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 white list ken@kirschenbaumesq.com ****************************** Panel dies right before auto-renewal January 26, 2022 ************************* Panel dies right before auto-renewal ************************* Ken I have a customer that is within 30 days of their contract being completed. This is a contract that I had prior to using Kirschenbaum Contracts and it’s in the state of Kentucky which does not have an auto renew law. The contract auto renews for 36 months at the completion of a 60 month term. The problem is their panel died today they did not execute a cancellation prior to the 60 day cancellation period. Based on the way the contract reads they on the hook for another 36 month term. What are your thoughts on it? Customer does not want to pay to replace the panel. They will not accept a free panel for a new contract and the customer does not want to pay for services they are not receiving. Anthony ****************************** Response ****************************** Because you are not using a Standard Form Agreement I don't know what you agreed to. Specifically I don't know if you agreed to replace non-operational equipment during the contract period. You indicate that the contract has self-renewed, though apparently the customer doesn't want to pay to fix the panel and doesn't want to pay for monitoring since the system is down. It could be that the customer is happy to let you disappear, which might be a good thing since this customer won't sign a proper up to date Residential All in One. We can hope for this outcome. Alternatively your customer could read the contract you signed, way back then, and figure out that you agreed to replace necessary parts and keep the system operational [if that's what it says]. Then the customer could let you know that they didn't cancel and neither did you, so you have to fix the system and continue monitoring. If you don't they may hire someone else to fix it and monitor the system and look to you to pay for the repair and the difference between what they would be paying you and what they are now paying their new alarm company. Though not a likely scenario, you asked. One advantage of using the Standard Form Agreements is that I'll know what you agreed to and can offer quick advice as issues arise. This especially applies to you because you're a Concierge Client. For others, I recommend using the Standard Form Agreements and joining the Concierge Program [before we have to create a waiting list to get into the program - and we are getting close to that]. The second advantage to using the Standard Form Agreements is that K&K can represent you if you have a dispute because the contracts have an arbitration provision. The third advantage to the Standard Form Agreements is that you're not likely to be between a rock and hard place because we've considered almost all scenarios and protected you. For example, in your case there would be no doubt that the customer had the obligation to repair or replace the panel, and have to continue with the contract into the renewal term [though the renewal term would likely be month to month, which is what we recommend in all states, including those with no automatic renewal law currently on the books]. ************************ 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
