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Business Law ( ) - Case Study Example

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Summary
In the normal course, under Article 30, Section 624 of the McKinney's Consolidated Law of New York- annotated, every contract for health services needs to be "cancelled within three business days after the date of receipt by the buyer of a copy of the written contract." (New York Consolidated Laws).
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Business Law (Case study)
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Download file to see previous pages The management of Silver's Gymnasium is insisting on the 3 day notice period from the date of signing of the agreement for the enforcement of its termination.
There are extenuating circumstances under which members may cancel membership in health clubs in the city of New York as per Section 624 under supplementary rights of cancellation. (New York Consolidated Laws).
Under Section 624, Sub section 3 states that under mitigating circumstances in certain cases the clients may cancel memberships in local health clubs, notwithstanding 3 day notice period, "if the buyer becomes significantly physically disabled for a period in excess of six months, or moves his residence to a location more than twenty-five miles from a health club operated by the seller." (New York Consolidated Laws).
It has also been clarified by Section 624 of the McKinney's Consolidated Law of New York- annotated, that in case any payments have been made to the seller of health services, it has to be returned forthwith to the buyer, "within fifteen days of the receipt of " communication of cancellation of contract. (New York Consolidated Laws: Additional Rights to Cancellation).
This is howev...
The rights of the buyer envisage that under no circumstances could the demand for payment of goods and services by the buyer exceed the contract price. (New York Consolidated Laws).
In this case it is $720. ($20X12X3 years)
Conclusions:
In this case, it is seen that both X and his brother Y could rescind the contract of health
Service provision made to Silver's Gym under the provisions of Section 624.
This is because both incapacity due to health reasons for a period of 6 months, duly validated by a health care practitioner is applicable in the case of X, and the relocation of the member in a place beyond 25 miles from the present location of the gym, is applicable in case of X's brother, Y, and are validated by the provisions of the New York Laws.
Further, they could also exercise their rights to have the excess contract money paid (if any) refunded to them, i.e. $ 720- $60 (services provided by gym) as per existing New York laws.
In case these monies are not made available to the brothers X and Y, it is possible for them to institute legal proceedings against the management of Silver's Gym for recovering of the unused proportion of health care fees under contract.
Works Cited
New York Consolidated Laws: Additional Rights to Cancellation. FindLaw: For Legal Professionals. 2008. 14 Nov. 2008. .
New York Consolidated Laws. FindLaw: For Legal Professionals. 2008. 14 Nov. 2008. ...Download file to see next pagesRead More
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