[Tango-L] Dance Teacher Business Practices.

[Tom Stermitz]

Here is an interesting exchange about Dance Teacher Business  
Practices, between me and the President of Tango Colorado (who  
happens to be a lawyer):



My wife Mel complained to me the other day that she had a $600 credit  
for ballroom privates she contracted for a couple years ago, but  
never took, and I expressed astonishment that the teacher had refused  
to return her money. This got me to thinking on what constitutes good  
dance teacher business policies.

I'm putting this out because I'm completely appalled that Mel's  
ballroom teacher, a long-standing professional in Denver with her own  
studio, would have such shoddy business practices.

This is a personality-driven, personal recognizance and word-of-mouth  
business. My business reputation depends on treating people fairly  
and reasonably.



FIRST PRINCIPLES

(1) Before signing up for a big package of classes, as a consumer you  
should do your homework, check out several different teachers, find  
one who works best for you in personality, style and skills. Read  
their bios, and ask around. Only then should you commit to a package.

(2) Such a package is a contract, Services in exchange for payment.  
Payment seals a contract, but a Check (bank draft) is itself a  
contract, a promise with a signature to give someone money. The  
little "for box" at the bottom is a good place to remind yourself,  
and the teacher what was promised. Cash is fine, but then you don't  
typically have a proof of purchase.

(3) Different teachers have different refund policies. Bad business  
practices would be to refuse any refund. Reasonable business  
practices might include refund minus a handling fee.


My policies include the following:

(1) Goup Classes: Typically I offer a $2 per class discount if you  
pay by the month. This needs to be used the same month. But, if you  
miss a class, I can often offer a makeup at a second class that same  
month. I don't roll these forward.

(2) Private refunds: I'm happy to refund all money for any reason,  
less classes taken and considering quantity discounts that might have  
applied when you bought the series.

(3) Festival Refunds: Refund of pass payment if you can't attend the  
festival minus about 10% for handling and credit card fees. (I can't  
do partial refunds, as I don't have records on partial attendance,  
and the pass discount is so large... 25-35%).

If anyone feels I owe them money or classes, please contact me, as I  
sincerely wish to deliver what was promised, or refund with no hard  
feelings.


Tom Stermitz
http://www.tango.org
2525 Birch St
Denver, CO 80207





Tom,

As a dance teacher you should be aware that this very situation is  
covered by the Colorado Consumer Protection Act (CPA), which includes  
a provision that sets forth requirements for contracts for dance  
lessons that are in excess of $500.  In essence, a dance teacher who  
offers and sells such a package has to: (a) be bonded, and (b) use a  
written contract which includes specific provisions obligating the  
teacher to refund the amount of all unused lessons (less a 10%  
administrative fee). The contract must contain the following:

YOU, THE PURCHASER, MAY CANCEL THIS CONTRACT AT ANY TIME DURING THE  
TERM OF ITS EFFECTIVENESS. YOU MUST GIVE WRITTEN NOTICE TO THE DANCE  
STUDIO THAT YOU DO NOT WANT TO BE FURTHER BOUND BY THIS CONTRACT. THE  
NOTICE OF CANCELLATION MAY BE SERVED IN PERSON, BY TELEGRAM, OR BY  
MAIL TO THE DANCE STUDIO AT THE ADDRESS STATED IN THIS CONTRACT OR AT  
THE LOCATION WHERE DANCE LESSONS ARE CONDUCTED. WITHIN THIRTY DAYS  
AFTER RECEIPT OF YOUR NOTICE OF CANCELLATION, THE DANCE STUDIO SHALL  
REFUND TO YOU THE CONTRACT PRICE LESS THE COST OF GOODS AND SERVICES  
ALREADY RECEIVED BY YOU AND AN AMOUNT OF LIQUIDATED DAMAGES EQUAL TO  
NOT MORE THAN TEN PERCENT OF THE COST OF THE REMAINING GOODS AND  
SERVICES.

Violation of the CO CPA is deemed to be a "deceptive trade practice,"  
and an aggrieved party can sue the offender and recover triple  
damages plus attorney fees. In addition, the aggrieved student can  
look to the bonding company for recovery and let them go after the  
deadbeat teacher.

The reference to the statute concerning dance contracts (which is  
part of the larger CPA) is: http://198.187.128.12/colorado/lpext.dll/ 
Infobase4/947d/949f/94a1/9825/989d?f=templates&fn=fs-main- 
doc.htm&q=6-1-705&x=Advanced&2.0#LPHit1

...

Thanks,

Jeff