seller must clearly tell you about this right and provide a cancellation option, and that right must be exercised by midnight of the third business day after the date of the transaction. Business days count only days the seller’s business is open, so weekends and holidays typically don’t count. For example, if the sale occurs on Monday, the deadline would be by midnight Wednesday; if it happens on Friday, the deadline would be by midnight Tuesday. This deadline is why the correct timing is three business days after the transaction date.