Under State Law in Many States and Under the FTC

question 53

Multiple Choice

Under state law in many states and under the FTC rules and the federal Consumer Credit Protection Act,a contract solicited in a consumer's home may be canceled:

• A) within 10 days by either party.
• B) within 10 days by the consumer.
• C) within three days by the consumer.
• D) within 20 days by either party.

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Definitions:

Promoter

An individual or company that helps raise capital, organize, and start a business or event.

Liability

A legal responsibility or obligation, particularly in terms of debts or financial compensation for loss or damage caused by one's actions or inactions.

Preincorporation Contracts

Agreements entered into on behalf of a corporation before it is legally formed, for which the corporation may later assume liability.

Promoter

An individual or company responsible for organizing and financing the initial operations of a business venture or organizing events, often taking significant financial risks.