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New York General Business - Article 30 - § 624 Rights of Cancellation of Contracts for Services

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General Business 
 
    §  624.  Rights  of  cancellation of contracts for services. 1.  Every
  contract for services at a planned health club or a  health  club  under
  construction shall, at the option of the buyer, be voidable in the event
  that  the  health  club and the services to be provided pursuant to such
  contract are not available within one year from the date the contract is
  executed by the buyer.
    2. Every contract for services shall provide that such contract may be
  cancelled within three business days after the date of  receipt  by  the
  buyer of a copy of the written contract. Notice of cancellation shall be
  delivered  by  certified or registered United States mail at the address
  specified in the contract. Such contract  shall  contain  the  following
  written  notice  in  at  least  ten  point bold type: CONSUMERS RIGHT TO
  CANCELLATION. YOU MAY  CANCEL  THIS  CONTRACT  WITHOUT  ANY  PENALTY  OR
  FURTHER  OBLIGATION  WITHIN  THREE  (3)  DAYS FROM THIS DATE . . . . . .
  Notice of cancellation shall be in writing subscribed by the  buyer  and
  mailed  by  registered  or certified United States mail to the seller at
  the address specified in such form. Such notice shall be accompanied  by
  the contract forms, membership cards and any other documents or evidence
  of  membership  previously  delivered  to  the  buyer.   All moneys paid
  pursuant to such contract shall be refunded within fifteen business days
  of receipt of such notice of cancellation.   If the buyer  has  executed
  any  credit  or  loan  agreement  to  pay for all or part of health club
  services, any such negotiable instrument executed  by  the  buyer  shall
  also be returned within fifteen days.
    3. Every contract for services shall provide that after such three day
  period  for cancellation as provided in subdivision two of this section,
  the buyer's estate may cancel a contract for services if the buyer dies.
  The buyer may  also  cancel  after  three  days  if  the  buyer  becomes
  significantly  physically disabled for a period in excess of six months,
  or moves his residence to a location more than twenty-five miles from  a
  health  club operated by the seller, or after the services are no longer
  available or substantially available as provided in the contract because
  of the seller's permanent discontinuance  of  operation  or  substantial
  change in operation. Nothing contained herein shall restrict or prohibit
  the  seller  from  offering  or providing in such contract additional or
  broader reasons for cancellation.  The  seller  may  require  reasonable
  evidence  for a cancellation pursuant to this subdivision. Such contract
  shall contain the following notice captioned in at least ten point  bold
  type:
  ADDITIONAL RIGHTS TO CANCELLATION:
    You may also cancel this contract for any of the following reasons:
    If  upon  a doctor's order, you cannot physically receive the services
  because of significant physical disability for a period in excess of six
  months.
    If you die, your estate shall be relieved of  any  further  obligation
  for payment under the contract not then due and owing.
    If you move your residence more than twenty-five miles from any health
  club operated by seller.
    If the services cease to be offered as stated in the contract.
    All  moneys  paid  pursuant to such contract cancelled for the reasons
  contained in this subdivision shall be refunded within fifteen  days  of
  receipt of such notice of cancellation; provided however that the seller
  may  retain  the  expenses  incurred  and the portion of the total price
  representing the services used or completed, and further  provided  that
  the  seller  may  demand the reasonable cost of goods and services which
  the buyer has consumed or wishes to retain  after  cancellation  of  the
  contract.  In  no  instance  shall  the seller demand more than the full
  contract price from the buyer. If the buyer has executed any  credit  or

  loan  agreement to pay for all or part of health club services, any such
  negotiable instrument executed by  the  buyer  shall  also  be  returned
  within fifteen days.
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Last modified: February 15, 2014