Wow, this looks like a bullet I've been lucky enough to dodge so far. I make it a matter of policy to alert a customer of any violations that I find, and tell the customer that I "cannot" perform service unless that issue is first resolved. I try to do this while in the presence of a third party, but it doesn't always work out that way.

I think it may be a good idea to include a new disclaimer in my contracts from now on. Time to have lunch with my attorney.

Thanks for the tip, and good luck out there!