358-I:6 Buyer's Rights. –
I. Every seller of a prepaid health club services contract shall:
(a) Refund to the buyer the pro rata cost of any unused services, within 15 days after request therefor, if:
(1) The buyer is unable to receive benefits from the seller's services by reason of death or disability. The health club may require that the disability be confirmed by an examination of a physician agreeable to the member and the health club; provided, however, that this subparagraph shall not operate to prevent the buyer from proving the disability in a judicial proceeding; or
(2) The seller relocates his facility more than 8 miles from its present location, or the services provided by the seller are materially impaired.
(b) Refund to the buyer the pro rata cost of any unused services under all contracts between the parties, within 15 days after request therefor, if the aggregate price of all contracts in force between the parties exceeds $1,000. Provided, however, if the contract so provides, the seller may retain a cancellation fee of not more than 25 percent of the pro rata cost of unused services on all contracts, not to exceed $250.
(c) Refund to the buyer the pro rata cost of any unused services within 15 days after the club ceases operation.
II. Upon the occurrence of any of the circumstances enumerated in subparagraphs I(a) or (b) or (c) of this section, the buyer or his estate shall be relieved of any further obligation for payment under the contract not then due and owing.
Source. 1983, 438:1. 1987, 397:5, 6, eff. July 25, 1987.