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Re: Automatic Renewal Prohibited
On Thu, 16 Nov 2006 14:47:57 -0500, "Robert L Bass"
<robertbass1@xxxxxxxxxxx> wrote:
>On Ken Kirschenbaum's website there is a page with state by state information on this subject. I thought some here might be
>interested. Here's the link:
>https://www.kirschenbaumesq.com/autorenewal.htm
>
>In brief: Arkansas, Connecticut, Illinois, New York and Utah have case appellate decisions proscribing automatic renewal under
>certain circumstances.
I'm curious as to what legally happens once the contract expires.
Does the relationship between the alarmco and subscriber legally cease
to exist? who is responsible for initiating a new contract? If
something goes wrong after the contract expires like a failure to
dispatch resulting in a death, does the alarmco bear no responsibility
since there was no contract in place at the time? If the alarmco
continues billing and the subscriber continues paying, does this imply
a voluntary extention of the contract. It makes since to me that if a
subscriber wants to cancel service on a system they own, there should
be no reason why an alarmco should be able to hold them to a contract.
However, automatic renewals clauses ensure the conditions of the
service being provided are legally defined regardless of the terms of
the contract. If the system is being leased, the customer would be
bound by the terms of the lease agreement regardless of services being
provided.
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