Verbal Contract For 42 months /

Answer To The Question Origin of the Name ADT

August 30, 2013

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Question - verbal contract
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Ken,
We are a customer of yours and have purchased a number of your contracts. We have a
family friend who called last week and would like to switch their alarm service to
our company. When they called their existing provider who they have had for 6
years, they were told that they are under contract until 2016 because they gave a
verbal commitment over the phone and that this copy had a recording of it.
Upon asking to hear this recording, Their existing provider had to call them back but did
produce a copy where their customer service dept had called to evaluate the service
and also asked if they would be interested in keeping their existing rate for 42
months with a guarantee of no increase to which they replied "Sure".
There is no written contract for this and they were never told they were being recorded. The
existing company is holding their feet to the fire saying they are under contract. They also won't let them drop their ACH payment option so our friend is nervous that they will get destroyed if they try to switch. What is your opinion on this?
Thanks,
GC
Louisville, Ky
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Answer
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Off the top of my head I am going to opine that the subscriber cannot be held to that 42 month contract. While a contract can be verbal with no written confirmation, confirmed by recording or some other reliable method of establishing that the essential terms of the agreement were reached and agreed upon, there are just too many consumer laws on the books that require not only written contracts but that various "consumer friendly or protective" provisions be included. There are also "statute of fraud" laws that require that an agreement that cannot be performed within a prescribed time [in NY its one year] be in writing to be enforced.
So the company trying to hold the subscriber to the long term verbal contract faces at least two issues - enforcement of the contract and deceptive business practices if the course of conduct violates consumer laws.
Finally, though I don't assist subscribers in getting out of their alarm contracts, in this case since the alarm company is not using written contracts [mine in particular] I say to for it and take the account. Make sure your family friend signs your alarm contract - you may not be on the same friendly terms when you hear from their insurance company looking to subrogate. BTY - remind your friend to cancel the ACH in writing to the bank.
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Answer to the question Origin of the name ADT
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Ken
ADT is American District Telegraph Company started in 1871 as a messenger service. Founder E.A. Calahan
Vince Nigro
Vital Services
Moorpark, California
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Ken
I believe the ADT originally stood for Atlantic District Telegraph
Jason Holmes
Southwest Fire & Security, LLC
Mansfield, TX
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Ken:
Regarding John Elmore's question about ADT being an English company:
ADT was originally a telegraph company with 57 separate telegraph messengers around the USA. However, in 1874 they formed themselves into American District Telegraph and eventually became part of Western Union in 1901. By 1907, they had already started a large framework of using telegraph signaling into their central offices similar to what the Holmes Protective Signaling Company had started in 1882 in Boston, MA.
In 1964, ADT was found to be a monopoly in restraint of trade (having about 80% of the central office customers) and was split-up into various venues.
Up until 1977, ADT was owned as an "American institution" in the alarm business with former owners such as Thomas Edison and Thomas Watson. However, as times changed, in 1997, Lord Ashcroft, a UK entrepreneur, bought ADT and moved it's headquarters to Bermuda. Eventually he sold out to Tyco in 1997 - but, still a Bermuda company. In 2012, it was separated from Tyco and now is listed on the NY Stock Exchange on 10-8-2012.
John W. Walter
National Security Systems, Inc.
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Yes it does stand for American District Telegraph.
Robert E. Klein
RK Electronic Services
Monroe, CT
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Ken,
As an ex-employee of ADT I knew the place to go for the answer. This is from ADT's web site:
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From: http://www.adt.com/about-adt/history
"For nearly 140 years – from ADT messengers and call box operators to automated homes and businesses – we've made protecting and connecting the centerpiece of what we do. Today, our mission remains the same – creating customers for life.
1874: Most people don't like to talk about age, but we're proud of ours! Just two years before the United States celebrated its first centennial, ADT was founded, not as a security company, but as a telegraph company. Surprising – we know! The American District Telegraph Company was in the business of providing a great service to its customers, just as it is nearly 140 years later as ADT.
Before leading the way in the electronic security industry and moving headquarters to Florida, we began in Baltimore, MD, embracing the most advanced communications technology of the 1800s. While they didn't have instant messaging back then, they had something similar. A telegraph system! This form of communication was more popular than carrier pigeons in the 1870s because it was faster and more reliable. A hand-written message was provided to a telegraph company from the sender. These messages were transmitted over telegraph lines to a receiving telegraph company at another location. They then decoded, transcribed, and hand delivered the message to the recipient.
1890: Much like the technology of today, though not quite as fast, there was constant change in the late 1800s. ADT embraced the change by welcoming the call box. With this improved system, we were well on our way to expanding our protection services portfolio. Specific signals could be transmitted by a watchman from a call box to a district office, alerting us to the particular need of a customer. For example, customers could request the assistance of the police, fire department, doctor, coach, and more. We followed through, providing customers with the service they needed."
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Alan Glasser, Executive Director
METROPOLITAN BURGLAR & FIRE ALARM ASSOCIATION OF NEW YORK, INC.
Brooklyn, New York
www.mbfaa.com
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