Effective 28 Aug 1988

407.332. Transfer or relocation of health spa, buyer's duties, rights, when — refund of moneys, amount, when — attorney general to represent buyers, when. — 1. The provisions of section 408.405 shall apply to any health spa contract with the following exceptions:

(1) It shall not be a defense relieving the buyer from amounts then owing on any contract between a buyer and a health spa for health services regardless of whether such contract has been assigned that the health spa has relocated provided that the health spa has relocated within ten miles of the location designated in the health spa contract;

(2) It shall not be a defense relieving the buyer from amounts then owing on any contract between a buyer and a health spa for health spa services regardless of whether such contract has been assigned that the health spa has been sold provided there has not been a lapse in services for more than thirty days. However, it shall be the legal obligation of every buyer of a health spa that has been providing health spa services pursuant to contracts to honor the terms of such contracts. The new owner of a health spa shall not consider the lapsed time period when determining how much time remains for service on any particular contract.

2. It shall be a defense relieving the buyer from amounts then owing on any contract between a buyer and a health spa for health spa services, regardless of whether such contract has been assigned, that the health spa has gone out of business without providing alternative health spa services at another location within ten miles of the location designated in the health spa contract.

3. Any health spa which relocates to a location that is ten miles from the location designated in a health spa contract or which goes out of business prior to the expiration of a buyer's contract without providing alternative health spa services at another location within ten miles of the location designated in the health spa contract shall be required to refund to the buyer funds paid or accepted in payment of the contract in an amount computed by dividing the contract price by the number of weeks in the contract term and multiplying the result by the number of weeks remaining in the contract term. This provision shall not apply to any health spa that has been sold provided there has not been a lapse in service for more than thirty days. However the new owner of a health spa shall honor the terms of all contracts entered into between buyers and the health spa while controlled by the prior owner. The new owner of the health spa shall not consider the lapsed period when determining how much time remains for service on any particular contract.

4. In order to ensure adequate enforcement of the provisions of this section the office of the attorney general is empowered to represent buyers who may be injured as a result of noncompliance with the provisions of this section. The attorney general is hereby given in addition to the powers granted to the attorney general to enforce the provisions of this chapter the additional power to seek and be granted receivership of all goods and chattels, rights and credits, moneys and effects, lands and tenements, books, records, documents, papers, choses in action, bills, notes, and property of every description of any person, firm, corporation, organization, club or association that has operated a health spa that is determined to have injured a buyer as a result of going out of business or being sold and failing to refund moneys due and owing buyers under the provisions of subsection 3 of this section, and to sell, convey, and assign the same and hold and dispose of the proceeds thereof under the direction of the court for the benefit of the injured buyers.

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(L. 1988 S.B. 486 § 5)