N.Y. General Business Law § 624: Rights of cancellation of contracts for services

§ 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 United States mail or electronic mail at the address or

e-mail address specified in the contract. Such contract shall contain

the following written notice in at least twelve point bold type:

CONSUMERS RIGHT TO CANCELLATION. YOU MAY CANCEL THIS CONTRACT WITHOUT

ANY PENALTY OR FURTHER OBLIGATION WITHIN THREE (3) BUSINESS DAYS FROM

THIS DATE. ..... Notice of cancellation shall be in writing subscribed

by the buyer and mailed by United States mail or electronic mail to the

seller at the address or e-mail 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 ten 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 ten business days.

3. (a) Every contract for services shall provide that after such three

business 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 business days if

the buyer becomes significantly physically disabled for a period in

excess of three months, or moves their 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.

(b) Such contract shall contain the following notice captioned in at

least twelve 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

three 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.

(c) All moneys paid pursuant to such contract cancelled for the

reasons contained in this subdivision shall be refunded within ten

business 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 ten business days.

4. (a) Every contract for services shall provide that such health club

shall accept cancellation of a membership by the buyer or the buyer's

estate, as provided in this section, no later than three business days

after receiving notice of the cancellation.

(b) Where a contract for services is due for renewal on an annual

basis, such contract for services following the initial contract shall

provide that such health club shall accept cancellation of renewal of a

membership, by the buyer or the buyer's estate, provided such request is

made within fifteen business days after such renewal takes effect. Where

a contract for service is due for renewal on a monthly basis, such

contract for services following the initial contract shall provide that

such health club shall accept cancellation of renewal of a monthly

membership, by the buyer or the buyer's estate provided such request is

made within three business days after such renewal takes effect.

(c) Such health club shall accept notice of cancellation of a

membership through methods including, but not limited to, website,

electronic mail, telephone, mail, or in person.

(d) If a health club allows a buyer to enter into a contract for

services through a website, such health club shall accept a notice of

cancellation of such contract through such website in addition to the

methods provided pursuant to paragraph (c) of this subdivision.