Section 13K: Personal service contracts between certain schools and students; termination notice provisions required; applicability; violations; penalties
Section 13K. Every written contract between a private occupational school, as defined in section 263 of chapter 112, or dance studio and any person who is to receive physical, mental or emotional benefit therefrom shall contain the following notice on the front of said contract above the place for the student's signature in a type size at least as large as the largest type size appearing in any other part of the said contract:
1. You may terminate this agreement at any time.
2. If you terminate this agreement within five days you will receive a refund of all monies paid, provided that you have not commenced the program.
3. If you subsequently terminate this agreement prior to the commencement of the program, you will receive a refund of all monies paid, less the actual reasonable administrative costs described in paragraph 7.
4. If you terminate this agreement during the first quarter of the program, you will receive a refund of at least seventy-five per cent of the tuition, less the actual reasonable administrative costs described in paragraph 7.
5. If you terminate this agreement during the second quarter of the program, you will receive a refund of at least fifty per cent of the tuition, less the actual reasonable administrative costs described in paragraph 7.
6. If you terminate this agreement during the third quarter of the program, you will receive a refund of at least twenty-five per cent of the tuition, less the actual reasonable administrative costs described in paragraph 7.
7. If you terminate this agreement after the initial five day period, you will be responsible for actual reasonable administrative costs incurred by the school to enroll you and to process your application, which administrative costs shall not exceed fifty dollars or five per cent of the contract price, whichever is less. A list of such administrative costs is attached hereto and made a part of this agreement.
8. If you wish to terminate this agreement, you must inform the school in writing of your termination, which will become effective on the day such writing is mailed.
9. The school is not obligated to provide any refund if you terminate this agreement during the fourth quarter of the program.
This section shall not apply to public and nonprofit schools and shall not affect the provisions of section forty-eight of chapter ninety-three or section fourteen of chapter two hundred and fifty-five D, which provides a right of cancellation for certain contracts.
Whoever fails to comply with this section shall be deemed to have committed an unfair and deceptive practice under section two of chapter ninety-three A.
Whoever violates the provisions of this section shall be punished by a fine of not more than one thousand dollars or by imprisonment for not more than six months, or both.