Business Practices and Locksmith Law Flashcards

What is the ALOA Code of Ethics requirement regarding servicing locks for customers?

Answer: Locksmiths must only provide services to authorized persons and must not use their skills for illegal purposes

ALOA's Code of Ethics requires members to verify customer authorization and never use their technical skills to assist in illegal activities such as unauthorized entry.

Which states require locksmiths to hold a state-issued license to legally perform locksmith services?

Answer: Several states including Alabama, California, Connecticut, Illinois, New Jersey, North Carolina, Oklahoma, Tennessee, Texas, and Virginia have locksmith licensing laws

As of current US law, a subset of states have enacted locksmith licensing requirements with varying exam, background check, and continuing education requirements.

What is a 'surety bond' and why do locksmiths often carry one?

Answer: A financial guarantee that protects customers if the locksmith causes damage or fails to perform contracted work, providing recourse for losses

A surety bond is a three-party agreement where the bonding company guarantees the locksmith's performance, protecting customers from financial loss due to negligence or misconduct.

What does 'general liability insurance' protect a locksmith business from?

Answer: Third-party bodily injury and property damage claims arising from the locksmith's business operations

General liability insurance covers claims from third parties (customers, bystanders) for bodily injury or property damage caused by the locksmith's business activities.

Which ALOA professional designation is the entry-level certification requiring passage of a written exam on basic locksmithing knowledge?

Answer: Registered Locksmith (RL)

Registered Locksmith (RL) is the entry-level ALOA designation, requiring passage of a written exam demonstrating basic knowledge of locks, keys, and security hardware.

What is the purpose of a 'work authorization form' used by professional locksmiths before performing services?

Answer: To document the customer's authorization, describe the work to be performed, and provide written consent protecting the locksmith from liability claims

A work authorization form documents that the customer authorized the specific services, provides a written record of the work scope, and establishes consent protecting the locksmith against unauthorized-access claims.