I heard from someone today (not a credible source, so I'm checking here) that said that there is some new law that, if you live in California, and purchase something online, you can cancel the transaction within 3 days regardless of any agreements you had made.
I'm taking this with a grain of salt because even if this was true, I follow New York laws, not California. So Californians could kiss my *** .
There is a statute in California called the 'long arm statute' which says, basically, that any contractor based outside of CA doing business with a company based in CA is subject to CA laws.
And yes, it's true that in CA there is a 3-day grace period where an agreement can be cancelled regardless of any agreements signed. So if a CA company signed a hosting agreement with a NY hoster, they would have 3 days to cancel the agreement under CA law, which the hoster is required to honor.
Enforcement of this would be difficult, but technically the CA law applies.
Just go to Google and try 'california long arm statute' - there are plenty of links to examples of the law. The basic premise is that customers in Califoria have 'personal juristiction' over transactions made in other states, and therefore the laws of California apply.
There's also a Wikipedia entry on 'long arm juristiction'
Just so there's no confusion, when I say 'CA', I mean California, not Canada.
I'm not a lawyer, so I'm not trying to interpret how it applies in any specific circumstances, but the basic premise of it is pretty clear.
california has so many laws that you could choke the entire galaxy on them.... they have a recycling fee you pay when you BUY the computer! what if that person moves out of state? the state made money off of them that they get to keep! BS if you ask me.... Glad i live in good ol' missouri
I can't comment on California, but I wouldn't be too surprised since such a law already exists in the UK - but only for consumers. It's called the "Distance Selling Regulations". Here's a link to the Government web site - http://www.oft.gov.uk/Business/Legal/DSR/default.htm. There are some exclusions and provisions such as goods that are created to a customers specification, but on the whole, it gives consumers 7 days (minimum) and up to 3 months to cancel an order that is placed at a distance which includes an order placed online.
Being from california, I can say that I don't sign up for any service that doesn't have a satisfaction guarantee period anyway, so I would never have to invoke this law. Most people here will probably be like that, as we're used to having return periods at most local businesses.
One thing to remember, if you're taking credit cards as payment, it would be in your best interest to at the very least honor the 3 days, even if you don't think the law should apply to you, if for no other reason than to avoid chargebacks. You may not see the law as applicable, but you can bet that their bank will honor it, even if it's an out of state bank.
Do you guys really do business without a satisfaction guarantee period? I would think that would cost you more good customers than it would bring bad ones. We tried that once with one of our stores and the results were a very painful dropoff in sales. Not sure I'd ever try that again, but I suppose there could be different market psychology at work in hosting.