As used in this chapter:

1. I. "Contract" means a month-to-month contract, monthly contract, or a term contract:

   1. (a) "Month-to-month contract" means any contract for a new prospective student to pay membership fees on a monthly basis.
   2. (b) "Monthly contract" means any contract where services are paid pro rata on a monthly basis for a predetermined period of time in excess of one month. No monthly contract shall be considered a "term contract."
   3. (c) "Term contract" means any contract where services are paid for in whole and in advance for a period of time greater than one month.
2. II. "Facilities" means equipment, physical structures, and other tangible property utilized by a martial arts school to conduct its business.
3. III. "Initiation fee" means any sum of money received at the initiation of a membership for the incurred costs, including advertising, administration, commissions, and orientation.

4. IV. "Martial arts school" means any establishment primarily operated for the purpose of teaching a form or forms of self-defense, such as judo or karate. As used in this chapter, the term "martial arts school" shall not include, and this chapter shall not apply to, services rendered by:

   1. (a) The state or any of its political subdivisions.
   2. (b) Any nonprofit religious, ethnic, community, or service organization.
   3. (c) Any establishment that does not have as one of its primary purposes or businesses the provision of martial arts school services or facilities.
5. V. "Member," "buyer," or "student" means a natural person who enters into a martial arts school contract or attains a status entitling him or her to the services or facilities of a martial arts school.
6. VI. "Prepayment" means any payment for services or the use of facilities made before the services or facilities are made available by the martial arts school. It is not a prepayment if a payment for services or the use of facilities is made on the same day the services or use of the facilities is provided. Money or other consideration received by a martial arts school from a financial institution upon the assignment or sale of a contract shall be considered a prepayment to the extent the member is required to make prepayments to the financial institution pursuant to the contract.
7. VII. "Seller" means the person, corporation, partnership, association, or other entity engaged in the operation of a martial arts school as defined in this section, and who offers for sale martial arts instruction at the martial arts school.
8. VIII. "Services" means programs, plans, guidance, or instruction provided by a martial arts school for martial arts school members.
9. IX. "Special offer or discount" means any offer of the marital arts school at a reduced price or without charge to the member or prospective member.

Source. 2007, 281:1, eff. July 1, 2007.