You have received a purchase order from a very large
company, much larger than your own, and it is based upon a
quotation you sent to them at their request. The money
involved represents 10% of your typical annual sales.
a- The fine print says that they have the right to visit your factory and to cancel the contract if they "find practices or policies that are known to be detrimental to quality assurance, end user safety, or protection of the environment." Do you accept this clause, or not? Explain.
b. The force majeure clause lists "government action" as a possible reason to nullify the contract. Do you accept this clause, or not? Explain
c. Another clause says that "the supplier will be liable for any and all product failures in the hands of the end customer unless said supplier can prove that its part or component was not related to, or complicit in, such failures." Do you accept that clause, or not.? Explain