§ 6-1-706 — Buyers' clubs - 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 any
contract of membership in a buyers' club in which the price of the membership
equals or exceeds one hundred dollars:

(a) Fails to allow any purchaser of a membership in a buyers' club to rescind
the membership contract at any time prior to the close of business on the next
business day following the day the purchaser signs the contract;

(b) Fails to provide in the membership contract the following mandatory
disclosure under the heading:

PURCHASER'S RIGHT TO CANCEL:

THE PURCHASER MAY CANCEL THIS CONTRACT FOR ANY REASON AT ANY
TIME PRIOR TO THE CLOSE OF BUSINESS ON THE NEXT BUSINESS DAY
FOLLOWING THE DAY THE PURCHASER SIGNS THE MEMBERSHIP CONTRACT
BY DELIVERING OR MAILING TO THE BUYERS' CLUB WRITTEN NOTICE OF
CANCELLATION. NOTICE OF CANCELLATION, IF SENT BY MAIL, IS DEEMED TO
BE GIVEN AS OF THE DATE THE MAILED NOTICE WAS POSTMARKED.

Said heading and disclosure shall be in capital letters in no less than ten-point,
bold-faced type.

(c) Fails to refund all payments made pursuant to the membership contract
within fifteen days after the buyers' club receives notice of cancellation from the
purchaser.

Legislative History

Source: L. 99: Entire part added with relocations, p. 646, � 2, effective May 18.