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S_MT PASS-14 — Two bounded PASS-06 agreement qualifications

Fresh access date: October 26, 2026, Pacific / October 26, 2026, UTC Scope: Only the PASS-06 E-SIGN §7002 qualification, the Montana telemarketing cancellation branches, affected claims C026–C029, affected coverage rows, Example 7, and one nonmaterial Ossello locator correction.

All other PASS-06 findings, nine unaffected workflows, examples, claims, coverage rows, fee/funds/security conclusions, ARM access holds, OCP-801 version conflict, actual-contract and entity facts, CROA/TSR coverage, consent, sales-process, FAA, and publication-status holds remain unchanged.

A. Correction summary

GROUP 1 — E-SIGN §7002 and Montana UETA

Exact replacement for the PASS-06 E-SIGN paragraph

Conditional E-SIGN and Montana-UETA relationship

For a transaction in or affecting interstate or foreign commerce, 15 U.S.C. §7001(a) prevents a signature, contract, or record from being denied legal effect solely because it is electronic. Section 7001(b) preserves substantive legal rights and does not generally compel a person to agree to electronic transactions. When a law requires consumer information to be provided in writing, §7001(c)(1) supplies a federal electronic-delivery route requiring affirmative consent, preconsent disclosures, hardware and software information, and electronic consent or confirmation reasonably demonstrating access to the electronic format. U.S. Code+1

That federal rule is qualified by §7002. A state law may modify, limit, or supersede §7001 with respect to state law only if it either:

1. Enacts or adopts the 1999 Uniform Electronic Transactions Act, subject to the federal limitation on inconsistent state scope exceptions; or
2. Establishes alternative procedures that are consistent with E-SIGN, are technology-neutral, and—if adopted after June 30, 2000—specifically refer to E-SIGN.

Section 7002(c) additionally prevents a state from circumventing E-SIGN through nonelectronic-delivery requirements of the identified UETA type. A qualifying state enactment does not modify a federal writing, disclosure, or contract requirement because §7002 operates only “with respect to State law.” U.S. Code

Montana’s Title 30, chapter 18, part 1 is expressly titled the Uniform Electronic Transactions Act. It generally applies to electronic records and signatures relating to a transaction, subject to listed exclusions; applies only when each party agreed to transact electronically; preserves other substantive law; recognizes electronic records and signatures; and preserves required retention, formatting, posting, and transmission methods. Montana’s state-only Part 20 and Part 21 duties are not among §30-18-103(2)’s listed exclusions, but actual transaction, consent, attribution, retainability, and statutory-format facts remain necessary. Montana Code Annotated+5

The present evidence strongly supports analyzing Montana’s state-law electronic transactions through its UETA. This bounded pass, however, did not locate a controlling Montana or federal decision conclusively determining that every Montana provision and scope exception satisfies §7002(a)(1). It therefore does not declare either that §7001(c) automatically controls every Montana-only Part 20 or Part 21 disclosure or that Montana UETA categorically displaces §7001 in every transaction.

Federal CROA writing and disclosure requirements remain federal requirements. Section 7002’s state-law exception cannot modify or supersede them. Whether CROA applies at all remains separately unresolved.

Narrow §7001(c)(3) and oral-record qualifications

Section 7001(c)(3) says that a consumer contract may not be denied legal effect, validity, or enforceability solely because the consumer-consent or access-confirmation step in §7001(c)(1)(C)(ii) was not obtained. That narrow savings clause does not establish that a required disclosure was delivered, that its content or timing was compliant, that the record was retainable, or that required formatting or proximity was preserved. Sections 7001(c)(2), (d), (e), and (f) retain those distinct requirements. U.S. Code+2

Section 7001(c)(6) says that an oral communication or recording does not qualify as the electronic record for subsection (c) except as otherwise provided under applicable law. Thus, a sales call or recording is not automatically the electronic record satisfying §7001(c), but the provision is not a universal recording ban and does not negate another legal effect expressly supplied by applicable law. U.S. Code+1

Corrected affected claims

Corrected coverage rows

GROUP 2 — Montana telemarketing cancellation branches

Exact replacement for the PASS-06 Montana telephone-sale paragraph

Conditional Montana telephone-sale cancellation architecture

Coverage must be established first. “Telemarketing” is a telephone plan, program, or campaign intended to induce a purchase and involving more than one telephone call to a consumer. A telemarketer may be located inside or outside Montana. Section 30-14-1405 exempts listed persons and transactions only from the registration and bonding requirements of §30-14-1404; it does not facially erase §30-14-1410. Section 30-14-1409 separately excludes the identified face-to-face-completion and qualifying consumer-initiated calls from the entire part. Actual campaign, solicitation, call, consumer, seller, telemarketer, and Montana-nexus facts remain required. Montana Code Annotated+2

When the transaction is covered and subsection (6) does not apply, §30-14-1410 creates two distinct cancellation branches:

1. Before signature. The buyer may cancel at any time before signing an agreement or offer to purchase the goods or services. Cancellation occurs when written notice is given to the seller or telemarketer or when properly addressed, postage-prepaid written notice is deposited in the mail. The buyer need not use the seller’s prescribed form if the writing communicates an intent to cancel. The substantially-same-condition restriction in subsection (4)(d) applies only when goods are involved. Montana Code Annotated
2. After receipt of the statutory notice. The sale is not final until the purchaser receives the required written notice. The notice must use the language principally used in the sales presentation and at least 10-point boldface type. It must state that cancellation is available until midnight of the third business day after receipt; that payments will be returned within ten business days after the seller receives written cancellation; and that a connected security interest will be canceled. The statutory notice also contains goods-return provisions, which should not be transplanted into a pure-service transaction. The seller or telemarketer must additionally supply the required identities, address, telephone number, solicitation date, and description. Montana Code Annotated

Subsection (6) is an alternative architecture. A sale satisfying subsection (6) is expressly not subject to either subsection (4) or subsection (5). At a minimum, the seller or telemarketer must have a policy:

• Allowing return of unused and undamaged goods or cancellation of services for at least seven days after delivery to the consumer.
• Providing a cash refund for a cash purchase or a credit applied to the debited account for a credit purchase.
• Disclosing the refund and return policy by telephone or in the specified advertising, promotional, or delivery materials.
• Restoring payments or issuing credits within 30 days after receiving the returned goods or notice canceling services.

The final sentence of subsection (6) says that a written disclosure using “satisfaction guaranteed,” “free inspection,” “a no-risk guarantee,” or similar language is deemed to meet the subsection’s review-and-return-for-refund policy requirements. That deeming language does not approve the underlying contract, services, fees, representations, execution, or compliance with other law. How “delivery” applies to an ongoing service is not resolved in the statute or this pass. Montana Code Annotated

Corrected affected claims

Exact replacement for PASS-06 Example 7

Example 7 — Conditional covered telephone sale

Assumptions

• The plan, program, or campaign satisfies §30-14-1403’s telemarketing definition.
• The consumer and call have the required Montana nexus.
• No §30-14-1409 whole-part exclusion applies.
• Any §30-14-1405 status is treated only as a registration-and-bonding exemption.
• The transaction involves services unless a goods-specific fact is expressly added.
• No exact delivery date, holiday calendar, or actual policy document is supplied.

Step 1 — Determine whether subsection (6) applies

The seller or telemarketer must establish the actual minimum policy predicates:

• At least seven days after delivery to cancel the service.
• Cash refund for a cash purchase or credit to the debited account for a credit purchase.
• Policy disclosure by telephone or through one of the specified written-material routes.
• Restoration or credit within 30 days after receiving the service-cancellation notice.

A qualifying written guarantee phrase receives only the review-and-return-for-refund-policy deeming effect stated in subsection (6).

Branch A — subsection (6) applies

The sale is not subject to the cancellation requirements in subsections (4) and (5).

Accordingly, this example does not add:

• The subsection (4) pre-sign cancellation process.
• The subsection (5) third-business-day cancellation notice.
• The subsection (5) ten-business-day payment-return period.

The subsection (6) policy, disclosure, cash-refund/account-credit, and 30-day restoration terms govern the statutory cancellation route being illustrated.

Branch B — subsection (6) does not apply, and the buyer has not signed

The buyer may cancel at any time before signing an agreement or offer to purchase.

Cancellation occurs when:

• Written notice is given to the seller or telemarketer; or
• Properly addressed, postage-prepaid written notice is deposited in the mail.

The writing need not use the seller’s form if it clearly communicates the buyer’s intent to cancel.

No goods-return condition is inserted because this branch assumes a service.

Branch C — subsection (6) does not apply, and the statutory notice has been received

The sale is not final until the purchaser receives the required notice.

The notice must:

• Use the language principally used in the sales presentation.
• Use at least 10-point boldface type.
• Provide cancellation until midnight of the third business day after receipt.
• State that payments will be returned within ten business days after the seller receives the written cancellation.
• Supply the required seller, telemarketer, legal-company, address, telephone, date, and solicitation-description information.

The goods pickup, return, condition, and disposal provisions are not imported into this pure-service example.

Held

No exact calendar date is calculated because the facts do not establish:

• The date or legally operative meaning of service “delivery.”
• The date of receipt of the subsection (5) notice.
• Whether subsection (6)’s policy was actually disclosed.
• Whether the transaction was cash or credit.
• The date the seller received a service-cancellation notice.
• Applicable business-day and holiday facts.

This example does not approve the underlying service, fee, contract, electronic execution, cancellation policy, or telemarketing coverage.

Corrected telemarketing coverage rows

PASS-14 source and access table

Nonmaterial Ossello locator annotation

No substantive holding changes. The corrected locator references are:

• Facts ¶4 begin on printed page 2 / zero-based PDF index 1 and continue on printed page 3 / PDF index 2.
• ¶20 begins on printed page 9 / PDF index 8.
• ¶27 begins on printed page 12 / PDF index 11.
• ¶31 begins on printed page 14 / PDF index 13.
• ¶¶40–41 appear on printed page 20 / PDF index 19.
• ¶¶42–43 appear on printed page 21 / PDF index 20. Justia Law+5

Residual holds and unchanged material

This patch does not determine:

• Whether a specific Part 20, Part 21, CROA, TSR, or Montana telemarketing regime covers an actual entity or transaction.
• Whether Montana’s UETA qualifies in every respect under §7002(a)(1).
• Whether an actual electronic consent, signature, attribution, disclosure, retention system, or delivery process complies.
• Whether an oral recording has another legal effect under applicable law.
• Whether an actual sale satisfies subsection (6).
• What “delivery” means for an ongoing service.
• Any exact third-business-day, ten-business-day, seven-day, or 30-day calendar without actual event and holiday facts.
• Any fee, refund, contract, account, policy, arbitration, waiver, or provider outcome.

No other PASS-06 paragraph, claim, coverage row, workflow, example, source history, or substantive conclusion is modified. No component, Montana, parent-dossier, A066, operational, or publication acceptance is created.

END S_MT PASS-14