Prepaid entertainment contract

Definition

The statutory class that martial arts lessons fall into, with caps a buyer inherits.

Why It Matters

Two states name martial arts in the statute itself. Ohio calls a contract paid before the service is enjoyed a prepaid entertainment contract, caps its duration at three years, and caps what may be collected before the facility is available at the lesser of fifty dollars or ten percent of the price. The buyer may cancel until midnight of the third business day after the first service is available, and on a relocation or a closing the contract is divided proportionally so the customer owes only the part already delivered. A contract may not include any waiver of the right to cancel. Washington caps payments at thirty-six months and lets a buyer cancel any contract longer than a year for any reason on thirty days' written notice. The school then refunds unused prepaid dues within thirty days, and the future payments end.