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Question re contracts after Monitronics

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Hi Ken,

    I read your response today (July 29, 2013) with great interest and have a question. I purchased your Standard Commercial Security Equipment Sales/Monitoring/Service Contract.  My question is what paragraph in your contract after the exculpatory clause and limits of liability helps prevent the clerks from working around the aforementioned paragraphs.

Thank you,

Bob K

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Answer

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    It's the exculpatory clause and limitation of liability clause that need to be worded properly.  They are essential terms in a properly worded alarm / security contract.  You can't take them for granted.  Even slight variation on terminology can render the provision unenforceable or at least unavailing against anticipated claims.  One feature of the Standard Form Contracts is that the entire contract and all of its provisions are designed to convey the unmistakeable message that the alarm company is not responsible for losses.  There are at least 5 protective provisions designed to insulate the alarm company directly.  These are 

  • exculpatory clause
  • limitation of liability clause
  • insurance procurement clause
  • indemnity clause
  • waiver of subrogation clause

    There are many other terms in the Standard Form Contracts to protect the alarm company.  Almost every provision in the contract is focused on what the alarm company needs, requires or should have.  Bottom line, get the All in One contract forms you need for the services you provide  - residential - commercial and commercial fire.

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AZ alarm license

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Ken 

    Arizona's new licensing requirements, by the Board of Technical Registration, go into effect 01 October 2013. It is important that existing alarm companies are aware of Ex Post Facto Law. It is one of the many things wrong with the passage of HB 2748. There is a reason that those who support the BTR licensing are calling and emailing alarm companies are sounding like used car salesmen. I heavily suggest that existing alarm companies contact their attorney prior to submitting to this and I suspect their will be law suits filed against the Arizona State Legislature in regards to this matter.     http://arizonaalarmdealers.org/Ex_Post_Facto_Law.html

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Which contract needed for independent salesman

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Hi Ken,

    I need a sales partner contract for our communications company.  What I need is something that will allow independent contractors to resell our services to their accounts. We will pay them a commission on a monthly basis for the customers they bring in to us. The customers will become and remain our customers.  This is common practice in the VOIP business, typically an IT company will bring us an account to service and we will pay them the commission.

Please let me know if you can help us with this.  

Thank your for your time and consideration,

Mark

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Answer

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    The contract you are looking for is the Independent Sales Affiliate form.  Get it at www.alarmcontracts.com.

The other form for a salesman is the Employment Contract.  That's for a W2 employee.

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Re jury award in Monitronics

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Ken,  

    I do appreciate the comments of John W. Yusza, Jr., of Monitor Controls, Inc.  He sounds like my kind of guy.  Nothing like being a ward of the state, although I never want to find out!

Best regards,

Sammy Falletta

Interactive Security Technologies

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Question - termination notice

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Ken

    In regard to termination notice, do you advise this be sent via certified mail.  How long does one wait to send a disconnect?  And what, if any, is required if fire monitoring is involved.  Thanks for your input and always enjoy reading your emails.

Nancy Saad, President

Eastern States Sentinel Alarm Services, Inc.

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Answer

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    Standard Form Contracts do not require notice by certified mail.  Unless you have a contract or statute that requires a particular manner of mailing you can use any method you like.  Regular mail has a presumption of delivery.  If you decide to use Certified Mail, RRR, you run the risk of the letter not be accepted.  I typically object to certified mailing in the contracts I negotiate for clients.  Keep in mind that email and faxes can be just as or more reliable and just as easy to prove delivery.

    As for fire, be sure to notify the AHJ of termination of fire alarm services and check to see if there are any statutes that apply to fire alarm termination.