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Has anyone heard of a Hold Harmless Document?

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#1 Kellio

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Posted 03 June 2014 - 06:38 PM

To all,

 

Hello and How are you?

 

I hope this note finds you well.

 

I am looking for information about Letter or a document called "Hold Harmless" Has anyone heard of such document? Apparently, this is for packaging or raw food material.  Any information or guidance would be greatly appreciated.

 

 

Thank you,

 

Kelio



#2 Snookie

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Posted 03 June 2014 - 06:45 PM

A Hold Harmless agreement is usually a document releasing or limiting liability on one or both parties.  So if you buy my food and you have a hold harmless agreement, and my food makes someone sick you would not be liable.  Don't know that I given you a great example but hopefully it will give you some idea. 


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#3 Mr. Incognito

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Posted 03 June 2014 - 07:04 PM

Yeah that's basically the long and the short of it Snookie.

 

It's a way to try to ensure that if you cause someone's product to become dangerous for consumption they can't sue you.  I'm not sure I've ever seen one.  All of the companies I've ever received product from was required to show a level of insurance on the business they did with us that way if they adulterated our product or caused our run to fail the amount of the damages would be transferred onto their insurance. 

 

Basically what a hold harmless document would have done for them is if they caused our product to make someone sick or die or if their product ruined our production run we would have no action we could take on them... of course it's all in the scope of the document.  It might spell out that if it is a product quality issue that they would be held harmless but not cover product safety.

 

If someone is giving you one of these then I'd be wary of them... they may not have a good track record in food safety or quality in some way.


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#4 ncwingnut

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Posted 03 June 2014 - 08:52 PM

We have a hold harmless clause in all of our vendor agreements now.  We started that last year.  Some of our vendors have their own that we use in leiu of our own, but most of them have had no issues in signing it.  Some don't sign them at all and we issue them an exemption, or we demote them to an alternate supplier, depending on the risk of the product they produce for us.



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#5 Charles.C

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Posted 05 June 2014 - 03:28 PM

Unfortunately, as I understand the US way, the offending party is still inevitably liable to either the FDA, USDA, or State Authorities ?

 

And this would surely neutralize any mystical guarantees being stowed in peoples's  safes?

 

Rgds / Charles.C


Kind Regards,

 

Charles.C


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#6 Snookie

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Posted 05 June 2014 - 03:45 PM

Unfortunately, as I understand the US way, the offending party is still inevitably liable to either the FDA, USDA, or State Authorities ?

 

And this would surely neutralize any mystical guarantees being stowed in peoples's  safes?

 

Rgds / Charles.C

 

:spoton: You forgot the lawyers which we have far too many of.  :giggle:


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#7 jenmarshall

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Posted 11 June 2014 - 11:10 AM

To build on what the group above has said, if you are being asked to sign a hold harmless agreement by a customer, I would not do so without consulting your legal counsel.  Some of them have language that is indecipherable to the common person and exposes a supplier to significant financial vulnerability.  It is my companie's practice to have our CFO review and sign any of them.  If you are looking to provide one to your supplier, I would also consult your legal cousel to get the wording correct for the risk you are trying to mitigate.  Either way, the lawyers get in the way.  Take care.



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#8 Charles.C

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Posted 14 June 2014 - 07:22 AM

To build on what the group above has said, if you are being asked to sign a hold harmless agreement by a customer, I would not do so without consulting your legal counsel.  Some of them have language that is indecipherable to the common person and exposes a supplier to significant financial vulnerability.  It is my companie's practice to have our CFO review and sign any of them.  If you are looking to provide one to your supplier, I would also consult your legal cousel to get the wording correct for the risk you are trying to mitigate.  Either way, the lawyers get in the way.  Take care.

 

cfo = checker foreign objects, chief financial officer ?

 

Rgds / Charles.C


Kind Regards,

 

Charles.C


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#9 Kellio

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Posted 18 June 2014 - 08:03 PM

Thank you for your responses and comments. This information has been very helpful.

Kellio







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