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Three day cancellation notice questions  
October 20 2022
Three day cancellation notice questions 
          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?
          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.
          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. 

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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