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 ****************************** Three day cancellation notice questions October 20 2022 ******************** Three day cancellation notice questions ********************* Ken The likelihood of us installing a system within 3 days of getting approval is almost zero. Are we still required to give the three day notice of cancellation? Jason ********************** Ken, As discussed in your forum, the 3 day notice of cancellation is meant to protect consumers from being pressured into signing a contract from in home salespeople knocking on doors. My question is, why do you recommend a 3 day cancellation notice when a potential customer reaches out to us by calling into the office to purchase a security system with a monitoring commitment over the phone. Duane ******************** Response ******************** The three day notice of cancellation is required in every state; it’s federal law and state law [I believe every state but if a state doesn’t have a law then the federal law applies]. It’s a cooling off period. If you’re not going to install until well after the three days from the contract execution why bother with the notice? The three days does not start when the contract is signed; it doesn’t start when you deliver the fully executed contract to the customer [a residential customer]; the three days start when you deliver the Three Day Notice of Cancellation. That date could be well after the job is finished. The customer can cancel the contract and demand that the premises be restored to status quo before the installation until three days after you give the required notice. When you don’t have to use the three day notice is a bit tricky. You have to consider more than what the law actually requires because when you go to sell your accounts you have one additional “AHJ” looking over your procedures and “qualified” contracts, and that’s the potential buyer of the accounts. If you routinely ignored the three day notice requirement many buyers won’t want to take the chance of buying the accounts and if you ignored the three day notice selectively then a buyer may want to exclude those accounts from the deal. One common exception to the three day notice is when the consumer comes to your place of business and buys the equipment and signs a contract. There is no exception for telephone sales, no matter who calls who. Unless you have a retail store where customers can come and pick up equipment, and you don’t do any installation [or visit the home] you should be using the three day notice. Part of the statutory compliance is right on the Standard Form Agreements just above the customer’s signature line. That notice, printed in statutory font and placement, advises that there is a three day period to cancel and refers to the Cancellation Form which you are also required to provide at time of contract execution [and too many of you still ignore]. K&K gives you the proper forms when you purchase the Residential All in One and any other residential contracts from us. ******************* 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