Sec. 863.141. - Definition of contracts.

A "contract for future consumer services" is any contract which includes a provision for consumer services to be rendered in the future on a continuing basis including, but not limited to, computer schools, health spas or gyms, home study school and courses or dance studios, except that futureservices shall not mean, nor include:

1.Boarding accommodations; or

2.Travel arrangements contracted for less than a year in advance; or

3.Contracts which incorporate warranties of service or repair given in conjunction with appliances or other goods, where the sale of goods is the primary object of the contract; or

4.Services by a public or private nonprofit educational institution, i.e., a college or university chartered by the University of the State of New York or the Board of Regents of New York State, secondary school and elementary school, a nursery school or kindergarten.

(L.L. No. 7-1975; amended by L.L. No. 4-1977, § 501)

  • Sec. 863.151. - Cancellation clauses.

It shall be a violation for any merchant to communicate orally or in writing to the consumer that any contract for future consumer services sold by him is noncancellable or not subject to cancellation or to use words of similar meaning or import. Nothing in this section or in section 863.161 shall preclude any person from communicating to a consumer that the consumer may be liable to the merchant for damages if he breaches or cancels a contract.

(L.L. No. 7-1975; amended by L.L. No. 4-1977, § 502)

  • Sec. 863.161. - Collection of fees limited; cancellation requirements.

1. It shall be a violation for any merchant who sells future consumerservices or collects consumer debts to contract for, receive or demand, in the event of cancellation by the consumer of such a contract for futureservice, more than a total of:

a. Ten percent of the cash price, but not to exceed $100.00; and

b. A pro rata portion of the total price, representing the proportion ofservices used or completed up to 25 percent of the time or lessons contracted for. The proportion of services used or completed shall include the time or lessons missed prior to cancellation; and

c. The cost to the merchant of any ancillary goods which the consumer has used or has retained after cancellation of the contract.

2 .Cancellation shall occur:

a .When the consumer mails to the merchant notice of his intention to cancel; or

b. Where the consumer fails to attend consecutive scheduled classes or lessons constituting at least 25 percent of the total lessons or time contracted for, without informing the merchant in writing that he intends to remain enrolled.

3. The contract forms used by the merchant shall conspicuously disclose the merchant's cancellation provisions in compliance herewith.

(L.L. No. 7-1975; amended by L.L. No. 4-1977, § 503)