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This entry was published on 2014-09-22
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SECTION 624
Rights of cancellation of contracts for services
General Business (GBS) CHAPTER 20, ARTICLE 30
§ 624. Rights of cancellation of contracts for services. 1. Every
contract for services at a planned health club or a health club under
construction shall, at the option of the buyer, be voidable in the event
that the health club and the services to be provided pursuant to such
contract are not available within one year from the date the contract is
executed by the buyer.

2. Every contract for services shall provide that such contract may be
cancelled within three business days after the date of receipt by the
buyer of a copy of the written contract. Notice of cancellation shall be
delivered by certified or registered United States mail at the address
specified in the contract. Such contract shall contain the following
written notice in at least ten point bold type: CONSUMERS RIGHT TO
CANCELLATION. YOU MAY CANCEL THIS CONTRACT WITHOUT ANY PENALTY OR
FURTHER OBLIGATION WITHIN THREE (3) DAYS FROM THIS DATE . . . . . .
Notice of cancellation shall be in writing subscribed by the buyer and
mailed by registered or certified United States mail to the seller at
the address specified in such form. Such notice shall be accompanied by
the contract forms, membership cards and any other documents or evidence
of membership previously delivered to the buyer. All moneys paid
pursuant to such contract shall be refunded within fifteen business days
of receipt of such notice of cancellation. If the buyer has executed
any credit or loan agreement to pay for all or part of health club
services, any such negotiable instrument executed by the buyer shall
also be returned within fifteen days.

3. Every contract for services shall provide that after such three day
period for cancellation as provided in subdivision two of this section,
the buyer's estate may cancel a contract for services if the buyer dies.
The buyer may also cancel after three days if the buyer becomes
significantly physically disabled for a period in excess of six months,
or moves his residence to a location more than twenty-five miles from a
health club operated by the seller, or after the services are no longer
available or substantially available as provided in the contract because
of the seller's permanent discontinuance of operation or substantial
change in operation. 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 for a cancellation pursuant to this subdivision. Such contract
shall contain the following notice captioned in at least ten point bold
type:
ADDITIONAL RIGHTS TO CANCELLATION:

You may also cancel this contract for any of the following reasons:

If upon a doctor's order, you cannot physically receive the services
because of significant physical disability for a period in excess of six
months.

If you die, your estate shall be relieved of any further obligation
for payment under the contract not then due and owing.

If you move your residence more than twenty-five miles from any health
club operated by seller.

If the services cease to be offered as stated in the contract.

All moneys paid pursuant to such contract cancelled for the reasons
contained in this subdivision shall be refunded within fifteen days of
receipt of such notice of cancellation; provided however that the seller
may retain the expenses incurred and the portion of the total price
representing the services used or completed, and further provided 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 health club services, any such
negotiable instrument executed by the buyer shall also be returned
within fifteen days.