| |||||||
| |||||||
| |||||||
| 1 | AN ACT concerning business.
| ||||||
| 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. | ||||||
| 8 | (a) (Blank). No contract for basic physical
fitness | ||||||
| 9 | services
shall require payment of a total amount in excess of | ||||||
| 10 | $2500 per year, and every such
contract must so provide in | ||||||
| 11 | writing;
except that this limit shall not apply to any contract | ||||||
| 12 | for: (1) family or couple memberships, or
(2) group | ||||||
| 13 | memberships, where the purchaser is a corporation or other
| ||||||
| 14 | business entity or any social, fraternal or charitable | ||||||
| 15 | organization not
created for the purpose of encouraging this | ||||||
| 16 | contractual arrangement.
| ||||||
| 17 | (b) (Blank). No contract for family or couple memberships | ||||||
| 18 | for basic physical fitness services shall require payment in | ||||||
| 19 | excess of $2,500 per year per person covered under the | ||||||
| 20 | membership.
| ||||||
| 21 | (c) No contract for physical fitness services shall require | ||||||
| 22 | payments or
financing over a period in excess of 3 years from | ||||||
| 23 | the date the contract
is entered into, nor shall the term of | ||||||
| |||||||
| |||||||
| 1 | any such contract be measured by
the life of the customer. The | ||||||
| 2 | initial term of services to be rendered under
the contract may | ||||||
| 3 | not extend
over a period of more than one year 2 years from the | ||||||
| 4 | date the parties enter into
the contract; provided that the | ||||||
| 5 | customer may be given an option to renew
the contract for | ||||||
| 6 | consecutive periods of not more than one year each for
a | ||||||
| 7 | reasonable consideration not less than 10% of the cash price of | ||||||
| 8 | the original
membership.
| ||||||
| 9 | (d) No contract for physical fitness services shall require | ||||||
| 10 | or entail
the execution of any note by the customer which, when | ||||||
| 11 | separately negotiated,
will cut off as to third parties
any | ||||||
| 12 | right of action or defense which the customer may have against | ||||||
| 13 | the physical
fitness center. No right of action or defense | ||||||
| 14 | arising out of a contract
for physical fitness services which | ||||||
| 15 | the customer has against the center
shall be cut off by | ||||||
| 16 | assignment of the contract whether or not the assignee
acquires | ||||||
| 17 | the contract
in good faith and for value. Such an assignee is | ||||||
| 18 | not a holder in due course.
| ||||||
| 19 | (Source: P.A. 94-663, eff. 1-1-06; 94-687, eff. 11-3-05.)
| ||||||