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California Residential Fire Alarms
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Ken,
The California Residential Lease All-in-One agreement we bought from you (and apparently other contract forms you offer), contains the following:
"FIRE ALARM EQUIPMENT: Unless stated otherwise, all costs attributable to making the fire alarm system operable for the Premises, including any sale and installation costs, do not exceed $500. Furthermore, no fire detection device has a value in excess of $500."
Can you say what is the purpose and intent of this provision?
Does it matter whether the alarm company is a licensed fire alarm contractor (vs just a licensed burglar alarm company doing minor fire add-ons to a burglar system)?
ANON
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Response
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The contract provision is needed so that the contract is not deemed a Home Improvement Contract, which would subject the alarm company and the contract requirements to a whole host of additional issues. Residential fire is included in the Residential All in One Agreement. Fire is not included in the Commercial All in One. Commercial fire is covered in the Fire All in One.
Here is a more formal response I had one of our attorneys in our Alarm Department prepare.
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Memorandum
To: Ken Kirschenbaum
From: Maureen Beil MBeil@Kirschenbaumesq.com
Date: January 17, 2017
Re: California regulation requiring contracts to limit the cost of a fire alarm system to $500
Question Presented
Why do the California Business and Professions Code require fire alarm contracts to contain the provision that “All costs attributable to making the fire alarm system operable for the residence identified by this document, including sale and installation costs, do not exceed five hundred dollars ($500)”?
Short Answer
The California Business and Professions Code requires fire alarm contracts to contain specific language stating that “All costs attributable to making the fire alarm system operable for the residence identified by this document, including sale and installation costs, do not exceed five hundred dollars ($500)” so that such contracts are not subject to the California Business and Professions Code’s specific requirements for home improvement contracts. Cal. Bus. & Prof. Code sections 7159, 7159.9.
Discussion
The California Residential Lease All-in-One agreement contains the following clause: “FIRE ALARM EQUIPMENT: Unless stated otherwise, all costs attributable to making the fire alarm system operable for the Premises, including any sale and installation costs, do not exceed $500. Furthermore, no fire detection device has a value in excess of $500.” The California Business Code Section 7159 identifies projects that require a home improvement contract. Moreover, it lists items that must be included in such home improvement contract, or may be provided as an attachment. Cal. Bus. & Prof. Code section 7159. Section 7159 expressly states that these requirements for home improvement contracts do not apply to the sale, installation and servicing of a fire alarm sold in connection with an alarm system “if all costs attributable to making the fire alarm system operable, including sale and installation costs, do not exceed five hundred dollars ($500), and the licensee complies with the requirements set forth in Section 7159.9.” Cal. Bus. & Prof. Code section 7159. California Business Code 7159.9 affirms that section 7159 requirements for home improvement contracts do not apply to the sale, installation and servicing of a fire alarm sold in conjunction with an alarm system if the licensee executes a certification statement in the contract or in a separate certification document, signed by all parties to the contract, precisely stating that “All costs attributable to making the fire alarm system operable for the residence identified by this document, including sale and installation costs, do not exceed five hundred dollars ($500).” Thus, the clause limiting the sales and transaction costs in California fire alarm contracts is necessary in order for the alarm contract to fall outside of the home improvement contract requirements. Additionally, sections 7159 and 7159.9 of the California Business Code! apply to the sale, installation and servicing of a fire alarm sold in conjunction with any alarm system, which is defined as “an assembly of equipment and devices arranged to signal the presence of a hazard requiring urgent attention and to which police are expected to respond.” Accordingly, the provisions should apply to all contracts for alarm systems that include the sale, installation and servicing of fire alarms.
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Title: All You Need To Know About electronic contracts for the alarm industry
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Title: All You Need To Know About consumer alarm contracts
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Title: All You Need To Know About Automatic Renewal Provisions in Alarm Contracts
When: February 15, 2017 at noon EST
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