1. EXCUSE OF
PERFORMANCE.
(a) Deliveries may be suspended by either party in
the event of: Act of God, war, riot, fire, explosion,
accident, flood, sabotage; lack of adequate fuel,
power, raw materials, labor, containers or transportation
facilities; compliance with governmental requests,
laws, regulations, orders or actions; breakage or
failure of machinery or apparatus; national defense
requirements or any other event, whether or not of
the class or kind enumerated herein, beyond the reasonable
control of such party; or in the event of labor trouble,
strike, lockout or injunction (provided that neither
party shall be required to settle a labor dispute
against its own best judgment); which event makes
impracticable the manufacture, transportation, acceptance
or use of a shipment of the goods or of a material
upon which the manufacture of the goods is dependent
(b) If Seller determines that its ability
to supply the total demand for the goods, or obtain
any or a sufficient quantity of any material used
directly or indirectly in the manufacture of the goods,
is hindered, limited or made impracticable, Seller
may allocate its available supply of the goods or
such material (without obligation to acquire other
supplies of any such goods or material) among itself
and its purchasers on such basis as Seller determines
to be equitable without liability for any failure
of performance which may result therefrom.
(c) Deliveries suspended or not made by reason
of this section shall be cancelled without liability,
but this contract shall otherwise remain unaffected.
2. BUYER'S
CREDIT. Seller reserves the right,
among other remedies, either to terminate this contract
or to suspend further deliveries under it in the event
Buyer fails to pay for any one shipment when same
becomes due. Should Buyer's financial responsibility
become unsatisfactory to Seller, cash payments or
security satisfactory to Seller may be required by
Seller for future deliveries and for the goods theretofore
delivered.
3. WEIGHTS
AND CONTAINERS. In the case of bulk
carload, tank car, tank truck or barge shipments,
Seller's weights shall govern unless proved to be
in error. Where returnable containers are used
in shipment, title to such containers shall remain
in Seller, and a deposit in the amount required by
Seller must be made at the time payment is tendered
for the goods. Such containers must be kept
in good condition, must not be used for any material
other than the goods shipped therein and must be returned
within sixty (60) days from date of shipment.
On such containers being so returned in good condition,
a refund of the deposit will be made.
4. SHIPMENTS.
(a) The quantity shipped in any contract month may
be limited by Seller to either (a) the average of
the monthly quantities purchased by Buyer for the
preceding contract months or (b) the maximum quantity
covered by this contract divided by the number of
months in the period of this contract (provided, however,
that if different quantities apply to different time
periods within the period of this contract, Seller
may limit shipments based upon the current maximum
quantity for the applicable time period under this
contract divided by the number of months in such time
period). Any quantity not shipped as a result
of any such limitation shall be deducted from the
total quantity of this contract. Seller shall
not be bound to tender delivery of any quantities
for which Buyer has not given shipping instructions.
(b) Seller reserves the right to apply a surcharge
to orders requiring shipment within two business days.
Seller may also apply a surcharge for changes made
to existing orders within 2 business days of the original
shipment date.
5. LIMITED
WARRANTY. Subject to Section 6 and
unless otherwise expressly provided herein, Seller
warrants title and that the goods shall conform to
Seller's standard specifications or to the attached
specifications, if any. Subject to the preceding
sentence and except as otherwise expressly provided
herein, SELLER MAKES NO REPRESENTATION OR WARRANTY
OF ANY KIND, EXPRESS OR IMPLIED, AS TO MERCHANTABILITY
, FITNESS FOR PARTICULAR PURPOSE, OR ANY OTHER MATTER
WITH RESPECT TO THE GOODS, whether used alone or in
combination with any other material.
6. LIMITATION OF
LIABILITY.
(a) Within thirty (30) days after receipt of each
shipment of the goods, Buyer shall examine such goods
for any damage, defect or shortage. All claims
for any cause whatsoever (whether such cause be based
on contract, negligence, strict liability, other tort
or otherwise) shall be deemed waived unless made in
writing and received by Seller within sixty (60) days
after Buyer's receipt of the goods, in respect to
which such claim is made, or, if such claim is for
non-delivery of such goods, within sixty (60) days
after the date upon which such goods were to be delivered,
provided that as to any such cause not reasonably
discoverable within such sixty (60) day period (including
that discoverable only in processing, further manufacture,
other use or resale) any claim shall be made in writing
and received by Seller within one hundred eighty (180)
days after Buyer's receipt of the goods, in respect
to which such claim is made, or within thirty (30)
days after Buyer learns of the facts giving rise to
such claim, whichever shall first occur. Failure
of Seller to receive written notice of any such claim
within the applicable time period shall be deemed
an absolute and unconditional waiver by Buyer of such
claim irrespective of whether the facts giving rise
to such claim shall have then been discovered or of
whether processing, further manufacture, other use
or resale of the goods shall have then taken place.
(b) BUYER'S EXCLUSIVE REMEDY SHALL BE FOR
DAMAGES, AND SELLER'S TOTAL LIABILITY FOR ANY AND
ALL LOSSES AND DAMAGES ARISING OUT OF ANY CAUSE WHATSOEVER
(WHETHER SUCH CAUSE BE BASED IN CONTRACT, NEGLIGENCE,
STRICT LIABILITY, OTHER TORT OR OTHERWISE) SHALL IN
NO EVENT EXCEED THE PURCHASE PRICE OF THE GOODS IN
RESPECT TO WHICH SUCH CAUSE ARISES OR, AT SELLER'S
OPTION, THE REPAIR OR REPLACEMENT OF SUCH GOODS, AND
IN NO EVENT SHALL SELLER BE LIABLE FOR INCIDENTAL,
CONSEQUENTIAL OR PUNITIVE DAMAGES RESULTING FROM ANY
SUCH CAUSE. Seller shall not be liable for,
and Buyer assumes liability for, all personal injury
and property damage connected with the handling, transportation,
possession, processing, further manufacture, other
use or resale of the goods, whether the goods are
used alone or in combination with any other material.
Transportation charges for the return of the goods
shall not be paid unless authorized in advance by
Seller.
(c) If Seller furnishes technical or other
advice to Buyer, whether or not at Buyer's request,
with respect to processing, further manufacture, other
use or resale of the goods, Seller shall not be liable
for, and Buyer assumes all risk of, such advice and
the results thereof.
7. PATENTS.
Subject to Section 6 and unless otherwise expressly
provided herein, Seller warrants that the goods sold
pursuant to this contract, except for those made for
Buyer according to Buyer's specifications, do not
infringe any valid U.S. patent. This warranty
is given upon condition that Buyer promptly notify
Seller of any claim or suit involving Buyer in which
such infringement is alleged and that, if Seller is
affected, Buyer permit Seller to control completely
the defense or compromise of any such allegation of
infringement. Seller does not warrant that the
use of the goods or any material made therefrom, whether
the goods are used alone or in combination with any
other material, will not infringe a patent.
Seller reserves the right to terminate Seller's warranty
under this Section 7 at any time with respect to any
undelivered goods, it being agreed that in the event
of such termination Buyer may, without penalty, thereafter
refuse acceptance of such undelivered goods.
8. PRICE REVISION.
The price, point of delivery, service allowance, if
any, and terms of payment herein specified may be
revised as of the first day of any month after the
date hereof (including the first such month) by written
notice from Seller given not less than fifteen (15)
days prior to the first day of any such month.
9. FREIGHT
AND TAXES. Any increase in freight
rates paid by Seller on shipments covered by this
contract and hereafter becoming effective and any
tax or governmental charge or increase in same (excluding
any franchise or income tax or other tax or charge
based on income) (a) increasing the cost to Seller
of producing, selling or delivering the goods or of
procuring materials used therein or (b) payable by
Seller because of the production, sale or delivery
of the goods, such as Sales Tax, Use Tax, Retailer's
Occupational Tax, Gross Receipts Tax, Value Added
Tax, may, at Seller's option, be added to the price
herein specified.
10. HARDSHIP
CLAUSE. IF, during the course of
the contract, Raw Material costs or the costs of the
components to produce the goods (including, but not
limited to, utilities, packaging, etc) were to significantly
increase, Seller reserves the right to pass on the
entire cost of the increase, or some portion thereof,
in the form of a surcharge for as long as this condition
persists.
11. COMPLIANCE
WITH CERTAIN LAWS. Subject to Section
6 and unless otherwise expressly provided herein,
the goods shall be produced in compliance with the
requirements of the Fair Labor Standards Act of 1938,
as amended, and Executive Order 11246.
12. ASSIGNMENT.
Buyer shall not (by operation of law
or otherwise) assign its rights or delegate its performance
hereunder without the prior written consent of Seller,
and any attempted assignment or delegation without
such consent shall be void.
13. MISCELLANEOUS.
THE VALIDITY, INTERPRETATION AND PERFORMANCE OF THIS
CONTRACT AND ANY DISPUTE CONNECTED HEREWITH SHALL
BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF GEORGIA. This contract constitutes
the full understanding of the parties, a complete
allocation of risks between them and a complete and
exclusive statement of the terms and condition of
their agreement. Except as provided in Sections
9 hereof, no conditions, usage of trade, course of
dealing or performance, understanding or agreement
purporting to modify, vary, explain or supplement
the terms or conditions of this contract shall be
binding unless hereafter made in writing and signed
by the party to be bound, and no modification shall
be effected by the acknowledgement or acceptance
of purchase order or shipping instruction forms containing
terms or conditions at variance with or in addition
to those set forth herein. No waiver by either
Seller or Buyer with respect to any breach or default
or of any right or remedy and no course of dealing,
shall be deemed to constitute a continuing waiver
of any other breach or default or of any other right
or remedy, unless such waiver be expressed in writing
signed by the party to be bound.