QUESTION:

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Dear Mr. Kirschenbaum,

    I enjoy reading your news letters.  They are very informative!

    I have a question.  We recently received a call from a potential client who want us to bid the installation of a CCTV [Lorux] System that her son purchased over the Internet.  We do not use that type of equipment and want to know what exposure we have...in terms of product liability as well as general liability?   Should we even bid this and expose ourselves to potential liabilities?  I just love manufacturers that sell products over the web to end users that don't know the first thing about the equipment and installation.

Charisse Allen

D E A Security Systems Co., Inc.

Belmont, CA  94002

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ANSWER:

    You actually have less exposure when installing subscriber selected and owned equipment, provided you use and fill out the contracts properly.  In this case you would be using a Sales Contract, upon which you would indicate that the subscriber has selected, purchased and owns the CCTV equipment and you are only installing it according to manufacturer's installation guidelines.  You would add that "Subscriber agrees to look exclusively to manufacturer for equipment failure unless caused by faulty installation in which case alarm co will repair or replace the damaged component." 

    Although there may arise a question if equipment failure was caused by you installation I think it reasonable for you to be responsible for the equipment if your installation rendered it inoperable.  The printed contract form may very well exculpate you from such liability, but this would be reasonable compromise and one that the subscriber may request.

     Once the installation is in you should sign the subscriber up with a Service Contract.

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WHY NEW CONTRACTS?

     Recent requests prompts the design and content of the new contracts.  FIRE ALARM MONITORING - for commercial fire alarm systems.  Covers monitoring only.  Makes provision for your installation and or programming of the transmitter.  This stand alone contract is priced at $375.  You would also use the Fire Alarm Sales, Fire Alarm Inspection and the Standard Service Contract.

     The "all in one" Fire Alarm Contract is for commercial subscribers.  It covers sale, installation, monitoring, service and inspection.  You select which of those services you will be providing.  This offers complete fire alarm services in a single contract.  This contract is priced at $850 and can be used in lieu of the separate contracts that would cost $1325 if purchased separately.

     These contracts will be discounted only today and tomorrow at special introductory price of $275 for the monitoring and $750 for the all in one fire.  Your on line order must be received by Friday, January 22, 2010 by 5 PM Eastern TIme.  Regular posted prices will apply thereafter.

     Order the contract forms at WWW.ALARMCONTRACTS.COM