Texas Education Code 1001.401 – Cancellation and Settlement Policy
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Terms Used In Texas Education Code 1001.401
- Contract: A legal written agreement that becomes binding when signed.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Signed: includes any symbol executed or adopted by a person with present intention to authenticate a writing. See Texas Government Code 311.005
As a condition for obtaining a driver training provider license, the provider must maintain a cancellation and settlement policy that provides a full refund of all money paid by a student if:
(1) the student cancels the enrollment contract before midnight of the third day, other than a Saturday, Sunday, or legal holiday, after the date the enrollment contract is signed by the student, unless the student successfully completes the course or receives a failing grade on the course examination; or
(2) the enrollment of the student was procured as a result of a misrepresentation in:
(A) advertising or promotional materials of the provider; or
(B) a representation made by an owner or employee of the provider.