BILL NUMBER: AB 1323	CHAPTERED  09/08/93
	BILL TEXT

	CHAPTER   359
	FILED WITH SECRETARY OF STATE   SEPTEMBER 8, 1993
	APPROVED BY GOVERNOR   SEPTEMBER 7, 1993
	PASSED THE SENATE   AUGUST 19, 1993
	PASSED THE ASSEMBLY   MAY 27, 1993

INTRODUCED BY  Assembly Member Speier

                        MARCH 3, 1993

   An act to amend Sections 1694.1, 1694.2, 1694.6, and 1694.7
of the Civil Code, relating to contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1323, Speier.  Contracts.
   Existing law regulates the form and content of dating service
and weight loss contracts.  Existing law also provides that a
buyer may cancel those contracts by sending a written notice of
cancellation to the seller by certified mail or telegram, prior
to midnight of the 3rd business day after the day on which the
contract was signed, and requires that specified language to
this effect appear on all contracts subject to this provision.
Under existing law, a buyer who cancels a contract, as
specified, is entitled to a refund of moneys paid pursuant to
the contract, except that payment is required to be made for any
services covered by the contract and received by the buyer
prior to cancellation.
   This bill would permit a buyer to give written notice of
cancellation by any form of mail, by telegram, or by delivery,
as specified.  This bill would also provide that a buyer shall
be permitted to cancel contracts governed by these provisions
without penalty or obligation and require that language to this
effect appear on the contracts.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1. Section 1694.1 of the Civil Code is amended to
read:
   1694.1.  (a) In addition to any other right to revoke an
offer, the buyer has the right to cancel a dating service
contract or offer, until midnight of the third business day
after the day on which the buyer signs an agreement or offer to
purchase those services.
   (b) Cancellation occurs when the buyer gives written notice
of cancellation by mail, telegram, or delivery to the seller at
the address specified in the agreement or offer.
   (c) Notice of cancellation, if given by mail, is effective
when deposited in the mail properly addressed with postage
prepaid.
   (d) Notice of cancellation given by the buyer need not take
the particular form as provided in the contract or offer to
purchase and, however expressed, is effective if it indicates
the intention of the buyer not to be bound by the dating service
contract.
   (e) All moneys paid pursuant to any contract for dating
services shall be refunded within 10 days of receipt of the
notice of cancellation.
   (f) The buyer may notify the dating service of his or her
intent to cancel the contract within the three-day period
specified in this section and stop the processing of a credit
card voucher or check by telephone notification to the dating
service.  However, this does not negate the obligation of the
buyer to cancel the contract by mail, telegram, or delivery as
required pursuant to this section.
  SEC. 2. Section 1694.2 of the Civil Code is amended to read:
   1694.2.  (a) A dating service contract shall be in writing.
A copy of the contract shall be provided to the buyer at the
time he or she signs the contract.
   (b) Every dating service contract shall contain on its face,
and in close proximity to the space reserved for the signature
of the buyer, a conspicuous statement in a size equal to at
least 10-point boldface type, as follows:
        "You, the buyer, may cancel this agreement, without any
      penalty or obligation, at any time prior to midnight of
the
      original contract seller's third business day following
the
      date of this contract, excluding Sundays and holidays.  To

      cancel this agreement, mail or deliver a signed and dated
      notice, or send a telegram which states that you, the
buyer,
      are canceling this agreement, or words of similar effect.

      This notice shall be sent to:

___________________________________________________________
           (Name of the business that sold you the contract)

__________________________________________________________."
          (Address of the business that sold you the contract)

   (c) The dating service contract shall contain on the first
page, in a type size no smaller than that generally used in the
body of the document, the name and address of the dating service
operator to which the notice of cancellation is to be mailed;
and the date the buyer signed the contract.
   (d) No dating service contract shall require payments or
financing by the buyer over a period in excess of two years from
the date the contract is entered into, nor shall the term of
any such contract be measured by the life of the buyer.
However, the services to be rendered to the buyer under the
contract may extend over a period beginning within six months
and ending within three years of the date the contract is
entered into.
   (e) If a dating service contract is not in compliance with
this chapter, the buyer may, at any time, cancel the contract.

  SEC. 3. Section 1694.6 of the Civil Code is amended to read:
   1694.6.  (a) In addition to any other right to revoke an
offer, the buyer has the right to cancel a weight loss contract
or offer until midnight of the third business day after the day
on which the buyer signs an agreement or offer to purchase those
services.
   (b) Cancellation occurs when the buyer gives written notice
of cancellation by mail, telegram, or delivery to the seller at
the address specified in the agreement or offer.
   (c) Notice of cancellation, if given by mail, is effective
when deposited in the mail properly addressed with postage
prepaid.
   (d) Notice of cancellation given by the buyer need not take
the particular form as provided in the contract or offer to
purchase and, however expressed, is effective if it indicates
the intention of the buyer not to be bound by the weight loss
contract.
   (e) All moneys paid pursuant to any weight loss contract
shall be refunded within 10 days of receipt of the notice of
cancellation.
   (f) The buyer may notify the weight loss program of his or
her intent to cancel the contract within the three-day period
specified in this section and stop the processing of a credit
card voucher or check by telephone notification to the weight
loss program.  However, this does not negate the obligation of
the buyer to cancel the contract by mail, telegram, or delivery
as required pursuant to this section.
  SEC. 4. Section 1694.7 of the Civil Code is amended to read:
   1694.7.  (a) A weight loss contract shall be in writing.  A
copy of the contract shall be provided to the buyer at the time
he or she signs the contract.
   (b) Every weight loss contract shall contain on its face, and
in close proximity to the space reserved for the signature of
the buyer, a conspicuous statement in a size equal to at least
10-point boldface type, as follows:
        "You, the buyer, may cancel this agreement, without any
      penalty or obligation, at any time prior to midnight of
      the original contract seller's third business day
following
      the date of this contract, excluding Sundays and holidays.

      To cancel this agreement, mail or deliver a signed and
dated
      notice, or send a telegram which states that you, the
buyer,
      are canceling this agreement, or words of similar effect.

      This notice shall be sent to:

___________________________________________________________
           (Name of the business that sold you the contract)

__________________________________________________________."
          (Address of the business that sold you the contract)

   (c) The weight loss contract shall contain on the first page,
in a type size no smaller than that generally used in the body
of the document, the name and address of the weight loss program
operator to which the notice of cancellation is to be mailed;
and the date the buyer signed the contract.
   (d) No weight loss contract shall require payments or
financing by the buyer over a period in excess of two years from
the date the contract is entered into, nor shall the term of
any such contract be measured by the life of the buyer.  The
services to be rendered to the buyer under the contract shall
not extend for more than three years after the date the contract
is entered into.
   (e) If a weight loss contract is not in compliance with this
chapter, the buyer may, at any time, cancel the contract.