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This entry was published on 2014-09-22
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SECTION 623
Contract restrictions
General Business (GBS) CHAPTER 20, ARTICLE 30
§ 623. Contract restrictions. 1. No contract for services shall
require payment by the person receiving service or the use of the
facilities of a total amount in excess of three thousand six hundred
dollars per annum, provided, however, that this subdivision shall not
apply to contracts relating solely to the use of tennis, platform tennis
or racquet ball facilities.

2. No contract for services shall provide for a term longer than
thirty-six months. No contract for services shall require payments or
financing by the buyer over a period in excess of thirty-seven months
from the date the contract is entered into, nor shall the term of any
such contract be measured by or be for the life of the buyer. Provided,
however, that the services to be rendered to the buyer under the
contract may extend over a period not to exceed three years from the
date the contract is entered into with the right to renew, at the option
of the buyer for a like period. The buyer may have thirty days after the
expiration to renew the contract. The installment payments shall be in
substantially equal amounts exclusive of the down payment and shall be
required to be made at substantially equal intervals, not to exceed one
month.

3. No contract for services may contain any provisions whereby the
buyer agrees not to assert against the seller or any assignee or
transferee of the health club services contract any claim or defense
arising out of the health club services contract.

4. No contract for services may require the buyer to execute a
promissory note or series of promissory notes which, when negotiated,
cuts off as to third parties a defense which the buyer may have against
the seller.

5. No contract may be assigned by one health club to another health
club not located on the same premises without written consent of the
buyer.