Minnesota Session Laws - 1990, Regular Session

  

                         Laws of Minnesota 1990 

                        CHAPTER 411-H.F.No. 1841 
           An act relating to consumer protection; regulating 
          membership travel contracts; providing a right to 
          cancel; prescribing penalties; providing remedies; 
          proposing coding for new law in Minnesota Statutes, 
          chapter 325G. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [325G.50] [MEMBERSHIP TRAVEL CONTRACTS; 
CANCELLATION.] 
    Subdivision 1.  [DEFINITIONS.] For purposes of subdivision 
2, the following terms have the meanings given them:  
    (a) "Membership travel contract" means an agreement offered 
or sold in this state evidencing a buyer's right to make travel 
arrangements from or through a membership travel operator and 
includes a membership that provides for this use. 
    (b) "Membership travel operator" means a person offering or 
selling membership travel contracts paid for by a fee or 
periodic payments. 
    (c) "Travel arrangements" means travel reservations or 
accommodations, tickets for domestic or foreign travel by air, 
rail, ship, bus, or other medium of transportation, or hotel or 
other lodging accommodations for members. 
    Subd. 2.  [BUYER'S RIGHT TO CANCEL.] In addition to other 
rights the buyer may have, the buyer may cancel a membership 
travel contract until midnight of the third business day after 
the day on which the contract was signed by the buyer. 
    To be effective, a notice of cancellation must be given by 
the buyer in writing to the membership travel operator at the 
operator's address.  This address must be included in the 
membership travel contract.  The notice, if given by mail, is 
effective upon deposit in a mailbox, properly addressed to the 
operator and postage prepaid.  The notice is sufficient if it 
shows, by any form of written expression, the buyer's intention 
not to be bound by the membership travel contract. 
     Cancellation is without liability on the part of the buyer 
and the buyer is entitled to a refund, within ten days after 
notice of cancellation is given, of the entire consideration 
paid for the contract.  Rights of cancellation may not be waived 
or otherwise surrendered. 
    Subd. 3.  [NOTICE TO MEMBERS.] A copy of the contract must 
be delivered to the buyer at the time the contract is signed.  
The contract must be in writing, must be signed by the buyer, 
must designate the date on which the buyer signed the contract, 
and must state, clearly and conspicuously in bold face type of a 
minimum size of 14 points, the following: 
"MEMBERS' RIGHT TO CANCEL 
    If you wish to cancel this contract, you may cancel by 
delivering or mailing a written notice to the membership travel 
operator.  The notice must say that you do not wish to be bound 
by the contract and must be delivered or mailed before midnight 
of the third business day after you sign this contract.  The 
notice must be delivered or mailed to:  (Insert name and mailing 
address of membership travel operator).  If you cancel, the 
membership travel operator will return, within ten days of the 
date on which you give notice of cancellation, any payments you 
have made." 
    Subd. 4.  [CANCELLATION AT ANY TIME.] A contract which does 
not contain the notice specified in subdivision 3 may be 
canceled by the buyer at any time by giving notice of 
cancellation by any means. 
     Sec. 2.  [325G.51] [PENALTIES; REMEDIES.] 
     A person who violates section 1 is subject to the penalties 
and remedies provided in section 8.31. 
    Presented to the governor April 3, 1990 
    Signed by the governor April 6, 1990, 11:05 a.m.