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CTSM Portfolio / Michael Mecham Page 1

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acceptance or written confirmation or other communication from Seller. This order includes an<br />

arbitration clause, below.<br />

8.2 Purchase<br />

This Purchase Order will be Interpreted and performance determined in accordance with the laws of<br />

California.<br />

A) Any controversy or claim arising out of or relating to this contract, or the breach thereof,<br />

including (but not by way of limitation) the quality or acceptability of goods delivered,<br />

payments, failure to meet specifications, or the question of whether any such controversy or<br />

claim is properly arbitratable, shall be settled by arbitration in San Francisco County,<br />

California, in accordance with the Commercial Arbitration rules of the American Arbitration<br />

Association, and the judgment upon the award rendered by the arbitrator(s) may be entered<br />

in any court having competent jurisdiction thereof.<br />

B) Time Is Of The Essence Of This Order. The Buyer may cancel all or any part of this order if<br />

the merchandise is not shipped per the date specified or such other date as may be agreed<br />

to in writing by Buyer and Seller. Shipments arriving at Buyer’s facilities more than ten (10)<br />

working days prior to the agreed upon delivery date may be returned at Seller’s expense for<br />

reshipment per the established schedule.<br />

C) The Buyer reserves the right to cancel all or any part of this order in the event of the<br />

happening of any of the following, but not limited to: Insolvency of Seller; Filing of a voluntary<br />

petition in bankruptcy; Filing of an involuntary petition to have the Seller declared bankrupt,<br />

provided it is not vacated within thirty (30) days from the date of filing; The appointment of a<br />

receiver or trustee for Seller; The execution by Seller of an assignment for the benefit of it’s<br />

creditors.<br />

D) The Seller shall not assign this purchase order or any interest therein or any monies due to<br />

become payable under this order without the prior written consent of Buyer.<br />

E) Items shipped in excess of Buyer’s order will be returned at Seller’s expense. not be<br />

responsible for any items without a written Purchase Order, or written amendment of same,<br />

approved by the Buyer.<br />

F) Goods made in accordance with Buyer’s specifications and/or drawings shall not be quoted<br />

to any other person or concern without expressed written approval from Buyer.<br />

G) The Seller will show this Purchase Order Number on all shipments and papers pertaining to<br />

this order.<br />

H) Costs for tooling, setup charges and/or transportation charges to be borne by Buyer will be<br />

separately stated on the invoice.<br />

I) All shipments are to be sent Prepaid. Buyer does not accept C.O.D. shipments.<br />

J) The Seller hereby warrants the merchandise and workmanship of the materials delivered on<br />

this order to me in accordance with specifications, drawings, or samples in all respects and<br />

agrees that this warranty shall survive acceptance by Buyer. All material and workmanship<br />

entering into the performance of this order shall be subject to Buyer’s inspection and<br />

approval before acceptance. In case the articles are found to be defective in material or<br />

workmanship, or otherwise not in conformity with the requirements of this order, Buyer shall<br />

have the right to reject same and/or require their correction or prompt replacement with<br />

satisfactory materials or workmanship.<br />

<strong>CTSM</strong> <strong>Portfolio</strong> / <strong>Michael</strong> <strong>Mecham</strong><br />

<strong>Page</strong> 29

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