MCA Chapter 81

in effect

Miss. Code Ann. § 75-81-101 Definitions.

As used in this chapter, the term “contract for dance studio lessons and other services” means a contract for instruction in ballroom or other types of dancing, and includes lessons and other services, whether given to students individually or in groups.

Miss. Code Ann. § 75-81-103 Written contract; customer to receive copy.

Every contract for dance studio lessons and other services shall be in writing and shall be subject to the provisions of this chapter. A copy of the written contract shall be given to the customer at the time the contract is signed.

Miss. Code Ann. § 75-81-105 Limitation on cost and term of contract.

No contract or series of contracts for dance studio lessons and other services shall require payment by the person receiving the lessons and other services or the use of the facilities exceeding Two Thousand Dollars ($2,000.00). No contract for dance studio lessons and other services shall require payments or financing by the buyer over a period in excess of twelve (12) months from the date the contract is entered into, nor shall the term of any such contract be measured by the life of the buyer. All contracts for dance studio lessons and other services which may be in effect between the same seller and the same buyer, the terms of which overlap for any period, shall be considered as one (1) contract for the purposes of this chapter.

Miss. Code Ann. § 75-81-107 Time for commencing performance; consumer’s right to rescind; disclosure of hourly rates; bonding.

Every contract for dance studio lessons and other services shall provide that performance of the agreed upon lessons will begin within twelve (12) months from the date the contract is entered into. Every contract for dance studio lessons and other services shall further provide that such contract may be rescinded within five (5) business days after receipt of the contract by the customer by written notice to the other party at the address specified in the contract, and all monies paid pursuant to such contract shall be refunded within ten (10) days of receipt of the notice of rescission, subject to payment by the customer for dance studio lessons or other services received prior to rescission. Every contract for dance studio lessons and other services shall contain a written statement of the hourly rate charged for each type of lessons for which the student has contracted. If the contract includes dance studio lessons which are sold at different per-hour rates, the contract shall contain separate hourly rates for each different type of lessons sold. All other services for which the student has contracted which are not capable of a per-hour charge shall be set forth in writing in specific terms. Such statement shall be contained in the dance studio contract before the contract is signed by the buyer. Every dance studio subject to the provisions of this chapter shall include in every contract for dance studio lessons or other services a statement that the studio is bonded and that information concerning the bond may be obtained by writing to the office of the State Treasurer. If the studio has elected to make a cash deposit in lieu of procuring a bond, the contract shall contain a description of the cash deposit.

Miss. Code Ann. § 75-81-109 Assignment of contract; consumer’s notes not to cut off consumer’s defenses as to third party.

No contract for dance studio lessons and other services shall require or entail the execution of any note or series of notes by the buyer which, when separately negotiated, will cut off as to third parties any right of action or defense which the buyer may have against the seller. The contract shall not be assigned except with the written consent of the customer.

Miss. Code Ann. § 75-81-111 Registration with Division of Consumer Protection.

Any person, corporation, partnership, association or group intending to open or operate a dance studio shall file a registration statement with the Attorney General’s Division of Consumer Protection prior to the sale of any contracts for dance studio lessons. Such a registration statement shall contain the name and address of the dance studio; the names and addresses of the officers, directors and stockholders of the dance studio and its parent corporation, if such an entity exists; the types of available facilities; the approximate size of the facility measured in square feet; the types of contracts and lessons to be offered and their cost; and a full and complete disclosure of any completed or pending litigation initiated against the dance studio and any of its officers and directors within the last three (3) years.

Miss. Code Ann. § 75-81-113 Refund on death or disability of consumer.

Every contract for dance studio lessons and other services shall contain a clause providing that if, by reason of death or disability, the person agreeing to receive lessons and other services is unable to receive all lessons and other services for which he has contracted, he and his estate shall be relieved from the obligation of making payment for lessons and other services other than those received prior to death or the onset of disability, and that if he has prepaid any sum for lessons and other services so much of such sum as is allocable to lessons and other services he has not taken shall be promptly refunded to him or his representative. Notwithstanding the provisions of any contract to the contrary, whenever the contract price is payable in installments and the buyer is relieved from making further payments or entitled to a refund under this section, the buyer shall be entitled to receive a refund or refund credit of so much of the cash price as is allocable to the lessons or other services not actually received by the buyer. The refund of the finance charge shall be computed according to the “sum of the balances method,” also known as the “Rule of 78.”

Miss. Code Ann. § 75-81-115 Relationship to other laws.

The provisions of this chapter are not exclusive and do not relieve the parties or the contracts subject thereto from compliance with all other applicable provisions of law.

Miss. Code Ann. § 75-81-117 Certain contracts void as against public policy.

Any contract for dance studio lessons and other services which does not comply with the applicable provisions of this chapter shall be void and unenforceable as contrary to public policy. Any contract for dance studio lessons and other services entered into in reliance upon any willful and false, fraudulent, or misleading information, representation, notice or advertisement of the seller shall be void and unenforceable. Any waiver of the buyer of the provisions of this chapter shall be deemed contrary to public policy and shall be void and unenforceable.

Miss. Code Ann. § 75-81-119 Private right of action; remedies; time within which dance studio may correct violations.

Any person who suffers any ascertainable loss of money or property, either real or personal, as a result of fraud, dishonesty or the violation of the provisions of this chapter may bring an action in chancery court to recover actual and/or punitive damages. If the court finds that such a violation was committed, the court may award actual and/or punitive damages. In the event that damages are awarded under this section, the court shall award to the person bringing such action reasonable attorney’s fees and costs. Upon a finding by the court that an action under this section was groundless and brought in bad faith or for purposes of harassment, the court may award to the defendant reasonable attorney’s fees and costs. Notwithstanding the provisions of this chapter, any failure to comply with any provisions of this chapter may be corrected within thirty (30) days after the execution of the contract by the buyer, and, if so corrected, neither the seller nor the holder shall be subject to any penalty under this chapter, provided that any correction which increases any monthly payment, the number of payments, or the total amount due, must be concurred in, in writing, by the buyer. “Holder” includes the seller who acquires the contract, or, if the contract is purchased by a financing agency or other assignee, the financing agency or other assignee. This section shall not be deemed to prohibit the enforcement by any person of any right provided by this or any other law.

Miss. Code Ann. § 75-81-121 Bond or cash deposit as security; actions against dance studio and its surety.

Every dance studio shall maintain a bond issued by a surety company authorized to do business in this state. The principal sum of the bond shall be Ten Thousand Dollars ($10,000.00). A copy of such bond shall be filed with the office of the State Treasurer. If the person in whose name the bond is issued severs his relationship with the bonded dance studio, the new owner shall, as a condition of doing business, notify the office of the State Treasurer of the change of ownership and of proof of compliance with this chapter. The bond required by this section shall be in favor of the State of Mississippi for the benefit of any person who, after entering into a contract for dance studio lessons and other services with the dance studio, is damaged by fraud or dishonesty or failure to provide the services of the studio in performance of the contract. Any person claiming against the bond may maintain an action at law against the dance studio and the surety. The aggregate liability of the surety to all persons for all breaches of the conditions of the bonds provided herein shall in no event exceed the amount of the bond. In lieu of furnishing the bond required by this section the dance studio may deposit with the office of the State Treasurer a cash deposit in a like amount. This cash deposit may be satisfied by any of the following: Certificates of deposit payable to the office of the State Treasurer issued by banks doing business in this state and insured by the Federal Deposit Insurance Corporation. Investment certificates or share accounts assigned to the office of the State Treasurer and issued by a savings and loan association doing business in this state and insured by the Federal Savings and Loan Insurance Corporation. Bearer bonds issued by the United States government or by this state. Cash deposited with the office of the State Treasurer.

Miss. Code Ann. § 75-81-123 Criminal penalties.

Any person who wilfully and knowingly violates the provisions of Section 75-81-103, 75-81-105, 75-81-107, 75-81-111, or 75-81-121, shall be guilty of a misdemeanor and shall be punished by a fine not exceeding Two Thousand Dollars ($2,000.00) or by imprisonment in the county jail for not more than one (1) year, or both.

Miss. Code Ann. § 75-81-125 Exemptions.

The provisions of this chapter shall not apply to dance studios that offer lessons solely to persons under the age of eighteen (18) years or to contracts for dance studio lessons that provide for services solely to persons under the age of eighteen (18) years.