§ 5-50-4. Contract contents — Notice to buyer of right to cancel contract — Right of contract
cancellation — Refund.
(a) A copy of every health club contract shall be delivered to the buyer at the time the
contract is signed.
(b)(1) All health club contracts must be in writing signed by the buyer; must designate the
date on which the buyer actually signs the contract; and must contain a statement
of the buyer's rights that substantially complies with this section.
(2) The statement must appear in the contract under the conspicuous caption "BUYER'S RIGHT
TO CANCEL,� and read as follows:
"If you wish to cancel this contract, you may cancel in person, by electronic mail,
or by mail to the seller. You must give notice, in writing, that you do not wish to
be bound by the contract. This notice must be delivered, electronically transmitted,
or mailed before midnight of the tenth (10th) business day after the date of the contract
so entered into. All cancellations must be delivered, electronically transmitted,
or mailed to: (Insert name, electronic mail address, and mailing address of health
club).�
(3) Proof of in-person cancellation shall be effectuated by writing "cancellation� and
the date of cancellation across the contract.
(4) The buyer shall receive a copy of the contract.
(5) The signature of the person employed by the health club who registers the cancellation
must also appear on the contract.
(c) Every contract for health club services shall provide that the contract may be cancelled
before midnight of the tenth (10th) day after the date of the contract so entered
into. The notice of the buyer's cancellation of the buyer's contract shall be in writing
and shall be made in person or by electronic mail to the seller at an electronic mail
address that shall be specified in the contract or by mail to the seller at the address
specified in the contract.
(d) Every contract for health club services shall provide clearly and conspicuously, in
writing, that after the expiration of the ten-day (10) period for cancellation as
provided in subsection (b)(2):
(1) The buyer shall be relieved from any and all obligations under the contract, and shall
be entitled to a refund of any prepaid membership under the contract if:
(i) A buyer relocates further than fifteen (15) miles from a comparable health club facility
operated by the seller;
(ii) If a health club facility relocates further than fifteen (15) miles from its current
location, or the seller does not maintain a health club service within a fifteen (15)
mile radius from its current location; or
(iii) If the health club services or facilities are not available to the buyer because the
seller fails to open a planned health club or location, permanently discontinues operation
of the health club or location, or substantially changes the operation;
(2) If a buyer becomes significantly physically or medically disabled for a period in
excess of three (3) months during the membership term, the buyer has the option:
(i) To be relieved of liability for payment on that portion of the contract term for which
the purchaser is disabled and receive a full refund of any prepaid membership on the
contract; or
(ii) To extend the duration of the contract at no additional cost for a period equal to
the duration of the disability. The health club may require that a doctor's certificate
be submitted as verification of the disability;
(3) In the event of the buyer's death, the buyer's estate shall be relieved of any further
obligation for payment under the contract and shall be entitled to a refund for any
prepaid membership for the unused portion of the contract. The health club may require
verification of death;
(4) In the event of a sale of health club ownership, the contract is voidable at the option
of the buyer.
(e) A health club contract that does not comply with the provisions of this chapter is
voidable at the option of the buyer.
(f) Upon cancellation pursuant to this section, the buyer shall be free of any and all
obligations under the contract, and any prepaid monies pursuant to this contract shall
be refunded within fifteen (15) business days of receipt of the notice of cancellation.
The right of cancellation shall not be affected by the terms of the contract and may
not be waived or surrendered.
(g) Notice of the buyer's right to cancel and the method of cancellation under this section
shall also be posted clearly and conspicuously on the premises of the health club.