KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Comment on Subcontractor provision in the All in One Agreement / Life Time Warranty
April 22, 2020
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Comment on Subcontractor provision in the All in One Agreement from article on April 7, 2020
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Ken 
          To Anon, about the subcontracting services section on the “Commercial All In One” – if all you use as subs are only the central station and alarm.com, and IF you are using the central station agreement supplied by your central station and willing to give the customer the Alarm.com form, you can alter the Commercial All In One to “only identified sub’s as attached by exhibit” and here is my reason. 
          In my case, the USA Central Station subscriber agreement goes beyond many contract central station forms because many of the protective provisions say “Installer and USA”. We offer you an additional layer of protection in our standard form agreement, which of course is a Kirschenbaum Standard form. But then we go even beyond that by describing “third party suppliers” in the supply chain that is “beyond our control”. If you are using a central station that does not provide you with a form, based on the Kirschenbaum Standard and enhanced to include you, you are not with a service provider that cares about your long term viability. 
          I have seen many central stations that provide forms for the end-user to sign that does not offer any protective provisions for the alarm installer, the only thing that is worse is a central station that does not require the three party contract and does not require a Kirschenbaum Standard or like worded contract to be in place; everyone is playing Russian roulette with their viability to remain in business and not bankrupt.
          I will change hats for a moment, as a claims administrator if I had the thousand dollar deductible for every time an insured called me and started out by saying, “I have been in business for 20, 25, 30 even forty years and never been sued”, I would have a lot of money. It’s not If you will be sued, it’s just a matter of when.
Bart A. Didden
President
U.S.A. Central Station Alarm Corp.
Port Chester, NY
Milford, CT
St. Paul, MN
877-872-1266
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Response
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          There are a few issues that I am adamant about.
          Central stations must require their dealers to use proper contracts with their subscribers.  If a dealer doesn’t use a proper contract the central station should insist that they dealer get its own contract, a Kirschenbaum Contract ™ so there is no doubt about its effectiveness and value.  Only when a dealer won’t get its own contract [which is properly the single stupidest thing a dealer will do in its business] the central station can provide a Three Party Contract, which is a monitoring contract that protects the central station.  The Kirschenbaum Contract ™ Three Party Contract ® does offer some protection for the dealer, but it is not a dealer agreement and it’s written for and to protect the central station, first and foremost.  
          A dealer using a “monitoring contract” provided by its central station is on the wrong path headed off a cliff.  Either a lawsuit for a loss is going to do them in or when they want to sell they will come up with an empty pocket.  I just don’t how else to say it.  Get your contracts today, right here:  www.alarmcontracts.com  Call our Contract Administrator Eileen Wagda at 516 747 6700 x 312.  She has helped literally thousands of alarm companies select the right contracts for their use.  
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Comment on Victor Harding’s article on April 7, 2020 re lifetime warranties 
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 Ken
          Victor Harding is right about lifetime warranties, and if you were not so dismissive of my comments to YOU during YOUR webinar YOU would understand that LIFETIME=CONTRACT TERM and not a useful life time. The 5 to 10 dollars a month is the correct pricing range depending on the size of the system. 2 doors, one keypad and a motion, $5. Lager system, more exposure, more money.
          Don’t be so dismissive big shot.  
Bart A. Didden
President
U.S.A. Central Station Alarm Corp.
Port Chester, NY
Milford, CT
St. Paul, MN
877-872-1266
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Response
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          I certainly didn’t want to come off as dismissive when you presented your comments.  In fact, I gave your comments all the attention and thought they deserved.  It’s not my fault it only took seconds to reject the argument and idea.
          First of all, since when does Lifetime Warranty = contract term?  Does the contract define “lifetime” as the “term of the contract”.  That would almost be as sleazy as a “tail light” warranty; warranties until you see my truck leave your driveway.  
          We start with a Warranty on a sale of equipment which is usually linked to the warranty offered by the manufacturer.  The dealer needs to make sure that its warranty doesn’t go beyond, or too far beyond, the manufacturer’s warranty.  Warranties are generally 90 days for commercial and one year for residential in the All in One agreements.  The one year is typically required by law in many jurisdictions for residential buyers.  
          The Repair Service Plan supplants the warranty and essentially extends the warranty for the term of the agreement.  That, I guess, meets your definition of lifetime warranty.  But alarm companies wanted exclusions to the warranties and the Repair Service Plan.  The exclusion started with batteries, then lightening and electrical surges; of course damage, misuse or tampering.  As I recall the exclusion list eventually included obsolete or end of life equipment; equipment no longer supported by manufacturer or no longer available with no replacement option.  
          You should be mindful that in today’s world of electronics, end of life could be less than a year.  I bought a Sharp 80 inch TV, with a 5 year service plan.  The TV had problems less than 9 months after installed.  When I called on the service plan I was told that parts were no longer available and could select a new TV equal to the original purchase price.  Nine month and no parts.  This was a new model TV.  
          Sorry for bringing up a sore spot, but where’s my lifetime warranty on all the videofied cameras I had?  You and I are still alive.  
          Alarm electronics is developing as fast as the rest of the electronic world. Sure, alarm companies want to keep their customers.  What business doesn’t want a satisfied customer?  But making unreasonable promises, even worse, contracting to provide these unreasonable services, will have adverse financial consequences that outweigh the intended good-guy gesture.  When you have to replace cameras or panels which new equipment, updated with latest technology, and your subscriber expects it for free, you’re going to realize that the only LifeTime Warranty is death and taxes.
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Reaching K&K during the lockdown
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     During this crisis the most efficient way to reach our attorneys is via email.  You can also call and if not picked up, leave a message and your call will be returned promptly.
    Here are a few departments to contact directly:
alarm / security / pers / fire department:  Ken - Ken@Kirschenbaumesq.com or call and leave a message with return number at 516 747 6700 x 301
health care professionals:  Jennifer Kirschenbaum,Esq 516 747 6700 x 302; jennifer@kirschenbaumesq.com
Alarm contracts:
  Eileen Wagda 516 747 6700 x 312​
Alarm licensing:  Alison Gallup,Esq 516 747 6700 x 317  AGallup@Kirschenbaumesq.com; or Eileen Wagda, Licensing Administrator, 516 747 6700 x 312  EWagda@Kirschenbaumesq.com
Employment issues:  Kieran Bastible 516 747 6700 x 315  kbastible@kirschenbaumesq.com; or Jennifer Kirschenbaum,Esq
Concierge Alarm Clients have full access through our Concierge Program Coordinator, Stacy Spector, Esq  516 747 6700 x 304 or SSpector@Kirschenbaumesq.com 
Collections:  [courts are shut down at this time, so don't expect much progress.  We will however continue to prepare papers on our end so that we will be ready when the courts normalize]  Kathleen Lampert  516 747 6700 x 319  KLampert@Kirschenbaumesq.com
Pending litigation:  Caroline Wallet,Esq  CWallett@Kirschenbaumesq.com  516 747 6700 x 305 and Maureen Biel,Esq 516 747 6700 x 303  MBeil@Kirschenbaumesq,com
Bankruptcy and debt collection issues:  Steve Sheinwald,Esq  516 747 6700 x 309 SSheinwald@Kirschenbaumesq.com or Scott Dillon,Esq  516 747 6700 x 318

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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.
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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