Source: http://delcode.delaware.gov/title6/c028/sc01/
Timestamp: 2018-06-20 18:57:36
Document Index: 62629812

Matched Legal Cases: ['§ 2801', '§ 2802', '§ 2803', '§ 2804', '§ 2805', '§ 2806', '§ 2807', '§ 2808', '§ 2809', '§ 2801', '§ 2802', '§ 2803', '§ 2804', '§ 2805', '§ 2806', '§ 2804', '§ 2807', '§ 2808', '§ 2803', '§ 2805', '§ 2809', '§ 1', '§ 98', '§ 5']

TITLE 6 - CHAPTER 28. CAMPGROUND RESORTS MEMBERSHIP AND VACATION TIME-SHARING PLANS SALES ACT - Subchapter I. Campground Resorts Membership Sales
§ 2801 § 2802 § 2803 § 2804 § 2805 § 2806 § 2807 § 2808 § 2809
Subchapter I. Campground Resorts Membership Sales
§ 2801 Applicability.
This subchapter shall apply to each campground resort membership contract executed at least in part in the State 90 days after this chapter is signed into law, regardless of the whereabouts of the membership camping resort operator's principal office, campground resort, or recreational facilities.
§ 2802 Definitions.
(1) "Advertisement'' means the attempt by publication, dissemination, solicitation or circulation to induce, directly or indirectly, any person to enter into any obligation, acquire any title, interest in or otherwise execute a contract as defined in this section.
(2) "Business day'' means any day except Sunday or a legal holiday.
(3) "Campground resort'' means any tract or parcel of real property within the State on which there are at least 10 camping sites.
(4) "Camping site'' means a space designed and promoted for the purpose of locating a trailer, tent, tent trailer, pickup camper, van, recreational vehicle or other similar device used for camping.
(5) "Contract'' means any written agreement of more than 1 year's duration, executed in whole or in part within the State, which grants to a purchaser a nonexclusive right or license to use the campground resort of a membership camping resort operator or any portion thereof on a first come, first serve or reservation basis together with other purchasers.
(6) "Facility'' means an amenity within a campground resort set aside or otherwise made available to purchasers in their use and enjoyment of the campground resort, and may include campsites, swimming pools, tennis courts, recreational buildings, boat docks, rest rooms, showers, laundry rooms, and trading posts or grocery stores.
(7) "Holder'' means the membership camping resort operator who enters into a membership camping resort contract with a purchaser or the assignee of such contract who purchases the same for value.
(8) "Managing entity'' means a person who undertakes the duties, responsibilities and obligations of the management of a campground resort.
(9) "Offer'' means any offer, solicitation, advertisement or inducement, to execute a contract.
(10) "Operator'' means any person who is in the business of soliciting, offering, advertising or executing membership camping resort contracts.
(11) "Person'' means any individual, corporation, partnership, company, unincorporated association or any other legal entity other than a government or agency or a subdivision thereof.
(12) "Purchase money'' means any money, currency, note, security or other consideration paid by the purchaser for a membership camping agreement.
(13) "Purchaser'' means any person who enters into a contract with an operator as defined herein.
(14) "Reciprocal program'' means any arrangement under which a purchaser is permitted to use camping resort sites or facilities at 1 or more campground resorts not owned or operated by the operator with whom the purchaser has entered into a contract.
(15) "Salesperson'' means an individual, other than an operator, who offers to sell a contract by means of a direct sales presentation, but does not include a person who merely refers a prospective purchaser to a sales person without making any direct sales presentation.
§ 2803 Operator's disclosure statement.
(a) Every operator, salesperson or other person who is in the business of offering for sale or transfer the rights under existing membership camping resort contracts for a fee shall deliver to the purchaser a current operator's disclosure statement before execution by the purchaser of the contract and no later than the date shown on such contract.
(b) The operator's disclosure statement shall consist of the following:
a. The words, "Membership Camping Operator's Disclosure Statement,'' printed in boldfaced type of a minimum size of 10 points, followed by,
b. The name and principal business address of the operator followed by,
c. A statement that the operator is in the business of offering for sale contracts, followed by,
THIS DISCLOSURE STATEMENT CONTAINS IMPORTANT MATTERS TO BE CONSIDERED IN THE EXECUTION OF A MEMBERSHIP CAMPING RESORT CONTRACT. THE MEMBERSHIP CAMPING RESORT OPERATOR IS REQUIRED BY LAW TO DELIVER TO YOU A COPY OF THIS DISCLOSURE STATEMENT BEFORE YOU EXECUTE A MEMBERSHIP CAMPING RESORT CONTRACT. THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN NATURE. YOU AS A PROSPECTIVE PURCHASER SHOULD REVIEW ALL REFERENCES, EXHIBITS, CONTRACT DOCUMENTS, AND SALES MATERIALS. YOU SHOULD NOT RELY UPON ANY ORAL REPRESENTATIONS AS BEING CORRECT. REFER TO THIS DOCUMENT AND TO THE ACCOMPANYING EXHIBITS FOR CORRECT REPRESENTATIONS. THE MEMBERSHIP CAMPING RESORT OPERATOR IS PROHIBITED FROM MAKING ANY REPRESENTATIONS WHICH CONFLICT WITH THOSE CONTAINED IN THE CONTRACT AND THIS DISCLOSURE STATEMENT.
SHOULD YOU EXECUTE A MEMBERSHIP CAMPING RESORT CONTRACT, YOU HAVE THE UNQUALIFIED RIGHT TO CANCEL SUCH CONTRACT. THIS RIGHT OF CANCELLATION CANNOT BE WAIVED. THE RIGHT TO CANCEL EXPIRES AT MIDNIGHT ON THE 5th BUSINESS DAY FOLLOWING THE DATE ON WHICH THE CONTRACT WAS EXECUTED. TO CANCEL THE MEMBERSHIP CAMPING CONTRACT, YOU AS THE PURCHASER MUST MAIL NOTICE OF YOUR INTENT TO CANCEL BY CERTIFIED MAIL TO THE MEMBERSHIP CAMPING RESORT OPERATOR AT THE ADDRESS SHOWN IN THE MEMBERSHIP CAMPING RESORT CONTRACT, POSTAGE PREPAID. THE MEMBERSHIP CAMPING RESORT OPERATOR IS REQUIRED BY LAW TO RETURN ALL MONEYS PAID BY YOU IN CONNECTION WITH THE EXECUTING OF THE MEMBERSHIP CAMPING RESORT CONTRACT, UPON YOUR PROPER AND TIMELY CANCELLATION OF THE CONTRACT.
a. The name of the operator and the address of the principal place of business;
b. A brief description of the nature of the purchaser's right or license to use the campground resort and the facilities which are to be available for use by purchasers;
c. The location of each of the campground resorts which is to be available for use by purchasers and a brief description of the facilities at each campground resort which are currently available for use by purchasers. Facilities which are planned, incomplete, or not yet available for use shall be clearly identified as incomplete or unavailable. A brief description of any facilities that are or will be available to nonpurchasers shall also be provided;
d. As to all memberships offered by the operator at each campground resort:
1. The form of membership offered;
2. The types and duration of memberships along with a summary of the major privileges, restrictions and limitations applicable to each type; and
3. Provisions, if any, that have been made for public utilities at each campsite including water, electricity, telephone and sewer facilities;
f. A description of any liens, defects or encumbrances affecting the campground resort;
g. A general description of any financing offered or available through the operator;
h. A statement that the purchaser has until midnight of the fifth business day following the signing of the membership campground resort contract to cancel the contract by proper notice to the membership camping resort operator;
i. A description of the insurance coverage that the operator provides for the benefit of purchasers, if any;
j. Any fees or charges that purchasers are or may be required to pay for the use of the campground resort or any facilities;
k. The extent to which financial arrangements, if any, have been provided for the completion of facilities together with a statement of the operator's obligation to complete planned facilities. The statement shall include a description of any restrictions or limitations on the operator's obligation to begin or to complete such facilities;
l. The name of the managing entity, if there is one, and the significant terms of any management contract, including, but not limited to, the circumstances under which the operator may terminate the management contract;
m. Any services which the operator currently provides or expenses the operator pays which are expected to become the responsibility of the purchasers, including the projected liability which each such service or expense may impose on each purchaser;
n. A brief description of the ownership in or other right to use the campground resort which is to be transferred to each purchaser, together with the duration of any lease, license, franchise or reciprocal agreement entitling the operator or the purchasers to use the campground resort, and any provision in any such agreements which restrict or limit a purchaser's use of the campground resort;
o. A summary or copy, whether by way of supplement or otherwise, of the rules, restrictions or covenant regulating the purchaser's use of the campground resort and the facilities which are to be available for use by the purchasers, including a statement of whether and how the rules, restrictions, or covenants may be changed;
p. A description of any restraints on the transfer of the membership camping resort contract;
q. A brief description of the policies covering the availability of camping sites, the availability of reservations and the conditions under which they are made;
r. A statement of whether the operator has the right to withdraw permanently from use all or any portion of any campground resort devoted to membership camping and, if so, the conditions under which such withdrawal is to be permitted; and
(c) The operator shall promptly amend the operator's disclosure statements to reflect any material change in the campground resorts or its facilities.
§ 2804 Cancellation.
(a) A purchaser shall have the right to cancel a membership camping resort contract within 5 business days following the date of its execution.
(b) The right of cancellation shall not be waived and any attempt to obtain such waiver shall be unlawful. Nothing in this section shall preclude the execution of documents in advance of closing for delivery after the expiration of the cancellation period.
(c) If the purchaser elects to cancel the contract, the cancellation may be done only by mailing notice thereof by certified mail to the operator at the address listed in the contract. The cancellation shall be deemed effective upon mailing.
(d) Upon cancellation, the operator shall refund to the purchaser all payments made by such purchaser and collected by the operator pursuant to the canceled contract. The refund shall be made within 15 days and may, where payment has been made by credit card, be made by an appropriate credit to the purchaser's account.
§ 2805 Contracts.
The operator shall deliver to the purchaser a fully executed copy of the contract, which contract shall include at least the following information:
(2) The name of the operator and address of the principal place of business.
(4) A description of the nature and duration of the membership being purchased.
(5) A statement that the operator, salesperson or any other person who in the business of offering for sale or transfer the rights under contracts for a fee is required by this chapter to provide each purchaser of a campground resorts membership with a copy of the operator's disclosure statement prior to execution of such contract and that a failure to do so is a violation of this chapter.
IF YOU CANCEL, ANY PAYMENTS MADE BY YOU UNDER THE CONTRACT AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY YOU WILL BE RETURNED WITHIN 15 BUSINESS DAYS FOLLOWING RECEIPT BY THE SELLER OF YOUR CANCELLATION NOTICE, AND ANY SECURITY INTEREST ARISING OUT OF THE TRANSACTION WILL BE CANCELLED. IF YOU DECIDE TO CANCEL THIS CONTRACT, YOU MUST NOTIFY THE SELLER IN WRITING BY CERTIFIED MAIL OF YOUR INTENT TO CANCEL. YOUR NOTICE OF CANCELLATION SHALL BE EFFECTIVE UPON THE DATE SENT AND SHALL BE SENT
(Name of Operator) (Address of Operator)
(7) The full name of all salespersons involved in the execution of the membership camping resort contract.
§ 2806 Escrow.
All purchase money received from or on behalf of a purchaser in connection with the execution of a contract shall be deposited and held in this State in an escrow account designated solely for that purpose, which may be the operator's own escrow account or that of the operator's attorney, until the time for cancellation has expired as provided for in § 2804 of this title, unless a later time is provided in the contract. If the contract has not been canceled, any purchase money received from a purchaser may be released to the operator upon:
(1) The conveying to the purchaser of the right or license to use the campground resort and facilities as required in the contract; or
§ 2807 Conditions on offering items as an inducement to execute.
(a) It is unlawful for any person by any means, as part of an advertising program, to offer any item of value as an inducement to the recipient to visit an operator's campground resort, attend a sales presentation or contact a salesperson, unless the person clearly discloses in writing in the offer in plain language each of the following:
(1) The name and campground resort address of the operator.
(2) A general statement that the advertising program is being conducted by an operator and the purpose of any requested visit.
(5) The number of campgrounds that are participating in such advertising programs.
a. Any deadline, if any, by which the recipient must visit the campground resort, attend the sales presentation or contact a salesperson in order to receive the item.
(7) A statement that the operator reserves the right to provide a rain check or a substitute or like item, if these rights are reserved.
(b) It is unlawful to charge postage, shipping, handling, insurance redemption fees or any other fees for any item of value offered as an inducement to the recipient to visit an operator's campground resort and attend a sales presentation.
(d) If the person making an offer subject to subsection (a) of this section is unable to provide an offered item because of limitations of supply, quantity or quality not reasonably foreseeable or controllable by the person making the offer, the person making the offer shall provide the approximate retail value of the item as stated in the advertising program as required under subsection (a)(4) of this section.
(f) It is unlawful for any person making an offer subject to subsection (a) of this section or any employee or agent of the person to:
§ 2808 Unfair trade practices.
A violation of any of the provisions of §§ 2803 to 2807 of this title, inclusive, or failure to comply with the notice of cancellation required by § 2805 of this title shall constitute an unfair or deceptive act or practice as set forth in Chapter 25 of this title.
§ 2809 Enforcement.
Violations of this subchapter shall be within the scope of the enforcement duties and powers of the State Division of Consumer Protection as described in subchapter II of Chapter 25 of Title 29.
67 Del. Laws, c. 433, § 1; 69 Del. Laws, c. 291, § 98(b), (c); 78 Del. Laws, c. 219, § 5.;