TERMS OF SALE
1. Buyer’s Acceptance of Seller’s Terms and Conditions
Any order accepted by Warren F. Fernsler dba FERNCO METAL PRODUCTS (SELLER)
is accepted with the understanding that BUYER assents to the terms and conditions
set forth in this QUOTATION, regardless of the form or terms of BUYER’s order.
This document constitutes the terms of agreement in their entirety between BUYER
and SELLER with respect to any order BUYER places with SELLER. Any additional or
different terms stated in any purchase order or other document which BUYER presents
to SELLER shall be considered material alterations, will be of no binding effect
and are hereby objected to and rejected. No course of dealing, usage of trade or
course of performance will be relevant to, supplement or explain any terms used
herein, unless expressly agreed otherwise in writing by SELLER.
2. Quotations
Unless previously withdrawn, SELLER’s QUOTATION is open for acceptance within the
period stated therein or when no period is stated, within 30 days from the date of SELLER’s QUOTATION.
3. Products
All descriptions and illustrations contained in SELLER’s literature, price lists
and advertisements and all specifications, drawings and particulars of weights and
dimensions contained therein submitted with any quotation to BUYER or otherwise
communicated to BUYER are intended merely to present a general idea of PRODUCTS
described therein and nothing contained in any of them shall form any part of the
contract unless otherwise stated in SELLER’s QUOTATION. PRODUCTS include, but are
not limited to, manufactured sub-assemblies and products. Any changes in product
specifications or quality requirements, and any consequent price changes which are
mutually agreed to in writing by SELLER and BUYER, shall become part of the contract
between the parties and are incorporated herein by this reference. Experimental work
performed at BUYER’s request, including but not limited to sketches, drawings, models
and engineering, shall be charged at SELLER’s current rates.
4. Price
All prices are subject to increases equal to any additional costs incurred by SELLER
as a result of any changes in laws, regulations or orders or raw material price increases.
Unless otherwise specified in SELLER’s QUOTATION the price includes crate fees and the cost
of delivery of PRODUCTS and all federal, state, or other taxes, and excludes duties or other
import / export fees levied on the PRODUCTS. Such taxes, where SELLER is required by law to
collect them, whether designated as sales tax, use tax, gross receipts tax, etc., will be
included in the SELLER’s QUOTATION based on the law in effect at the time of delivery unless
BUYER furnishes SELLER with a proper tax exemption certificate. BUYER agrees to reimburse
SELLER for any such taxes, duties and fees which SELLER or its suppliers are required to pay.
BUYER agrees to reimburse SELLER for any additional costs attributed to changes in the
specifications, directions, or design of the PRODUCTS furnished hereunder which are
requested by BUYER. SELLER will issue a supplementary quotation to BUYER covering such
changes and will not proceed with their implementation prior to receiving BUYER approval.
5. Variation, Delay and Cancellation
Lead times and delivery dates may vary depending on many circumstances. Stated delivery
dates are SELLER’s estimate of the time required to produce BUYER’s order. SELLER reserves
the right to re-adjust shipment schedules. Except for a cancellation resulting from a default
by SELLER, BUYER may not cancel any order without SELLER’s prior written consent. In such
event, BUYER shall pay SELLER the contract price for all PRODUCTS which have been completed
by SELLER prior to termination and shall reimburse SELLER for SELLER’s expenses for labor,
material, unamortized tooling, overhead and any other commitments made and expenses
incurred by SELLER to date of cancellation for PRODUCTS not yet produced, in accordance
with SELLER’s standard charges therefor. Split deliveries may not be canceled if SELLER
has already produced the PRODUCTS and they are awaiting delivery. No cancellation by BUYER
for a default by SELLER shall be effective until SELLER has failed for 30 days from the date
it receives written notice of a default to cure such default to BUYER’s reasonable satisfaction.
SELLER may cancel any order in whole or in part if: (i) BUYER breaches any term or condition
herein; (ii) any material representation made by BUYER to SELLER proves to be false or misleading;
(iii) BUYER is insolvent; (iv) a case naming BUYER as “debtor” is commenced under any chapter
of the United States Bankruptcy Code; (v) BUYER makes an assignment for the benefit of creditors;
(vi) a receiver or trustee is appointed for BUYER’s property; or (vii) a formal or informal
proceeding for the dissolution, liquidation or conclusion of affairs of BUYER is commenced.
In the event of any cancellation by SELLER for any of the foregoing reasons, SELLER shall
have the rights, in addition to its other rights, to (a) refuse to deliver PRODUCTS and/or
perform hereunder, and (b) be reimbursed by BUYER for SELLER’s expenses for labor, material
and overhead incurred by SELLER to date of cancellation, in accordance with SELLER’s
standard charges therefor.
6. Payment
Terms of payment shall be as specified in the QUOTATION and, unless otherwise agreed,
payment shall be made within 30 days from the date of invoice. No discounts shall be
provided. Late payments shall accrue interest at the rate of one and one half percent
(1.5 %) per month, or the highest interest rate allowable by applicable law, whichever
is lower. BUYER shall pay all of SELLER’s costs and expenses (including reasonable
collection agency and attorney’s fees) to enforce and preserve SELLER’s right to collect
all amounts payable by BUYER to SELLER. In addition, in the event that BUYER becomes
delinquent in the payment of any sum due to SELLER, SELLER shall have the right to suspend
performance under any ORDERS until such delinquency is corrected. Partial shipments made
under any ORDER shall be treated as a separate transaction and payment thereof shall be
made accordingly. In the event of any default by BUYER, SELLER may decline to make further
shipments without in any way affecting its rights under such ORDER or any other ORDERS
or agreements between SELLER and BUYER.
7. Pre-delivery Inspection and Tests
All PRODUCTS supplied pursuant to the ORDER will be subjected to SELLER’s standard inspection
and test procedures prior to shipment together with any additional tests and / or inspection
identified in SELLER’s QUOTATION. Should BUYER require any additional testing or inspection,
or to be present at SELLER’s standard testing, such attendance and any additional testing
required by BUYER’s then defined requirements will constitute a change to the ORDER and all
additional costs will be payable by BUYER.
8. Delivery
Unless otherwise stated in SELLER’s QUOTATION, delivery dates are estimates only and are based,
among other things, on the timely receipt of full payment from BUYER. SELLER shall not be liable
for any loss, liability, damages (whether direct, indirect or consequential) or other obligations
because of any delay or failure to deliver all or any part of any ORDER for any reason, including,
without limitation, SELLER’s active or passive negligence or any cause beyond SELLER’s control.
The SELLER shall be entitled to deliver the PRODUCTS in one or more consignments unless otherwise
expressly agreed. Unless PRODUCTS are to be picked up by BUYER or his agent at SELLER’s
manufacturing facility, PRODUCTS are sold on a freight pre-paid basis; SELLER will pay the carrier
for actual freight invoiced, including any carrier-imposed surcharges applicable to the shipment,
and include that amount in the SELLER’s QUOTATION. SELLER shall not be liable for any loss resulting
from any violation of any requirements of any common carrier. Freight charges will not be adjusted
for any allowances or payments SELLER may receive from the carrier, including those for supply of
equipment, or performance of services. Unless otherwise specified in SELLER’s QUOTATION, BUYER
shall be responsible and assumes all risk for unloading the PRODUCTS at the point of delivery.
If SELLER does not receive sufficient delivery instructions to enable it to dispatch the PRODUCTS
within 14 days of notification to BUYER that the PRODUCTS are ready for dispatch, they shall be
deemed to have been delivered for payment purposes.
9. Storage
If any PRODUCTS are not shipped within 30 days after notification to BUYER that they are ready
for dispatch, for any reason beyond SELLER’s reasonable control, including BUYER’s failure to
give shipping instructions or make full payment, SELLER may store such PRODUCTS at BUYER’s risk
in a warehouse or storage facility or yard or at SELLER’s facility and BUYER shall pay all
handling, transportation and storage costs at the prevailing commercial rates. If SELLER has
agreed to store PRODUCTS and these PRODUCTS are not withdrawn by BUYER within 6 months, SELLER
shall have the right to dispose of said PRODUCTS as it sees fit or charge BUYER for continued
storage.
10. Passing Of Risk And Property
Risk of loss, responsibility for, and title to all PRODUCTS sold hereunder shall pass to BUYER
upon SELLER’s delivery to freight carrier or when picked up by BUYER or his agent at SELLER’s
manufacturing facility. SELLER shall not be liable for any loss or injury of any kind to BUYER
arising from the use or operation of, or any damage to the PRODUCTS occurring after the risk
has passed to BUYER however caused, nor shall any liability or obligation of BUYER to SELLER
be diminished or extinguished by reason of such loss or injury. Any claim for loss or damage
in transit shall be against the carrier only.
11. Inspection of Product
BUYER may not revoke acceptance of the PRODUCTS, except as specifically permitted under the
Uniform Commercial Code. BUYER shall inspect the PRODUCTS immediately on receipt thereof and
shall within five (5) days give notice to SELLER in detail of any grounds on which BUYER alleges
that the PRODUCTS are damaged, defective or not in accordance with the agreement. If BUYER
fails to give such notice the PRODUCTS shall be conclusively presumed to be in all respects in
accordance with the contract and free from any manufacturing error or defect which would be
apparent on reasonable examination of the PRODUCTS and BUYER shall be deemed to have irrevocably
accepted the PRODUCTS accordingly. Not withstanding the foregoing, any use of the PRODUCTS
for any purpose after delivery therefore, shall constitute an irrevocable acceptance of the
PRODUCTS by BUYER.
12. Confidentiality And Intellectual Property Rights
SELLER retains for itself all of its intellectual property rights in any supporting
documentation supplied hereunder, including but not limited to all designs, engineering details,
manufacturing fixtures, and other data or information pertaining to any PRODUCT sold except
where such rights are assigned under written agreement by the SELLER. No title to or ownership
of any manufacturing procedure or any parts thereof is transferred to BUYER by any delivery of
such information to BUYER hereunder. All information furnished by SELLER and all information
learned or observed about SELLER or its operations through the parties’ performance hereunder
is confidential, and BUYER shall not disclose any such information to any other person or use
such information for any purpose other than the fulfillment of its obligations hereunder
without SELLER’s prior written consent.
13. Limited Warranty
SELLER warrants that the PRODUCTS will be free from defects in manufacturing and materials at
the time of shipment. Should BUYER feel that any PRODUCTS fail to conform to this warranty BUYER
must give written notice and a specific description of such non-conformity to SELLER within five (5)
days of delivery or it shall be deemed to have been waived. SELLER must be given the opportunity
to inspect the PRODUCTS alleged to be defective. SELLER will, at its option, remedy any non-conformity
by reworking any defective PRODUCTS, making available reworked or replacement PRODUCTS, or by the
issuance of a credit for the defective PRODUCTS. Replacement of non-conforming PRODUCTS means
delivering to BUYER conforming PRODUCTS.
14. Warranty Liability Limitations
EXCEPT FOR THE EXPRESS WARRANTY STATED ABOVE, SELLER DISCLAIMS ALL WARRANTIES, EXPRESS OR
IMPLIED, INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR
PURPOSE AND DISCLAIMS ALL WARRANTIES FOR TRADE. THE STATED WARRANTY AND REMEDY PROVIDED ARE
IN LIEU OF OTHER POSSIBLE LIABILITY AND DAMAGES AGAINST SELLER AND IN NO EVENT SHALL SELLER
BE LIABLE FOR SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES RESULTING FROM THE BREACH OF THIS
WARRANTY OR ANY OTHER PROVISION OF THESE TERMS AND CONDITIONS, THE QUOTATION, THE PURCHASE
ORDER AND / OR ANY AGREEMENT BETWEEN BUYER AND SELLER OR OTHERWISE ARISING OUT OF OR IN
CONNECTION WITH THE PRODUCTS OR THEIR SALE, DELIVERY, DISTRIBUTION, INSTALLATION, MAINTENANCE,
OPERATION, SERVICE, PERFORMANCE OR USE, INCLUDING, WITHOUT LIMITATION, ANY LOSS OF USE, LOST
REVENUES, LOST PROFITS, DAMAGE TO ASSOCIATED EQUIPMENT OR TO FACILITIES, COSTS OF SUBSTITUTED
GOODS, EQUIPMENT FACILITIES OR SERVICES, AND ANY SIMILAR OR DISSIMILIAR LOSSES, COSTS OR DAMAGES,
WHETHER BASED ON WARRANTY, CONTRACT, STRICT LIABILITY OR NEGLIGENCE. IN NO EVENT SHALL THE
LIABILITY OF SELLER EXCEED THE PRICE PAID BY THE BUYER FOR THE PRODUCTS PROVIDED BY THE SELLER,
OR THE ACTUAL COST OF CORRECTING DEFECTS IN MANUFACTURED PRODUCTS, WHICHEVER IS LESS.
15. Excusable Delays
SELLER shall have no liability hereunder to BUYER or to anyone presenting claims through BUYER
for any delays in delivery or any breach, failure or omission on the part of SELLER if caused
by any law, rule, regulation, order or ruling of any Federal, state, or local governmental
authority; any labor disturbances, act of terrorism, riot, fire, flood, accident, delay of
common carrier, or act of God; SELLER’s inability to obtain supplies, raw materials, component
parts or services through its regular and usual sources of supply; delays in shipments or
deliveries caused by SELLER’s manufacturers and suppliers; or any other cause beyond SELLER’s control.
16. Indemnity By Buyer
BUYER SHALL INDEMNIFY AND HOLD SELLER HARMLESS FROM AND AGAINST ANY AND ALL DAMAGES, CLAIMS, OR
EXPENSES (INCLUDING REASONABLE ATTORNEY’S FEES) ARISING OUT OF OR RELATING TO IMPROPER SELECTION,
APPLICATION, OR ABUSE OF THE PRODUCT. SHOULD THE PRODUCT BE USED IN A MANNER NOT IN ACCORD WITH
THE INTENDED USE, BUYER WILL INDEMNIFY SELLER AND HOLD SELLER HARMLESS FROM ANY LIABILITY OR
DAMAGE WHATSOEVER INCLUDING, WITHOUT LIMITATION, ATTORNEYS’ FEES, ARISING OUT OF THE USE OF THE
PRODUCT IN SUCH A MANNER. BUYER AGREES TO INDEMNIFY AND HOLD SELLER HARMLESS FROM CLAIMS, SUITS,
LIABILITY OR DAMAGES, INCLUDING ATTORNEYS’ FEES AND LEGAL EXPENSES, ARISING OUT OF ANY ACCIDENT,
INJURY OR DEATH FROM THE USE OF CRATE OR SHIPPING CONTAINER WHILE LIFTING, CARRYING OR OTHERWISE
MOVING THE CONTAINER BY ANY PARTY, EXCEPT TO THE EXTENT ANY SUCH ACCIDENT, INJURY OR DEATH IS
CAUSED BY SELLER’S NEGLIGENCE IN DESIGN OR MANUFACTURE.
17. Modification of Terms and Conditions
Except as otherwise expressly set forth herein this document is the final written expression
of all of the terms of the agreement between BUYER and SELLER with respect to the sale of the
PRODUCTS. No terms or conditions other then those stated herein, and no written or oral agreement
or understanding which in any way purports to waive or modify these terms or conditions, whether
made by any agent, representative or salesperson of SELLER or contained in BUYER’s purchase order,
shipping release form or elsewhere, shall be binding on SELLER unless agreed to in writing by
SELLER or SELLER’s authorized agent or representative.
18. Arbitration
If, at any time, any dispute, difference or question shall arise out of the contract or
as to the rights or liabilities of the parties thereunder or in connection therewith or
as to the construction or interpretation thereof either party shall be entitled to give
notice in writing to the other requiring such dispute difference or question to be
referred to arbitration under the Rules of the American Arbitration Association
in Philadelphia, PA.
19. No Waiver
SELLER’s failure to insist upon performance of any of the terms and conditions set forth
herein or to exercise any right hereunder on any one or more occasions shall not be deemed
to be a waiver of such terms, conditions or rights, nor shall it be deemed to be a waiver
of any other term, condition or right set forth herein.
20. Proper Law
All QUOTATIONS and ORDERS are subject to the laws of the State of New Mexico and the
United States of America unless otherwise agreed in writing by SELLER. If any provision of
these TERMS OF SALE is found to be invalid or unenforceable, the remaining provisions
shall remain in full force and effect.
21. Assignment
As used herein, BUYER and SELLER include their respective heirs, executors, personal
representatives, successors and assigns. No right or interest arising under this document
shall be assigned by BUYER and no delegation of any obligation owed by BUYER shall be
made without the prior written permission of SELLER.
22. Clause Headings
The clause headings used in these TERMS OF SALE are exclusively for reference purposes
and in the interpretation of the subject clause the applicable clause title shall not
act to limit, alter or otherwise affect the content of the clause.