Should central station monitor dealer with no cancellation notice in contract / financial webinars start tomorrow - see below September 14, 2020
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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 white list ken@kirschenbaumesq.com ****************************** Should central station monitor dealer with no cancellation notice in contract / financial webinars start tomorrow - see below September 14, 2020 *********************** Should central station monitor dealer with no cancellation notice in contract ************************ An alarm dealer contends he doesn't need the 3 day notice of cancellation in his contract because he doesn't do door to door sales. That is accurate, in most states, if not all states. The real issue is whether the dealer is in fact engaging in door to door sales, or telemarketing sales. It's difficult to accept that there are no door to door sales. The dealer would have to have a brick and mortar retail store where the customers come, see the products and services, and sign while there in the store. I don't know many alarm dealers who conduct business that way. Telemarketing is another issue, but here the states have different provisions. Some deal with solicitation and other with any part of the sale conducted by telephone. Telephone marketing, by the way, requires a 7 day right to cancel, though there may not be a notice requirement in the contract which is required for the door to door right to cancel. Another issue, whether a CENTRAL STATION needs to be concerned with the dealer's failure to include the 3 day notice of cancellation in its contract. I think a Central Station can accept the monitoring if all that's missing is the 3 day notice of cancellation. Generally the penalty for failure to include the 3 day notice is that the consumer can rescind the contract. I think that means cancel at any time; probably demand return of all money paid, though acceptance of services, monitoring services in this case, may have to be paid for. We need to look at the issue in the context it may arise, a claim against Central Station. The dealer is required to indemnify and insure the Central Station, so it's not going to be the dealer making the claim against the Central Station. The subscriber who suffers a loss will have to begin the foundation of the case with establishing a duty to monitor, and that's going to require an allegation that there was an alarm contract, the dealer's contract, that required monitoring. It's highly unlikely a subscriber could include a claim to rescind the contract at the same time claiming negligence or breach of that agreement by the dealer or its subcontractor. I don't think the contract would be ignored just because there was no cancellation notice in the context of a subscriber claim for loss. My guess is that a dealer who doesn’t have the 3 day notice of cancellation in the residential contract has left out a lot more than the cancellation notice. New contracts would be the answer or the dealer should be required to use the Central Station’s three party agreement. Also, the Central Station will want to get the additional insured endorsement on the dealer’s policy and maybe require additional coverage levels because of the added risk. The Central Station won’t have to worry about the rescission right because the consumer didn’t pay the Central Station. There are too many alarm companies that haven’t updated their contracts to the Standard Form Agreements. What are you waiting for?A fire loss with damages well in excess of your insurance coverage? A notice from your central station that it won’t continue monitoring your accounts? A notice from your E&O carrier that your policy is being canceled or your premium is going to triple? A due diligence performance by a potential buyer who runs, not walks, out the door? Sorry to keep quoting the eloquent democratic candidate, but, “come on man, are you joking?” Update your contracts today; they are equally valid for democrats and republicans. ******************** WEBINAR SCHEDULE AND REGISTRATION ********************* Webinar Series: Financing for the alarm industry When: September 15, 2020 12 PM ET half hour presentation and then Q&A Topic Details: How to Use Lending to Grow Your Business - A general overview of how an alarm dealer can use lending to grow, such as making a acquisitions, buying out a partner, fueling organic growth, consolidating debt, etc. Presented by: Jim Wooster and Jim Wooster Jr. Alarm Financial Services, Inc 866-204-9350 ext 1200 www.alarmfunding.com Hosted by: Ken Kirschenbaum Who should attend: company owners and CFOs Register: https://attendee.gotowebinar.com/register/5986254083373814030 This webinar will be recorded and available at https://www.kirschenbaumesq.com/page/alarm-webinars ****************** Webinar Series: Financing for the alarm industry When: September 17, 2020 12 PM ET half hour presentation and then Q&A Topic Details: How to Finance an Acquisition - A more specific drill-down on this method of growing by purchasing the accounts of another alarm company Presented by: Jim Wooster and Jim Wooster Jr. Alarm Financial Services, Inc 866-204-9350 ext 1200 www.alarmfunding.com Hosted by: Ken Kirschenbaum Who should attend: company owners and CFOs Register: https://attendee.gotowebinar.com/register/4228983813536754190 This webinar will be recorded and available at https://www.kirschenbaumesq.com/page/alarm-webinars ********************** Webinar Series: Financing for the alarm industry When: September 22, 2020 12 PM ET half hour presentation and then Q&A Topic Details: How to Finance Organic Growth - A more specific drill-down on the many ways loan financing can help an alarm dealer grown organically through covering creation costs, enabling leasing, expansion, etc. Presented by: Jim Wooster and Jim Wooster Jr. Alarm Financial Services, Inc 866-204-9350 ext 1200 www.alarmfunding.com Hosted by: Ken Kirschenbaum Who should attend: company owners and CFOs Register: https://attendee.gotowebinar.com/register/3255545487536556558 This webinar will be recorded and available at https://www.kirschenbaumesq.com/page/alarm-webinars ********************* To order up to dateStandard 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. *********************** NOTICE: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles *********************** THE ALARM EXCHANGE
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