KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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ISC Schedule / How customer signs contract / False alarm fines assessed against alarm companies
March 23, 2023
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If you're attending the ISC show next week I still have a few times available for private meetings and our group meetings may also have a few spots. Give Stacy Spector,Esq a call to schedule a time 516 747 6700 x 304 or email her at SSpector@Kirschenbaumesq.com. If you don't have time to schedule I'll be stopping by Rapid Response Monitoring's booth and COPS Monitoring booth, so stop by and say hello.
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Schedule for Group Discussion Meetings at ISC [subject to dealer interest] Meetings are limited to 6 dealers. Contact Stacy Spector,Esq at 1 516 747 6700 x 304 or SSpector@Kirschenbaumesq.com to reserve a spot. Private meetings with Ken Kirschenbaum are still available – contact Stacy for appointment. All meetings scheduled at Palazzo Prestige Lounge unless otherwise noted.
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Group Meeting Schedule: Note changes in schedule:
Wednesday, March 29 at 10:00am-11:00am: Finance Group Discussion with Jim Wooster, Alarm Financial Services
Wednesday, March 29 at 3:30pm-4:00pm: Meeting with Mitch Reitman, Employee Retention Credit and other tax issues
Thursday, March 30 at 9:30 - 10:30am at ESA meeting room: Bassano Suite 2705 by convention floor: Liability, insurance, horror stories, claims and other issues from perspective of Claims Administrator [Bart] and Alarm Defense Attorney [Ken]. Ken Kirschenbaum and Bart Didden. This promises to be entertaining and informative. You don't want to miss this. informative. All invited. No reservation needed
Thursday, March 30 at 10:45 am -11:15 am: Central Station Group Meeting with COPS Monitoring at COPS booth
Thursday, March 30 2023 at 11:30 am to 12pm Central Station Group meeting at Rapid Response Monitoring at Rapid Response booth
Thursday, March 30 at 11:00am-11:45: Alarm Brokers Group meeting with Rory Russell, Acquisition & Funding Services
Thursday, March 30 at 1:00pm-1:45pm: Contracts Group Meeting with Ken Kirschenbaum Fully Booked [call Stacy for private or meeting time]
Thursday, March 30 at 2:00pm-2:45pm: Insurance E&O Group Meeting with Shawn Iverson, The Insurance Center Fully Booked
Thursday, March 30 at 3:00pm-3:45pm: Sale or Purchase of Business Group Meeting with Ken Kirschenbaum Fully Booked [call Stacy for private or meeting time]
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Private Meeting Schedule: Still a few open times for private meetings. Call Stacy 516 747 6700 x 304. Tuesday March 28 has open time
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How customer signs contract
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Ken
We are using your Standard Form contracts; well written.
If a customer signs a commercial contract using the Business Name (yes, they are told not to) as a signature is that acceptable? This is causing a back and forth email competition.
Robert
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Response
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Customer is Joes Pizza Inc. You get the name of the customer and address right. At the bottom of the contract it calls for the customer’s signature. So this customer wants to sign Joes Pizza Inc. Well, that’s obviously not going to cut it.
Corporations and LLCs are creatures of law; they exist only because the law permits them to be created by a filing with the state. They are not natural persons. These legal entities can “act” only in accordance with their organization papers and by-laws, and within the statutory framework pursuant to which they were permitted to be formed.
These entities act through their authorized officers and members. That means that a natural person has to sign his or her name to the contract and disclose the title that person holds which authorizes that person to act, such as President for a corporation or Managing Member for an LLC.
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False alarm fines assessed against alarm companies
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Ken
Extremely liberal California has a law in place to prevent any municipality from imposing fines against an alarm company for false alarms.
Jason
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Response
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Unfortunately you have been misled by a the headline to a SSI article on August 16, 2017 titled “California Bans Alarm Companies From Being Fined for False Alarms”. I confess I too was misled by the headline because I didn’t read the statute. This recently came to my attention again because New York is considering a similar law.
The pertinent part of the law actually reads as follows”
“(B) An alarm company operator or an alarm agent shall not be liable for civil penalties and fines assessed or imposed by a city, county, or city and county for false alarms not attributed to alarm company operator error, improper installation of the alarm system by an alarm agent or an alarm company operator, defective equipment provided or installed by an alarm agent or an alarm company operator, or defective equipment leased by an alarm company operator.” Section 7592.8 of the Business and Professions Code
I don’t know how this law has effected California alarm companies but I don’t think it solves any problem; only kicks the can down the road and causes more problems. Read carefully the law does not prohibit fines against alarm companies and in fact authorizes fines when the false alarm is
“… attributed to alarm company operator error, improper installation of the alarm system by an alarm agent or an alarm company operator, defective equipment provided or installed by an alarm agent or an alarm company operator, or defective equipment…”
While I can envision a situation where a customer would admit to causing a false alarm, more often than not, the customer will blame the alarm company for the false alarm for one reason or another. Who then is going to determine whether the alarm company is responsible for the false alarm and will that determination be made after a judicial hearing or unilaterally by an administrative employee?
Regardless of whether an alarm company is fined or the customer is fined, the Standard Form Agreement requires the customer to pay the fine per the indemnity provision and specific reference to false alarm fines.
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STANDARD FORM AGREEMENTS: To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com
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CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304.
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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
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