Question:

Ken,

        Is there special language we should include in our monitoring agreement that deals with CO monitoring? Also, I'm told that the life of a CO detection device is about 5 years. Do we need to take special precautions, e.g. advise the customer that we will only monitor the device for 5 years and then stop monitoring and charging the customer for CO monitoring unless they replace the device? Thanks,

Ernie McDaniel

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ANSWER:

    You can include specific disclaimers in the Disclaimer Notice - www.alarmcontracts.com.  I don't have anything in there now about CO detectors.  If CO is included in your schedule of equipment and services you should indicate equipment limitations.  Keep in mind that with a Service Contract you would be expected to replace or service equipment that you know or should have known was inoperable.  This is not an inspection obligation, but if you provide a service call and you believe it's time to change batteries or devices you should call it to the attention of the subscriber.  A "don't look and don't tell" policy isn't going to be the best procedure.

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QUESTION:

    Hi Ken,

    We provide PERS systems (personal emergency response) and purchased your contract.  If we are providing services to a client but they are being paid for by an insurance company, who should sign the contract?  Paying party or the party using the services.

Regards,

Kevin Buckland

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ANSWER:

    The end user should sign the contract.  You should also get a letter from the carrier that it is paying the bills, or have the carrier sign as well.

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QUESTION:

    Ken,

    Have you heard anything about this need for “90 days of video storage” at the Pumps for C- Stores (Gas Stations) that is being pushed by the Credit Card companies here in Fl.?

    Thanks

     Kevin Sheridan

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ANSWER:

    I haven't heard of it.  Anyone else know about this?

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QUESTION:

    Ken,

    We sell some very large and complicated fire alarm systems and they require a custom program to make the life safety system work correctly.  On occasion the client will want to get multiple bids when additions and/or changes to the system are required.  If we are not the successful bidder we might be asked to give the custom program that we have created to the customer so that our competitor can make the changes to the program.  In this case shouldn’t we obtain a release absolving us of any liability concerning the operation of the life safety system?  Is this something you’ve had any experience with?

Regards,

Doug O. Padgett

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ANSWER:

    You cannot be overly precautious when it comes to alarm systems and service, especially fire.  In your case you are in installer and the one providing service and monitoring, at least until your subscriber decides to bid out all or part of the services.  The incoming companies need your programming codes.  Once you are no longer solely responsible for the system and know that others will be taking over, you would be prudent to ask for a release in exchange for the codes.

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QUESTION:

 

Good Morning Ken,

 

This is Joe from Elk Grove, CA.  I have recently noticed your emails and was wondering 2 things. 

1.  Where can I find requirements for installing CCTV equipment @ a massage business.  (It should be the same as any other business)  Basically, not to place cameras where anyone would expect a reasonable amount of privacy.  Not to record audio, but if doing so- Display clearly that ALL public activities are subject to audio and video monitoring.  Employees should sign a document acknowledging it . (Basically acceptance of work with a the company is an acceptance of the companies security practices noted on the document.)  IE:  USPCTEK has established security measures to help protect company assets, employees and visitors.  These may include video and audio monitoring and other electronic security measures.

One of my clients got arrested and she said they considered the CCTV system and early alert system for VICE.  (Her employees are 1099, and a new employee offered an illegal act on the Under Cover.)  They ripped out the CCTV system.  I have been to the Sheriffs dept.  Contacted City Ordinance Dept., Building and planning, Special Investigations Unit and nobody can provide me a guidelinedocumentation  to cover her rear end if I were to do 2 other locations.  She is scared of the criminal aspect she is vulnerable to and scared of the police penalizing her.

           The other thing is, I have several clients that ask if they can record audio, I recommend they seek the advice of their attorney.  You could research and create documentation for my area and each time I get a client I can tell them the cost or include it in my bid and you provide it for them.  (Something they can have on file like localstate requirements that theyhuman resources can follow.)

    As for me, I was wondering if you have a general disclaimer, releasing liability to "Company" if misuse, neglect of equipment or just plain component failure.  Products are warranted according to MFG. warranty which can be accessed by contacting the MFG. or @ their websites.  Labor is warranted for 30 or 90 days unless otherwise specified in writing.  (30 Days on entry level system)  90 Days for all others.

    HERE'S the big question, do you have a surveillance system on your home and business?  access control on your business?  specializing in this kind of law makes me wonder if you see the benefits and apply them.

 Thank You,

Joe

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ANSWER:

    I'm glad you found the emails.  Hope they are useful.  Now buy the contracts - www.alarmcontracts.com and you'll be all set. 

    No audio.

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QUESTION:

    Does installation of IP cameras fall under the NY Security License?

Ken Erdheim

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ANSWER:

    Yes, and everywhere else where CCTV is covered by the alarm license.

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QUESTION:

    Ken:

    Regarding your comments on finance charges, there has to be a penalty for paying late.  Are you suggesting that the idea of a percentage of the amount due as a finance charge is a bad idea?  Would a flat fee (like in the case of a bounced check) be better?  Right now I am finding that 1.5% of the past-due balance is around .20 cents sometimes and that is useless to me as a motivator to pay on time whereas a flat $25 late fee would be much more motivating.  Could you please elaborate on this issue?  Thank you.

-David Myers

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ANSWER:

    You can have a finance charge, late fee, but not a penalty.  Penalties are not enforceable.  What's the difference?  A penalty is not reasonable,  finance charge and late fee are.  I don't include them only because saving the account is more important than collecting a few extra bucks.  If there is a default and you have to go after the subscriber then my contracts do provide for high interest and collection costs.

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QUESTION:

    Ken, 

    Here is a head scratcher:

We have bid a fire alarm for a hospital to a group of electrical contractors. The equipment specified is not what we normally use, and had the single source supplier bid it to us , as well as the electrical so that we could do the work.

It turns out that what the price bid to us was 5.1% higher than what they bid to the electrical contractors. The supplier is a single source, nothing else will work. Is this “Restraint of Trade” or some other onerous illegal activity?

Leigh J

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Answer:

    It does sound like restraint of trade issue but there could be other reasons to justify the price differential.