14 And if the total amount is equal to or greater than $2,501 you have 45 days to cancel the contract. 13 If the total amount of money due is between $2,001 and $2,500, you have 30 days to cancel. If the total value of the contract is between $1,500 and $2,000, you have 20 days to cancel the contract. There is additional time to cancel depending on how much money you will ultimately have to pay the health club under the contract. If the contract were signed on Saturday, the exclusion of Sunday (even if the club were open Sunday) means that it could be canceled by mailing or delivering notice anytime before midnight on Friday. If the health club were not open for business on Tuesday, the time for canceling would be extended until midnight on Monday. For instance, if the contract is signed on Monday, it may be canceled by mailing or delivering notice to the address specified in the contract anytime until midnight on Saturday. Sundays and holidays are excluded when counting the five days. 12Įxample: You may cancel the contract at any time before midnight of the fifth day that the health studio is open for business after the date that the contract is signed. Upon cancellation, all payments must be refunded within 10 days after the health club receives notice of the cancellation, except that you must pay for any services that you received prior to cancellation. You probably may cancel the contract by sending an e-mail message, although the law does not specifically allow or prohibit this method. The notice must be mailed to or delivered at the health club's address given in the contract. In order to cancel the contract, you must mail or deliver a signed and dated notice, or send a telegram, which informs the health club that you have decided to cancel the contract, or words to that effect. The notice shall be sent to _ (Name of health studio operator) at (Address of health studio operator)." 11 To cancel this agreement, mail or deliver a signed and dated notice, or send a telegram which states that you, the buyer, are canceling this agreement, or words of similar effect. "You, the buyer, may cancel this agreement at any time prior to the midnight of the fifth business day of the health studio after the date of this agreement, excluding Sundays and holidays. The face of the contract must conspicuously disclose the following notice, in a size equal to at least 10-point bold type, close to the place for your signature: The contract must contain a provision that gives you a five-day right to cancel the contract. But if the health club does open after six months, you only have ten days to cancel the contract. 9 If the health club has not opened within six months, you may cancel the contract at any time. The health club must open for use within six months of the date when the contract is signed. If the health club is not already operating when the contract is signed, the contract must state when the health club will be open and available for use. 7 A copy of the contract must be given to you when you sign it. The contract must include the name and address of the company that provides the health studio services, and the date on which you sign the contract. The contract must state the length of the contract term in a size equal to at least 14-point type, above the place for your signature. It also means that "lifetime contracts" are prohibited. 5 That means that a four-year contract would be unlawful, and that a two-year contract requiring payments for longer than two years also would be unlawful. 4 The duration of the contract may not exceed three years, and the contract may not require payments for longer than the term of the contract. 3 The contract may not require payments and initiation/initial membership fees that total more than $3,000 not including interest or finance charges (this amount increases to $4,400 on January 1, 2010) over the contract term. 2Īll health studio contracts must be in writing. However, services provided by persons licensed in the healing arts, by nutritionists, and by schools operating under the California Education Code, are not subject to this law. Health studio services include instruction, training or assistance in physical culture, body building, exercising, reducing, figure development and other similar skills the use of a health studio, gym or other facility for any of these purposes and membership in any group formed for any of these purposes. Overview of California's Health Studio Services Contract Law: Legal Guide W-10Ĭalifornia's Health Studio Services Contract Law applies to all contracts for health studio services in California.
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