Question:

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Hello Ken,

    What contract would I use for doing takeovers? Or would I need a specific contract to do so. I would prefer to have a contract specific to doing this. I am concerned about the previous company trying to come after us for changing the customers service for whatever reason.

     Also I am aware of alot of trunk slammer companies that did not install the inital system properly. Specifically "NO LINE SIEZURE".  Is this a legal angle for them to get out of their exsisting contract and perhaps a refund of some sort from the installing company?

    Most alarm company and manufacture installation standards REQUIRE LINE SIEZURE on ALL Systems. How can I use this defect to my advantage?

Thank You

Richard Jackson

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Answer:

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    When you take over an alarm system you will need the Standard Monitoring Contract.  You should also get the Standard Service Contract signed.  With every new subscriber you should get a Disclaimer Notice signed.  Specifying line seizure is something you can add to the Disclaimer Notice.  You will be responsible for that alarm system once you take it over, so be certain that the system meets your standards.

    You can add to your monitoring contract that "alarm system was installed by others and that [your company] is not responsible for the operation of the alarm system, only the monitoring of the system".  If you are concerned with line seizure being absent, you can also add, "alarm system does not have line seizure which alarm company recommends". 

    I am not technical enough to comment on whether line seizure is industry standard or recommended by manufacturers [or by UL or ETL/Intertek]

     If you sign a service contract you will be responsible for the service once

you start.  Use the Disclaimer Notice and add to it as necessary for particular circumstances. 

    If you are concerned with being sued by another alarm company when you take over an existing alarm system you can ask the subscriber to sign a statement to the effect that the subscriber is not under any contract with another alarm company, or understand that there is a contract and subscriber initiated contact with your company and wants you to take over the service.  To be successful in a lawsuit against you the other alarm company would generally be required to prove that you instigated the improper contact with the intent to interfere with the other alarm company's relationship with the the subscriber or used some underhanded and improper tactics to persuade and induce the subscriber to switch to you.  It's a fairly hard burden.

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Response re FBI stats / more on free systems business model

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Hi Ken;

     I couldn't put my hands on the copy of the FBI UCR, but after very

little searching, here is what I found as far as percentages go:   Click

on this link

http://www.aralifestyle.com/article.aspx?UserFeedGuid=2299c748-7ce1-4826-bf28-bccf4848b51a&ArticleId=2746&ComboId=13120&title=67-of-burglaries-target-homes-Get-an-alarm-syste&origin=222843-APP16&subid=0000758254&segments=

    As for your reply about large companies pulling permits and not doing

shoddy work, maybe you better rethink your position.  I have lost many

jobs to the larger companies a) because I don't work for free, and b)

when I mention the cost of a permit, the customers invariably stated

that (Free Alarm Co. XYZ) said nothing about a permit, and there was

nothing mentioned by them.  Also, as for the quality of the work, let me

ask you a question.  If you were having some work done at your house,

would you prefer to use a contractor who quoted you a fair price for the

work, or a sub-contractor who is getting paid a low amount for doing the

job, and they only get that set amount of pay, whether the job takes a

day or a week?  Who do you think will do the better job.  I replaced a

"free system" recently, and the "mechanic" from the Free Alarm Co. used

a ball peen hammer to open a small hole in a wall so that he could drill

a hole up to the next floor.  I figure that guy must use a 10 lb. sledge

hammer as a fly swatter.  IMHO.

John from NJ

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Multiple licenses - do you need to display them?

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TO all:

    In Illinois the issues are addressed by Statute. In regard to requirement of license, the State has exclusivity albeit municipalities can require permits for installations (which are generally paid by the customer - directly or indirectly). Many years ago the industry spent $$$$$$ to get this into the Statutes. The Statute on advertisement is explicit as to what, when and where.

See below:

Illinois Statutes – 225 ILCS 447

Multiple Licenses & Advertising

(225 ILCS 447/50‑25)

    (Section scheduled to be repealed on January 1, 2014)

    Sec. 50‑25. Home rule. Pursuant to paragraph (h) of Section 6 of Article VII of the Illinois Constitution of 1970, the power to regulate the private detective, private security, private alarm, fingerprint vending, or locksmith business or their employees shall be exercised exclusively by the State and may not be exercised by any unit of local government, including home rule units.

(Source: P.A. 95‑613, eff. 9‑11‑07.)

Sec. 5‑10. Definitions. As used in this Act:

    "Advertisement" means any printed material that is published in a phone book, newspaper, magazine, pamphlet, newsletter, or other similar type of publication that is intended to either attract business or merely provide contact information to the public for an agency or licensee. Advertisement shall include any material disseminated by printed or electronic means or media, but shall not include a licensee's or an agency's letterhead, business cards, or other stationery used in routine business correspondence or customary name, address, and number type listings in a telephone directory.

(225 ILCS 447/35‑15)

    (Section scheduled to be repealed on January 1, 2014)

    Sec. 35‑15. Advertisements; penalties.

    (a) No licensee providing services regulated by this Act may knowingly advertise those services without including his or her license number in the advertisement. The publisher of the advertising, however, is not required to verify the accuracy of the advertisement or the license number.

    (b) A licensee who advertises services regulated by this Act who knowingly (i) fails to display his or her license at his or her place of business, (ii) fails to provide the publisher with the current license number, or (iii) provides the publisher with a false license number or a license number other than that of the person or agency doing the advertising or a licensee who knowingly allows his or her license number to be displayed or used by another person or agency to circumvent any provision of this subsection, is guilty of a Class A misdemeanor. Each day an advertisement is published or a licensee allows his or her license to be used in violation of this Section constitutes a separate offense. In addition to the penalties and remedies provided in this Section, a licensee who violates any provision of this Section shall be subject to the disciplinary action, fines, and civil penalty provisions of this Act.

(Source: P.A. 93‑438, eff. 8‑5‑03.)

 Respectfully,

Alan R. ENGEL

Security - Investigation Consultant

State of Illinois