comment on automatic renewal statute in VA / video monitoring cs / 3 day notice of cancellation January 21, 2019

KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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comment on automatic renewal statute in VA / video monitoring cs / 3 day notice of cancellation
January 21, 2019

comment on automatic renewal statute in VA

Ken
               "The more corrupt the industry, the more numerous the laws."
J Yusza Jr
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central stations specializing in video monitoring from January 14, 2019
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Ken
               We are a specialized Video Monitoring center that works exclusively through our dealers.
Thanks,
Daniel Forrest
Eyeforce Inc.
Remote Guarding Solutions
713-574-1745 ext. 804
www.eyeforce.com
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3 day notice of cancellation

Ken,
               re: 3 day notice of cancellation
               What if a sales person meets with a client in their home and then emails or faxes a contract to a client.   Is a 3 day notice required?   Also is it any different if the electronic transmission occurred within 3 days of the visit?
Thank you,
Arthur Davis, Consultant

Response

               The 3 day notice is intended as a cooling off period to protect the consumer from high pressure sales tactics.  The meeting with the home owner can take place in the home or any other sales location other than the alarm company's main retail office.  So if you have a sales presentation in a hotel or mall and sign the consumer up there, up have to give the 3 day notice.
               If you mail the contract to the home owner with a return envelope you may not have to give the notice.  But you need to be careful because a potential buyer of your accounts is going to expect to see that you gave the notice.  Unless your answer is that you use the mail for all sales, you're going to have a problem.
               Having the consumer sign an electronic contract while your sales person sits in the home does require the notice.  And you will also need to use the Disclosure and Consent form for Electronic Communication.
               As a practical matter I think it's just as easy to give the notice, especially if you're not planning on doing the installation within the 3 days. If you have the business model of selling and installing immediately after the contract is signed, well you run the risk of cancellation until you do give the notice. I would use the notice even under that circumstance.
               How many cancellations should you expect if you give the notice.  I don't have the statistics; can anyone offer an opinion?
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
516 747 6700
www.KirschenbaumEsq.com