§ 59-2004 — Provisions to be included in contract or membership

agreement. Every health spa contract or membership agreement for the sale of future health spa services which are paid for in advance or which the buyer agrees to pay for in future installments shall be in writing and shall contain the following provisions: 1. A provision for the penalty-free cancellation of the contract or membership agreement within three (3) business days of its making and refund upon such notice, of all monies paid under the contract or membership agreement; 2. A provision for the cancellation of the contract or membership agreement if the health spa relocates or goes out of business and fails to provide alternative facilities within eight (8) miles of the location designated in the health spa contract or membership agreement. Upon receipt of such notice, the health spa shall refund to the buyer funds paid or accepted in payment of the contract or membership agreement in an amount computed by dividing the contract price by the number of weeks in the contract or membership agreement term and multiplying the result by the number of weeks remaining in the contract or membership agreement term; 3. A provision for the cancellation of the contract or membership agreement if the buyer dies or becomes physically unable to use a substantial portion of the services for thirty (30) or more consecutive days. Upon receipt of such notice, the health spa shall refund to the buyer funds paid or accepted in payment of the contract or membership agreement in an amount computed by dividing the contract price by the number of weeks in the contract or membership agreement term and multiplying the result by the number of weeks remaining in the contract or membership agreement term. In the case of disability, the health spa may require the buyer to submit to a physical examination by a doctor agreeable to the buyer and the health spa. The cost of the examination shall be borne by the health spa; 4. A provision that: a. to cancel a contract or membership agreement, the buyer shall notify the health spa of cancellation in writing, by certified mail, return receipt requested, or personal delivery, to the address specified in the health spa contract or membership agreement, b. all moneys to be refunded upon cancellation of the health spa contract or membership agreement shall be paid within thirty (30) days of receipt of the notice of cancellation, and c. if the customer has executed any credit or lien agreement with the health spa to pay for all or part of health spa services, any such agreement executed by the buyer shall also be returned within sixty (60) days after such cancellation; 5. A provision for the penalty-free cancellation of the contract or membership agreement if the health spa changes ownership and relocates and fails to provide notice of the change of ownership and relocation within thirty (30) days through certified mail to the buyer; and 6. A provision for the penalty-free cancellation of the contract or membership agreement if the health spa changes ownership and relocates and fails to obtain written authorization from the buyer to continue to collect automatic bank draft deductions. If the health spa fails to secure written authorization from the buyer, the health spa shall refund to the buyer any funds drafted after the change of ownership and relocation.

Legislative History

Added by Laws 1987, c. 217, § 6, eff. Nov. 1, 1987. Renumbered from Title 15, § 775.4 by Laws 1988, c. 215, § 12, eff. Nov. 1, 1988. Amended by Laws 1991, c. 96, § 4, eff. Sept 1, 1991; Laws 2012, c. 258, § 3, emerg. eff. May 15, 2012.