Rhode Island General Laws 5-78-2. Contract requirements
(a) Each contract for social referral services shall provide that such contract may be cancelled at any time up until midnight of the third (3rd) business day after the date of receipt by the buyer of a copy of the written contract, by written notice, delivered by certified or registered United States mail to the seller at an address that shall be specified in the contract.
Terms Used In Rhode Island General Laws 5-78-2
- Buyer: means any person entering into a social referral services contract with a seller. See Rhode Island General Laws 5-78-1
- Contract: A legal written agreement that becomes binding when signed.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Right of rescission: Right to cancel, within three business days, a contract that uses the home of a person as collateral, except in the case of a first mortgage loan. There is no fee to the borrower, who receives a full refund of all fees paid. The right of rescission is guaranteed by the Truth in Lending Act (TILA). Source: OCC
- Seller: means any person offering social referral services. See Rhode Island General Laws 5-78-1
- Social referral services: means dating, matrimonial, or personal referral services by any of the following means:
(1) An exchange of names, telephone numbers, addresses, and statistics;
(2) A photograph or video selection process;
(3) Personal introductions provided by the seller at the seller's place of business; or
(4) A social environment provided by the seller intended primarily as an alternative to singles' bars or club-type environments. See Rhode Island General Laws 5-78-1
- United States: include the several states and the territories of the United States. See Rhode Island General Laws 43-3-8
(b)(1) In every contract for social referral services, the seller shall furnish to the buyer a fully completed copy of the contract at the time of its execution, which shows the date of the transaction and contains the name and address of the seller, and in the immediate proximity to the space reserved in the contract for the signature of the buyer and in not less than ten-point (10) boldface type, a statement in substantially the following form:
“You, the buyer, may cancel this contract at any time prior to midnight of the third business day after your receipt of this contract. See the attached notice of cancellation for an explanation of this right.”
(2) At the time the buyer signs the social referral services contract, a statement captioned “Notice of Cancellation” shall be contained in the contract and shall contain, in not less than ten-point (10) boldface type, the following information and statements:
“Notice of Cancellation”
“_________________________________________ (Date of Transaction)
You may cancel this contract, without any penalty or obligation, at any time prior to midnight of the third business day after your receipt of this contract by mailing this signed and dated notice of cancellation by certified or registered United States mail to the seller at the following address: _______________________________________________________________________ . If you cancel, any payments made by you under the contract will be returned within ten (10) business days following receipt by the seller of your cancellation notice.”
(3) All moneys paid pursuant to any contract for social referral services shall be refunded within ten (10) business days of receipt of the notice of cancellation.
(c) The consumer’s right of rescission shall not be waived, sold, or abrogated in any way or manner.
History of Section.
P.L. 2006, ch. 116, § 1; P.L. 2006, ch. 137, § 1.