2013 Kentucky Revised Statutes
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367.910 Written contract -- Contents.
A fully completed copy of each contract shall be delivered to the buyer at the
time the contract is signed. Every contract must constitute the entire
agreement between the seller and the buyer, must be in writing, and must be
signed by the member.
Each contract shall state in at least ten (10) point bold faced type the following:
"NOTICE TO BUYER: DO NOT SIGN THIS CONTRACT UNTIL YOU
HAVE READ ALL OF IT. ALSO, DO NOT SIGN THIS CONTRACT IF IT
CONTAINS ANY BLANK SPACES."
Every purchaser of a membership shall be entitled to cancel his or her contract
within three (3) business days by notifying the health spa in writing by midnight
of the third business day following the date of purchase of the membership
contract. Written notification is deemed given if mailed or delivered by midnight
of the third business day. All money collected pursuant to the contract shall be
refunded to the purchaser exercising the right to cancel.
In addition to the cancellation rights stated in subsection (3) of this section, a
member shall be entitled to cancellation and to a full or partial refund of the
contract price as follows:
(a) A member shall be entitled to cancel if, because of death or medical
disability, the member becomes unable to use a substantial portion of the
facilities or services for thirty (30) or more consecutive days. Upon receipt
of written notice from the member, or from the representative of the
member's estate, the health spa shall pay a refund in an amount
computed by dividing the contract price by the number of weeks in the
contract term and multiplying the result by the number of weeks remaining
in the contract term. Members shall only receive refunds of money
actually paid to the spa by them, or on their behalf. In the case of medical
disability, the health spa may require the member to submit to an
examination by a medical doctor agreeable to both the member and the
health spa. The cost of the examination shall be borne by the health spa.
(b) A member shall be entitled to cancel if the health spa relocates more than
five (5) miles from the location designated in the health spa contract.
Upon receipt of written notice from the member, the health spa shall pay a
refund to the member in an amount computed as provided in subsection
(4)(a) of this section.
(c) A member shall be entitled to cancel if the member relocates twenty-five
(25) miles or more from the residence stated in the contract, and the spa
cannot provide comparable alternative facilities and services within five
(5) miles of the member's new residence. Upon written notice from the
member, the health spa shall pay a refund in an amount computed as
provided in subsection (4)(a) of this section. The health spa may require
written verification of the new residence, such as a lease, deed, or utility
(d) If the health spa fails to open for business within ninety (90) days from the
sale of the first contract, becomes insolvent, or ceases operation, all
membership contracts shall be deemed canceled and the spa shall pay
refunds to its members. No notification from any member shall be
required. Refunds shall be given in an amount computed as provided in
subsection (4)(a) of this section.
(5) If written notice of cancellation is required in subsection (4) of this section, the
member shall notify the health spa in writing, by certified mail, return receipt
requested, or by personal delivery, to the address stated in the health spa
contract. All moneys to be refunded shall be paid within thirty (30) days of
receipt of the cancellation notice.
(6) If a refund is required by this section and the member has executed any credit
or loan agreement with the health spa to pay for use of all or part of the
facilities and services, that agreement shall be canceled and returned within
the same time period as required for the refund.
(7) Each contract shall contain the following notice in at least ten (10) point bold
"IF WITHIN THREE (3) BUSINESS DAYS YOU DECIDE YOU DO NOT WISH TO
REMAIN A MEMBER OF THIS HEALTH SPA, YOU MAY CANCEL THIS
AGREEMENT BY MAILING A NOTICE TO THE HEALTH SPA BY MIDNIGHT OF
THE THIRD BUSINESS DAY FOLLOWING YOUR PURCHASE OF THE
CONTRACT STATING YOUR DESIRE TO CANCEL THIS CONTRACT. THE
WRITTEN NOTICE SHOULD BE MAILED TO THE FOLLOWING ADDRESS:"
(address of the health spa)
"ADDITIONAL CANCELLATION RIGHTS:
You may also cancel this contract if any of the following occur:
You may cancel if, because of death or medical disability, you become unable
to use a substantial portion of the spa's facilities or services for thirty (30) or more
days. In the event of medical disability, you must provide the spa with a doctor's
statement. In addition, the spa may require you to submit to a physical examination
by a mutually agreeable medical doctor, at its cost. Your estate may cancel in the
event of your death.
You may cancel if the spa relocates more than five (5) miles from the location
stated in the contract.
You may cancel if you relocate more than twenty-five (25) miles from your
residence as stated in the contract, and the spa cannot provide comparable facilities
and services within five (5) miles of your new residence. The spa may require written
verification of your new residence, such as a lease, deed or utility bill.
IN ORDER TO EXERCISE THESE ADDITIONAL CANCELLATION RIGHTS, YOU
MUST NOTIFY THE SPA IN WRITING, BY CERTIFIED MAIL, RETURN RECEIPT
REQUESTED, OR BY PERSONAL DELIVERY, TO THE ADDRESS STATED
ABOVE. ALL MONEYS TO BE REFUNDED SHALL BE PAID TO YOU WITHIN
THIRTY (30) DAYS AFTER THE SPA'S RECEIPT OF THE CANCELLATION
Effective:July 15, 1988
History: Amended 1988 Ky. Acts ch. 367, sec. 7, effective July 15, 1988. -Created 1982 Ky. Acts ch. 298, sec. 3, effective July 15, 1982.
CHAPTER 367 - CONSUMER PROTECTION
367.910 Written contract -- Contents.
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