Civil Code Sections 1812.50 - 1812.69
An owner of a dance studio must maintain a surety bond equal to a 25 percent of the dance studio's gross income from the studio business in California during the studio's last fiscal year; such bond must be for at least $25,000. [CC § 1812.64]
In addition, the owner is required to have a city or county business license.
The following statutory provisions govern the sale of dance lessons. The contractual requirements for these service contracts, as well as remedies for violation, are similar.
- Written contract required. [CC § 1812.52]
- Buyer must be given a copy of the contract at the time buyer signs it. [CC § 1812.52]
- Buyers have a right to cancel anytime provided the buyer gives notice and a refund is given to the student based on a pro rata basis. [CC § 1812.54(b)]
- Any contract for services which does not comply with the statutory requirements is void and unenforceable as contrary to public policy. [CC § 1812.59]
- Waiver of statutory provisions void. [CC § 1812.61]
- Contract must include clause for cancellation and refund upon buyer's death or disability. [CC § 1812.57]
- Contract cannot require payments or financing by the buyer over a period in excess of one year nor can a contract term be measured by life of buyer. No lifetime contracts. Contract services may extend over a period not exceeding 7 years from date contract entered into. [CC § 1812.53]
There are no provisions for:
- Disability cancellation fees,
- Moves or transferability of membership,
- Installment payments and financing.