Contracts in the E-Cigarette, E-Liquid and ENDS Industry
Contracts in the E-Cigarette, E-Liquid and ENDS Industry
Businesses enter into numerous contractual relationships, which can include purchase orders, invoices, terms & conditions and other transactions. E-cigarette, e-liquid and ENDS manufacturers enter into a wide variety of contracts, including: employment, manufacturing, distributing, licensing, sales, vendor, supplier, marketing, information technology and other contractual relationships. Each one of these contractual dealings has the potential to result in expected and, more importantly, unexpected liability. All exposure cannot be eliminated.
Sometimes, contracts are unintentionally formed with terms that businesses are not completely aware of resulting in terms they did not intend to agree to. Understanding, assessing and limiting exposure is essential to a business avoiding unexpected and substantial liability. In general, businesses should identify all contracts and take the following actions:
- Ensure all contracts are fully executed and all exhibits and schedules are attached
- Index originals and keep in a safe place
- Prepare abstracts of each contract to address deadlines, renewals and other rights, duties and unique issues;
- Create a comprehensive index of all contracts; and
- Implement a contract approval, review, negotiation and finalization procedure.
A comprehensive review and system should be implemented to ensure a business’s preferred contractual terms and conditions are properly set forth in its business dealings. Preparing a specially tailored set of terms and conditions for purchase orders, invoices and others contractual dealings can assist in assuring the terms you are looking for are included.
Using online contract execution providers, like DocuSign, can expedite the contract signing process, ensure appropriate approvals and assist with contract maintenance.
The e-cig/e-liquid attorneys at Brown & Charbonneau, LLP are skilled contract attorneys and are up to date on all of the relevant issues affecting the industry. We are prepared to assist you. To learn more, call us today at 714.406.4397, or e-mail inquiries@bc-llp.com to set up a consultation. For more information about the e-cigarette, e-liquid and ENDS industry, please click here