§ 6-1-705 — Dance studios - deceptive trade practices

(1) A person engages in
a deceptive trade practice when, in the course of such person's business, vocation,
or occupation, such person engages in one or more of the following activities or
practices in connection with the advertisement, sale, or performance of contracts
for dance studio services in which the total amount of the obligation that the
purchaser undertakes is in excess of five hundred dollars:

(a) Fails to execute a written contract and to provide a copy of the contract
to the purchaser at the time the purchaser signs it;

(b) Fails to include, printed in ten-point, bold-faced type in the contract:

(I) The total amount of the obligation the purchaser undertakes;

(II) All goods and services that the purchaser is to receive under the contract
set forth in specific terms, including the total number or hours of dance instruction
to be given by the dance studio under the contract broken down by different hourly
rates, if applicable, and all other goods and services;

(III) The itemized cost of all goods and services to be provided under the
contract, including but not limited to the cost per hour of dance instruction and the
different hourly rates for different types of dance lessons, if any, and any charges
to be paid by the purchaser for cost of travel, accommodations, or other expenses
of dance studio owners, operators, managers, agents, or employees, the total cost
of which shall equal the amount to be specified in the contract pursuant to
subparagraph (I) of this paragraph (b); and

(IV) The purchaser's right to cancel as specified in paragraphs (c) to (e) of
this subsection (1);

(c) Fails to include in the contract the following statement in bold-faced type
under the conspicuous caption:

PURCHASER'S RIGHT TO CANCEL:

YOU, THE PURCHASER, MAY CANCEL THIS CONTRACT AT ANY TIME
DURING THE TERM OF ITS EFFECTIVENESS. YOU MUST GIVE WRITTEN NOTICE
TO THE DANCE STUDIO THAT YOU DO NOT WANT TO BE FURTHER BOUND BY
THIS CONTRACT. THE NOTICE OF CANCELLATION MAY BE SERVED IN PERSON,
BY TELEGRAM, OR BY MAIL TO THE DANCE STUDIO AT THE ADDRESS STATED
IN THIS CONTRACT OR AT THE LOCATION WHERE DANCE LESSONS ARE
CONDUCTED. WITHIN THIRTY DAYS AFTER RECEIPT OF YOUR NOTICE OF
CANCELLATION, THE DANCE STUDIO SHALL REFUND TO YOU THE CONTRACT
PRICE LESS THE COST OF GOODS AND SERVICES ALREADY RECEIVED BY YOU
AND AN AMOUNT OF LIQUIDATED DAMAGES EQUAL TO NOT MORE THAN TEN
PERCENT OF THE COST OF THE REMAINING GOODS AND SERVICES.

(d) Fails to allow the contract to be canceled by the purchaser upon the
purchaser's serving written notice to the dance studio;

(e) Fails, upon cancellation of a contract for dance studio services, to refund
to the purchaser all prepayments made under the contract, minus the total of:

(I) The amount equal to the cost of goods and services actually received by
the purchaser under the contract; and

(II) An amount of liquidated damages equal to not more than ten percent of
the cost of the remaining goods and services not received by the purchaser;

(f) Subtracts a total amount under subparagraphs (I) and (II) of paragraph (e)
of this subsection (1) that exceeds the total amount of the obligation as set out in
subparagraph (I) of paragraph (b) of this subsection (1);

(g) Fails to have a performance bond in the amount of twenty-five thousand
dollars, as to each studio, location, or owner, for the benefit of any person who
enters into a contract for dance studio services in which the total amount of the
obligation that the purchaser undertakes is in excess of five hundred dollars and
who is damaged by the failure of the dance studio to provide the services specified
in the contract or by the failure of the dance studio to comply with this section,
which performance bond guarantees the dance studio's performance of its
contractual obligations with the purchaser in accordance with the provisions of this
section, or fails to disclose in the contract with such purchaser the existence of the
performance bond;

(h) Sells or induces any person to purchase or to become obligated directly
or contingently, or both, under more than one contract for dance studio services at
the same time for the purpose of avoiding the provisions of this section; or

(i) Assigns or accepts an assignment of dance studio services without the
written consent of the purchaser.

Legislative History

Source: L. 99: Entire part added with relocations, p. 645, � 2, effective May 18.