This website requires certain cookies to work and uses other cookies to help you have the best experience. By visiting this website, certain cookies have already been set, which you may delete and block. By closing this message or continuing to use our site, you agree to the use of cookies. Visit our updated privacy and cookie policy to learn more.
This Website Uses Cookies
By closing this message or continuing to use our site, you agree to our cookie policy. Learn More
This website requires certain cookies to work and uses other cookies to help you have the best experience. By visiting this website, certain cookies have already been set, which you may delete and block. By closing this message or continuing to use our site, you agree to the use of cookies. Visit our updated privacy and cookie policy to learn more.
SDMmag logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
SDMmag logo
  • Home
  • Magazine
    • Current Issue
    • Digital Editions
    • Archives
    • Monitoring Today
    • Professional Security Canada
  • Products
  • Newswire
  • Exclusives
    • SDM 100 Report
    • Top Systems Integrators Report
    • Annual Industry Forecast
    • State of the Market Series
    • Dealer of the Year
    • Systems Integrator of the Year
    • TMA Monitoring Center Excellence Awards
    • Blog
    • PSA Leadership Institute
  • Topics
    • Trends & Industry Issues
    • Video Solutions
    • Access Control & Identification
    • Smart Home
    • More SDM Topics
  • Columns
    • Editor's Angle
    • 5-Minute Tech Quiz
    • Security & the Law
    • Security Networkings
    • Digital Shuffle
    • Technology @ Work
    • Insider News & Business
    • Today's Systems Integrator
    • Marketing Madmen
    • Sales Stars
    • Smart Insights
  • Events
    • Industry Calendar
    • SDM 100 Gala @ ESX
    • Webinars
  • More
    • Videos
    • Podcasts
    • ISC West 2019
    • Photo Galleries
    • Newsletters
    • Classified Ads
    • SDM Store
    • White Papers
    • Sponsor Insights
    • More Resources
  • Directories
    • Buyers Guide
    • Take a Tour
    • Guide to Distributors
    • Guide to Central Stations & Monitoring
  • Contact
  • Advertise
Home » Does Signed Secuity Alarm Contract Absolve Deceptive Door Knocker?
Business Services & EducationSecurity & the LawSDM TopicsColumnsIntrusion Alarm

Does Signed Secuity Alarm Contract Absolve Deceptive Door Knocker?

Security & the Law Default
November 1, 2018
Lessing E. Gold
KEYWORDS security dealers / security systems
Reprints
No Comments

In a recent case in Texas, a jury convicted a defendant under the Texas deceptive business practices statute. The defendant appealed to the Appellate Court.

The state, in its complaint, alleged that the appellant unlawfully gave the impression to the complainant that an alarm system was the complainant’s current company, when it was actually the system of another company, and/or intentionally and recklessly misrepresented the price by telling the complainant that a new alarm installation was free when it required a new contract at additional cost. 

The elderly complainant had a home security system monitored by a company. There was a sign in front of her yard with the name of the company on it. The appellant was a door-to-door sales representative for a different monitoring company. On the day of the offense, the appellant rang the complainant’s doorbell. He pointed to the sign in the yard and said, “I’m here to update your security.”  He said that he would put a light on her sign and make it more visible from the street. He did not say what company he worked for.  He was not wearing a uniform, nametag, or anything to identify what company he worked for.  

Believing that the appellant worked for the present company that monitored her system, the complainant invited appellant into her home. He told her that installation of new features, such as wireless monitoring, would be “free.” Ultimately the complainant signed a five-year alarm monitoring agreement with the new company at a higher monthly cost than her previous service.  

A few days later the complainant cancelled the new contract. At the trial, the appellant contended that he did not represent that he was selling the complainant an alarm system from her current alarm company because, he never misrepresented for whom he worked, and she knew that she was changing her alarm service from her current company to another company when she executed the contract.  

The state contended that the statute criminalizes conduct both leading up to and during the completion of a business transaction.  Thus, the state contended that a deceptive business practice can be committed in all aspects of the transaction, and is not excused merely by a signature on a contract.  

The Appellate Court agreed with the position of the State Court in that the relevant inquiry does not focus on what the complainant knew at the time she signed the contract. Instead, it focuses on what appellant did —  what he represented — during the course of business.

The court said that a rational juror could have understood the statutory rule “representing” to include the appellant’s conduct and statement immediately after he initiated contact with the elderly complainant — pointing to her current sign and stating “I’m here to update your security.” A rational inference from this statement and conduct is that appellant was describing claimant’s current alarm company, although he was not.  

The court acknowledged that the state, at a minimum, had to prove that appellant acted recklessly. The penal code provides the standard as follows: A person acts recklessly, or is reckless, with respect to circumstances surrounding his conduct or the result of his conduct when he is aware of but consciously disregards a substantial and unjustifiable risk that the circumstances exist or the result will occur. The risk must be of such a nature and degree that its disregard constitutes a gross deviation from the standard of care that an ordinary person would exercise under all the circumstances as viewed from the actor’s standpoint.  

The state met its burden to show that the appellant made the false representation at least recklessly. The complainant did not learn that the appellant was selling an alarm system of another company until he presented the papers.     

Therefore the court affirmed the trial court’s judgment.


 

READERS ASK 

 

Q: We are an alarm company licensed to do business in State A. We have a subscriber doing business in multiple states. We have been asked by the subscriber to install a system in State B where we are not licensed. We will use a third party monitoring company to do the monitoring in State B and we have requested them to engage a subcontractor to actually do the installation of the new system in state B. We have instructed the monitoring company to make sure that the installation company is properly licensed in State B. Do we require a license in State B? 

 

A: If the third party monitoring company is properly licensed and the company they engage on your behalf to install the system is properly licensed, then the probability is you do not require a license. However, before giving you a definitive answer, I would check the law in State B where the activity is taking place to make sure they do not require the seller of the system who holds the contract with the subscriber to be licensed.

Subscribe to SDM Magazine

Recent Articles by Lessing Gold

Is Alarm Company Responsible for Plaintiff’s Flood Damage?

Can Insurance Company Recoup in Fire Sprinkler Case?

Does Monitoring Contract With Tenants Entitle Building Insurance Provider to Reimbursement?

Prominent Liability Clause Protects an Alarm Company That Failed to Respond

Burglar Alarm Responding Sheriff Causes Traffic Accident — Was he Liable?

Les-gold-dscf0001

Lessing E. Gold of Mitchell, Silberberg & Knupp is counsel to the California Alarm Association and a contributing legal columnist. He can be reached at sdm@bnpmedia.com.

Related Articles

Does Monitoring Contract With Tenants Entitle Building Insurance Provider to Reimbursement?

Does Gross Negligence Trump Contract?

What Does a Security Alarm Protect?

Does Limited Liability Protect Alarm Company?

Related Directories

MaxOut Technology

Resideo

You must login or register in order to post a comment.

Report Abusive Comment

Subscribe For Free!
  • Print & Digital Edition Subscriptions
  • SDM eNewsletter & Other eNews Alerts
  • Online Registration
  • Subscription Customer Service

More Videos

Sponsored Content What Is Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the SDM audience. All Sponsored Content is supplied by the advertising company. Interested in participating in our Sponsored Content section? Contact your local rep.

Close
Featureimage_900x550__ovl0jlkbbj__
Sponsored By
Schneider Electric

New Digital Load Management System Drives Productivity and Enables New Business Models

Motor starter selection and configuration has always been a labor-intensive task. To address this challenge, machine builders and system integrators must adopt new technologies that simplify motor starter selection, installation, configuration and maintenance.

Popular Stories

Dealer of the Year(2019)

SDM 2019 Dealer of the Year: CPI Security of Charlotte, NC

ACT365-ipad

3 Reasons You Should Be Offering Cloud-Based Access Control

Supreme Security Systems

Supreme Security Systems Acquires T&R Alarm Systems

STANLEY

STANLEY Security Partners With Indianapolis Colts to Honor Local ‘Security Champion’

GettyImages-1087183206

Whatever Happened to the Prediction of a Mass Extinction of Security Dealers?

SDM 2019 Top Systems Integrators Report

Events

January 1, 2030

Webinar Sponsorship Information

For webinar sponsorship information, visit www.bnpevents.com/webinars or email webinars@bnpmedia.com.

View All Submit An Event

Poll

Hiring Women in Security

Has your company made any efforts in the past year to specifically hire and/or promote women in managerial/executive positions? (Please select the best answer.)
View Results Poll Archive

Products

Contemporary Security Management, 4th Edition

Contemporary Security Management, 4th Edition

 Contemporary Security Management, 3rd Edition teaches security professionals how to operate an efficient security department and how to integrate smoothly with other groups inside and outside their own organizations. 

See More Products

SDM Magazine

_FC_SDM1219 cover 144x192

2019 December

Check out SDM Magazine’s December 2019 issue, featuring "CPI’s Key to Success Is Controlling ‘the Experience’ in-House", "Monitoring Services: The Cutting Edge", and much more.

Check back throughout the month for new content!

View More Create Account
  • Resources
    • List Rental
    • Online Exclusives
    • Industry Innovations
    • Partners
    • Privacy Policy
    • Survey And Sample
  • Want More
    • Subscribe
    • Connect

Copyright ©2019. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing