TITLE 5

Businesses and Professions

CHAPTER 5-50

Health Clubs

SECTION 5-50-4



   § 5-50-4  Contract contents – Notice

to 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 the

time the contract is signed.



   (b)(1) All health club contracts must be in writing signed by

the buyer, must designate the date on which the buyer actually signs the

contract, and must contain a statement of the buyer's rights which

substantially complies with this section.



   (2) The statement must appear in the contract under the

conspicuous caption "BUYER'S RIGHT TO CANCEL", and read as follows:



   "If you wish to cancel this contract, you may cancel in

person or by mail to the seller. You must give notice, in writing, that you do

not wish to be bound by the contract. This notice must be delivered or mailed

before midnight of the tenth (10th) business day after the date of the contract

so entered into. All cancellations must be delivered or mailed to: (Insert name

and mailing address of health club)".



   (3) Proof of in person cancellation shall be effectuated by

writing "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 club

who registers the cancellation must also appear on the contract.



   (c) Every contract for health club services shall provide

that the contract may be cancelled before midnight of the tenth (10th) day

after the date of the contract so entered into. The notice of the buyer's

cancellation of his or her contract shall be in writing and shall be made in

person or by mail to the seller at the address specified in the contract.



   (d) Every contract for health club services shall provide

clearly and conspicuously, in writing, that after the expiration of the ten

(10) day period for cancellation as provided in subdivision (b)(2) of this

section:



   (1) The buyer shall be relieved from any and all obligations

under the contract, and shall be entitled to a refund of any prepaid membership

under the contract if:



   (i) A buyer relocates further than fifteen (15) miles from a

comparable 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 health

club service within a fifteen (15) mile radius from its current location; or



   (iii) 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.



   (2) If a buyer becomes significantly physically or medically

disabled 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 portion

of the contract term for which the purchaser is disabled and receive a full

refund of any prepaid membership on the contract; or



   (ii) To extend the duration of the contract at no additional

cost for a period equal to the duration of the disability. The health club may

require that a doctor's certificate be submitted as verification of the

disability.



   (3) In the event of the buyer's death, his or her estate

shall be relieved of any further obligation for payment under the contract and

shall be entitled to a refund for any prepaid membership for the unused portion

of the contract. The health club may require verification of death.



   (4) In the event of a sale of health club ownership, the

contract is voidable at the option of the buyer.



   (e) A health club contract which does not comply with the

provisions of this chapter isvoidable at the option of the buyer.



   (f) Upon cancellation pursuant to this section, the buyer

shall be free of any and all obligations under the contract and any prepaid

monies pursuant to this contract shall be refunded within fifteen (15) business

days of receipt of the notice of cancellation. The right of cancellation shall

not be affected by the terms of the contract and may not be waived or

surrendered.



   (g) Notice of the buyer's right to cancel and the method of

cancellation under this section shall also be posted clearly and conspicuously

on the premises of the health club.



History of Section.

(P.L. 1996, ch. 154, § 1; P.L. 1999, ch. 354, § 15.)