44-1746. Relief from payment
A. Every contract for dance studio lessons and other services shall contain a
clause providing that if, by reason of death or disability, the customer is unable to
receive all lessons and other services for which the customer has contracted, the
customer or his estate shall be relieved from the obligation of making payment for
lessons and other services other than those received prior to death or the onset of
disability. If the customer has prepaid any sum for lessons and other services so much
of such sum as is allocable to lessons and other services the customer has not taken
shall be promptly refunded to the customer or his legal representative. Any dance studio
contract terminated under the provisions of this section may provide for a servicing fee
not to exceed ten per cent, less interest or finance charges, of the remaining balance of
the contract.
B. Notwithstanding the provisions of any contract to the contrary, whenever the
contract price is payable in installments and the customer is relieved from making
further payments or entitled to a refund under this section, the amount of the contract
price allocable to lessons and other services not received shall represent at least as
great a proportion of the total contract price as the sum of the periodic monthly
balances not yet due bears to the sum of all the periodic monthly balances under the
schedule of installments in the contract.
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