Door-to-Door Siding Contract and the Three-Day Cancel
On a Saturday afternoon, a salesperson for Cascade Exteriors knocks on Alan's door in Eugene. Alan did not invite the visit. After a two-hour pitch in Alan's living room, Alan signs a $24,500 contract to replace siding on his 1,900-square-foot house. The contract says the $7,350 deposit is nonrefundable and contains an arbitration clause, but it has no cancellation form and no CCB complaint notice. The salesperson schedules the crew for Monday morning; by Tuesday, workers have removed siding from two walls. On Thursday, Alan emails a cancellation. Cascade refuses, saying the three-day period expired, the deposit is earned, and Alan waived cancellation by allowing work to begin. Alan's wife has photos of the removed siding and the unsigned contract pages.
1. Was this a home solicitation sale under Oregon law, and what cancellation rights did Alan have?
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This looks like a home solicitation sale under Oregon's Home Solicitation Sales Act, ORS 83.710 to 83.750. The seller came to Alan's residence without an invitation and the agreement was made there. The buyer generally has three business days to cancel. The seller must give written notice of the right to cancel, usually in duplicate, and the cancellation period runs from the later of signing or receiving that notice. The contract here has no cancellation form. Missing the required notice extends the cancellation right; under the Act it can continue well beyond three days and may extend up to one year. Cascade's argument that the period expired on Tuesday is therefore weak. Alan's Thursday email is likely timely because the clock never properly started. The fact that work began does not by itself waive the right, especially where the notice was missing.
2. Can Cascade keep the $7,350 deposit or charge for two days of work?
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The 'nonrefundable' label does not settle it. On a valid cancellation, the seller must refund the buyer's payments within the statutory period, generally 10 days, and take back any goods. Cascade can potentially claim the reasonable value of materials or services actually requested and not returnable, but it cannot simply keep a $7,350 deposit as a penalty. It removed siding from two walls, so it may have a claim for labor and materials used, but it must document those costs and credit salvage or unused material. The burden is on Cascade to prove the amount. Alan should send a written cancellation citing the Act, demand an accounting, photograph the house, and preserve the removed siding. If Cascade refuses, he can file a CCB complaint and a UTPA claim. He should not let the crew continue.
3. How should the arbitration clause and missing notices affect the dispute?
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The arbitration clause may be enforceable, but it does not eliminate the statutory cancellation right or the CCB complaint process. A clause that requires arbitration can be enforced under Oregon and federal arbitration law, but consumer protection claims may still be raised, and the CCB can investigate licensing and UTPA violations. The missing CCB complaint notice is a separate contract-content problem. The missing cancellation notice is the stronger defense to Cascade's deposit claim. Alan should not sign a new arbitration agreement or a release without advice. If Cascade sues or demands arbitration, Alan can raise the Home Solicitation Sales Act and the failure of notice. The arbitration clause does not make the nonrefundable deposit valid.