§ 623 — Contract restrictions

New York § 623

• Jurisdiction: New York
• Law GBS: General Business
• Art. 30: Health Club Services

Text

§ 623. Contract restrictions. 1. No contract for services shall\nrequire payment by the person receiving service or the use of the\nfacilities of a total amount in excess of three thousand six hundred\ndollars per annum, provided, however, that this subdivision shall not\napply to contracts relating solely to the use of tennis, platform tennis\nor racquet ball facilities.\n 2. No contract for services shall provide for a term longer than\nthirty-six months. No contract for services shall require payments or\nfinancing by the buyer over a period in excess of thirty-seven months\nfrom the date the contract is entered into, nor shall the term of any\nsuch contract be measured by or be for the life of the buyer. Provided,\nhowever, that the services to be rendered to the buyer under the\ncontract may extend over a period not to exceed three years from the\ndate the contract is entered into with the right to renew, at the option\nof the buyer for a like period. The buyer may have thirty days after the\nexpiration to renew the contract. The installment payments shall be in\nsubstantially equal amounts exclusive of the down payment and shall be\nrequired to be made at substantially equal intervals, not to exceed one\nmonth.\n 3. No contract for services may contain any provisions whereby the\nbuyer agrees not to assert against the seller or any assignee or\ntransferee of the health club services contract any claim or defense\narising out of the health club services contract.\n 4. No contract for services may require the buyer to execute a\npromissory note or series of promissory notes which, when negotiated,\ncuts off as to third parties a defense which the buyer may have against\nthe seller.\n 5. No contract may be assigned by one health club to another health\nclub not located on the same premises without written consent of the\nbuyer.\n