KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Comments on Does exculpatory clause continue /  More on Cellular issue
August 28, 2019
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Comments on Does exculpatory clause continue in contract renewal terms and after termination from article on August 23, 2019
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Ken,
            Another great article on contract provisions and liability possibilities.
            I negotiate my three party monitoring contracts as well as my dealers contracts (free of charge) every week with potential new dealer customers at my dealers request. Recently the majority are property management companies or government entities. In fact one Midwest State's attorney commented that USA was the only company that they have had a fruitful discussion (we both won) and mutually agreed contract with. USA and our dealer are protected and we now are the preferred service providers, our local dealer is reaping the benefits.
            But back to your article and term limited contracts. These are the preferred manner for both property managers and government entities because of management contracts which are year to year and for governments, budget approvals.
            The simple answer is just this simple, allow cancellation at anytime after the one year or any reason.
            This allows for the terms and conditions to continue without question just in case either party forgets to seek renewal or cancellation.
            I can't repeat myself enough, no contract means no service, no matter what, as a claims manager and company owner. 
Bart A. Didden, Executive Claims Manager 
Security America Reassurance Group, Inc. - SARG 
877-872-1266 
bdidden@securityamericarrg.com 
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Ken,
            You are absolutely right.  One of the terms that clients object to most frequently is the auto renewal.  We refuse to strike this completely but instead indicated that the contract shall renew itself monthly with the same conditions.  The client generally wants to avoid being tied into another substantial term.  A monthly term after the initial term is not scary so they generally accept and my belief is that our exculpatory clause and all others remain in effect without us chasing down a new contract, or worse forgetting to and being exposed. 
  Regards,
Kevin Buckland, General Manager
True Steel Security
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Ken, 
            Sometimes, after having their standard form agreement executed and having provided the required 3-day written notices to a residential subscriber, a dealer might begin to install and/or to provide alarm service during that 3-day right-to-cancel period, with the dealer assuming the risk, of course, that the subscriber might cancel during that window of time, whereupon the dealer must then undo his work, remove equipment, and refund any monies paid. This is a simple business decision on the dealer's part, and occurs often, I have observed. 
            BUT, what if there were to be a loss, perhaps a substantial loss, during the 3-day period, whereupon the subscriber cancels the agreement. Where does that leave the dealer?... they did the work, there was a loss, the sub cancelled the agreement, dealer removes any installed equipment, but then the sub makes a claim for the loss... 
            So, to address these issues, our form agreements provide, in these two places, as follows: 
            In the Arbitration Paragraph: 
This agreement to arbitrate shall survive any cancellation, non-renewal, default and/or termination of this Agreement.
            And elsewhere:
SURVIVING PROVISIONS: BENEFITING PARTIES: PRE-EXISTING AGREEMENTS: Subscriber and each SYSTEM USER (see Paragraph xx) acknowledge and agree that: 
(a) this Agreement, and particularly Paragraphs 36 through 49 (collectively herein: SURVIVING PROVISIONS) relating to Company's disclaimer of warranties, exemption from liability, even for its negligence, limitation of liability, right of indemnity, third party indemnification, waiver of subrogation rights, legal actions, and other matters, shall protect and inure to the benefit of each and all INDEMNIFIED PARTIES (see Paragraph xx); 
(b) the SURVIVING PROVISIONS shall survive any assignment, cancellation, non-renewal, default and/or termination of this Agreement, and; 
(c) any pre-existing agreement(s) Subscriber and/or SYSTEM USER may have with Company are deemed modified to include those SURVIVING PROVISIONS.
            Note that, as our Agreements continuously auto-renew, month-to-month, there is never an 'expiration', rather this is referred to as 'non-renewal'. 
            I'd be interested in learning how other dealers address these matters. 
Nick in California 
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More on Cellular issue from August 22, 2019
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Ken
            Just in case it makes anyone feel better about an antagonistic telephone service provider, they have refused to reconnect service since the 1970’s when I started in the business. Direct connect, PD line, a POTS it didn’t matter.  I used to think they didn’t understand how since they would jump at an alarm connect, an RJ31x block first, cut it out, and claim it was the problem. (And not tell anyone)  But the real issue is the word ‘demarcation’. A favorite of theirs. And I guess everyone needs a boundary of responsibility.  Ours, in the security industry is to find a way to keep each customer hooked up. It has always been a problem with no easy answer.  
Zeke
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Ken,
            What everyone is overlooking, is that Honeywell/ADI were still selling GSM Radios in February and March of this year and were late to introduce LTE Radios including the Fire Communicator introduced  in June. It is safe to assume they were just trying to get rid of their inventory.
Ken Marcus
EIPS
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Ken
    A response to Eric from my previous email.
    I ordered FIOS and set up my WIRELESS ROUTER
    Not fiber optic or hardline (nor did I site Honeywell specifically).
    I just noted what the Tech said about the 2 choices for setting up my wireless devised through the new router. (choices were a 4g setting and a 5g setting)
Their suggestion was to use 5g setting for devises that did not travel far distances to the outside but needed speed. However, that I should set my cell phone to the 4G setting, instead of the 5G setting which may be faster speeds, but can not get signals through walls and floors.
    I made the connection why the older radios are having denigrated signal strength when they are replaced with newer units in the same location just switched out from 4G to 5G
DB 
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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