§ 624 — Rights of cancellation of contracts for services

New York § 624

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

Text

§ 624. Rights of cancellation of contracts for services. 1. Every\ncontract for services at a planned health club or a health club under\nconstruction shall, at the option of the buyer, be voidable in the event\nthat the health club and the services to be provided pursuant to such\ncontract are not available within one year from the date the contract is\nexecuted by the buyer.\n 2. Every contract for services shall provide that such contract may be\ncancelled within three business days after the date of receipt by the\nbuyer of a copy of the written contract. Notice of cancellation shall be\ndelivered by United States mail or electronic mail at the address or\ne-mail address specified in the contract. Such contract shall contain\nthe following written notice in at least twelve point bold type:\nCONSUMERS RIGHT TO CANCELLATION. YOU MAY CANCEL THIS CONTRACT WITHOUT\nANY PENALTY OR FURTHER OBLIGATION WITHIN THREE (3) BUSINESS DAYS FROM\nTHIS DATE. ..... Notice of cancellation shall be in writing subscribed\nby the buyer and mailed by United States mail or electronic mail to the\nseller at the address or e-mail address specified in such form. Such\nnotice shall be accompanied by the contract forms, membership cards and\nany other documents or evidence of membership previously delivered to\nthe buyer. All moneys paid pursuant to such contract shall be refunded\nwithin ten business days of receipt of such notice of cancellation. If\nthe buyer has executed any credit or loan agreement to pay for all or\npart of health club services, any such negotiable instrument executed by\nthe buyer shall also be returned within ten business days.\n 3. (a) Every contract for services shall provide that after such three\nbusiness day period for cancellation as provided in subdivision two of\nthis section, the buyer's estate may cancel a contract for services if\nthe buyer dies. The buyer may also cancel after three business days if\nthe buyer becomes significantly physically disabled for a period in\nexcess of three months, or moves their residence to a location more than\ntwenty-five miles from a health club operated by the seller, or after\nthe services are no longer available or substantially available as\nprovided in the contract because of the seller's permanent\ndiscontinuance of operation or substantial change in operation. Nothing\ncontained herein shall restrict or prohibit the seller from offering or\nproviding in such contract additional or broader reasons for\ncancellation. The seller may require reasonable evidence for a\ncancellation pursuant to this subdivision.\n (b) Such contract shall contain the following notice captioned in at\nleast twelve point bold type:\nADDITIONAL RIGHTS TO CANCELLATION:\n You may also cancel this contract for any of the following reasons:\n If upon a doctor's order, you cannot physically receive the services\nbecause of significant physical disability for a period in excess of\nthree months.\n If you die, your estate shall be relieved of any further obligation\nfor payment under the contract not then due and owing.\n If you move your residence more than twenty-five miles from any health\nclub operated by seller.\n If the services cease to be offered as stated in the contract.\n (c) All moneys paid pursuant to such contract cancelled for the\nreasons contained in this subdivision shall be refunded within ten\nbusiness days of receipt of such notice of cancellation; provided\nhowever that the seller may retain the expenses incurred and the portion\nof the total price representing the services used or completed, and\nfurther provided that the seller may demand the reasonable cost of goods\nand services which the buyer has consumed or wishes to retain after\ncancellation of the contract. In no instance shall the seller demand\nmore than the full contract price from the buyer. If the buyer has\nexecuted any credit or loan agreement to pay for all or part of health\nclub services, any such negotiable instrument executed by the buyer\nshall also be returned within ten business days.\n 4. (a) Every contract for services shall provide that such health club\nshall accept cancellation of a membership by the buyer or the buyer's\nestate, as provided in this section, no later than three business days\nafter receiving notice of the cancellation.\n (b) Where a contract for services is due for renewal on an annual\nbasis, such contract for services following the initial contract shall\nprovide that such health club shall accept cancellation of renewal of a\nmembership, by the buyer or the buyer's estate, provided such request is\nmade within fifteen business days after such renewal takes effect. Where\na contract for service is due for renewal on a monthly basis, such\ncontract for services following the initial contract shall provide that\nsuch health club shall accept cancellation of renewal of a monthly\nmembership, by the buyer or the buyer's estate provided such request is\nmade within three business days after such renewal takes effect.\n (c) Such health club shall accept notice of cancellation of a\nmembership through methods including, but not limited to, website,\nelectronic mail, telephone, mail, or in person.\n (d) If a health club allows a buyer to enter into a contract for\nservices through a website, such health club shall accept a notice of\ncancellation of such contract through such website in addition to the\nmethods provided pursuant to paragraph (c) of this subdivision.\n