Re: Automatic Renewal Prohibited

["Bob Worthy" <securinc@xxxxxxxxxxxxx>]

"Robert L Bass" <robertbass1@xxxxxxxxxxx> wrote in message
news:QsKdnYVD47KepsDYnZ2dnUVZ_smdnZ2d@xxxxxxxxxxxxxx
> > I'm curious as to what legally happens once
> > the contract expires.
>
> That depends on where the protected premises is.  Different states have
different laws.
>
> > Does the relationship between the alarmco
> > and subscriber legally cease to exist?
>
> Usually not, but the naturew of the relationship is modified.  If the
homeowner continues to make payments and the alarm company
> continues to provide services, most if not all of the provisions of the
contract remain in effect.  By continuing to pay the
> homeowner can be said to have constructively assented to the terms unless
he has made a counter offer or made some demand for a
> change of terms.  For example, if the client sends a letter before the
cancellation date stating that he does not wish to renew the
> contract, but he continues to make payments he has cancelled only the
automatic renewal.  By making those payments he has assented
> to the rest of the terms.
>
> > who is responsible for initiating a new contract?
>
> Either party can initiate a new contract though usually it is done by the
alarm company.  The law doesn't care who takes the first
> step.
>
> > 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?
>
> That would depend on the rest of the facts.  If the two partied continue
paying and sevicing, then the alarm company could be
> liable, assuming that it failed to provide services for which it had been
paid.  Most well-written alarm monitoring contracts
> include limitation of liability and liquidated damages clauses.  If the
contract remained in effect at the time of the loss, then
> the terms of the contract would remain in effect, even if there was no
signing.
>
> Note that some states *require* an active assent by the client to enforce
automatic renewal.  In such locations, either the renewal
> alone might be voided or the entire contact might be null and void.  To be
certain how things woprk in your state you'd need to
> consult an attorney knowledgeable in alarm contract law.  You could also
try sending an email to Ken Kirschenbaum.  His email
> address is on his website, which I've referenced in a reent post.
>
> > If the alarmco continues billing and the subscriber
> > continues paying, does this imply a voluntary
> > extention of the contract...
>
> In most places, yes.
>
> > 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...
>
> Beyond the initial term of the agreement, they shouldn't unless the client
assents by signing or continuing to honor his obligations
> under the contract.
>
> > However, automatic renewals clauses ensure
> > the conditions of the service being provided
> > are legally defined regardless of the terms of
> > the contract...
>
> There's nothuing inherantly bad about automatic renewals.  Unfortunately,
some companies use them in an abusive manner.  One common
> trick is to require 60 or 90 days advance notice of cancellation.  The
only reason for such a long advance notice is that most
> people will forget t9 cancel until they receive another bill.  By then
they're stuvk for another one, two or sometimes even five
> years.
>
> > If the system is being leased, the customer
> > would be bound by the terms of the lease
> > agreement regardless of services being
> > provided.
>
> True, until the lease expires.  At that point the client should notify the
alarm company that he doesn't intend to renew.  Most of
> the time the alarm company will leave the system in place, hoping that the
client will change his mind later or that the next
> occupant will sign up for services.  If the client notifies and the alarm
company makes no effort to retrieve its hardware within a
> reasonable period, the homeowner can consider the alarm system his to keep
or dispose of as he pleases.  How long is "reasonable"
> varies by jurisdiction.

Take the advice of your attorney and your insurance carrier. Not what
someone posts here, especially when they are not in the trade. Their
opinions will not help you in court.