Comments On Electronic Signatures /
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comment on electronic signatures
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Ken,
In response to the question regarding electronic signatures, you are correct, using a signature service isn't required for the contract to be legal, but most lenders and account buyers will require that the e-signatures are maintained by such a service,
Alan Pepper
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Response
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Good point. Legal doesn't always mean it will be acceptable to a buyer or bank who may be marching to their own tune - played by their astute counsel
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another comment by a e-signature vendor
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Ken,
I would like to weigh in on the electronic signature service question. It is certainly not necessary to use an eSignaure vendor, although I wouldn't advise trying it on your own, especially since most vendors have relatively inexpensive costs compared to what is spent on the manual processing of paper contracts and the human errors that come with it.
Over a decade ago eSignature/eRecord laws were established (most notably UETA & ESIGN), these laws set a few basic requirements to create a legally admissible electronically signed document; they left most of the best practice workflow and processes up to the industry leaders to set.
Legal admissibility should not be confused with legal enforceability however. Standard contract law is not changed by the electronic process; some of the most important components of creating a legally admissible and enforceable eContract are the steps taken before and after the eSignature is applied and the evidence which is captured through the process. I've listed below just some of the industry best practices which should be in place. I would not recommend that any company who wishes to sell their contracts, use their contracts as collateral with a bank/funder, or securitize, attempt to try this on their own because there are several other necessary steps far beyond the eSigning process.
Authentication- establish reasonable assurance that whoever actually eSigns the contract is the intended signer. Remember, email accounts are often compromised, so I would not only rely on email. Industry leaders provide multiple methods to reasonably establish ones identity; including passwords, sms text message, Q&A exams, capturing the IP address, etc. This should also be considered for face to face esigning events.
ESIGN Consent- it is required to capture the ESIGN consent of the signer. Meaning that the signer has acknowledged they understand they are going to sign electronically, understand the software/hardware requirements, and have accepted the standard ESIGN t's and c's.
Opt Out- its required to allow a consumer to opt out of the eSiganture process or withdraw their consent at any point prior to applying their signature. (consumers can not be required to eSign)
Review/Completed copies- the signer should have reliable access to review copies and completed copies of the documents, as well as a copy of the ESIGN t's and c's which they consented to.
Intent- the eSignature must be applied in a manor that shows the signer did in fact have the intent to apply their signature to the document.
Integrity- You must be able to prove that the document was not altered or manipulated after the signature was applied. Many vendors also use digital signature technology to "lock down" or tamper seal the document once the eSignature is applied, rendering the esignature invalid if it is tampered with.
These are just a few examples of what should be in place (I could have added several more actions). Alarm companies who work with consumers also have to consider FTC cooling off period requirements as it relates to the electronic contracting process. Most importantly, these steps and other necessary steps should be documented as evidence for legal purposes and non-repudiation. If ever needed in the court of law, evidence showing that these steps were in place and taken will help with legal admissibility and enforceability.
I work for an eSignature/eTransaction pioneer who is heavily involved in the security alarm industry.
John Jacobs
eOriginal, Inc
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Response
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I suspect that its just reluctance to get involved in something they don't know that keeps most alarm companies from exploring electronic contracts and signatures. The added cost also. Who knows how long printed contracts will be available. Check out the new technology - and be sure to start with the Standard Form Contracts, because it doesn't matter if it's print or electronic if you don't have the right contract. And BTY, none of the electronic signature vendors are authorized to provide you with the Standard Form Contracts - that's something you have to give them for your use only.
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can alarm co offer tech advice for NYC building?
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Ken
I'm a constant reader of your responses to various queries. Quite impressed with your wide repertoire of knowledge in this tight knitted industry.
My query is.
I have a client who owns a high rise residential building on Manhattan (30 floors). There is an old ACME Strapkey system that has been operating since 1962. It is, and has been dying for the past 3 years and will likely do so shortly.
My question is: What type of replacement system will be in compliance with the building's classification? Looking forward to your or anyone that may offer an "experience" response.
Thanks in Advance
Errol A. Williams-Pres/Eng
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Response
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Tech advice is well beyond my range of knowledge. You should contact tech advisors - you can find them in The Alarm Exchange - below and by going to TheAlarmExchange.com web site which is updated daily.
For free advice - let's see who offers a suggestion to your problem.
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Can Alarm Co. Offer Tech Advice For NYC Building?
August 19, 2013