January 24, 2011
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Question
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Ken,
A business burglar alarm client (we installed and monitor his burg alarm) is asking me to install an empty bell box with a strobe light outside his shop. It will NOT be connected to the alarm system in any way. The stated purpose of this is to turn on the strobe light manually during business hours to attract customers. Being that this has nothing to do with security, can we, and should we use our normal alarm contract (we use your all-in-one) specifying that this is for display purpose only, not in any way connected, changes or enhances the existing alarm system, etc?, or are we better off writing this on another type of paper? We want to do this not for the money but because we believe he can send referrals our way.
Lior
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Answer
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Alarm contracts are designed to contain various "protective" provisions, most with the purpose of "contracting away liability for the alarm company's negligent performance of the contract". That protection is necessary in the security business because of the extensive exposure security companies face in the performance of their services. However, that protection is not necessary, nor in my opinion appropriate, for non security related services.
For example, one of the Standard Form Contracts that I offer is an Audio - Video Contract, which is a home entertainment contract. You don't need an exculpatory clause in a contract when you're installing a TV or media system. But some equipment is in a gray area.
The strobe light you describe is clearly not a security feature. It is not activated with the alarm. It's described as a light designed to attract customers to the store, probably running during business hours. No doubt violates building codes or at least requires a permit; but that's not your problem.
If you were a general contractor I'd tell you that you don't need an alarm contract to install the strobe. You're an alarm dealer, you have an alarm contract, and you may as well use it for the sale and installation. The description and use of the equipment that you mention in your question is appropriate and you should include it in the contract description. You can even put your sticker on it.
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Multi state fire and security monitoring question
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Question
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Ken,
We may be doing fire and security monitoring in states other than our home. Are your contracts state-specific? Do we need separate agreements based on which state we do the monitoring in?
We would not likely be doing any installation or service work, just monitoring. And lastly, would I need to purchase separate agreements if this is the case or would one purchase cover all applications/locations that contract is used?
Tom
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Answer
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Our Standard Form Contracts are state specific, but not every state requires changes. Not every state requires licensing and not every state, or jurisdiction, has the same rules and procedures for selling, installing and monitoring alarms.
You need to know the law in any jurisdiction you intend to do business in, whether its installing or monitoring. If I am right, Texas and Florida are two states where monitoring is regulated. That means your monitoring for those states will have specific provisions.
Residential subscribers will require state specific contracts because every state has its own rules, the right to cancel language for example.
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To all:
Regarding 6E, and state licensing of out of state central stations.
First of all if you don’t post your real name and company on Kens list no one takes you seriously.
1, New York has no money to fund and administer this program, read the papers they are laying off people everywhere.
2, Even if it were passed NYS has no standing outside their borders, no money to travel and prosecute and therefore cannot enforce this, the only people that will get this is the good guys that already have licensing and good employee screening and training, the rest of the companies will not get licensed and no one will care or be able to do anything about it.
3, The ordinance is poorly written in my opinion, having things like 69-EE, Section 5, Page 6 were principals SHALL be held responsible for the actions committed by their operators is a huge mistake, if you have not read the entire thing you need to.
4, To the group that thinks that legislating competition away is the answer, this is a mistake, dealers are very sophisticated today, saying that there is a threat of having central stations in India will take over is a farce, and if you really are concerned next time you call your bank and get an out of the country call center are you going to pull out of the bank, the world is changing but market forces are much better suited to deal with these concerns.
5, Everyone I have spoke with in the monitoring industry is committed to having cleared, smart and trained operators working, but what we don’t need is to license the same person 100’s of times in all the states and communities in North America, what we want is one federal monitoring license.
It only makes sense, the feds have the best resources to background check, they have standing everywhere in the country. We can still register with the states even pay a fee for this for those states looking for revenue.
Having a federal requirement assures everything you want to accomplish in 6e, makes it enforceable and makes it easier for the national monitoring companies.
Morgan Hertel
Vice President and General Manager
January 24, 2011
******************
***********
Question
**********
Ken,
A business burglar alarm client (we installed and monitor his burg alarm) is asking me to install an empty bell box with a strobe light outside his shop. It will NOT be connected to the alarm system in any way. The stated purpose of this is to turn on the strobe light manually during business hours to attract customers. Being that this has nothing to do with security, can we, and should we use our normal alarm contract (we use your all-in-one) specifying that this is for display purpose only, not in any way connected, changes or enhances the existing alarm system, etc?, or are we better off writing this on another type of paper? We want to do this not for the money but because we believe he can send referrals our way.
Lior
**********
Answer
**********
Alarm contracts are designed to contain various "protective" provisions, most with the purpose of "contracting away liability for the alarm company's negligent performance of the contract". That protection is necessary in the security business because of the extensive exposure security companies face in the performance of their services. However, that protection is not necessary, nor in my opinion appropriate, for non security related services.
For example, one of the Standard Form Contracts that I offer is an Audio - Video Contract, which is a home entertainment contract. You don't need an exculpatory clause in a contract when you're installing a TV or media system. But some equipment is in a gray area.
The strobe light you describe is clearly not a security feature. It is not activated with the alarm. It's described as a light designed to attract customers to the store, probably running during business hours. No doubt violates building codes or at least requires a permit; but that's not your problem.
If you were a general contractor I'd tell you that you don't need an alarm contract to install the strobe. You're an alarm dealer, you have an alarm contract, and you may as well use it for the sale and installation. The description and use of the equipment that you mention in your question is appropriate and you should include it in the contract description. You can even put your sticker on it.
**********
Multi state fire and security monitoring question
***********
Question
**********
Ken,
We may be doing fire and security monitoring in states other than our home. Are your contracts state-specific? Do we need separate agreements based on which state we do the monitoring in?
We would not likely be doing any installation or service work, just monitoring. And lastly, would I need to purchase separate agreements if this is the case or would one purchase cover all applications/locations that contract is used?
Tom
***********
Answer
***********
Our Standard Form Contracts are state specific, but not every state requires changes. Not every state requires licensing and not every state, or jurisdiction, has the same rules and procedures for selling, installing and monitoring alarms.
You need to know the law in any jurisdiction you intend to do business in, whether its installing or monitoring. If I am right, Texas and Florida are two states where monitoring is regulated. That means your monitoring for those states will have specific provisions.
Residential subscribers will require state specific contracts because every state has its own rules, the right to cancel language for example.
**************
To all:
Regarding 6E, and state licensing of out of state central stations.
First of all if you don’t post your real name and company on Kens list no one takes you seriously.
1, New York has no money to fund and administer this program, read the papers they are laying off people everywhere.
2, Even if it were passed NYS has no standing outside their borders, no money to travel and prosecute and therefore cannot enforce this, the only people that will get this is the good guys that already have licensing and good employee screening and training, the rest of the companies will not get licensed and no one will care or be able to do anything about it.
3, The ordinance is poorly written in my opinion, having things like 69-EE, Section 5, Page 6 were principals SHALL be held responsible for the actions committed by their operators is a huge mistake, if you have not read the entire thing you need to.
4, To the group that thinks that legislating competition away is the answer, this is a mistake, dealers are very sophisticated today, saying that there is a threat of having central stations in India will take over is a farce, and if you really are concerned next time you call your bank and get an out of the country call center are you going to pull out of the bank, the world is changing but market forces are much better suited to deal with these concerns.
5, Everyone I have spoke with in the monitoring industry is committed to having cleared, smart and trained operators working, but what we don’t need is to license the same person 100’s of times in all the states and communities in North America, what we want is one federal monitoring license.
It only makes sense, the feds have the best resources to background check, they have standing everywhere in the country. We can still register with the states even pay a fee for this for those states looking for revenue.
Having a federal requirement assures everything you want to accomplish in 6e, makes it enforceable and makes it easier for the national monitoring companies.
Morgan Hertel
Vice President and General Manager
Mace CS