§ 5-50-4 - Contract contents – Notice to buyer of right to cancel contract – Right of contract cancellation – Refund.
SECTION 5-50-4
§ 5-50-4 Contract contents – Noticeto buyer of right to cancel contract – Right of contract cancellation– Refund. – (a) A copy of every health club contract shall be delivered to the buyer at thetime the contract is signed.
(b) All health club contracts must be in writing signed bythe buyer, must designate the date on which the buyer actually signs thecontract, and must contain a statement of the buyer's rights whichsubstantially complies with this section.
(2) The statement must appear in the contract under theconspicuous caption "BUYER'S RIGHT TO CANCEL", and read as follows:
"If you wish to cancel this contract, you may cancel inperson or by mail to the seller. You must give notice, in writing, that you donot wish to be bound by the contract. This notice must be delivered or mailedbefore midnight of the tenth (10th) business day after the date of the contractso entered into. All cancellations must be delivered or mailed to: (Insert nameand mailing address of health club)".
(3) Proof of in person cancellation shall be effectuated bywriting "cancellation" and the date of cancellation across the contract.
(4) The buyer shall receive a copy of the contract.
(5) The signature of the person employed by the health clubwho registers the cancellation must also appear on the contract.
(c) Every contract for health club services shall providethat the contract may be cancelled before midnight of the tenth (10th) dayafter the date of the contract so entered into. The notice of the buyer'scancellation of his or her contract shall be in writing and shall be made inperson or by mail to the seller at the address specified in the contract.
(d) Every contract for health club services shall provideclearly and conspicuously, in writing, that after the expiration of the ten(10) day period for cancellation as provided in subdivision (b)(2) of thissection:
(1) The buyer shall be relieved from any and all obligationsunder the contract, and shall be entitled to a refund of any prepaid membershipunder the contract if:
(i) A buyer relocates further than fifteen (15) miles from acomparable health club facility operated by the seller;
(ii) If a health club facility relocates further than fifteen(15) miles from its current location, or the seller does not maintain a healthclub service within a fifteen (15) mile radius from its current location; or
(iii) If the health club services or facilities are notavailable to the buyer because the seller fails to open a planned health clubor location, permanently discontinues operation of the health club or locationor substantially changes the operation.
(2) If a buyer becomes significantly physically or medicallydisabled for a period in excess of three (3) months during the membership term,he or she has the option:
(i) To be relieved of liability for payment on that portionof the contract term for which the purchaser is disabled and receive a fullrefund of any prepaid membership on the contract; or
(ii) To extend the duration of the contract at no additionalcost for a period equal to the duration of the disability. The health club mayrequire that a doctor's certificate be submitted as verification of thedisability.
(3) In the event of the buyer's death, his or her estateshall be relieved of any further obligation for payment under the contract andshall be entitled to a refund for any prepaid membership for the unused portionof the contract. The health club may require verification of death.
(4) In the event of a sale of health club ownership, thecontract is voidable at the option of the buyer.
(e) A health club contract which does not comply with theprovisions of this chapter isvoidable at the option of the buyer.
(f) Upon cancellation pursuant to this section, the buyershall be free of any and all obligations under the contract and any prepaidmonies pursuant to this contract shall be refunded within fifteen (15) businessdays of receipt of the notice of cancellation. The right of cancellation shallnot be affected by the terms of the contract and may not be waived orsurrendered.
(g) Notice of the buyer's right to cancel and the method ofcancellation under this section shall also be posted clearly and conspicuouslyon the premises of the health club.