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WARRANTY ISSUE 
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Ken,
    We use HONEYWELL as our main source of control panels and other devices related to a security system. When our local distributor has a sale on a particular product, we sometimes purchase a larger quantity of these devices, for the savings. Sometimes the demand for the item  becomes low and a few may sit on the shelf for 45 days or more. After this shelf time, they may be selected in a job. 
    The device is installed and discovered to be bad out of the box. We return it to HONEYWELL and it is replaced under their warranty. The device is replaced and returned to us, only there is now an “R” on the box indicating the item was refurbished.     We bought it as new, but now with the refurbishment tag, I don’t think we can sell it as new. Some here disagree with me but I do not want to open us up to possible problems down the road.
    Is there something I could create in writing that would protect us? I believe that we could sell the items if we notified the client that the equipment is refurbished and as good as new. We can even offer to extend the warranty to match that of new equipment as a show of faith in HONEYWELL repairs
    I don’t want to wave a red flag here and make something out of nothing but the whole situation causes me to wonder. There must be other dealers out there with similar problems. What do they do?    
Jim
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ANSWER
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    Yes there is something you should do, something you should have [and may have already] done - and that is use the Standard Form All in One forms.
    The manufacturer's warranty runs to the end user.  The end user gets the manufacturer warranty and typically any warranty you offer, which is usually limited to what the manufacturer offers and often refers to the manufacturer's warranty as the actual warranty that you offer.  
    The manufacturer's warranty doesn't start until you install the system and the end user registers the warranty.  Your contract should state that you reverse the right to use reconditioned parts for repair or replacement.  Once installed you can replace with reconditioned parts.  That doesn't mean that you should be installing defective equipment,  but you've have to know it's defective before installation, which is not the case in your scenario.
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CANCELLATION LETTER
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Ken,
    Do you have a standard letter to send to (former) customers who have quit paying for their services? 
Thank you,
Greg 
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ANSWER
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    We don't provide a standard cancellation letter but I will be happy to review any that you compose.  The key with a cancellation letter is be sure to cancel at a specific date and time, and be sure that you do actually cancel at that time.  Also, do not give an option to cure in your letter.  Option to cure belong in pre cancellation letters, not the cancellation letter.
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HOLDING PAYCHECK FROM SEPT 13 2014 ARTICLE
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Ken,
    Besides the wealth of knowledge you impart, your sarcastic wit is much appreciated.
    So, I will not hold back a paycheck when an employee steals from me. No problem. However, the idea if having a police report filed when they pickup their last paycheck does sound good.
    Is that ok or am I asking for trouble?
Anon
Florida
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RESPONSE
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    You can file a police report, but I don't think you should threaten to file one; just file it when you're ready.
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Ken, 
    I think the employee issue is different state to state. Of course this statement from Colorado is for a termination situation.
    Permissible Deductions Upon Termination
    Deduction for the amount of money or the value of property that the employee failed to properly pay or return to the employer in the case where a terminated employee was entrusted during his or her employment with the collection, disbursement, or handling of such money or property. In this instance the employer shall have 10 calendar days after the termination of employment to audit and adjust the accounts and property value of any items entrusted to the employee before the employee's wages or compensation shall be paid in accordance with C.R.S. 8-4-109.
Keith
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RESPONSE FROM JUDGE RUTH KRAFT  https://www.kirschenbaumesq.com/page/ruth-b-kraft
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    Yes but this isn't the whole story. If an employer charges back, the employee can go into an administrative proceeding under the 2014 changes and raise all sorts of other wage/hour issues.  An employer who thinks that taking the deductions is a home run would be foolish.  Additionally, there would have to be an underlying agreement between the parties as to consequences and you can bet that, under FLSA, these will be scrutinized for fairness, opportunity to negotiate in good faith, adhesion, etc.
    Another issue is whether employer reported the missing items to law enforcement. If not, proving that the deduction was appropriate will be more difficult in the administrative proceeding.  
    Finally, Keith sent only one provision which must be read in conjunction with the rest. Also it can't violate the FLSA.
Judge Ruth Kraft

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                                  Webinar Anouncement - no charge to attend
                                        
Title: Learn how to design sales presentations using tablets and computers.

When:  October 8, 2014  12 noon to 1 PM EST.  Sign in on your computer and dial in to participate.  Register here (space limited so register now):  https://attendee.gotowebinar.com/register/2478859221657647105

Description:    This webinar will introduce you to sales techniques and tools using tablets and computers to do sales presentations.  Puffington will customize your sales tools utilizing our templates and proven sales presentations designed specifically for the alarm / security industry.

Presenter:  Luke Goetting  Luke@Puffingston.com;  312-620-0704  Puffingston is listed on The Alarm Exchange under Technology that increases or preserves your RMR.

Who should attend:   Alarm company owners and sales managers and sales personnel
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TO SUBMIT QUESTIONS OR COMMENTS REPLY TO THIS EMAIL OR EMAIL Ken@Kirschenbaumesq.com.  Most comments and questions get circulated.

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                                                           Speaking Engagements


If you would like to schedule a free live video/webinar presentation for your association meeting or event contact Eileen Wagda at 516 747 6700 x 312.

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Texas Burglar and Fire Alarm Association.  October 1 - 4, 2014,  annual convention at San Luis Resort Spa & Conference Center, Galveston, TX.  Register here:  http://tbfaa.org/tbfaa-2014-convention-trade-show-attendee-registration/
For more info contact Debi at 281-859-4569.  Brad Shipp, Executive Director
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Alabama Alarm Association.  AAA's Fall Meeting and Trade Show - October 21, 2014 from 3 to 5 PM at DoubleTree Hotel 808 South 20th Street Birmingham, AL 35205  for more info contact AAA Executive Director: director@alabamaalarm.org  (205) 933-9000 

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