412-A - Cancellation of contracts for future consumer services.

§  412-a.  Cancellation of contracts for future consumer services.  1.  Contract for future consumer services. As referred to in  this  section,  the term "contract for future consumer services" shall mean any contract  entered  into  for  consumer services to be performed in the future on a  lesson-by-lesson or class-by-class basis and offered, sold  or  provided  by  correspondence  schools which for the purposes of this section shall  mean any plan or method used by any person or persons, firm, corporation  or other organization for giving instruction in any form  or  manner  by  correspondence under contract.    2.  No person, including any business entity, may contract to receive,  or demand, in the  event  of  cancellation  of  a  contract  for  future  services, more than the total of:    (a)  five  percent of the cash price, but not to exceed fifty dollars,  and    (b) a pro rata portion of the total price, representing the proportion  of services used or completed.    In addition, the  seller  may  receive  or  demand  the  cost  of  any  ancillary  goods  which the buyer has consumed or wishes to retain after  cancellation of the contract.  In no instance shall the  seller  collect  more than the full contract price from the buyer.    3.  Within  ten days after a contract for future consumer services has  been cancelled, the seller shall tender to the buyer any  payments  made  in   excess  of  the  amounts  permitted  to  be  retained  pursuant  to  subdivision two of this section.    4. Cancellation. Cancellation shall occur:    (a) when the buyer mails to the seller notice of his intent to cancel,  or    (b) where the seller has actual notice of  the  buyer's  intention  to  cancel, or    (c)  where  the buyer fails to attend consecutive scheduled classes or  lessons constituting at least twenty-five percent of the  total  lessons  or  time contracted for, without informing the seller in writing that he  intends to remain enrolled.    5. The contract forms used by the seller shall conspicuously  disclose  the  seller's  cancellation  provisions  in compliance with subdivisions  two, three, and four of this section and  shall  contain  the  following  notice in ten point bold face type:    If you cancel this contract (the seller) may keep only five percent of  the  cash  price,  but not to exceed fifty dollars, and a portion of the  contract price based upon the lessons or services you have used. You may  notify the seller of your intent to cancel by mail,  addressed  to  (the  seller) at (seller's address).    6.  Nothing  in  this  section  shall be construed so as to nullify or  impair any right or rights which a buyer may have against  a  seller  at  common law, by statute, or otherwise.