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California Residential Fire Alarms / See Webinar Schedule Below - January 26, 2017


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California Residential Fire Alarms
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Ken,
    The California Residential Lease All-in-One agreement we bought from you (and apparently other contract forms you offer), contains the following:
    "FIRE ALARM EQUIPMENT: Unless stated otherwise, all costs attributable to making the fire alarm system operable for the Premises, including any sale and installation costs, do not exceed $500. Furthermore, no fire detection device has a value in excess of $500."
    Can you say what is the purpose and intent of this provision?
    Does it matter whether the alarm company is a licensed fire alarm contractor (vs just a licensed burglar alarm company doing minor fire add-ons to a burglar system)?
ANON
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Response
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    The contract provision is needed so that the contract is not deemed a Home Improvement Contract, which would subject the alarm company and the contract requirements to a whole host of additional issues.  Residential fire is included in the Residential All in One Agreement.  Fire is not included in the Commercial All in One.  Commercial fire is covered in the Fire All in One.
    Here is a more formal response I had one of our attorneys in our Alarm Department prepare.
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                                                                         Memorandum
To:            Ken Kirschenbaum
From:       Maureen Beil  MBeil@Kirschenbaumesq.com
Date:        January 17, 2017
Re:            California regulation requiring contracts to limit the cost of a fire alarm system to $500
Question Presented
       Why do the California Business and Professions Code require fire alarm contracts to contain the provision that “All costs attributable to making the fire alarm system operable for the residence identified by this document, including sale and installation costs, do not exceed five hundred dollars ($500)”?
Short Answer
    The California Business and Professions Code requires fire alarm contracts to contain specific language stating that “All costs attributable to making the fire alarm system operable for the residence identified by this document, including sale and installation costs, do not exceed five hundred dollars ($500)” so that such contracts are not subject to the California Business and Professions Code’s specific requirements for home improvement contracts. Cal. Bus. & Prof.  Code sections  7159, 7159.9.
Discussion
    The California Residential Lease All-in-One agreement contains the following clause:  “FIRE ALARM EQUIPMENT: Unless stated otherwise, all costs attributable to making the fire alarm system operable for the Premises, including any sale and installation costs, do not exceed $500.  Furthermore, no fire detection device has a value in excess of $500.” The California Business Code Section 7159 identifies projects that require a home improvement contract.  Moreover, it lists items that must be included in such home improvement contract, or may be provided as an attachment. Cal. Bus. & Prof.  Code section 7159.  Section 7159 expressly states that these requirements for home improvement contracts do not apply to the sale, installation and servicing of a fire alarm sold in connection with an alarm system “if all costs attributable to making the fire alarm system operable, including sale and installation costs, do not exceed five hundred dollars ($500), and the licensee complies with the requirements set forth in Section 7159.9.”  Cal. Bus. & Prof. Code section 7159.  California Business Code 7159.9 affirms that section 7159 requirements for home improvement contracts do not apply to the sale, installation and servicing of a fire alarm sold in conjunction with an alarm system if the licensee executes a certification statement in the contract or in a separate certification document, signed by all parties to the contract, precisely stating that “All costs attributable to making the fire alarm system operable for the residence identified by this document, including sale and installation costs, do not exceed five hundred dollars ($500).”  Thus, the clause limiting the sales and transaction costs in California fire alarm contracts  is necessary in order for the alarm contract to fall outside of the home improvement contract requirements.  Additionally, sections 7159 and 7159.9 of the California Business Code! apply to the sale, installation and servicing of a fire alarm sold in conjunction with any alarm system, which is defined as “an assembly of equipment and devices arranged to signal the presence of a hazard requiring urgent attention and to which police are expected to respond.”    Accordingly, the provisions should apply to all contracts for alarm systems that include the sale, installation and servicing of fire alarms. 
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                                WEBINARS:  Sign up for any or all of the webinars that interest you.
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FREE Webinar Series "All You Need To Know About" alarm industry issues. 
Register for one or all.  Each presentation scheduled for half hour to hour.  Not recorded.

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Title: All You Need To Know About electronic contracts for the alarm industry
When: February 2, 2017 at noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: General discussion about electronic alarm contracts, execution and delivery. Introduction to SedonaOffice's eForms service.
Who should attend: Alarm company owners, general managers, sales managers
Presented by: Michael Marks 440-804-4517 SedonaOffice michael@perennialsoftware.com
Register here:  https://attendee.gotowebinar.com/register/6112404321829619713
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Title: All You Need To Know About Preparing Your Company For A Sale
When: February 7, 2017 at 12 noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: General discussion about preparing your company for sale
Who should attend: Alarm company owners
Presented by: Kelly Bond, Alarm Capital Alliance kelly.bond@alarmcapital.com
Register here:  https://attendee.gotowebinar.com/register/8406180190928568833
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Title: All You Need To Know About PERS - Personal Emergency Response Service
When: February 8, 2017 at noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: the state of the PERS industry, demographics here now and ahead, financial and business models, PERS solutions available, mobile PERS and where this will likely end up in the near future. Introduction to Essence-USA 's Smart Alerting and partnership with Affiliated Central Station.
Who should attend: Alarm company owners, general managers, sales managers, sales staff
Presented by: Josh Locke, Director of Sales Essence-USA.com JoshLo@Essence-USA.com  734.667.5958 cell:  734.709.5609
Register here:  https://attendee.gotowebinar.com/register/2770642138855812865
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Title: All You Need To Know About consumer alarm contracts
When: February 9, 2017 noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: What makes consumer contracts different and compliance issues.
Who should attend: Alarm company owners, general managers, sales managers, sales staff
Presented by: Ken Kirschenbaum, Esq.
Register here:  https://attendee.gotowebinar.com/register/9083897168057308673
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Title: All You Need To Know About Automatic Renewal Provisions in Alarm Contracts
When: February 15, 2017 at noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: The why, where and how of automatic renewal provisions in alarm contracts
Who should attend: Alarm company owners, general managers, sales managers, sales staff
Presented by: Ken Kirschenbaum, Esq.
Register here:    https://attendee.gotowebinar.com/register/3498770624606417921
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Title: All You Need To Know About Video Surveillance
When: February 16, 2017 at noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: Discuss latest in video surveillance equipment and services
Who should attend: Alarm company owners, general managers, sales managers, video technicians
Presented by: Ari Erenthal, training manager for IPVM, the leading resource for independent news, reviews, and testing of cameras, VMS, NVRs, and more. (862) 414-3078 ari@ipvideomarket.info
Register here:  https://attendee.gotowebinar.com/register/6264618512556065793
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Title: All You Need To Know About Selecting the Right Broker to Sell Your Alarm Business
When: February 23, 2017 noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: General discussion about finding the right broker to represent you on the sale of your alarm business
Who should attend: Alarm company owners
Presented by: Ron Davis and Steve Rubin from Graybeards rdavis@graybeardsus.com srubin@graybeardsus.com
Register here:   https://attendee.gotowebinar.com/register/8548769256865453057
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Title: All You Need To Know About modern nationwide central station operations and how to select the best central station for your needs
When: February 24, 2017 noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: General discussion about what you should expect from your modern nationwide central station and how to select the best central station for your needs
Who should attend: Alarm company owners, general managers, sales managers, sales staff
Presented by: Morgan Hertel from Rapid Response MHertel@rrms.com
Register here:   https://attendee.gotowebinar.com/register/507826318172222465
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Title: All You Need To Know About Fire Alarm Systems and Taking Over Fire Alarm Systems
When: March 1, 2017 noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: General discussion about issues to consider when installing, servicing or inspecting fire alarm and when taking over an existing system
Who should attend: Alarm company owners, general managers, sales managers, technician managers
Presented by: Jeff Zwirn JeffZwirn@alarmexpert.com
Register here:   https://attendee.gotowebinar.com/register/4756737271107996417
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Title: All You Need To Know About Standard Fire Protection All in One Agreement Covering Installation, Inspection, Service of Sprinkler System, Portable Extinguishers, Kitchen Hood, Smoke Detectors, Fire Pump
When: March 2, 2017 noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: General discussion about the Standard Fire Protection All in One provisions including scope of work, liability limitations, insurance issues, indemnity issues, how to handle subscribers who won't sign or want you to sign their agreement. 
Who should attend: Alarm company owners, general managers, sales managers, sales staff
Presented by: Ken Kirschenbaum, Esq.
Register here:   https://attendee.gotowebinar.com/register/658147149875346945
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Title: All You Need To Know About Alarm Licensing and Contracts for DIY 
When: March 9, 2017 noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: General discussion about licensing in the alarm industry for DYI. Different types of licenses, where you need them and how you get them. How and when to use License Holders or Qualifiers for your business and how to become a license holder for a company. Risks involved in not being licensed. Contract you will need for nationwide DIY monitoring agreements.
Who should attend: Alarm company owners, general managers, compliance managers and license holders.
Presented by: Ken Kirschenbaum, Esq.
Register here:   https://attendee.gotowebinar.com/register/2585168820901654273
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