What if a customer changed his mind and you had to return and
install the old equipment and refund the price paid for a new system you had
put in yesterday?
Or, what if you left the new equipment in place because the old
equipment had already been destroyed during removal, and refunded the purchase
price of the new equipment?
Chapter 39 of the Texas Business and Commerce Code provides for a
three-day right of cancellation of certain consumer transactions. HVAC
contractors fall under the letter of this law. That means that the two
above-mentioned situations could absolutely occur — if you live in Texas.
I once domiciled in the Lone Star State and traveled to Possum
Kingdom, Texas with my wife to view a parcel of land. I had no intention of
buying the land; I just wanted the free golf clubs the company was offering.
Fortunately, for the company, I sincerely fell in love with the idea of
becoming a land baron overlooking a spacious canyon. I bought. Unfortunately,
for the company, the next day I realized how completely insane I had been,
knowing that I would likely never retire to Possum Kingdom, Texas. I rescinded
the deal. Thank goodness for the three-day right of cancellation. Fortunately,
for me, the company did not make me mail back the golf clubs.
However, if somebody needs a new HVAC system, let’s hope they
weren’t purchasing it with the simple dastardly plan of changing their mind in
order to get a freebie.
The difference in the land buy and an HVAC system is that Possum
Kingdom lured me with the free golf clubs hoping to sell a parcel of land.
Contractors don’t weasel their way into people’s homes with the intent of
selling them something they don’t really want.
An installed system should not be subject to such extreme
penalties as previously mentioned. It is not the same as a vacuum cleaner that
a person can easily return upon cancelling a purchase. HVAC systems should be
handled differently under Texas Law.
MikeMurphy Editor-in-Chief. E-mail him at mikemurphy@achrnews.com.
Title: Saying No By: Wes Davis Posted: November 12, 2008 5:49 PM
Mike you raise good points, the law should be changed.
May I ask you to raise another questoin? Why do so few technicians become NATE certified? Is the test too hard? Is the certification worth less in the marketplace than once thought? Something is fishy in Denmark and I was wondering if you knew the answer or would pose this benign and stable (as in - not explosive, like nitro - explosive) question.
Title: Cooling Off Rule By: Naomi Posted: November 13, 2008 5:58 PM
I don't know too much about Texas state law, but there is a Federal Law, commonly known as the "Cooling Off" rule (see http://www.ftc.gov/bcp/edu/pubs/consumer/products/pro03.shtm) that gives consumers the right to change their minds within three days of a purchase, where the sale takes place at their home & the transaction amount is greater than $25. There is an exception for repairs & maintenance. So where does a new HVAC system fit? According to an FTC rep on 12/5/06, it does, indeed, fall under the Cooling Off Rule.
There are a couple of ways around this. The first is to have the homeowner waive their right to cancel. If the homeowner fills out a declaration on their own (no pre-formatted forms allowed), and declare their situation to be a "bona fide personal financial emergency," then they can no longer cancel the unit. We primarily use this when the consumer is financing the purchase, and tell them that because they have the right to cancel for three days, we will call them on day 4 to schedule the install. If they feel that it is too hot or too cold to wait that long, then they complete a statement stating it is an emergency & waive their right to cancel. We will then schedule the install for as soon as possible.
The other solution involves two parts, half of which I know works, and the other half is still untested theory. Here's the theory part: the cooling off rule requires that any goods received must be returned in the same condition in which it was received. There is no way after an installation that any component would be considered new. I believe our logic is sound, and would protect us if somebody ever did try & return their used unit. The only part of this process that leaves us vulnerable to a loss is if the homeowner changes their mind somewhere between the sale & the install. We had a situation where this happened when we showed up to the door, and we had to eat the crane charge, the re-stocking fee, and the technicians' pay for the day. We now require a non-refundable deposit at the time of the sale, which is explained in writing. If there is a cancellation, we explain the policy, but usually refund some or all of the deposit, keeping only what we need to cover our actual expenses. We have been sued by one homeowner to get this deposit back, and the court decided in our favor.
Title: Nate Posted: November 18, 2008 5:54 AM
Regarding why so few techs become nate certified: Two reasosn in my opinion, first there is cost and difficulty of passing(positive in my opinion), second is the method of recertifying(a huge negative). Currently one has 2 choices to recertify, either pay another fee and retake the exam or pay for and take classes that qualify for nate credits. The problem in my area(chicago, is that there are not enough classes available that qualify for nate credits. One would have to travel out of state and pay close to a thousand dollars for qualifying classes. Makes no sense. I have no choice but to let my certification expire since I am not paying full price to retake the exam.
Title: NATE question from Wes Davis By: Murph Posted: November 18, 2008 1:08 PM
Wes,
Good question, and you noticed an interesting reply from our friend in Chicago-land. He is going to let his NATE certification expire soon, because of lack of qualified training to maintain his status. More distributors and manufacturers have got to step up to the plate and provide needed training that dovetails with NATE.
Murph
Title: Murphy's Law: Cooling Off Rule By: Murph Posted: November 18, 2008 1:14 PM
Naomi,
You seem to have an excellent remedy for avoiding the 3-day period. More would be wise to follow your lead. As long as the communication is fair to the customer, I think this is a great way to protect an "installed" product.
Murph
Title: NATE re-certification By: Rex Boynton Posted: January 13, 2009 10:35 AM
I hope our friend from Chicagoland will also consider re-certifying using online resources like hvacreducation.net. He can take NATE-recognized courses from the comfort of home at a time convenient to his schedule.
Try this link www.hvacreducation.net
Other NATE-recognized courses are listed on the NATE website, www.natex.org
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By: Wes Davis
Posted: November 12, 2008 5:49 PM
May I ask you to raise another questoin? Why do so few technicians become NATE certified? Is the test too hard? Is the certification worth less in the marketplace than once thought? Something is fishy in Denmark and I was wondering if you knew the answer or would pose this benign and stable (as in - not explosive, like nitro - explosive) question.
By: Naomi
Posted: November 13, 2008 5:58 PM
There are a couple of ways around this. The first is to have the homeowner waive their right to cancel. If the homeowner fills out a declaration on their own (no pre-formatted forms allowed), and declare their situation to be a "bona fide personal financial emergency," then they can no longer cancel the unit. We primarily use this when the consumer is financing the purchase, and tell them that because they have the right to cancel for three days, we will call them on day 4 to schedule the install. If they feel that it is too hot or too cold to wait that long, then they complete a statement stating it is an emergency & waive their right to cancel. We will then schedule the install for as soon as possible.
The other solution involves two parts, half of which I know works, and the other half is still untested theory. Here's the theory part: the cooling off rule requires that any goods received must be returned in the same condition in which it was received. There is no way after an installation that any component would be considered new. I believe our logic is sound, and would protect us if somebody ever did try & return their used unit. The only part of this process that leaves us vulnerable to a loss is if the homeowner changes their mind somewhere between the sale & the install. We had a situation where this happened when we showed up to the door, and we had to eat the crane charge, the re-stocking fee, and the technicians' pay for the day. We now require a non-refundable deposit at the time of the sale, which is explained in writing. If there is a cancellation, we explain the policy, but usually refund some or all of the deposit, keeping only what we need to cover our actual expenses. We have been sued by one homeowner to get this deposit back, and the court decided in our favor.
Posted: November 18, 2008 5:54 AM
By: Murph
Posted: November 18, 2008 1:08 PM
Good question, and you noticed an interesting reply from our friend in Chicago-land. He is going to let his NATE certification expire soon, because of lack of qualified training to maintain his status. More distributors and manufacturers have got to step up to the plate and provide needed training that dovetails with NATE.
Murph
By: Murph
Posted: November 18, 2008 1:14 PM
You seem to have an excellent remedy for avoiding the 3-day period. More would be wise to follow your lead. As long as the communication is fair to the customer, I think this is a great way to protect an "installed" product.
Murph
By: Rex Boynton
Posted: January 13, 2009 10:35 AM
Try this link www.hvacreducation.net
Other NATE-recognized courses are listed on the NATE website, www.natex.org