A consumer may cancel a home solicitation contract at any time prior to midnight of which period after the date of the transaction?

A consumer may cancel a home solicitation contract at any time prior to midnight of which period after the date of the transaction?

• A. 1st business day
• B. 2nd business day
• C. 3rd business day
• D. 4th business day

Answer: (C)

A home solicitation contract gives the consumer a short window to reconsider after signing. That window lasts three business days, and the cancellation deadline is the midnight at the end of the third business day after the date of the transaction. Business days count Monday–Friday and exclude weekends and holidays, so the clock starts the day after the transaction date. For example, if you sign on a Monday, the three business days are Tuesday, Wednesday, and Thursday, so you can cancel any time up to Thursday midnight. If you sign on Friday, the three business days are Monday, Tuesday, and Wednesday, with cancellation due by Wednesday midnight. This is why three business days is the appropriate period—the other timeframes would either be too short or too long according to the rule.

A home solicitation contract gives the consumer a short window to reconsider after signing. That window lasts three business days, and the cancellation deadline is the midnight at the end of the third business day after the date of the transaction. Business days count Monday–Friday and exclude weekends and holidays, so the clock starts the day after the transaction date.

For example, if you sign on a Monday, the three business days are Tuesday, Wednesday, and Thursday, so you can cancel any time up to Thursday midnight. If you sign on Friday, the three business days are Monday, Tuesday, and Wednesday, with cancellation due by Wednesday midnight.

This is why three business days is the appropriate period—the other timeframes would either be too short or too long according to the rule.