Legal Question in Business Law in Nevada

Three Day Cooling Off Period

I have purchased from a company out of Utah, a program whereby they would help me make hugh profits from esablishing a website, or what they call e-commerce. I was to sell their products and they would too build me a website so I can list they products to sell at wholesale cost. This I was charged $3,000 They indicated that my status with them is considered to be an Executive (to be reconized as such) They were to set up a Merchant Account for a cost of $995 and the remainder monies were go to cost of them designing a website for me. They said that you don't have to be educated to learn how to make big profits. You have to be just dedicated and devoted to selling. They said that we could make between $1,000 to $6,000 monthly.

Later, I was called by the same company about 1 week later from their marketing dept. and they were pushy as to having me invest $10,000 to learn the secrets of marketing to make big money. At this cost they would show me how. I refused.

I told them that their was no mention during the seminar that we would have to invest this kind of money even after giving them $3,000. They make it appear that the $3,000 will send you on your way to hugh profits monthly. I want to know if I can get out of this contract


Asked on 11/08/05, 5:43 pm

1 Answer from Attorneys
Grenville Pridham Law Office of Grenville Pridham

Re: Three Day Cooling Off Period

The Three Day Cooling Off Period would not apply to your situation if the sale were completed by telephone. See the Federal Trade Commission's website, www.ftc.gov, to learn more about it.

It sounds like you have been ripped off. The representations that you mentioned appear to be false. Furthermore you should check out yahoo and similar websites for their merchant website hosting. It is considerably less than $3,000 to get started.

Because the amount of your loss is only $3,000, you should probably sue in small claims court. Most attorneys would want a retainer of $3-5,000 to handle a case like this so you will have to do the small claims case yourself.

If you paid by credit card and are within 60 days of the statement, you need to do a written dispute with the credit card company for a charge back. Otherwise, it would be wise to seek legal advice prior to entering into any further such contracts or offers.

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Answered on 11/08/05, 6:43 pm


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