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ELECTRONIC SIGNATURES
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Ken,
    We’re getting ready to start using your All in One Agreement.
    Regarding electronic signatures, specifically “Docusign” from your experience, do you feel:

  • it would be helpful to insert any language that refers to electronic signatures.
  • that there is increased vulnerability for liability claim.
  • the account value is affected adversely with electronic signature vs. physical signature.

Thank you,
Dan
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RESPONSE
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    I've heard from a few companies that provide electronic signature services, including more than one that wanted to let me know they had the All in One form already formated for the fill in fields, which would save a company money.  But none of these companies have followed up with me so I don't really know what cost savings they are prepared to offer or how their services are working out.
    I do know that many companies are using electronic signature.  I have assigned several attorneys in my office to research how some consumer law requirements may conflict with electronic signature and I will let you know when we have that research underway.  I imagine this is going to be an evolving issue as new legislation is enacted to try and keep up with technology, something that I don't think is going to happen.  So it's not clear to me how you provide a consumer with a fully executed contract when the signature is electronic and there is no portable printer on site.  How is the 3 day notice provided in physical form so it can be used to mail in cancellation.  How are manufacturer warranties provided.  These are not insurmountable issues, but they should be addressed.
    There is no reason to refer to the contracts being signed in electronic format.  That will be obvious and in any event I don't see it as a requirement, not yet at least.
    Getting the contract signed electronically is not going to increase your liability exposure.  If you need to rely on the contract you will have the same issues at trial, proving your contract was executed by the subscriber.  You can run into issues with paper contracts too, so I don't see this as an added exposure as long as you get the electronic contract signed properly and retain your proof of execution and delivery.
    Making sure your subscriber contracts are executed properly and are in proper format, both substantively and lay out, makes all the difference in valuation of the contracts.  It shouldn't matter if you use paper or electronic, its what you use and how you use it that's going to matter.
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BUSH NEEDS A NEW ALARM
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    Can you believe that former president Bush needs a new alarm in his residence.  Secret Service is conducting research, an investigation, probably hiring consultants and bringing in the top guns.  Our tax dollars are at work.  Here's an idea.  Call in ADT and have a new system installed for $199 and $39 bucks a month.  Few more cameras - no problem, make it $599 for installation.
    I think all of you should offer to do the installation.  Even a blind estimate will not come close to what this system is going to eventually cost.  In fact I bet the consulting fees will exceed what most alarm companies would charge for the survey, design and installation.  Make sure you use the 3 day notice of cancellation.
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