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