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More on alarm dealer can still get in trouble even with K&K Contract
August 24,  2023
More on alarm dealer can still get in trouble even with K&K Contract from article on July 28, 2023
          Would like to hear your thoughts on the fact that the Sales person was not properly licensed. What does that do to the contract?
          This is relevant to you only if in a state that requires your sales employee to be licensed.  A license requirement for a sales person may be treated differently than a requirement that a licensed alarm company register or certify its employees, including its sales people.
          Some states require a sales person to be licensed as an alarm sales person.  Other states require that the licensed alarm company only employ a sales person who has been registered with the state and approved for employment. Generally failure to comply with a registration requirement or an employee license require will constitute a violation of the company’s alarm license, resulting in fine and potentially suspension or revocation of the alarm license.  Engaging in unlicensed activity may constitute a violation or crime.
          But what about all the contracts this sales person signs up, sometimes signing on behalf of the company.  And, sometimes the name and id or license number of the employee is separately required on the contract. The license law could very well specify that unlicensed activity voids a contract with a customer.
          But there are other laws on the books that might also come into play.  In New York for example if we sue a consumer [residential alarm customer] the Complaint must allege the license number of the alarm company and failure to allege the license is is fatal to the Complaint; in other words the case will be dismissed.  This would be a problem when a particular customer falls into default and then challenges the collection action; but what about an issue that would affect all your contracts, and certainly the consumer contracts? 
          A buyer of your account contracts is going to want a representation and warranty that all contracts being purchased were executed properly and all contracts are enforceable.  Well, that obviously may not be true if your company isn’t licensed or your employees aren’t licensed [when required to be]. 
          Folks, this shouldn’t be that complicated.  Sometimes I feel like I am fielding a question like “what happens if I just decide to ram my car into the rear end of another car sitting at a red light”.  Well, not a very good decision.  Why risk not getting licensed and making sure your employees are all in compliance with the licensing law?
          K&K offers licensing assistance, letting you know when you need to be licensed, which license and also assists finding you someone who can qualify for that license and hold it on behalf of your company. Call our License Coordinator Eileen Wagda at 516 747 6700 x 312 or Your license holder should know license requirements and is responsible to tell you [owner or manager who isn’t licensed] what needs to be done.  Sure, as company owner you can decide to risk non-compliance, but the license holder should be smart enough to tell you adios, because it’s his license on the line.    

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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