If a homeowner cancels a $1,000 door-to-door contract 2 days after signing, what is the maximum service fee a contractor may charge?

If a homeowner cancels a $1,000 door-to-door contract 2 days after signing, what is the maximum service fee a contractor may charge?

• A. $50
• B. $100
• C. $200
• D. Nothing. No service fee may be collected

Answer: (D)

When a homeowner cancels a door-to-door contract within the specified timeframe, they are protected under Maryland law, which provides consumers with the right to withdraw from certain contracts without penalties. For door-to-door sales, specifically, if the cancellation occurs within three business days from the date of signing, the contractor is not permitted to charge any service fee. This provision is designed to protect consumers from high-pressure sales tactics and ensure they have the opportunity to reflect on their purchase decision without incurring costs. Therefore, the allowable action in this scenario is that the contractor cannot impose any service fee upon the homeowner's cancellation. This reinforces consumer protection laws and emphasizes the importance of transparency and fair dealings in home improvement contracts.

When a homeowner cancels a door-to-door contract within the specified timeframe, they are protected under Maryland law, which provides consumers with the right to withdraw from certain contracts without penalties. For door-to-door sales, specifically, if the cancellation occurs within three business days from the date of signing, the contractor is not permitted to charge any service fee. This provision is designed to protect consumers from high-pressure sales tactics and ensure they have the opportunity to reflect on their purchase decision without incurring costs.

Therefore, the allowable action in this scenario is that the contractor cannot impose any service fee upon the homeowner's cancellation. This reinforces consumer protection laws and emphasizes the importance of transparency and fair dealings in home improvement contracts.