Blue Chip Terms and Conditions of Sale

BLUE CHIP COMPUTER SYSTEMS, INC.  

TERMS AND CONDITIONS OF SALE  

SCOPE. (a) The terms and conditions of sale contained herein (the “Terms and conditions of Sale”) apply to all quotations made and contracts of sale entered into by Blue Chip Computer Systems (“Seller”). Though the Terms and Conditions of Sale may conflict with certain terms and conditions, if any, specified by Buyer in Buyer’s order form, or other- wise, Seller’s acceptance of Buyer’s order is on condition that only the Terms and Conditions of Sale shall apply to Buyer’s order, irrespective of whether the Buyer accepts these Terms and Conditions of Sale by a written acknowledgment, by implication, or by acceptance of and payment for goods ordered hereunder. Any term, provision or condition in conflict with, or in addition to or in modification of, any of the Terms and Conditions or Sale shall not be binding  upon Seller unless such term, provision or condition is in writing and signed by an officer of Seller. Seller’s failure to object to any term or condition contained in any communication from Buyer shall not be deemed a waiver of the Terms and Conditions of Sale All offers, orders, agreements, and contracts must be approved and accepted by Seller at its home office  Notwithstanding the foregoing, however, stenographic and clerical errors are, subject to revision and correction.  

TITLE AND DELIVERY. (a) Unless otherwise expressly provided herein, title passes to Buyer when the products ordered hereunder are delivered to the carrier F.O.B. point of shipment. In all cases, risk of loss or damage to any such product in transit shall fall upon Buyer, whose responsibility it shall be to file  claims with the carrier, which shall be deemed Buyer’s agent. Seller accepts no responsibility and shall not be responsible for such claims filed with it. Unless Seller receives specific shipping instructions from Buyer, Seller will exercise its own discretion in selecting the method of shipment.  

(b) Shipping dates are approximate and are based upon prompt receipt of all necessary information from Buyer. Seller reserves the right to make deliveries of products in installments and, when Seller cannot deliver the full amount of all orders in the agreed schedule, the right to allocate production delivery among its various Buyers then under contract for similar goods in a commercially reasonable manner. Seller shall not be liable for delay in delivery or non-delivery due to causes  beyond Seller’s reasonable control, including but not limited to, acts of God, acts of Buyer, acts of civil or military authority, war, riots, fires, floods, strikes, lockouts, delays in transportation, and inability to obtain necessary fuel, power, labor, materials, or manufacturing facilities. In the event of any such delay the date of delivery shall automatically be extended for a period equal to the time lost by reason of such delay.  

(c) In no event shall Seller be in default for failure to deliver unless Seller does not commence to cure such failure within ten (10) days after receipt from Buyer of written notice (by certified mail) of failure to deliver.  

TAXES. Unless otherwise expressly indicated herein, all prices are exclusive of federal, state and local excise, sales, use and similar taxes. Such taxes, when applicable to this sale or to the products sold, will appear as separate additional items on the invoice, or in lieu thereof the Buyer, prior to delivery, shall provide the Seller with a properly executed tax exemption certificate acceptable to the appropriate taxing authorities.  

WARRANTY DISCLAIMER. BLUE CHIP COMPUTER SYSTEMS MAKES NO WARRANTIES WHICH EXTEND BEYOND THE DESCRIPTION ON THE FACE HEREOF. THESE GOODS ARE SOLD WITH ALL FAULTS AND AS IS. BLUE CHIP COMPUTER SYSTEMS MAKES NO EXPRESS OR  IMPLIED WARRANTIES IN CONNECTION WITH THE SALE OF THERE GOODS. THERE IS NO EXPRESS OR IMPLIED WARRANTY THAT THE GOODS ARE MERCHANTABLE OR FIT FOR THE PURPOSE FOR WHICH THEY WERE INTENDED.  

BLUE CHIP COMPUTER SYSTEMS ASSIGNS TO BUYER ANY WARRANTY MADE BY MANUFACTURER IN CONNECTION WITH THE GOODS.  

BUYER’S REMEDIES. In the event that the goods are defective, Buyer’s sole claim against Seller shall be for repair or replacement of the goods. In the event the goods cannot be repaired or replaced,  Buyer’s  damages shall be limited to the difference between the price paid for the goods and the fair market value of the goods received.  

IN NO EVENT SHALL SELLER BE LIABLE TO BUYER OR ANY THIRD PARTY FOR LOST PROFITS,  CONSEQUENTIAL DAMAGES OR INCIDENTAL DAMAGES. PATENTS. (a) With regard to products made to the order of Buyer’s designs, specifications or instructions, Buyer shall save and hold Seller harmless against any damage, cost, loss or expense, including reasonable attorney fees, resulting from any claim, suit or proceeding brought by any person or entity for infringement of patents, copyright, trade- marks, trade names, or for unfair completion arising from Seller’s compliance with  Buyer’s designs, specifications or instructions.  

(b) The sale of any product or products by Seller pursuant to this order does not convey to Buyer any license, by implication, estoppel, or  otherwise, respecting any patent, trademark or trade name claims or rights of Seller covering said product  or products or any combination thereof with or without other devices or elements.  

LIABILITY OF SELLER. BLUE CHIP COMPUTER SYSTEMS MAKES NO WARRANTIES WHICH EXTEND BEYOND THE DESCRIPTION ON THE FACE HEREOF. THESE GOODS ARE SOLD WITH ALL FAULTS AND AS IS. BLUE CHIP COMPUTER SYSTEMS MAKER NO EXPRESS OR IMPLIED WARRANTIES IN CONNECTION WITH THE SALE OF THESE GOODS. THERE IS NO EXPRESS OR IMPLIED WARRANTY THAT THE GOODS ARE MERCHANTABLE OR FIT FOR THE PURPOSE FOR WHICH THEY WERE INTENDED.  

BLUE CHIP COMPUTER SYSTEMS ASSIGNS TO BUYER ANY WARRANTY MADE BY MANUFACTURER IN CONNECTION WITH THF GOODS.  

BUYER’S REMEDIES: in the event that the goods are defective, Buyer’s sole claim against Seller shall be for repair or replacement of the goods, In the event the goods cannot be repaired or replaced, Buyer’s damages shall be limited to the difference between the price paid for the goods and the fair market value of the goods received.  

IN NO EVENT SHALL SELLER BE LIABLE TO BUYER OR ANY THIRD PARTY FOR LOST PROFITS,  CONSEQUENTIAL DAMAGES, PUNITIVE DAMAGES OR INCIDEN- TAL DAMAGES.  

PAYMENT AND PRICES. (a) When Seller has extended credit to Buyer,  terms of payment shall be net 10 days from the date of invoice unless otherwise specified by the Seller. On any order on which credit is not extended by Seller, shipment shall be made at Seller’s election as follows; Cash with Order (in whole or part), or a Letter of Credit in a format acceptable to Seller, with all costs of collection, including reasonable attorney fees, for the account of Buyer. If deliveries are made in installments, each installment shall be separately invoiced and paid for when due without regard to other deliveries. Time of payment is of the essence. All payments shall be in U.S. funds. Interest at the maximum rate permitted by law may be added to any overdue amounts owed to Seller.  

(b) If in the judgment of Seller, the financial condition of Buyer at any time does not justify continuance of production or delivery on the terms of payment above specified, Seller may require full or partial payment in advance. If Buyer becomes insolvent, or bankruptcy or other debtor’s relief proceedings are instituted by or against Buyer, or Buyer makes an assignment for the benefit of its creditors or is unable to meet its obligations as they come due, any such event shall be deemed a material default hereunder, entitling Seller to cease performance under this order and to avail itself of all legal and equitable remedies it may have against Buyer.  

SHORTAGES: DEFECTIVE OR INCORRECT PRODUCTS. All claims for shortages or incorrect products must be filed by Buyer with Seller within 15 days of the receipt of the products. Any lawsuit relating to any  damages upon the goods sold and delivered must  be commenced within one (1) year of Buyer’s discovery of the defect or is forever barred. DEFAULTS. In the event of any default by Buyer, Seller may decline to make further shipments without in any way affecting its rights under this order. If despite any default by Buyer,  Seller elects to continue to make shipments, Seller’s action shall not constitute a waiver of any default by Buyer or in any way affect Seller’s legal remedies of any such default. Default shall include, but not be limited to, the Buyer’s failure to make timely payments. In the event of a default, Buyer shall be responsible for all costs of collection including reasonable attorney fees.  

CONTROLLING LAW. The validity, construction, and performance of these Terms & Conditions of Sale shall be governed by and construed in accordance with the laws of the State of California, Los Angeles, excluding that body of law applicable to conflict of laws. In the event that any provision of these Terms & Conditions of Sale or the application of any such pro- vision shall be held by a court of law to be contrary to law, the remaining provisions of these Terms & Conditions of Sale shall remain in full force and effect.  

MODIFICATIONS. No addition to nor deletion from nor modification of any of the provisions of the Terms & Conditions of Sale of this order shall be binding upon Seller unless acknowledged and accepted by Seller. Any change made by Seller will be deemed accepted by Buyer unless within 10 days from notice of such change Buyer notifies Seller of Buyer’s exception to such change. A waiver by Seller of any default or of any of the Terms & Conditions of Sale shall not be deemed to be a continuing waiver or a waiver of any other default or of any other of these Terms & Conditions of Sale, but shall apply solely to the instance to which the waiver is directed.  

RETURNS. Buyer returning merchandise with the original sales receipt within ten (10) days of the date of the invoice will be granted a refund of the original sale price of the item(s) returned subject to the following: 1) the merchandise must be returned in a ‘like new” condition. No merchandise will be accepted that has been damaged or altered from the original configuration. Seller will not accept the return of  software which has been opened under any circumstances; 2) BUYER MUST REQUEST AND RECEIVE A  R.M.A. (RETURN MERCHANDISE  AUTHORIZATION) NUMBER PRIOR TO THE RETURN OF THE MERCHANDISE. The R.M.A. # may be obtained by  contacting the Seller and  pro- viding information relating to the product purchased and the original invoice number and date of sale. A Buyer electing to return the item(s) by mail must write the R.M.A. # on the outside of the shipping carton so that it is visible to the receiving agent. Merchandise forwarded to the Seller without a valid R.M.A. # will be returned to the Buyer; 3) all  merchandise must be returned within ten (10) days of the invoice date. Returns made after ten (10) days will be refused and/or returned to the Buyer.  

A Buyer returning merchandise under the conditions detailed above may choose either of the following refund options: 1) CASH REFUND: A refund by Company check will be forwarded to the Buyer within ten (10) days of the return of the merchandise, subject to the conditions detailed above. A “Restocking Fee” of  twenty (20) percent of the original invoice sales price of the item(s) returned will be charged the Buyer and deducted from the refund issued. No cash refunds will be issued under any circumstances, except  as stated above; 2) STORE CREDIT: Buyer may elect a Store Credit in the amount of the sale price of the item(s) returned in accordance with the terms and conditions detailed above. The Store Credit may be used for any merchandise offered for sale by the Seller. The Store Credit will be valid for one (1) year from the date of issue. No-Restocking Fee will be applied on returns where Buyer elects to receive a Store Credit.  

Rev. June 10, 2019 06:00 pm