Question

When sales representatives go house-to-house they are taught how to move a prospective sale into an actual sale, sometimes by high-pressure means. Since customers face an asymmetric information problem they may not possess all the information needed to make an informed decision. To prevent exploitation the UK and other countries have passed into consumer protection law a period (usually two weeks) when the consumer has the right to cancel the agreement without penalty. This is called a____

Answer 1

The period when a consumer has the right to cancel an agreement without penalty is called a cooling-off period.

Step-by-step explanation:

The period (usually two weeks) when a consumer has the right to cancel an agreement without penalty is called a cooling-off period. This period is included in consumer protection laws in the UK and other countries to prevent exploitation of consumers.

During the cooling-off period, consumers can take the time to consider their purchase decision and gather any additional information they may need before making a final commitment. It gives them the opportunity to cancel the agreement if they change their mind without facing any financial consequences or penalties.

Consumers should be aware of their rights and the specific terms and conditions of the cooling-off period for each purchase. It is important to read and understand the agreement, including the cancellation policy, to exercise their rights effectively.