Section 82 Cancellation after buyer’s death or disablement; other reasons for cancellation; notice; refund
Section 82. Every contract for health club services shall provide clearly and conspicuously in writing that after the expiration of the three day period for cancellation as provided in section eighty-one, in the event of the buyer’s death, the buyer’s estate may cancel the contract for health club services. The contract shall also provide that the buyer may cancel if he becomes significantly physically or medically disabled for a period in excess of three months, or if the health club services or facilities are not available to the buyer because the seller fails to open a planned health club or location, permanently discontinues operation of the health club or location, or substantially changes the operation of the health club or location. The contract shall also provide that the buyer may also cancel if he moves his residence to a location more than twenty-five miles from a health club operated by the seller or a substantially similar health club which will accept the seller’s obligation under the contract. Nothing contained herein shall restrict or prohibit the seller from offering or providing in such contract additional or broader reasons for cancellation.
The seller may require reasonable evidence of the reason for cancellation by the buyer pursuant to this section. The contract for health club services shall contain the following notice captioned in at least ten point bold type:
“ADDITIONAL RIGHTS TO CANCELLATION
You or your estate may also cancel this contract for any of the following reasons:
if upon a doctor’s order, you cannot physically or medically receive the services because of significant physical or medical disability for a period in excess of three months;
in case of your death;
If the health club services to be provided under this contract are not available because the seller fails to open a planned health club or location, permanently discontinues operation of a health club or location, or substantially changes the operation of a health club or location.
If you move either your residence or your place of employment more than twenty-five miles from any health club operated by the seller or a substantially similar health club which will accept the seller’s obligation under the contract.”
All monies paid by the buyer pursuant to a contract for health club services which has been cancelled for one of the reasons contained in this section shall be refunded to the buyer or his estate within fifteen days of the seller’s receipt of such notice of cancellation; provided, however, that the seller may retain the portion of the total contract price representing the amount of time that the services or facilities were used by the buyer prior to cancellation; and provided, further, that the seller may demand the reasonable cost of goods and services which the buyer has consumed or wishes to retain after cancellation of the contract. In no instance shall the seller demand more than the full contract price from the buyer. If the buyer has executed any credit or loan agreement to pay for all or part of the price of the contract for health club services, any such negotiable instrument executed by the buyer shall also be returned and terminated within fifteen days. The buyer shall no longer be liable for any obligation under such credit or loan agreement.