Question Regarding Educational Contract.

[illnevertell]

What is the name of your state (only U.S. law)? NJ

Hi there,

I posted on here in the past and I got incredible feedback. In any event, I teach a program focused on freelance makeup artistry. This is NOT a cosmetology program and has no affiliation with state certification or standards.

For the first time in 14 semesters, I have had a student request a refund three months after signing a contract. I have an eight page contract that explicitly states the terms of the refunds--meaning, that there are no refunds, regardless of circumstance. It also explains that upon signing, they are securing their space and time, so its not the rendering of the service that completes the exchange, but the physical space they have made unavailable to other students. It also explains that regardless of their personal choice to attend, the service is still rendered. Meaning the education is being made available to them, its just their choice to attend. Also, if a student chooses to not attend in excess of three days, it is considered an "offense" if they do not have documented support.

I do have a force majeure clause in there that would allow the student to credit the time towards a future semester if something super major prevents them from taking the one they signed up for.

In any event, this student emailed me and requested a refund explaining that her parents have encountered financial hardships and she needs to give them money. She took out a loan to pay for this course specifically.

I replied explaining that she signed an eight page contract outlining the refund policy and that this was a legal contract.

She replied claiming that she is "moving" (new excuse) and that she wouldn't be able to take the class. I haven't yet answered this email, but I was going to reply saying something like "you signed this contract aware of the dates, in fact, I molded the final semester dates based on your availability." Additionally, there are those clauses I referenced above that state that a students attendance does not determine whether or not the service was rendered.

I have two separate kinds of semesters. One called the "weekender" catered to local students. And one called "intensive" catered to out of state students as 75% of my student body is from out of state and out of country. So even if she was moving, I have services designed to accommodate her.

I was thinking of offering her a credit towards a future Intensive semester so that she could come back and take it at a more suitable time. I was also thinking of offering her a credit towards four full day crash courses (equal value) so she could take something sooner. If I amended the contract for a future semester, I could only offer her the furthest out semester I have (July). Otherwise It would be a more "open" credit where she could choose a new semester once they are released. I know she will not want July and I feel like the exchange will not be specific enough if its just an open credit.

My fear is amending the contract with this particular person or even offering anything is that the email will would technically serve as an amendment.

It sounds to me like this girl wants to free up loan money that was allocated to education for personal reasons and is using every trick in the book.

Should I offer her a future semester and/or a crash course or should I stick to my guns and enforce the existing contract?

This person signed the contract fully aware of the dates. Does moving have any relevance to the enforceability of a contract? Again, she changed the reason for the request from the first email to the second. So the first case she is claiming her parents financial hardship. Next she is saying she is moving and wont be able to take it.

Any feedback would be appreciated.

 

[quincy]

What is the name of your state (only U.S. law)? NJ

Hi there,

I posted on here in the past and I got incredible feedback. In any event, I teach a program focused on freelance makeup artistry. This is NOT a cosmetology program and has no affiliation with state certification or standards.

For the first time in 14 semesters, I have had a student request a refund three months after signing a contract. I have an eight page contract that explicitly states the terms of the refunds--meaning, that there are no refunds, regardless of circumstance. It also explains that upon signing, they are securing their space and time, so its not the rendering of the service that completes the exchange, but the physical space they have made unavailable to other students. It also explains that regardless of their personal choice to attend, the service is still rendered. Meaning the education is being made available to them, its just their choice to attend. Also, if a student chooses to not attend in excess of three days, it is considered an "offense" if they do not have documented support.

I do have a force majeure clause in there that would allow the student to credit the time towards a future semester if something super major prevents them from taking the one they signed up for.

In any event, this student emailed me and requested a refund explaining that her parents have encountered financial hardships and she needs to give them money. She took out a loan to pay for this course specifically.

I replied explaining that she signed an eight page contract outlining the refund policy and that this was a legal contract.

She replied claiming that she is "moving" (new excuse) and that she wouldn't be able to take the class. I haven't yet answered this email, but I was going to reply saying something like "you signed this contract aware of the dates, in fact, I molded the final semester dates based on your availability." Additionally, there are those clauses I referenced above that state that a students attendance does not determine whether or not the service was rendered.

I have two separate kinds of semesters. One called the "weekender" catered to local students. And one called "intensive" catered to out of state students as 75% of my student body is from out of state and out of country. So even if she was moving, I have services designed to accommodate her.

I was thinking of offering her a credit towards a future Intensive semester so that she could come back and take it at a more suitable time. I was also thinking of offering her a credit towards four full day crash courses (equal value) so she could take something sooner. If I amended the contract for a future semester, I could only offer her the furthest out semester I have (July). Otherwise It would be a more "open" credit where she could choose a new semester once they are released. I know she will not want July and I feel like the exchange will not be specific enough if its just an open credit.

My fear is amending the contract with this particular person or even offering anything is that the email will would technically serve as an amendment.

It sounds to me like this girl wants to free up loan money that was allocated to education for personal reasons and is using every trick in the book.

Should I offer her a future semester and/or a crash course or should I stick to my guns and enforce the existing contract?

This person signed the contract fully aware of the dates. Does moving have any relevance to the enforceability of a contract? Again, she changed the reason for the request from the first email to the second. So the first case she is claiming her parents financial hardship. Next she is saying she is moving and wont be able to take it.

Any feedback would be appreciated.

If you want your contracts to be meaningless, you change the terms of the contract based on the wants or needs of your students. If you want your contracts to be legal and binding, you enforce the terms.

Although it is nice to be sympathetic when something bad happens in the lives of your students, you are running a business.

I suggest you send to your student a copy of the contract she signed with the relevant portions highlighted.

 

[justalayman]

I would also have an attorney review your contract. You tossed out a couple clauses that might be problematic should the contract be challenged.

 

[quincy]

I would also have an attorney review your contract. You tossed out a couple clauses that might be problematic should the contract be challenged.

I agree. illnevertell stated a few things as part of the contract that might be problematic. There are clauses that seem to conflict.

But nothing jumped out at me as being in conflict with a no-refund policy.

I do think a review of the contract in its entirety would probably be smart, to make sure the student does not have a legitimate challenge to what was signed.

 

[justalayman]

I agree. illnevertell stated a few things as part of the contract that might be problematic. There are clauses that seem to conflict.

But nothing jumped out at me as being in conflict with a no-refund policy.

I do think a review of the contract in its entirety would probably be smart, to make sure the student does not have a legitimate challenge to what was signed.

Really? That was the first thing that jumped out at me. While we do not have the actual contract to review and i could be putting more into what op said but;

No refunds, regardless of circumstances.


That is a problem. so op just up and decides one day he is going on a 3 year hiatus. Sorry, no refunds but I'll be back in three years to schedule your classes.


Obviously an exaggeration but I think you will get the point.

 

[quincy]

Really? That was the first thing that jumped out at me. While we do not have the actual contract to review and i could be putting more into what op said but;

No refunds, regardless of circumstances.


That is a problem. so op just up and decides one day he is going on a 3 year hiatus. Sorry, no refunds but I'll be back in three years to schedule your classes.


Obviously an exaggeration but I think you will get the point.

I get YOUR point but that was not what had me thinking the contract needed personal review.

I am less concerned about the non-refundable clause (because the money is to reserve space in the class). Non-refundable means non-refundable and the signature on the contract indicates the student agreed to this term. I am more concerned with any additional clause that allows this non-refundable money to be applied toward other classes at a later date.

I am seeing some contradictory/conflicting clauses in the contract, in other words, that need clarification (or deletion).

 

[justalayman]

There are at least a couple more areas that would concern me. I didn't want to get too deep into it. Op simply should have his contract reviewed so he can put forth a fully enforceable contract.

 

[quincy]

There are at least a couple more areas that would concern me. I didn't want to get too deep into it. Op simply should have his contract reviewed so he can put forth a fully enforceable contract.

I agree that the contract should be reviewed if the student demands a refund.

But I still think a copy of the signed contract, with the relevant portions on refunds highlighted, can be sent to the student. I would not try to appease the student by offering alternatives. illnevertell has no obligation (at least from what has been posted) to make other arrangements for a student who is dropping the class early.

 

[Zigner]

Frankly, I'm not convinced that the OP's "school" is legal in New Jersey in the first place...I wonder what will happen when the students asks the state for assistance in this matter.

 

[quincy]

Frankly, I'm not convinced that the OP's "school" is legal in New Jersey in the first place...I wonder what will happen when the students asks the state for assistance in this matter.

A business registered in New Jersey that offers how-to classes could be legal (http://www.nj.gov/treasury/revenue/gettingregistered.shtml) but I admit I was looking more at the contract and less at the business itself, based on illnevertell's statement that the business has operated for 14 semesters (apparently without issue).

If illnevertell has used "school" and "education" to promote the business, though, that could be a problem.

Donald Trump, for example, has gotten into a whole mess of legal trouble with his "Trump University," being sued for false and deceptive claims and for misleading consumers by promoting his classes as a "university" when his business is not licensed to call itself a university.

With justalayman's and Zigner's posts expressing concern with the business, it seems smart for illnevertell to have a personal review of the contract, and the business and its operation, done by an attorney in New Jersey, to better determine if there are any legal issues that need addressing prior to trying to enforce the terms of the student's contract.

 

[Zigner]

How-to classes for a state regulated and licensed industry is more problematic than how-to classes for a less strictly controlled industry.

 

[justalayman]

How-to classes for a state regulated and licensed industry is more problematic than how-to classes for a less strictly controlled industry.

Now you have me curious. I would love to know what "freelance makeup artistry" is and how it is not under the state's cosmetology laws.


I suspect it has something to do with the "the money pays for class space and time" and not some educational course. The last time Pepe le Pew painted his stripe black he still stunk.

why one would refer to the benchwarmers as students if the contract is in fact not for the educational services is beyond my comprehension.

 

[quincy]

How-to classes for a state regulated and licensed industry is more problematic than how-to classes for a less strictly controlled industry.

I have seen online videos on how to use makeup to create certain theatrical effects (e.g., how Lion King actors are transformed) and videos on how to face-paint for children's parties. I am not sure that similar in-person classes being taught (or on teaching someone how to paint, like the classes offered at wine bars) would be state-regulated or require special licensing.

I could be wrong.

I guess a lot depends on how the classes are presented and what one is promised when they "graduate."

It is interesting to me to see how you (Zigner) and justalayman are viewing the business. I had been looking at it differently but can see how you are questioning its legitimacy/legality.

 

[justalayman]

I have seen online videos on how to use makeup to create certain theatrical effects (e.g., how Lion King actors are transformed) and videos on how to face-paint for children's parties. I am not sure that similar in-person classes being taught (or on teaching someone how to paint, like the classes offered at wine bars) would be state-regulated or require special licensing.

I could be wrong.

I guess a lot depends on how the classes are presented and what one is promised when they "graduate."

It is interesting to me to see how you (Zigner) and justalayman are viewing the business. I had been looking at it differently but can see how you are questioning its legitimacy/legality.

http://www.njconsumeraffairs.gov/Statutes/cosmetologylaw.pdf

The laws regarding cosmetology are quite expansive.

j. "Cosmetology and hairstyling" means any one or combination of the following practices when performed on the human body for cosmetic purposes and not for the treatment of disease or physical or mental ailments and when performed for the general public, for male or female customers:

4) applying cosmetic preparations, antiseptics, tonics, lotions, creams or makeup to the hair, scalp, face or neck;


It also requires a teaching license to teach it as well. Due to that, even if the students are not taking the course to be able to obtain a license, it sounds like the instructor would be required to have a cosmotology teaching license even if it was for theatrical makeup (which requires a cosmotogist license) or kids parties (which I suspect requires a cosmotogist license as well)

About the only way a person would not be required to have a license is for self application. I still suspect the instructor would have to be licensed.

 

[quincy]

What is the name of your state (only U.S. law)? NJ

... I teach a program focused on freelance makeup artistry. This is NOT a cosmetology program and has no affiliation with state certification or standards. ...

While you might be right, justalayman, that means we must ignore what illnevertell has already told us - that it is not a cosmetology program - and we must assume that illnevertell has not complied with all requirements for the business (including getting necessary licenses to operate).

Here is a direct link to the cosmetology laws in New Jersey (note 45:5B-7 exceptions) - http://www.njconsumeraffairs.gov/Statutes/cosmetologylaw.pdf - and, just to cover the bases, here is a link to New Jersey's Body Art laws - http://www.state.nj.us/health/phss/documents/bodyart.pdf

Perhaps illnevertell will return to this thread to provide some (obviously needed) clarification - although the advice on the contract question originally asked has probably been best answered with the direction to seek out a personal review of the contract, in its entirety, with an attorney in New Jersey.