|
|
|
HB5875 Engrossed |
|
LRB093 19957 RXD 45701 b |
|
|
1 |
| AN ACT in relation to business transactions.
|
2 |
| Be it enacted by the People of the State of Illinois, |
3 |
| represented in the General Assembly:
|
4 |
| Section 5. The Physical Fitness Services Act is amended by |
5 |
| changing Section 8 as follows:
|
6 |
| (815 ILCS 645/8) (from Ch. 29, par. 58)
|
7 |
| Sec. 8. Prohibited contract provisions. (a) (Blank).
No |
8 |
| contract for physical
fitness services
shall require payment of |
9 |
| a total amount in excess of
$2500 per year, and every such
|
10 |
| contract must so provide in writing;
except that this limit |
11 |
| shall not apply to any contract for group membership,
other |
12 |
| than family membership, where the purchaser is a corporation or |
13 |
| other
business entity or any social, fraternal or charitable |
14 |
| organization not
created for the purpose of encouraging this |
15 |
| contractual arrangement.
|
16 |
| (b) No contract for physical fitness services shall require |
17 |
| payments or
financing over a period in excess of 3 years from |
18 |
| the date the contract
is entered into, nor shall the term of |
19 |
| any such contract be measured by
the life of the customer. The |
20 |
| initial term of services to be rendered under
the contract may |
21 |
| not extend
over a period of more than 2 years from the date the |
22 |
| parties enter into
the contract; provided that the customer may |
23 |
| be given an option to renew
the contract for consecutive |
24 |
| periods of not more than one year each for
a reasonable |
25 |
| consideration not less than 10% of the cash price of the |
26 |
| original
membership.
|
27 |
| (c) No contract for physical fitness services shall require |
28 |
| or entail
the execution of any note by the customer which, when |
29 |
| separately negotiated,
will cut off as to third parties
any |
30 |
| right of action or defense which the customer may have against |
31 |
| the physical
fitness center. No right of action or defense |
32 |
| arising out of a contract
for physical fitness services which |