KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ********************** More on alarm dealer can still get in trouble even with K&K Contract August 24, 2023 ************************** More on alarm dealer can still get in trouble even with K&K Contract from article on July 28, 2023 ************************* Ken Would like to hear your thoughts on the fact that the Sales person was not properly licensed. What does that do to the contract? GB ************************* Response ************************* This is relevant to you only if in a state that requires your sales employee to be licensed. A license requirement for a sales person may be treated differently than a requirement that a licensed alarm company register or certify its employees, including its sales people. Some states require a sales person to be licensed as an alarm sales person. Other states require that the licensed alarm company only employ a sales person who has been registered with the state and approved for employment. Generally failure to comply with a registration requirement or an employee license require will constitute a violation of the company’s alarm license, resulting in fine and potentially suspension or revocation of the alarm license. Engaging in unlicensed activity may constitute a violation or crime. But what about all the contracts this sales person signs up, sometimes signing on behalf of the company. And, sometimes the name and id or license number of the employee is separately required on the contract. The license law could very well specify that unlicensed activity voids a contract with a customer. But there are other laws on the books that might also come into play. In New York for example if we sue a consumer [residential alarm customer] the Complaint must allege the license number of the alarm company and failure to allege the license is is fatal to the Complaint; in other words the case will be dismissed. This would be a problem when a particular customer falls into default and then challenges the collection action; but what about an issue that would affect all your contracts, and certainly the consumer contracts? A buyer of your account contracts is going to want a representation and warranty that all contracts being purchased were executed properly and all contracts are enforceable. Well, that obviously may not be true if your company isn’t licensed or your employees aren’t licensed [when required to be]. Folks, this shouldn’t be that complicated. Sometimes I feel like I am fielding a question like “what happens if I just decide to ram my car into the rear end of another car sitting at a red light”. Well, not a very good decision. Why risk not getting licensed and making sure your employees are all in compliance with the licensing law? K&K offers licensing assistance, letting you know when you need to be licensed, which license and also assists finding you someone who can qualify for that license and hold it on behalf of your company. Call our License Coordinator Eileen Wagda at 516 747 6700 x 312 or EWadga@Kirschenbaumesq.com. Your license holder should know license requirements and is responsible to tell you [owner or manager who isn’t licensed] what needs to be done. Sure, as company owner you can decide to risk non-compliance, but the license holder should be smart enough to tell you adios, because it’s his license on the line. ***************************** STANDARD FORM AGREEMENTS: To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** 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. *********************** ALARM ARTICLES: You can always read our Articles on our website at www.kirschenbaumesq.com/page/alarm-articles updated daily ************************* THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily. https://www.kirschenbaumesq.com/page/alarm-exchange ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our email list / Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. ************************** 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
