TITLE 6

Commerce and Trade

SUBTITLE II

Other Laws Relating to Commerce and Trade

CHAPTER 28. CAMPGROUND RESORTS MEMBERSHIP AND VACATION TIME-SHARING PLANS SALES ACT

Subchapter I. Campground Resorts Membership Sales


This subchapter shall apply to each campground resort membership contract executed at least in part in the State 90 days after this chapter is signed into law, regardless of the whereabouts of the membership camping resort operator's principal office, campground resort, or recreational facilities.

67 Del. Laws, c. 433, § 1; 70 Del. Laws, c. 186, § 1.;

When used in this subchapter, the following shall have the meanings respectively set forth:

(1) "Advertisement'' means the attempt by publication, dissemination, solicitation or circulation to induce, directly or indirectly, any person to enter into any obligation, acquire any title, interest in or otherwise execute a contract as defined in this section.

(2) "Business day'' means any day except Sunday or a legal holiday.

(3) "Campground resort'' means any tract or parcel of real property within the State on which there are at least 10 camping sites.

(4) "Camping site'' means a space designed and promoted for the purpose of locating a trailer, tent, tent trailer, pickup camper, van, recreational vehicle or other similar device used for camping.

(5) "Contract'' means any written agreement of more than 1 year's duration, executed in whole or in part within the State, which grants to a purchaser a nonexclusive right or license to use the campground resort of a membership camping resort operator or any portion thereof on a first come, first serve or reservation basis together with other purchasers.

(6) "Facility'' means an amenity within a campground resort set aside or otherwise made available to purchasers in their use and enjoyment of the campground resort, and may include campsites, swimming pools, tennis courts, recreational buildings, boat docks, rest rooms, showers, laundry rooms, and trading posts or grocery stores.

(7) "Holder'' means the membership camping resort operator who enters into a membership camping resort contract with a purchaser or the assignee of such contract who purchases the same for value.

(8) "Managing entity'' means a person who undertakes the duties, responsibilities and obligations of the management of a campground resort.

(9) "Offer'' means any offer, solicitation, advertisement or inducement, to execute a contract.

(10) "Operator'' means any person who is in the business of soliciting, offering, advertising or executing membership camping resort contracts.

(11) "Person'' means any individual, corporation, partnership, company, unincorporated association or any other legal entity other than a government or agency or a subdivision thereof.

(12) "Purchase money'' means any money, currency, note, security or other consideration paid by the purchaser for a membership camping agreement.

(13) "Purchaser'' means any person who enters into a contract with an operator as defined herein.

(14) "Reciprocal program'' means any arrangement under which a purchaser is permitted to use camping resort sites or facilities at 1 or more campground resorts not owned or operated by the operator with whom the purchaser has entered into a contract.

(15) "Salesperson'' means an individual, other than an operator, who offers to sell a contract by means of a direct sales presentation, but does not include a person who merely refers a prospective purchaser to a sales person without making any direct sales presentation.

67 Del. Laws, c. 433, § 1.;

(a) Every operator, salesperson or other person who is in the business of offering for sale or transfer the rights under existing membership camping resort contracts for a fee shall deliver to the purchaser a current operator's disclosure statement before execution by the purchaser of the contract and no later than the date shown on such contract.

(b) The operator's disclosure statement shall consist of the following:

(1) A cover page containing:

a. The words, "Membership Camping Operator's Disclosure Statement,'' printed in boldfaced type of a minimum size of 10 points, followed by,

b. The name and principal business address of the operator followed by,

c. A statement that the operator is in the business of offering for sale contracts, followed by,

d. The following in printed boldfaced type of a minimum size of 10 points:

THIS DISCLOSURE STATEMENT CONTAINS IMPORTANT MATTERS TO BE CONSIDERED IN THE EXECUTION OF A MEMBERSHIP CAMPING RESORT CONTRACT. THE MEMBERSHIP CAMPING RESORT OPERATOR IS REQUIRED BY LAW TO DELIVER TO YOU A COPY OF THIS DISCLOSURE STATEMENT BEFORE YOU EXECUTE A MEMBERSHIP CAMPING RESORT CONTRACT. THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN NATURE. YOU AS A PROSPECTIVE PURCHASER SHOULD REVIEW ALL REFERENCES, EXHIBITS, CONTRACT DOCUMENTS, AND SALES MATERIALS. YOU SHOULD NOT RELY UPON ANY ORAL REPRESENTATIONS AS BEING CORRECT. REFER TO THIS DOCUMENT AND TO THE ACCOMPANYING EXHIBITS FOR CORRECT REPRESENTATIONS. THE MEMBERSHIP CAMPING RESORT OPERATOR IS PROHIBITED FROM MAKING ANY REPRESENTATIONS WHICH CONFLICT WITH THOSE CONTAINED IN THE CONTRACT AND THIS DISCLOSURE STATEMENT.

e. The following language, printed in boldfaced type of a minimum size of 10 points after the appearance of the items required in paragraphs (b)(1)a. through d. of this section:

SHOULD YOU EXECUTE A MEMBERSHIP CAMPING RESORT CONTRACT, YOU HAVE THE UNQUALIFIED RIGHT TO CANCEL SUCH CONTRACT. THIS RIGHT OF CANCELLATION CANNOT BE WAIVED. THE RIGHT TO CANCEL EXPIRES AT MIDNIGHT ON THE 5th BUSINESS DAY FOLLOWING THE DATE ON WHICH THE CONTRACT WAS EXECUTED. TO CANCEL THE MEMBERSHIP CAMPING CONTRACT, YOU AS THE PURCHASER MUST MAIL NOTICE OF YOUR INTENT TO CANCEL BY CERTIFIED MAIL TO THE MEMBERSHIP CAMPING RESORT OPERATOR AT THE ADDRESS SHOWN IN THE MEMBERSHIP CAMPING RESORT CONTRACT, POSTAGE PREPAID. THE MEMBERSHIP CAMPING RESORT OPERATOR IS REQUIRED BY LAW TO RETURN ALL MONEYS PAID BY YOU IN CONNECTION WITH THE EXECUTING OF THE MEMBERSHIP CAMPING RESORT CONTRACT, UPON YOUR PROPER AND TIMELY CANCELLATION OF THE CONTRACT.

(2) The following information is required after all disclosure statements required in paragraphs (b)(1)a. through e. of this section:

a. The name of the operator and the address of the principal place of business;

b. A brief description of the nature of the purchaser's right or license to use the campground resort and the facilities which are to be available for use by purchasers;

c. The location of each of the campground resorts which is to be available for use by purchasers and a brief description of the facilities at each campground resort which are currently available for use by purchasers. Facilities which are planned, incomplete, or not yet available for use shall be clearly identified as incomplete or unavailable. A brief description of any facilities that are or will be available to nonpurchasers shall also be provided;

d. As to all memberships offered by the operator at each campground resort:

1. The form of membership offered;

2. The types and duration of memberships along with a summary of the major privileges, restrictions and limitations applicable to each type; and

3. Provisions, if any, that have been made for public utilities at each campsite including water, electricity, telephone and sewer facilities;

e. Any initial or special fee due from the purchaser together with a description of the purpose and method of calculating the fee;

f. A description of any liens, defects or encumbrances affecting the campground resort;

g. A general description of any financing offered or available through the operator;

h. A statement that the purchaser has until midnight of the fifth business day following the signing of the membership campground resort contract to cancel the contract by proper notice to the membership camping resort operator;

i. A description of the insurance coverage that the operator provides for the benefit of purchasers, if any;

j. Any fees or charges that purchasers are or may be required to pay for the use of the campground resort or any facilities;

k. The extent to which financial arrangements, if any, have been provided for the completion of facilities together with a statement of the operator's obligation to complete planned facilities. The statement shall include a description of any restrictions or limitations on the operator's obligation to begin or to complete such facilities;

l. The name of the managing entity, if there is one, and the significant terms of any management contract, including, but not limited to, the circumstances under which the operator may terminate the management contract;

m. Any services which the operator currently provides or expenses the operator pays which are expected to become the responsibility of the purchasers, including the projected liability which each such service or expense may impose on each purchaser;

n. A brief description of the ownership in or other right to use the campground resort which is to be transferred to each purchaser, together with the duration of any lease, license, franchise or reciprocal agreement entitling the operator or the purchasers to use the campground resort, and any provision in any such agreements which restrict or limit a purchaser's use of the campground resort;

o. A summary or copy, whether by way of supplement or otherwise, of the rules, restrictions or covenant regulating the purchaser's use of the campground resort and the facilities which are to be available for use by the purchasers, including a statement of whether and how the rules, restrictions, or covenants may be changed;

p. A description of any restraints on the transfer of the membership camping resort contract;

q. A brief description of the policies covering the availability of camping sites, the availability of reservations and the conditions under which they are made;

r. A statement of whether the operator has the right to withdraw permanently from use all or any portion of any campground resort devoted to membership camping and, if so, the conditions under which such withdrawal is to be permitted; and

s. A statement describing the material terms and conditions of any reciprocal program to be available to the purchaser including a statement concerning whether the purchaser's participation in any reciprocal program is dependent upon the continued affiliation of the operator with that reciprocal program and whether the operator reserves the right to terminate such affiliation.

(c) The operator shall promptly amend the operator's disclosure statements to reflect any material change in the campground resorts or its facilities.

67 Del. Laws, c. 433, § 1; 70 Del. Laws, c. 186, § 1.;

(a) A purchaser shall have the right to cancel a membership camping resort contract within 5 business days following the date of its execution.

(b) The right of cancellation shall not be waived and any attempt to obtain such waiver shall be unlawful. Nothing in this section shall preclude the execution of documents in advance of closing for delivery after the expiration of the cancellation period.

(c) If the purchaser elects to cancel the contract, the cancellation may be done only by mailing notice thereof by certified mail to the operator at the address listed in the contract. The cancellation shall be deemed effective upon mailing.

(d) Upon cancellation, the operator shall refund to the purchaser all payments made by such purchaser and collected by the operator pursuant to the canceled contract. The refund shall be made within 15 days and may, where payment has been made by credit card, be made by an appropriate credit to the purchaser's account.

67 Del. Laws, c. 433, § 1; 70 Del. Laws, c. 186, § 1.;

The operator shall deliver to the purchaser a fully executed copy of the contract, which contract shall include at least the following information:

(1) The actual date the contract is executed by the purchaser.

(2) The name of the operator and address of the principal place of business.

(3) The total financial obligation imposed upon the purchaser by the contract, including the initial purchase price and any additional charges which the purchaser may be required to pay.

(4) A description of the nature and duration of the membership being purchased.

(5) A statement that the operator, salesperson or any other person who in the business of offering for sale or transfer the rights under contracts for a fee is required by this chapter to provide each purchaser of a campground resorts membership with a copy of the operator's disclosure statement prior to execution of such contract and that a failure to do so is a violation of this chapter.

(6) The following statement shall appear in the contract, under its own paragraph, immediately above the space reserved in the contract for the signature of the purchaser, in boldfaced type of a minimum size of 10 points:

"PURCHASER'S NONWAIVABLE RIGHT TO CANCEL''

shall appear at the beginning of said paragraph in boldfaced type of a minimum of 10 points, immediately preceding the following statement:

                                          

                                               (Date of Transaction)

"YOU MAY CANCEL THIS CONTRACT WITHOUT ANY PENALTY OR OBLIGATION WITHIN 5 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 15 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 BY CERTIFIED MAIL OF YOUR INTENT TO CANCEL. YOUR NOTICE OF CANCELLATION SHALL BE EFFECTIVE UPON THE DATE SENT AND SHALL BE SENT

TO: ______________ AT

                   (Name of Operator)                  (Address of Operator)

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.''

(7) The full name of all salespersons involved in the execution of the membership camping resort contract.

67 Del. Laws, c. 433, § 1.;

All purchase money received from or on behalf of a purchaser in connection with the execution of a contract shall be deposited and held in this State in an escrow account designated solely for that purpose, which may be the operator's own escrow account or that of the operator's attorney, until the time for cancellation has expired as provided for in § 2804 of this title, unless a later time is provided in the contract. If the contract has not been canceled, any purchase money received from a purchaser may be released to the operator upon:

(1) The conveying to the purchaser of the right or license to use the campground resort and facilities as required in the contract; or

(2) The forfeiture of the purchase money by the purchaser under the terms of the contract.

67 Del. Laws, c. 433, § 1.;

(a) It is unlawful for any person by any means, as part of an advertising program, to offer any item of value as an inducement to the recipient to visit an operator's campground resort, attend a sales presentation or contact a salesperson, unless the person clearly discloses in writing in the offer in plain language each of the following:

(1) The name and campground resort address of the operator.

(2) A general statement that the advertising program is being conducted by an operator and the purpose of any requested visit.

(3) A statement of odds, in Arabic numerals, of receiving each item offered.

(4) The approximate retail value of each item offered.

(5) The number of campgrounds that are participating in such advertising programs.

(6) The restrictions, qualifications and other conditions that must be satisfied before the recipient is entitled to receive the item, including:

a. Any deadline, if any, by which the recipient must visit the campground resort, attend the sales presentation or contact a salesperson in order to receive the item.

b. The approximate duration of any visit and sales presentation.

c. The date upon which the offer shall terminate and the final date upon which the gift or prizes are to be awarded.

d. Any other conditions, such as minimum age qualification, a financial qualification or a requirement that if the recipient is married both spouses must be present in order to receive the item.

(7) A statement that the operator reserves the right to provide a rain check or a substitute or like item, if these rights are reserved.

(8) All other material rules, terms and conditions of the offer or program.

(b) It is unlawful to charge postage, shipping, handling, insurance redemption fees or any other fees for any item of value offered as an inducement to the recipient to visit an operator's campground resort and attend a sales presentation.

(c) It is unlawful for any person making an offer subject to subsection (a) of this section or any employee or agent of the person to offer any item if the person knows or has reason to know that the offered item will not be available in a sufficient quantity based on the reasonably anticipated response to the offer.

(d) If the person making an offer subject to subsection (a) of this section is unable to provide an offered item because of limitations of supply, quantity or quality not reasonably foreseeable or controllable by the person making the offer, the person making the offer shall provide the approximate retail value of the item as stated in the advertising program as required under subsection (a)(4) of this section.

(e) On the written request of a recipient who has received or claims a right to receive any offered item, the person making an offer subject to subsection (a) of this section shall furnish to the recipient sufficient evidence showing that the item provided matches the item randomly or otherwise selected for distribution to that recipient.

(f) It is unlawful for any person making an offer subject to subsection (a) of this section or any employee or agent of the person to:

(1) Misrepresent the size, quantity, identity or quality of any prize, gift, money or other item of value offered.

(2) Misrepresent in any manner the odds of receiving any particular gift, prize, amount of money or other item of value.

(3) Label any offer a "notice of termination'' or "notice of cancellation.''

(4) Materially misrepresent, in any manner, the offer or program.

(g) Any violation of this section shall make any contract entered into voidable at the option of the purchaser.

67 Del. Laws, c. 433, § 1; 70 Del. Laws, c. 186, § 1.;

A violation of any of the provisions of §§ 2803 to 2807 of this title, inclusive, or failure to comply with the notice of cancellation required by § 2805 of this title shall constitute an unfair or deceptive act or practice as set forth in Chapter 25 of this title.

67 Del. Laws, c. 433, § 1.;

Violations of this subchapter shall be within the scope of the enforcement duties and powers of the State Division of Consumer Protection as described in subchapter II of Chapter 25 of Title 29.

67 Del. Laws, c. 433, § 1; 69 Del. Laws, c. 291, § 98(b), (c); 78 Del. Laws, c. 219, § 5.;