§ 66-132. Contracts to be in writing. - North Carolina Statutes

§66‑132.  Contracts to be in writing.

(a)        Every contractbetween a discount buying club and its customers shall be in writing, fullycompleted, dated and signed by all contracting parties. A copy of the completedcontract shall be given to the buyer at the time he signs it. The contractshall in clear, conspicuous and simple language:

(1)        State the durationof the contract in a definite period of years or months. If the contract may beperiodically renewed, the contract shall state specifically the terms underwhich it may be renewed; and the amount of any renewal fees must be statedunless the contract meets the requirements of subsection (b) of this section.

(2)        State that thebuying club will maintain a trust account and bond in compliance with G.S. 66‑135,and identify the location of the trust account and the name and address of thesurety company.

(3)        Contain, immediatelyabove the customer's signature in boldface type of not less than 10 pointssize, a statement substantially as follows:

"You,the customer, may cancel this contract at any time prior to midnight of thethird business day after the date of this contract. To cancel you must notifythe company in writing of your intent to cancel."

(4)        List the categoriesof goods and services the buying club contracts to make available.

(5)        State the proceduresby which the customer can select, order, and pay for merchandise or servicesand state the time and manner of delivery.

(6)        State the method thediscount buying club will use in setting the price customers will pay for goodsor services.

(7)        List any charges,however denominated, which are incidental to the purchase of goods or servicesand which must be paid by the customer.

(8)        State the discountbuying club's obligations with respect to warranties on goods or servicesordered.

(9)        State the customer'srights and obligations with respect to the cancellation or return of orderedgoods.

(b)        The writtencontract required by subsection (a) above need not be signed or dated by thecustomer if the following requirements are met:

(1)        The totalconsideration paid by each member or customer does not exceed a one‑timeor annual fee of one hundred dollars ($100.00);

(2)        The member orcustomer has the unconditional right to cancel the contract at any time and receivewithin 10 days a full refund of the one‑time membership fee, or theannual membership fee covering the current membership period, whichever thecase may be;

(3)        Instead of thenotice required in subsection (a)(3), above, the written contract contains onits first page in boldface type of not less than 10 points size, or not lessthan the point size of the contract terms or information printed immediatelyadjacent thereto, whichever point size shall be larger, a statementsubstantially as follows:

"You,the customer, may cancel this contract at any time and receive a total refundof any fees or consideration already paid for the current membership period. Tocancel you must notify the company in writing of your intent to cancel.";and

(4)        The written contractis mailed to the buyer on or before the date the membership is first charged orbilled. (1981, c. 594, s. 1; 1989, c. 495, s. 1.)