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  1. #1

    Exclamation How to Get Out of a Martial Arts Contract

    Hello. I am new here. I hope this is in the right section, but if not, sorry! We recently entered our son into a Tae Kwon Do martial arts 3 year contract. We live in Ohio. I have heard that it is illegal in some states to have a martial arts contract lasting over 1 year, and I was wondering if Ohio is one of these? We are currently wasting $100 a month, on lessons that our son hates. He is made fun of there, by both the Master, and his fellow students. He just hates Tae Kwon Do. He cries before every lesson, and it just isn't worth it. It would be different if the contract was with the Master, but it is with a billing agency call Black Belt Billing Inc. How can we cancel this contract, without getting sued? We have already spen $1000 on lessons, $140 on belt tests, and $500 dollars on gear. Please HELP!
    Distressed Dad

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    75,004

    Default Re: How to Get Out of a Martial Arts Contract

    Ohio law provides as follows:
    Quote Quoting ORC 1345.41 Prepaid entertainment contract definitions.
    As used in sections 1345.41 to 1345.50 of the Revised Code: [indent](A) “Prepaid entertainment contract” means a contract under which the buyer of a service pays for or becomes obligated to pay for service prior to the buyer’s receipt of or enjoyment of any or all of the service and that is a contract for:
    (1) Dance studio lessons, which include related services and instruction in ballroom or other types of dancing, and lessons whether given to students individually or in groups;

    (2) Social referral service, which includes any service that, for a fee, provides matching of members of the opposite sex, by any means for purposes of introduction, dating, or general social contacts;

    (3) Martial arts training, whether or not the training will lead to a specific degree of expertise;

    (4) Health spa service, which includes contracts for instruction, training, or assistance in physical culture, body-building, exercising, reducing, figure development, or any other similar activity or for the use of the facilities of a health spa, gymnasium, or other facility used for any purpose described in this division or for membership in any group, club, association, or organization formed for any purpose described in this division.
    “Prepaid entertainment contracts” do not include contracts for services rendered by any public or private nonprofit school, college, or university; by the state or any of its political subdivisions; or by any nonprofit religious, ethnic, or community organization.
    (B) “Purchase price” means the total cumulative price of a prepaid entertainment service, whether under single or multiple contracts, including all interest and service charges.

    (C) “Business day” means any calendar day except Sunday, or a legal holiday as defined in section 1.14 of the Revised Code.

    (D) “First service” means the first service rendered to the buyer under a prepaid entertainment contract that is typical of the type of service rendered throughout the course of the contract and that is not a special or an introductory service.
    Quote Quoting ORC 1345.42 Contract provision of prepaid entertainment contracts.
    (A) All prepaid entertainment contracts between the same seller and the same buyer that are in effect at the same time, or the terms of which overlap for any period, shall be considered as one contract for the purpose of sections 1345.43 and 1345.44 of the Revised Code.

    (B) Prepaid entertainment contracts shall:
    (1) Be in writing and be signed by the buyer and the seller, and a copy shall be provided to the buyer at the time he signs the contract;

    (2) Not be measured by the life of the buyer;

    (3) Not have a duration of service other than a duration that is a precisely measured period of years or any definite part of a year and shall not have a duration of service for a period in excess of three years;

    (4) Provide that all information and material of a personal or private nature that is acquired directly or indirectly from a buyer including but not limited to, answers to tests or questionnaires, photographs, or background information, shall be returned by the seller to the buyer by regular mail within thirty days after the expiration of the contract or after the expiration for any reason of the service to be rendered by the seller;

    (5) Provide that if by reason of death or disability, the buyer is unable to receive benefits from the seller’s services, the contract shall be proportionally divided by all of the days in which the facility was made available to the buyer as part of the contract offering, and the buyer shall be liable for payments only for that portion of the contract that can be attributed to the period prior to the buyer’s actual death or disability, exclusive of any period of time in which the facility was made available to the buyer free of charge as part of the contract offering, and the seller, within thirty days after receiving notice of the death or disability, shall return to the buyer or his representative the amount paid in excess of the proportional amount;

    (6) Provide that performance of the contract will begin no later than one hundred eighty days from the date the contract is entered into;

    (7) Provide that if the buyer relocates twenty-five miles or more from the facility operated by the seller or a substantially similar facility that would accept the seller’s obligation under the contract and if the buyer gives the seller written notice that he intends to relocate and requests that the contract be terminated, the contract shall be proportionally divided by all of the days in which the facility was made available to the buyer as part of the contract offering, and the buyer shall be liable for payments for only that portion of the contract that can be attributed to the period prior to the buyer’s actual relocation, exclusive of any period of time in which the facility was made available to the buyer free of charge as part of the contract offering, provided, that the seller may require and verify reasonable evidence of relocation, and the seller shall return to the buyer the amount paid in excess of the proportional amount;

    (8) Provide that if the seller relocates the facility twenty-five miles or more from the buyer’s residence or closes the facility and a substantially similar facility that would accept the seller’s obligation under the contract is not within twenty-five miles of the buyer’s residence, the contract shall be proportionally divided by all of the days in which the facility was made available to the buyer as part of the contract offering, and the buyer shall be liable for payments for only that portion of the contract that can be attributed to the period prior to the seller’s actual relocation or closing of the facility, exclusive of any period of time in which the facility was made available to the buyer free of charge as part of the contract offering, and the seller shall return to the buyer the amount paid in excess of the proportional amount;

    (9) Not require the buyer to pay more than fifty dollars or ten per cent of the total contract price, whichever is the lesser amount, prior to the date on which the facility or service that is the subject of the contract is available for use by the buyer.

  3. #3
    Join Date
    Dec 2010
    Posts
    4

    Default Re: How to Get Out of a Martial Arts Contract

    Mr. Knowitall,
    The Martial Arts school with which I have signed a contract has changed business owner (and business name). The new owner has also changed the schedule, which makes it impossible for me to attend the classes. I want out of the contract and the new owner does not object. However, the 3rd party that handled old school's finances and now handles new school's finances make their own rules. They now threaten me with a collection agency. My contract has old school's name on it. I have never signed a paper with the new owner. Is my contract voided on the basis that I have signed it with an old business owner? Do I have any binding obligations? This 3rd party says that it does not matter to them that the school's name has changed.... How do I dispute that?
    Thank you.

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