In consideration of purchases from time to time, Santa Barbara Chocolate Co. guarantees that articles and products shipped by it to, or on the order of the Purchaser as of the date of such shipment, are not adulterated or misbranded, within the meaning of the Federal Food, Drug and Cosmetic Act, as now in effect, and that such articles or products are not articles or products which may not, under the provisions of Section 404 or 505 of the Act, as now in effect, be introduced into Interstate Commerce; and that said articles or products do not contain a color additive from a batch which was not certified in accordance with the regulations promulgated by the secretary under the Food, Drug and Cosmetic Act, as now in effect.
In the event of the breach of this guarantee, the Supplier’s sole liability shall be to indemnify and save Purchaser harmless against direct expenses which Purchaser may incur or damage which Purchaser may directly suffer by reason thereof. Supplier’s liability for such damages is limited to the value of such of the products of the supplier shipped to or on the order of Purchaser as may fail to comply with said Guarantee. Supplier shall have no liability for any incidental or consequential damages incurred by Purchaser, even if Supplier has been made aware of the possibility of such damages.
Any and all prior Guarantees or Indemnity Agreements heretofore given by Supplier are revoked.
*This communication is intended to provide informal advice to Santa Barbara Chocolate customers upon their request. Our interpretation of the law does not represent a formal legal opinion, as we have not sought concurrence with the competent authorities. Customers are encouraged to consult with their own legal counsel.