Terms and Conditions

No. 1-TERMS OF CONTRACT: Unless Buyer notifies Seller in writing by certified mail, return receipt requested, within three days after receipt of the order acknowledgement by Buyer, acceptance of the terms and conditions hereof by Buyer shall be considered accepted and in the absence of such notification, the sale and shipment by Seller of the goods covered hereby shall be conclusively deemed to be subject to the terms and conditions hereof. All orders and contracts are subject to acceptance only at Seller’s home office.

No. 2-TERMS OF PAYMENT: Discount-1/2 of 1%10 Days; Net 30.

No. 3-CREDIT: Accounts will be opened only upon approved credit deemed by Seller. The Seller reserves the right to decline delivering product, except for cash, whenever doubt as to the Buyer’s financial condition develops.

No. 4-QUANTITIES: All quotations are based on Buyer accepting over-run or under-run on each individual item not exceeding 10% of quantities ordered. Where closer control of quantity is required special arrangements must be made, otherwise Seller’s responsibility is only to deliver a quantity of parts within this range.

No. 5-DELIVERIES: Every effort will be made by Seller to fill orders within the time promised. Seller assumes the responsibility of assigning the necessary resources to achieve the delivery schedule quoted to the Buyer. Seller does not assume any responsibility due to default or delay in production or delivery of all or any portion of any contract resulting directly or indirectly from: (A) accident to, or breakdowns of Seller’s plant machinery or equipment; labor disputes; fire; riots; national emergency; natural disaster; acts of terrorism; delays of suppliers; carriers; or governmental restrictions, prohibitions; or allocations; or (B) any cause beyond the control of Seller. In no event shall Seller be liable for any consequential, special, or contingent damages arising out of Seller’s default or delay in filling this order. Unless otherwise agreed to between Buyer and Seller, quotations are made and orders are accepted for delivery as fast as manufactured by complete shipment, bulk packaged. If special delivery schedules and lot quantities are required, it may affect price and must be detailed as part of the request for quotation by Buyer, delineated in the quotation by Seller and delineated on the purchase order by Buyer.

No. 6-SAMPLES: If requested, Rollin J. Lobaugh, Inc. will submit samples for approval when commencing operations upon any order. However, Seller’s machines may start production immediately after they are set correctly to Buyer’s supplied specifications, and Seller will assume responsibility for having the product in conformity with such specifications while awaiting Buyer’s approval. Any changes to original specifications will be made only at Buyer’s directions and expense. If changes are made, Seller must be notified at once by telephone or fax, and followed up with written confirmation. If Buyer intends to use the samples to test a new or unproven design, Buyer should always include the anticipated production delay in the request for quotation and Seller and Buyer must agree to a specific amount of time and cost associated with the production hold, prior to order acceptance.

No. 7-TOLERANCES: All dimensions must be limited by a specific tolerance. When not specified it is understood that commercial tolerances apply:

Decimal Dimensions: All diameters plus or minus .005”

Lengths plus or minus .010”

Fractional Dimensions: plus or minus 1/64”

Lengths over 18” : plus or minus 1/32”

Intersecting Surfaces: fillets .020” Max.

Corners: .020” Max. Radius or Chamfer

Angles: Plus or minus 2-1/2 degrees

Samples are to be considered as denoting fractional dimensions, unless otherwise specified and dimensions of samples will be considered “mean” dimensions. Where cross drilling, slotting, milling and similar operations are required, the location will be without relation to other features unless otherwise specified.

When Buyer purchases pursuant to his own specifications, Seller will not be held responsible for the design and fit of parts.

Concentricity requirements, if any, must be specified separately from dimensions and will be subject to inspection only at the point where the relation is shown on the print. When a concentricity limitation is specified it is understood that it means the actual eccentricity allowable between the center lines of the dimensions, which is one-half of a dial reading registration. When concentricity is not specified, the work will be manufactured in the most economical manner without particular regard to concentricity.

No. 8-THREADS: Unless otherwise specified, threads will be of the ANSI Unified Screw Threads and will be made to Class 2A and Class 2B fit tolerances. When Buyer specifies threads other than sizes in the Coarse Thread Series or Fine Thread Series, gauges are to be furnished by Buyer or charged for by Seller.

No. 9-EXTERNAL THREADS: Where threading to the shoulder is specified, if a relief or undercut of sufficient width is not provided for, it will be understood that the last full thread may not be closer to the shoulder than a distance of two and one-half threads and in the case of fine pitches, may not be closer that 1/16”.

No. 10-INTERNAL THREADS: Unless otherwise specified, blind tapped holes may not have a full thread closer than three and one-half threads from the bottom, and in the case of fine pitches, not closer than 5/32”.

No. 11-GAUGES: Where dimensions cannot be readily gauged with micrometers and require special gauges, such gages may be furnished by Buyer or supplied by Seller at an extra charge. Thread inspection gauges will conform to the limits specified by the current ANSI standards.

No. 12-INSPECTION: Inspection by Seller is made on a percentage basis only. It is assumed that 100% inspection is not required. If 100% inspection is required, it is an added cost at Buyer’s expense.

No. 13-TOOLS, TOOLING CHARGES, FIXTURES, ETC.: Tools, dies, jigs, fixtures, programs, gauges, and their engineering and design, are integral parts of Seller’s manufacturing processes. Therefore, separate quotation to, or payment by Buyer for these items, supplied by Seller, conveys neither ownership, nor the right of removal from Seller’s possession.

No. 14-SHIPMENT: In ordering, Buyer should state explicitly the method of shipment preferred, and in the absence of shipping directions, Seller will use discretion, forwarding by air, truck or parcel post when packages are small and therefore subject to loss in transit. When considered prudent by the Seller, shipment will be insured at Buyer’s expense, unless otherwise specified by Buyer. All goods are sold F.O.B Rollin J. Lobaugh, Inc., South San Francisco, California, so Buyer assumes freight cost and liability for any loss or damage to goods once the goods have left Seller’s premises.

No. 15-BUYER’S MATERIAL: Quotations covering machining of Buyer’s material are made subject to delivery of the amount of material as specified by the Seller in 10 to 12 ft. lengths, F.O.B. Seller’s plant, and are subject to change if material is defective or will not machine with reasonable wear on tools at the feeds and speeds estimated. Chemical and physical specifications are the sole responsibility of Buyer, and parts manufactured from Buyer’s material, which conform to print specifications, shall be accepted by Buyer. The seller does not guarantee to deliver more than 90% of the quantity ordered, as stated in No. 4-QUANTITIES. If Buyer’s material proves defective, in total or in part, or of a different character than represented by either Buyer or material producer, all work performed by Seller shall be reimbursed by Buyer.

No. 16-QUOTATIONS: Typographical errors are subject to correction.

No. 17-Taxes: Taxes imposed by any present or future law of federal, state, county, or municipal authority on the manufacture, sale or use of the articles purchased hereunder and required to be paid by Seller shall be added to the amount to be paid by Buyer. Buyer shall furnish evidence of exemption if applicable. Customs duties or taxes are not included in prices; Buyer shall reimburse Seller for any such duties or taxes as Seller may pay or subsequently be assessed.

No. 18-PATENTS: It is not the intention of the Seller to manufacture any product which is an infringement of a patent. Buyer will defend and reimburse Seller for all expenses and damages resulting from claims of infringement related to filling the Buyer’s orders. This will apply to orders for individual parts or assemblies.

No. 19-CANCELLATION: Orders may be cancelled or deliveries deferred by Buyer with the written consent of Seller, only upon the condition that the Buyer assumes immediate liability and makes payment to Seller for all work complete and incomplete, recovering Seller’s costs and lost profits. The Seller will recover from Buyer: the unit sales price of completed work, work in process on the basis of the percentage of completion, raw material costs, unamortized tooling costs, engineering, handling, overhead charges, and other cancellation charges incurred on the basis of cost to Seller, as well as lost profits. All cancellation charges to be determined at the time of cancellation or deferment.

No. 20-CLAIMS: If Buyer claims delivery of material is not as ordered, he must notify Seller within fifteen (15) days of receipt of shipment. If such claim is sustained, Seller shall, at his option, repair, replace, credit or complete order. Charges for repair or inspection of parts by Buyer without prior authorization cannot be honored. Seller shall have the option of inspecting the goods on Buyer’s premises or of taking back the goods and deciding whether to replace goods or credit Buyer.

Claims for shortage of goods must be presented within fifteen (15) days from the date of receipt of goods and must state the packing list number, weight including tare and the method used in arriving at a count of the parts. Any claim for error in weight or shortage, not presented in accordance with this provision, will conclusively be deemed waived. Seller may, at Seller’s discretion, request the shipment be returned in its entirety for full evaluation.

Seller will not allow claims on those goods further processed by Buyer resulting in change of dimensions or characteristics from parts as ordered.