KRS § 367.910 — KY Code / Title XXIX / Chapter 367 / Section 367.910
367.910 Written contract -- Contents
Status: in_force

367.910 Written contract -- Contents.

(1) 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.

(2) 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."

(3) 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.

(4) 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 bill.

(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 faced

type:

"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:

(a) 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.

(b) You may cancel if the spa relocates more than five (5) miles from the location

stated in the contract.

(c) 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

NOTICE."