CANCELLATION RIGHTS - CA  
December 4, 2012


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COMMENT
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Ken
                I would like to offer a correction as to three day right to cancel. In CA the customer only has a right to cancel a purchase Agreement signed in the home non-emergency, within three days and may also cancel a service Agreement.   Service Agreement  only, no sale, signed in the home, non emergency, no right of cancel.   I have had this upheld on Appeal. Customer wanted to cancel our Monitoring Agreement ( and return to prev co who matched our rate we took to Small Claims, our Agreement was upheld awarded a minimun amount. Customer appealed, we ended up in Dep[t#1 the presiding Judge of the Van Nuys LA Sup Court! He made it quite clear the CA law allows only the cancellation of a Service Agreement if it  is in conjunction with a cancellable purchase. As ours was not, no right to cancel.   I was awarded the entire balance of 33 months!

                Have also had the court confirm that emergency installations are not cancellable, must do waiver do to emergency installation and on a separate sheet under CA law. The most favorite, they guy who though he could want a rush job and then cancel to ‘renegotiate’. I had him testify in court that yes he signed the Agreement on the hood of my truck, which was parked in the street… Sorry, no can cancel; judgment for the plaintiff, including the bal of the 36 mo Agreement!

Bruce Boye

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Response
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                Home owners have a right to cancel door to door sales for any agreements relating to the residence for personal use.  Not only does every state have a "right of cooling off" statute, but there is a Federal Law that sets a minimum standard; it's 3 days notice.  Some states permit the home owner to waive the 3 days if there is a very good reason for doing so.  The waiver should be on a separate paper, handwritten and signed by the subscriber.  

                The Standard Form Contracts are customized not only for your company but for your state jurisdiction.  One of the first issues we look at is the cancellation notice and rights because it's usually somewhat different state to state.  

                 I had one of our attorneys who works in our alarm licensing and compliance department verify California cancellation laws.  Any contract for sale or service, and that includes monitoring, if solicited and signed at the house, requires the cancellation notice.  If the transaction is on line or through the mail and not at the house, then no cancellation notice is required.  Keep in mind that what the law requires and what some lender or potential buyer may require can be different, so you may want to give the cancellation notice even if not technically required.

                Here's my associate attorney's response:

                CA is 3 days time for a sale pursuant to § 1689.6 (a)  "Right  to cancel home solicitation  contract  or  offer."  Two exceptions to this rule include contracts which fall within the ambit of "Home Improvement" contracts, (which does not include alarm sales), and PERS contracts pursuant
to § 1689.7 (d) which requires language providing the customer with 7 days time to cancel.

Joseph M. Clark, Esq.

KIRSCHENBAUM & KIRSCHENBAUM, P.C.