§ 5-50-7 - Pre-opening sales – Permit and bond required – Facilities unopened – Under construction and planned.
SECTION 5-50-7
§ 5-50-7 Pre-opening sales – Permitand bond required – Facilities unopened – Under construction andplanned. – (a) Any health club which is not fully operative or established and whichconducts a pre-opening sales campaign must, before advertising or hold apre-opening sales campaign, obtain a permit from the director of businessregulation. The permit shall not be issued until a surety bond is posted in theamount stipulated in § 5-50-3.
(b) Any person, firm, corporation, or other entity intendingto offer health club services at a facility under construction or planned shallregister as required by § 5-50-2 before opening for business, enteringinto any contracts, or accepting any fees and shall maintain a surety bond asrequired by § 5-50-3.
(c) A health club shall not enter into a contract with abuyer more than twelve (12) months prior to the intended opening of the healthclub.
(2) A buyer shall be entitled to a full refund from anunopened seller as provided in § 5-50-4(d).
(3) When the facility is substantially completed and fullyoperational and available for use, the seller shall mail or personally deliverto each buyer a written notice informing the buyer that:
(i) The facility is available for inspection and use; and
(ii) The buyer has fifteen (15) days after the date of themailing of the notice to inspect the facility and determine whether itsubstantially conforms to the written contract, any written materials providedby the seller, or any advertisement by the seller.
(4) If it is found that the facilities do not conform, thebuyer may cancel by giving notice to the seller in person or by mail and thebuyer shall receive a full refund.
(5) If upon reasonable investigation the buyer ascertainsthat the promised facility was not open and available for use within sixty (60)days after the date promised, and no substantial work was performed to preparethe facility for opening for a period of more than thirty (30) days thereafter,the buyer may request a refund from the seller and the buyer shall receive afull refund.
(d) The director of the department of business regulation maypromulgate rules and regulations as may be necessary to carry out theprovisions of this section.