§ 394-b. Limitations on certain contracts for instruction or use of\nphysical or social training facilities. 1. (a) "Total contract price"\nshall mean the total cash price paid or to be paid by the buyer for\ninstruction or services which are the subject of the written contract.\n (b) "Notice of cancellation" shall be deemed to have been provided by\na buyer by mailing or delivering written notification to cancel the\ncontract to the seller or by failing to attend instructional facilities\nfor a period of five consecutive appointment days on which classes or\nthe provisions of services which are the subject of the contract were\nprearranged with the buyer.\n (c) "Reasonable and fair service fee" shall mean no more than ten\npercent of the total contract price for contracts of one thousand\ndollars and under. For contracts over one thousand dollars, reasonable\nand fair service fee shall mean no more than one hundred dollars plus an\namount equal to five percent of the total contract price over one\nthousand dollars, not to exceed two hundred fifty dollars.\n (d) "Initial contract" shall mean the buyers first contract for\nservices. Subsequent contracts shall be referred to as renewals.\nContracts for services which are entered into, after a lapse of\ncontractual service for a period of twelve consecutive months, shall be\ndeemed to be initial contracts.\n 2. Any contract for instruction in physical or social skills, or for\nthe use by an individual patron of a dance hall studio, ballroom, or\nother physical or other social training facility, which is measured by\nthe life of the person receiving such instruction or the use of such\nphysical or social training facility as an individual patron, shall be\ndeemed void and unenforceable as contrary to public policy.\n 3. Any initial contract for instruction in physical or social skills,\nor for the use by an individual patron of a dance hall studio, ballroom,\nor other physical or social training facility which requires payment by\nthe person receiving such instruction, or the use of such physical or\nsocial training facilities, of a total amount in excess of five hundred\ndollars, or granting to the person furnishing such instruction or\nproviding the use of such facilities, an automatic renewal option where\nthe payments to be made during the original contract period and the\noption period combined are in excess of five hundred dollars, shall be\nvalid and enforceable only if: (a) The term of the contract shall be for\na precisely measured period of years, or any definite part thereof; and\n(b) the payments to be made thereunder shall be in instalments so\ncomputed that the total amounts so paid shall not exceed by more than\nfive percent the prorated cost of the units of instruction or use\nactually received thereunder at the time the latest payment is made; or,\nif no definite number of units of instruction or use is specified in the\ncontract, the total amount so paid shall not exceed by more than five\npercent the proportion of the total contract price that the expired\nportion of the entire term bears to the whole term of the contract.\n 4. No contract for services shall be assigned without written consent\nof the person receiving such instruction or for the use of such physical\nor social training facility.\n 5. (a) Every contract for services shall provide that such contract\nmay be canceled at any time. Notice of cancellation shall be delivered\nor mailed by certified or registered United States mail at the address\nspecified in the contract. Such contract shall contain the following\nwritten information in at least ten point type: "CONSUMERS RIGHT TO\nCANCELLATION. YOU MAY CANCEL THIS CONTRACT AT ANY TIME BY DELIVERING OR\nMAILING BY CERTIFIED OR REGISTERED UNITED STATES MAIL TO THE ADDRESS\nSPECIFIED IN THE CONTRACT. IF YOU CANCEL THE CONTRACT WITHIN THREE (3)\nDAYS FROM THE DATE OF RECEIPT, YOU WILL BE ENTITLED TO A FULL REFUND. TO\nCANCEL A CONTRACT WITHIN THRE
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