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Question re Three Day Right of Cancellation
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Ken,
Is there a way to execute an electronic contract with a homeowner for the sale and installation/monitoring of a security system and still satisfy the three day right of cancellation requirement?
Currently the customer is left with two copies of the document he/she has signed. They have three days during which they may cancel the contract with no obligation. To do so they would simply sign the back of the contract that reads:
I herby cancel this transaction: Dated: _______________ Purchaser’s Signature____________________________________
They then mail or deliver this “Cancellation Notice” to the alarm company whose name and address is provided.
The question is, how can this be satisfied with a paperless transaction? The sales person would not have a printer with them. The contract would be executed on a lap top or iPad.
`Presumably a copy of the executed agreement could be mailed or emailed to the customer and the customer could then execute the Cancellation as described above if they so desired.
This may be a topic of interest for your Email Newsletter for those of us who are interested in paperless transactions.
Thank you,
Ron Haner
Alarm Center, Inc.
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Response
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I am responding rather than answer, because I don't have an answer; at least not one that will definitively answer this question. I don't believe legislation has kept pace with technology. There is no question that electronic signatures are valid and enforceable. But how do you satisfy consumer laws that require that a copy of the fully executed contract be left with the subscriber at time of execution? How do you comply with the cancellation law that requires you to give the subscriber the actual form to be used to cancel the transaction within 3 days?
All states have one requirement or another and many have type size, font and text color requirements. This can be satisfied with electronic contracts and I suggest a click through process. If anyone has a decision on a lawsuit on this issue please let us know - and not what you do or how you've gotten away with whatever you do - I'd like to see an actually decision by a judge on this topic.
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Question - are the big boys exempt from licensing?
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Ken,
Thanks again for the valuable service you provide to our industry. With the likes of AT&T, Verizon, Comcast, etc. entering our industry, I would like to know if they will be required to obtain the multitude of various licenses that we traditional alarm companies must have? Most states/jurisdictions that I am familiar with exempt “public utilities” from licensing requirements such as electrical. Does that exemption apply to any/all products and services they provide? Your input is much appreciated.
Ron
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Answer
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I believe the phone and cable companies that are entering the alarm market are not utilities, not anymore. They will require the same licenses that any other alarm company would require.
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comment on cellular reliability
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Cellular technology reliability. I was expecting call on cellphone, so I waited quietly for 2 hours listening for phone ring. The call didn't come. When I looked at the screen, it said: "Automatic update. Phone will shut down." I guess the phone did shut down and I missed call I was waiting for. If this happened to alarm cellular radio, someone could die. People who design the hardware of our "modern technology" are engineers, but people who write the firmware/software are just bunch of idiots with no qualification, no licensing requirement, no insurance or responsibility of any kind. There should be pressure to make programmers reliable. Sue them and they wake up.
Dusan
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Response
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I am defending a case now that alarm system designed to sound if phone line went down. Cable went down, alarm sounded and subscriber injury while "escaping" from the house. Turns out the cable went out so the alarm went off. Alarm company was sued for the injury suffered by the subscriber. I am about to bring in the cable company; it was the cable company's line that went out and if the alarm company is liable then there is no reason the cable company shouldn't be liable. I'll keep you posted on the case.