What should be included in Letter of guarantee? Urgent!
I started this topic because when you review your supplier profile, you will found everybody wrote it differently, some saying they are following HACCP even list special section of the regulation & every bits of detail of there food safety program, some is just a indemnity & hold harmless agreement.
And when you look up in regulation, there seems no specific rule on how you should word it (at least not I know of) which is very confusing.
Besides, I just started a new job in a big company, it's the time of the year to renew our letter of guarantee as well, but we not only produce certain item in USA, but also import and using co-manufacture to produce product. We handle frozen foods (Ice cream, veggie or meant & poultry containing frozen meal etc), snack, spice, bottled product etc, I want to know what I should included in our own letter of guarantee is appropriate.
Please advice, than you guys!
Sincerely,
Alex
Copy the old ones and change the date?
Put in whatever you are guaranteeing that the product will be unadulterated, will arrive within agreed upon specifications, etc.
You could go legal & fancy ..
For an in consideration for the purchase of merchandise by CUSTOMER NAME, (“Buyer”) from the undersigned (COMPANY X).
The undersigned represents and warrants to Buyer that no food or food products comprising or contained in any shipment or other delivery of products sold by the undersigned has been, is, or will be at the date of shipment and delivery: (a) adulterated, unsafe, or misbranded, within the meaning of the Federal Food, Drug and Cosmetic Act, as amended (the “Act”), (b) an article which, under the provisions of paragraph 404, 505, and 512 of the Act, may not be introduced to interstate commerce, © in violation of any other applicable law, rule, or regulation. The undersigned also represents and warrants to Buyer that the goods to be supplied under this agreement are merchantable, of the highest quality, and free from defects, whether patent or latent, and that the undersigned has good title to such goods, free and clear of all liens and encumbrances.
Or you could go breezy & casual -
Company X hereby guarantees that all of our products manufactured and shipped, are not adulterated or misbranded within the meaning of the Federal Food Drug & Cosmetic Act, Title 21.
Company X guarantees that all products are produced under sanitary conditions in accordance with Good Manufacturing Practices. These products are also guaranteed to meet all internal Quality standards and specifications.
This continuing letter of guarantee shall be applicable to all goods manufactured and packaged at Company X and shall continue to be in effect until written notice of revocation.
__
There's really no regulation, mostly this is a CYA (Cover your a**) move for liability purposes. For example, Kraft Foods used the LOG from PCA during their trial as evidence to show that PCA was commiting fraud by selling them food that wasn't in accordance with the LOG.
What do your customers want?
Hi guys,
Thanks for the response, let me specify my questions:
1. When you reviewing your supplier profile or when you issue your own letter of guaranty, what kind of letter of guaranty consider an acceptable letter of guaranty?
2. Should indemnity & hold harmless agreement in an acceptable letter of guaranty?
3. Should specific agency & section of the law be included in letter of guaranty?
4. Should every aspect of current food safety program implemented for that company be included in letter of guaranty?
5. Seems a lot of us just copy and paste, but is what we claim really appropriate? Just like the term mentioned by magenta-majors "an article which, under the provisions of paragraph 404, 505, and 512 of the Act, may not be introduced to interstate commerce", we are a food manufacture, we don't produce drug or cosmetic on site, but sec 505 & sec 512 is not really for food if I didn't misunderstand.
Anyway, any input is appreciated.
Sincerely,
Alex
Hi guys,
Thanks for the response, let me specify my questions:
1. When you reviewing your supplier profile or when you issue your own letter of guaranty, what kind of letter of guaranty consider an acceptable letter of guaranty?
2. Should indemnity & hold harmless agreement in an acceptable letter of guaranty?
3. Should specific agency & section of the law be included in letter of guaranty?
4. Should every aspect of current food safety program implemented for that company be included in letter of guaranty?
5. Seems a lot of us just copy and paste, but is what we claim really appropriate? Just like the term mentioned by magenta-majors "an article which, under the provisions of paragraph 404, 505, and 512 of the Act, may not be introduced to interstate commerce", we are a food manufacture, we don't produce drug or cosmetic on site, but sec 505 & sec 512 is not really for food if I didn't misunderstand.
Anyway, any input is appreciated.
Sincerely,
Alex
1. Anything that says what they make is legal
2. I wouldn't put that in without asking someone who knows about .. laws...
3. At least CFR 21. I don't put anything further than that in my own (mine is the plain language example)
4. Nah, that would take way too much time
5. That legal example is a copy and paste. In an ideal world, lawyers would write these instead of us. Because it's only a liability document. I definitely wouldn't add sections of the law that do not apply to my business to it, though I suppose you would be in compliance with those laws. I've seen many, many different sections of 21 listed on LOGs. I try to keep mine general.
I agree with Magenta-Majors: hold harmless and indemnity clauses usually obligate you to paying for damages to a potentially long chain of businesses (your customer, their customer, the next user in line, etc.). Your legal person needs to review those types of requests.