Sec. 42-103y. Contract. Information required. Right to cancel. (a) Each seller
of a time-sharing plan shall provide each purchaser of such plan with a fully completed
copy of a contract pertaining to such sale which shall include the following information:
(1) The date the contract is executed by all parties; (2) the name and address of the
seller, the developer and the time-sharing plan; (3) the total financial obligation of the
purchaser, including the initial purchase price and any additional charges to which the
purchaser may be subject, such as reserve assessments, maintenance, management and
recreation charges; (4) the estimated date of availability of each accommodation or
facility which is not completed at the time the contract is executed by the seller and
purchaser; (5) a description of the nature and duration of the time-share period being
sold, a statement of whether any interest in real property is being conveyed and the
specific period of years or months constituting the term of the contract; (6) immediately
above the space reserved in the contract for the signature of the purchaser, in boldface
type of a minimum size of ten points, substantially the following statements:
.... (Date of Transaction)
"YOU MAY CANCEL THIS CONTRACT WITHOUT ANY PENALTY OR OBLIGATION WITHIN THREE BUSINESS DAYS FROM THE ABOVE DATE.
IF YOU CANCEL, ANY PAYMENTS MADE BY YOU UNDER THE CONTRACT AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY YOU
WILL BE RETURNED WITHIN TEN BUSINESS DAYS FOLLOWING RECEIPT BY THE SELLER OF YOUR CANCELLATION NOTICE, AND
ANY SECURITY INTEREST ARISING OUT OF THE TRANSACTION
WILL BE CANCELLED.
IF YOU DECIDE TO CANCEL THIS CONTRACT, YOU MUST NOTIFY
THE SELLER IN WRITING OF YOUR INTENT TO CANCEL. YOUR NOTICE OF CANCELLATION SHALL BE EFFECTIVE UPON THE DATE
SENT AND SHALL BE SENT
| TO: |
NAME OF SELLER |
AT |
ADDRESS OF SELLER. |
NO PURCHASER SHOULD RELY UPON REPRESENTATIONS OTHER
THAN THOSE INCLUDED IN THIS CONTRACT."
If no interest in real property is being conveyed, the contract shall also contain the
following statement:
"YOU MAY ALSO CANCEL THIS CONTRACT AT ANY TIME AFTER THE ACCOMMODATIONS OR FACILITIES ARE NO LONGER AVAILABLE AS PROVIDED IN THIS CONTRACT."
(b) The seller shall inform each purchaser orally, at the time he signs the contract,
of his right to cancel.
(c) Within ten days after a time-share plan contract has been cancelled the seller
shall tender to the purchaser any payments made by the purchaser and any note or other
evidence of indebtedness.
(P.A. 82-232, S. 3.)
Sec. 42-103z. Advertising and promotional devices. (a) Advertising materials
pertaining to time-sharing plans shall not: (1) Misrepresent facts or create false or misleading impressions regarding the time-sharing plan; (2) make predictions of specific
or immediate price or value increases of time-share periods; (3) contain statements
concerning nonspecific or not bona fide future price increases by the seller; (4) contain
any asterisk or other reference symbol as a means of contradicting or substantially changing any previously made statement or as a means of obscuring material facts; (5) describe
any improvement to the time-sharing plan that is not required to be built or that is
uncompleted unless conspicuously labeled as "need not be built", or "proposed", or
"under construction" with the date of promised completion clearly indicated; (6) misrepresent the size, nature, extent, qualities or characteristics of the offered accommodations
or facilities; (7) misrepresent the amount or period of time during which the accommodations or facilities will be available to any purchaser; (8) misrepresent the nature or extent
of any services incident to the time-sharing plan; (9) misrepresent the conditions under
which a purchaser may exchange the right to use accommodations or facilities in one
location for the right to use accommodations or facilities in another location.
(b) No promotional device, including sweepstakes, lodging certificates, gift awards,
premiums, discounts, drawings or display booths may be utilized without a disclosure
that: (1) The promotional devices are being used for the purpose of soliciting sales of
time-share periods; and (2) the promotional devices are being used to obtain the names
and addresses of prospective purchasers, and that any acquired names and addresses
may be used for the purpose of soliciting sales of time-share periods.
(c) When a time-share project uses free offers, gift enterprises, drawings, sweepstakes or discounts as a promotional program the rules of such promotional program
shall be disclosed to the public and shall state: (1) The name of each time-sharing plan
or business entity participating in the program; (2) the day and the year by which all
prizes listed or offered will be awarded; and (3) the method by which all prizes are to
be awarded.
(d) At least one of each prize featured in a promotional program shall be awarded
by the day and year specified in the promotion. The provisions of this section shall apply
to persons or firms that engage in advertising the opportunity for any person to contract
for the purchase of a time-sharing plan.
(P.A. 82-232, S. 4.)
Sec. 42-103aa. Unfair trade practices. A violation of any of the provisions of
sections 42-103w to 42-103z, inclusive, and section 42-103bb, or failure to comply with
the provisions of the notice of cancellation required by section 42-103y shall constitute
an unfair or deceptive act or practice as defined by section 42-110b.
(P.A. 82-232, S. 5; P.A. 91-367, S. 6.)
History: P.A. 91-367 added reference to a violation of Sec. 42-103bb.
Cited. 231 C. 707, 727.
Sec. 42-103bb. Disclosure of information concerning prizes in advertisements
and promotional materials. Each individual or business entity advertising or promoting, by mail, any time-sharing plan or property sale, in this state and offering prizes in
its promotional materials, shall disclose, in all advertisements and promotional materials, the value of the prize and the odds of winning such prize, expressed as a fraction,
with a numerator of one and any conditions or restrictions that would apply to the receipt
of the prize or would void the receipt of such prizes. Such information shall be printed
adjacent to and in the same size and face type as the description of the prize. As used
in this section, "prize" includes but is not limited to an award, gift or anything of value
regardless of whether there are any conditions or restrictions attached to the receipt of
the prize.
(P.A. 82-418, S. 2, 4; P.A. 91-367, S. 7.)
History: P.A. 91-367 required the disclosure of any conditions or restrictions that would apply to the receipt of the prize
or would void the receipt of such prizes and defined "prize".