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 ****************************** 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 ********************** Comment on 3 day notice of cancellation and ADT’s early compliance October 4, 2022 ***************** Comment on 3 day notice of cancellation and ADT’s early compliance From article on September 22, 2022 ****************** Ken, For those who don't already know, the 3-day Consumer Notice of Right to Rescind is meant to protect consumers from unscrupulous door-to-door alarm salespeople. I heard of an instance many years ago where a door-to-door alarm salesman made a contractual sale, then got to work immediately, installing the system himself. It was finished and he was out the door before the husband got home, who was unaware and not pleased. That is just one example. When I worked at ADT (Corporate, not Dealer), (and the 3-day Notice of Right to Rescind was introduced) their residential salespeople were required to get this explained and signed at time of signing all residential agreements. Although ADT wasn't the cause of this new requirement, ADT complied because they do occasionally send their sales force(s) door-to-door. Again, the 3 day notice is made to entirely to protect the consumer, just in case they were bamboozled into an alarm sale by a slick-tongued door-knocker. I do recall one particular ADT customer who had an emergency situation and had to travel to another State on short notice. He could not wait out the 3 days, so we had him hand-write his intentions, a 'waiver' of sorts, had him sign and date it, and we kept it on file with his records. I don't recall the wording used, but it was approved by our upper management and we proceeded with the emergency install. Ken, I do believe a legally written waiver needs to be developed, for these exceptional situations. Cynthia Hart Retired Security Consultant ************************ Response ************************ Without doing any research or investigation I am comfortable saying that the alarm industry was not the reason for the 3 day notice of cancellation. I not sure the famous alarm door knockers were out and about when the 3 day cooling off was imposed, federally and then I every state. While the alarm industry pre-dates me entering the practice of law I seem to recall a few other industries that, my guess, may have been instrumental in the cooling off laws. These would include the infamous aluminum siding sales people [really men in those days exclusively I am sure] and the home improvement sales people. I don’t think I’ve heard any jokes about alarm sales people, but plenty about aluminum siding and home improvement sales people. Some states have codified the “emergency” exception. In at least one state the “emergency” request must be in writing, separate from the contract, in the homeowner’s handwriting, stating the emergency and waiving the 3 days. There are plenty alarm companies that sell the alarm system and install it the same or next day. They risk being required to remove the system, restore the property and return the money, and that option can be exercised any time by the homeowner [consumer] until they actually get the Notice of Cancellation form and 3 days expire. That’s why companies that don’t bother with the 3 day notice have difficulty, sometimes, with a potential buyer of the accounts when they find out that the selling alarm company routinely ignored the cancellation notice requirement. Another potential problem is the state Attorney General taking the position that the alarm company engaged in deceptive practices and now must offer all customer-consumers a right to cancel and refund. It’s easy enough to comply, even if you decide to do the work before the 3 days expires you should be giving the notice. I don’t believe the 3 days is stayed or extended just because you did the work during the cooling off period. If you do the work on day one the consumer can’t tell you to remove it on day four. A common question I get about the notice of cancellation is how many copies do you need to leave with the customer? Two. Why does K&K tell you to have the form in triplicate? So you can get a copy receipt at time of contract showing that you gave the consumer the cancellation form. When the contract is signed electronically the notice of cancellation is also electronic, in which case there is only the one electronic copy. ********************* To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** 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 ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* 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 / Email 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. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** 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
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