| Under the Federal Trade Commission's Mail or Telephone Merchandise Order Rule, when a seller determines that it cannot ship goods to a buyer within 30 days of the buyer's order or within the time period previously specified by the seller, the seller must: (1) promptly cancel the order and refund the buyer's money or (2) obtain the buyer's consent to a delayed shipment. If the seller chooses to cancel the order, the seller must notify the buyer of the cancellation and promptly send a refund to the buyer.
According to the Federal Trade Commission, the seller must cancel the order and refund the buyer's money when:
* the buyer exercises an option to cancel the order before the goods are shipped;
* the buyer does not respond to the seller's first delay notice containing a definite revised shipment date of 30 days or less and the seller has not shipped the goods or received the buyer's consent to a further delay by the revised shipment date;
* the buyer does not respond to the seller's first delay notice containing a definite revised shipment date of 30 days or more, or a delay notice stating that the seller is unable to provide a definite shipment date, and the seller has not shipped the goods within 30 days of the original shipment date;
* the buyer has consented to a revised shipment date and the seller has not shipped the goods or obtained the buyer's consent to a further delay by the revised shipment date to which the buyer has consented;
* the seller has not shipped the goods or sent a first or renewed delay notice to the buyer within the time required by the Rule; or
* the seller determines that it will never be able to ship the goods. Copyright 2013 LexisNexis, a division of Reed Elsevier Inc. |