Obligations Arising From Particular TransactionsContracts for Dance Studio Lessons and Other Services
Section § 1812.50
This law section explains that many dance studios have been using unfair and deceptive practices in their contracts, causing financial problems for people. Because the current laws aren't enough to solve these issues, new rules are necessary to protect people. The goal is to stop false advertising and unfair contract terms, while promoting fair competition and honest business practices in the dance studio industry.
Section § 1812.51
This law section defines what a 'contract for dance studio lessons and other services' includes. It covers contracts for dance lessons, whether they are one-on-one or in group settings. However, it does not apply to contracts for professional services by licensed individuals or lessons at schools operating under the Education Code.
Section § 1812.52
Any agreement you make with a dance studio for lessons or services needs to be in writing, and you must be given a copy of this contract right when you sign it.
Section § 1812.53
This law section limits dance studio contracts so buyers can't be required to pay or finance them for more than one year, but they can receive lessons and services for up to seven years. Additionally, if a buyer has multiple contracts with the same studio that overlap, they're treated as one single contract.
Section § 1812.54
If you're signing up for dance lessons, this law requires that your classes start within six months of signing the contract. You can cancel anytime by sending a written notice, and you'll get a refund within ten days. The refund is calculated based on how many lessons you didn't take. You won't be charged a cancellation fee. The contract must clearly show the cost per hour for each type of lesson, and if there are different rates, those need to be separated out. Also, if the dance studio is bonded—a kind of insurance—it must say so in the contract and tell you how to get more info about the bond from the state.
Section § 1812.55
This law says that dance studios can't make you sign any kind of payment agreement that would stop you from being able to take legal action against them if there are problems. In short, they can't make you sign notes that would hurt your rights if someone else gets involved in the payment process.
Section § 1812.56
This law says that if you have a contract with a dance studio and someone else takes over the contract, your rights to make claims or defenses against the seller will not be lost unless certain steps are followed. Specifically, the new contract holder (assignee) must send you a written notice about the contract assignment. You then have 30 days to inform them in writing if you have any claims or defenses. The notice must include details like your name, the seller's name, a description of the services, the remaining balance, and payment terms.
Section § 1812.57
If you've signed up for dance lessons and can't attend due to death or disability, you or your family don't have to pay for unused lessons. You'll get a refund for any prepaid lessons you couldn't take. Even if you're paying in installments, you're entitled to a refund for lessons not received. The refund on any finance charges follows a specific calculation method called the 'Rule of 78'.
Section § 1812.58
This law means that even if a contract complies with this specific set of rules, it still has to follow all other relevant laws. It doesn't get a free pass from any other legal obligations.
Section § 1812.59
If a contract for dance studio lessons and services doesn't follow the rules set out in the law, it's considered invalid and can't be enforced because it goes against what is deemed good for society.
Section § 1812.60
If you sign up for dance lessons or services based on false or misleading information from the seller, the contract isn't valid and can't be enforced.
Section § 1812.61
This law means that if a buyer agrees to give up their rights under this title, that agreement won't count and can't be enforced because it's against public policy.
Section § 1812.62
If a buyer is harmed because someone violated this law, they can sue for damages. If they win, they could get three times the actual damages plus attorney fees. A seller or holder can avoid penalties for not following the rules if they fix the problem within 30 days of the contract, as long as it doesn't increase the payment terms unless the buyer agrees in writing. The term 'holder' refers to the seller who owns the contract or any agency that buys the contract.
Section § 1812.63
If someone breaks the rules about dance studio contracts, it's considered a misdemeanor, which is a type of crime. The state's superior courts can stop these violations using special court orders. It's mainly up to the Attorney General, district attorneys, and city attorneys to go after these violations by either charging the person with a misdemeanor or using court orders, or both. However, this doesn't stop others from enforcing legal rights they have under this law or others.
Section § 1812.64
If you own a dance studio in this state, you must have a bond from a surety company, at least $25,000 or 25% of last year's gross income, whichever is higher. You need to file this bond with the Secretary of State, along with a signed declaration stating your studio's income. This info isn't public. If there's a change in studio ownership, the new owner must inform the Secretary of State and show compliance with bond regulations.
Section § 1812.65
This law requires dance studios in California to have a bond that protects customers. If the studio is dishonest, commits fraud, or doesn't fulfill the contract for dance lessons or related services, this bond ensures customers can be compensated for their losses.
Section § 1812.67
This law section explains when certain rules don't apply to dance studios. If a dance studio asks for less than $50 upfront from each student, and only once every 30 days, they are exempt from these rules. Additionally, studios teaching ballet, modern, jazz, or tap to those under 21 are exempt if the total cost is less than $500, all lessons occur within four months, and the student can cancel within three days for a refund. Also, organizations with a 501(c)(3) tax-exempt status and receiving grants from the California Arts Council are exempt from these rules.
Section § 1812.68
If any part of this law is found to be unconstitutional or invalid for a specific situation or person, it doesn't mean the entire law is invalid. The rest of the law still stands and can be applied to other situations and people.
Section § 1812.69
The Secretary of State is in charge of making sure all the rules about filing and maintaining bonds are followed. They will also charge a fee for filing these bonds, but this fee can't be more than the actual cost of doing the filing.