KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Comment on dating the 3 day cancellation notice 
February 8, 2023
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Comment on dating the 3 day cancellation notice from article on January 28, 2023
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Ken
     I regularly read your efforts to make this 72 hour cancellation law understandable. In our case, we sell no job in the home. We meet with the customer, get them to educate us on how they live in the home, what they wish to us to do to secure the home either with or without a security system, CCTV system or both.
At a later date, we send them a written proposal. It goes back and forth until they settle on exactly what they want. Then a contract is sent. The process takes days, at a minimum and sometimes weeks or months, if it involves new construction.
In 38 years, we have only done one installation within 72 hours of our initial meeting and she signed a waiver stating that this was an emergency situation because her husband just died and she could not live in the home alone without security. We do have a different kind of customer and our average contract, for security, is $2-4K but it still concerns me over this overly protective law.
Stan C
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Response
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            The main reason I think this law is so hard to get is because everyone wants to ignore it or work around it.  The simple answer us is, just comply.  Give the notice when you deliver the fully executed contract.  Since you know the date of delivery you know how to calculate the outside 3 days when the notice must be returned to you.  [note some states and under some systems it’s 7 days]. 
            The law applies unless the sale and contract signing takes place at your main office; that’s not common for alarm companies. 
            You mention that you have the customer come to your office; So, you must design a system without first viewing, surveying or inspecting the property ....   Yes, I’m surprised.  Not using the cancellation notice may be the least of your problems if there is a problem, such as whether you designed or installed a deficient system or if you under-estimated the work or scope of work. 
            But let’s assume you either don’t go to the property or you do but don’t discuss the contract or ask that it be signed at the residence [commercial premises are not covered by the law].  You engage in back and forth emails until the contract is agreed to and executed by the customer.  You then sign it and send it back to the customer; it’s now fully executed.  You should send the 3-day notice with it.  Why or, the better question, why not?  There’s little down side on sending the notice.  One simply reason for sending it is that a potential buyer of your accounts may want assurance that you complied with the law and may not be interested in your explanation why you didn’t.  Unless you routinely start your jobs within 3 days of executing the contract sending the notice shouldn’t have much impact; not many customers cancel within the 3 days unless your sales practice includes high pressure door to door or telephone sales. 
            A written waiver of the cancellation right is not effective in most states.  In states where it is effective the notice has to comply with the waiver statute.  At least one statute requires that the written waiver be written by the customer, in the customer’s handwriting, on a paper separate from the contract and signed by the customer. 
            The electronic delivery of the fully executed contract requires the use of a Disclosure and Consent to Electronic Communication.  Be sure you use that form when delivering the contract electronically.
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another comment
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Ken
       We use your Residential All in One contract and the three day notice of cancellation. Using Adobe Sign and a simple formula we're able to insert the three day date while they're signing the contract so they get a full executed contract and the notice of cancellation with the correct date.

Paul Romanelli
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Response
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       Sounds right.  Don't forget the Disclosure and Consent to Electronic Communication.
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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
www.KirschenbaumEsq.com