BCS SWITCHGEAR, INC

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Terms & Conditions

Condition of Goods

- All goods are classified and sold according to one of the following classifications:

- “AS-IS”: Goods are sold “As Is” and “With all Faults”. The buyer acknowledges that no warranties are to be implied on these items.

- “E-OK”: Goods are sold “Electrically OK” and seller guarantees that at the time of shipment the goods have been certified to have withstood and passed customary electrical tests. Any claim that the goods are not “E-OK” must be made within 7 working days from the receipt of the goods.

- “R/G or REBUILT GUARANTEED”: Goods are sold rebuilt. Seller guarantees that all components have been completely disassembled, reconditioned, and tested to original OEM specifications (as available). All goods sold “R/G” are tested to industry standards, which include ANSI C37, NETA, NEMA and OEM (results are provided). Seller guarantees all “R/G” goods for a period of one year from date of shipment, under competent supervision and normal load and usage conditions.

- “UNUSED/NEW SURPLUS”. Goods are sold in new or unused condition. Seller guarantees that the goods will perform for a period of one year from the date of shipment, under competent supervision and normal load and usage conditions.

- “NEW”: Goods are sold “NEW” from original manufacturer. Seller guarantees all “NEW” goods for a period of one year from the date of delivery, under competent supervision and normal load and usage conditions.

Provisions of Warranty

1. All goods are sold subject to the terms and conditions contained herein. Any affirmation or promise shall not be deemed to create an express warranty unless a duly authorized representative of Seller delivers such affirmation or promise in writing.

2. All warranty terms will be considered null and void if (I) goods are not paid for in a timely manner and/or (ii) defects arise which result from Buyer’s accident, negligence, abuse or misuse, improper storage or maintenance, improper installation or alterations, and/or repairs performed without consent of the Seller.

3. Limitation of Liability: SELLER WILL NOT BE LIABLE IN CONTRACT OR IN TORT FOR SPECIAL, INDIRECT, INCEDENTAL, COLLATERAL OR CONSEQUENCTAL DAMAGES resulting from any defect in material or breach of the terms of the purchase order contract or invoice contract. Seller’s liability limitation extends to any and all damages beyond the invoiced amount and such limitation specifically includes but is not limited to, loss of profit or revenue, down time costs, and repair costs of third parties. Seller’s sole liability will be to replace the defective material if it is determined that there have been no violations of these warranty provisions. In the case of the warranty repair, Seller will pay all standard freight associated with replacing the defective item as provided herein.

The warranties set forth in these provisions are exclusive and in lieu of all other warranties whether statutory, express, or implied (including all warranties of merchantability and fitness for a particular purpose). Except as provided herein, all other warranties are expressly denied.

General Terms and Conditions

Provisions of Order

1. Acceptance: All orders are subject to credit approval and will be deemed accepted by (I) issuance of Seller’s Acknowledgement of Order or (ii) receipt of the actual order.

2. Payment Terms: All orders are subject to credit approval and will be deemed accepted by (I) issuance of Seller’s Acknowledgement of Or Unless otherwise specified in writing, terms of payment are in United States Dollars due in full 30 days from date of invoice. All past due accounts are subject to finance charges of 1-1/2 per month or the maximum rate allowed by law.

3. Shipping / Freight: All orders are subject to credit approval and will be deemed accepted by (I) issuance of Seller’s Acknowledgement of Or All prices are quoted F.O.B. point of shipment unless otherwise specified in writing. Seller is responsible for adequate packaging but all other transportation related perils are Buyer’s responsibility. These responsibilities include but are not limited to; tariffs, strike, ICC regulations, and accidents.

4. Delivery: All orders are subject to credit approval and will be deemed accepted by (I) issuance of Seller’s Acknowledgement of Or Delivery will be made F.O.B. point of shipment. Shipping dates are approximate and are based on prompt receipt of all necessary information from buyer.

5. Force Majure: All orders are subject to credit approval and will be deemed accepted by (I) issuance of Seller’s Acknowledgement of Or Seller shall not be liable for failure to perform or for delay in performance due to fire, flood, strike, act of God, act of War or any inability to obtain labor, materials or manufacturing resources due to any cause beyond it’s reasonable control.

6. Cancellation: All orders are subject to credit approval and will be deemed accepted by (I) issuance of Seller’s Acknowledgement of Or Buyer may terminate Orders only upon written notification prior to shipment and upon repayment of reasonable and proper termination charges. Seller may cancel order at any time prior to shipment if in Seller’s sole opinion, Buyer will financially unable to pay according to terms. Should Buyer file or be placed in bankruptcy or be named defendant in any litigation, Seller shall be entitled to cancel all pending orders.

7. Security interest: All orders are subject to credit approval and will be deemed accepted by (I) issuance of Seller’s Acknowledgement of Or Until goods are paid for in full, Buyer hereby grants to Seller an unconditional security interest in (I) all products bought from Seller and (ii) all proceeds of resale therefrom, including all receivables relating thereto. Buyer agrees to execute any and all documents required by Seller to create and perfect the foregoing described security interest.

8. Choice of Law/Remedies: All orders are subject to credit approval and will be deemed accepted by (I) issuance of Seller’s Acknowledgement of Or All terms and conditions concerning agreements, orders and payments are to be governed by the provisions of the laws of the State of Texas and venue is proper in Denton County, Texas. Buyer agrees to pay all of Seller’s expenses including reasonable attorney’s fees, incurred by Seller in connection with any breach by Buyer of the Terms of this contract or any order.

9. Taxes/Fees: All orders are subject to credit approval and will be deemed accepted by (I) issuance of Seller’s Acknowledgement of Or Prices do not include any federal, state, local or other taxes. Buyer agrees to be responsible for any and all taxes associated with any order and also agrees to specifically indemnify Seller from any expense so related.

10. Miscellaneous: All orders are subject to credit approval and will be deemed accepted by (I) issuance of Seller’s Acknowledgement of Or All clerical or typographical errors are subject to correction. The invalidity, in whole or in part, in any of the foregoing paragraphs will not affect the remainder of neither such paragraph nor any other provision or paragraph contained herein.

11. Returns/Restocking Fees: All orders are subject to credit approval and will be deemed accepted by (I) issuance of Seller’s Acknowledgement of Or BCS must be notified in advance before items are returned. After notification BCS will issue a RMA number for the part to be returned. All returns may be subject to a 50% restocking charge & freight charge. No returns after 30 days without authorization.

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Telephone: (888) 599-0486 | Office: (940) 365-1800 | Fax: (940) 365-1808 | cody@bcsswitchgear.com