Terms and Conditions
MGM TRANSFORMER COMPANY
5701 SMITHWAY STREET • COMMERCE, CA 90040
(323) 726-0888 • (800) 423-4366 • FAX (323) 726-8224
www.mgmtransformer.com
APPLICABLE LAW: MGM Transformer is a
California corporation doing business in California
and as such requires that any litigation brought
against the company have exclusive venue in
California . Applicable law may be either the laws
of the state of California, or the U.C.C. This
requirement of California jurisdiction is mandatory
despite the fact that MGM ships products
nationwide.
STANDARD CONDITIONS OF SALE: The
information contained herein covers the terms and
conditions under which MGM Transformer
Company products are sold. Any modifications of
these terms and conditions, unless agreed to in
writing, will not be recognized.
CHANGES : Prices, conditions and terms of sale
are subject to change without notice.
TERMS: Terms are 1% ten days, net thirty (30)
days from date of invoice. The Company may at
any time require full or partial payment in advance.
If the purchaser delays shipments, payment shall
become
due from the date when the Company is
prepared to make shipment. Apparatus held for the
purchaser shall be at the risk and expense of the
purchaser.
QUOTATIONS: Quotations, written or verbal, are
subject to the conditions of sale listed
herein. Written quotations automatically expire
thirty (30) calendar days from the date issued and
are subject to withdrawal by notice within that
period. Verbal quotations automatically expire
twenty-four (24) hours from the time issued.
ACCEPTANCE OF ORDERS: All orders shall be
written and are subject to acceptance at the factory.
EQUIPMENT DESTINED FOR FEDERAL,
STATE, OR LOCAL GOVERNMENT: MGM is
not bound to honor quotations for equipment
destined for Federal, State, or Local Government
unless MGM knows at the time of quoting that it is
a government job as these orders frequently involve
higher administration costs.
TAXES: Prices do not include sales, use, excise, or
other taxes. If any products or materials delivered
hereunder are determined to be taxable under any
sales, use, excise, or other taxes applicable to the
sale or delivery of personal property, Purchaser
shall be liable for and pay the same without
recourse against Seller, or in lieu thereof furnish
Seller with a tax-exemption certificate acceptable to
taxing authorities.
ERRORS: All stenographic and clerical errors are
subject to correction.
DELIVERY: MGM can arrange for apparatus to be
sold F.O.B, point of shipment; or freight prepaid.
UNLOADING AND DEMURRAGE: Unless
stated otherwise in our quote, it is the customer’s
responsibility to unload all shipments whether by
rail or truck. All demurrage charges are customer
responsibility.
MGM recognizes that sometimes the size or weight
of shipments requires the customer to make prior
unloading arrangements. In such cases the
customer shall advise MGM prior to shipment the
hours during which shipments cam be received and
the notice required before delivery. MGM will then
reflect these arrangements on the bill of lading.
Origin method of shipment and routing: The
company will determine the point of origin, method
of transportation, and the routing of shipment.
Purchasers requiring other routings will be billed
any excess in transportation charges.
PENALTY CLAUSES: The Company will not
pay or be liable for any penalty, either liquidated
or otherwise, for late delivery or installation.
Shipping dates are estimated and are dependent
upon prompt receipt of all information and material
necessary. The Company shall also not be liable for
any unforeseen delay, i.e. acts of God or inability to
obtain necessary labor, materials, or manufacturing
facilities due to such causes.
CANCELLATION: Buyer shall not have the
right to cancel purchase orders because of
reasonable delays in deliveries. An y order or
contract if cancelled requires paymen t based on the
following table:
Purchase Order Released……..20%
Engineering Complete………..50%
Purchasing Complete………..100%
Changes: The customer has the right to change
their order, in writing, if agreed upon by seller.
Should such changes alter the amount due or time
required for production, an equitable adjustment of
price and/or time shall be made. Changes affecting
function
or performance of item ordered may not be
made without prior written consent from MGM.
Warranty: MGM transformers are guaranteed to
be of the highest quality. They are further
guaranteed, when used for the purpose intended and
operated under normal conditions to give
continuous and efficient service. MGM Transformer
Company agrees to correct any defect in
workmanship or material, which may develop under
proper or normal use during the period of one year
from date of shipment. Should a transformer fail
within the warranty period, MGM will issue
authorization to return the failed transformer to one
of MGM’s plants, freight prepaid. At MGM’s
option the failed transformer will be repaired,
replaced or credit will be issued depending on the
nature of the failure. A repaired transformer or
replacement will be delivered to the purchaser
F.O.B. point of shipment with freight prepaid.
Repair, replacement or issuance of credit with
regards t
o the defective transformer will constitute
fulfillment of all MGM’s liabilities in respect to
said
transformer. This guarantee does not
include
incidental expenses, such as expense of removing
and replacing the transformers from service. This
warranty is exclusive and in lieu of all
other warranties of quality whether written,
oral or implied (including any warranty of
merchantability or fitness for purpose.)
LIMITATION OF LIABILITY: MGM shall not
be liable in contract or in tort for special, indirect,
incidental, or consequential damages, such as but
not limited to, loss of profits or revenue, loss of use
of power system, cost of capital, cost of purchased
or replacement power, or claim of customers of
purchaser for service interruptions set forth herein
are exclusive, and the liability of MGM with respect
to any contract, or anything done in connection
therewith such as the performance of breach
thereof, or from the manufacture, sale, delivery, resale, installation, repair or use of any
equipment
covered by of furnished under this contract whether
in contract, in tort, or otherwise, shall not
exceed the price of the equipment or part on
which such liability is based.
RETURNING APPARATUS:
A. In no case are goods to be returned without
first obtaining the Company’s written
permission.
B. Any material returned and not authorized will
not be signed for and will be returned back
deadhead to the sender.
C. Material accepted for credit is subject to a
MINIMUM restocking charge of 20% plus all
transportation charges.
D. Material built to order is not subject for credit
under any circumstances.
E. If return is caused by fault of the Company,
full credit will be allowed.
EXPORT PACKING: Refer to factory for
additional cost of export packing.
SPECIAL CONDITIONS FOR POWER
TRANSFORMERS: Because of their nature, size,
and weight, the following additional policies apply
to power transformers:
A. MGM Transformer Company reserves the
right to determine the best mode of shipping.
All shipments will be made by truck unless
size or weight makes this impossible.
B. Prices quoted for power transformers do not
include high voltage or low voltage bushing
connectors unless specified in the inquiry and
quotation.
C. Field inspection or supervision is not
included
D. Standard testing is included. Special testing
or witness testing are extra cost items.
1. In the event of default by buyer of any
obligation buyer agrees to pay costs and
expenses including attorney fees, costs of suit
and interest at 0.83% per month.