In the past we’ve discussed how important it is to have your customer sign your order form at the bottom acknowledging he read and agreed to its terms. In a recent case on behalf of a dealer being sued by his customer, our best defense was contained in terms of his order form. But guess what? Although the language was in large, dark print, the signature line was blank so there was not much I could do when she denied ever having seen the form until only after the problem arose. So much for signature lines.

Let’s look at some clauses of good order forms. If yours has various conditions of sale printed on its back, you must, in large, bold lettering indicate this on the front.

This language might say: “The terms and conditions contained on both the face of this contract and on the reverse side shall be binding upon the parties.”

Other clauses might say what you are not responsible for. This may include things like the sub-floor pipes, electrical wiring, breakables, removal of old flooring, doors that don’t fit after installation, moldings and delays due to circumstances beyond your control.

This is by no means a complete list. In most jurisdictions a seller may not wave away damage caused by his own negligence. Thus, although you state you are not responsible for your customer’s breakables, if she does leave something out and your man accidentally knocks into it with a roll of carpet, you will probably be liable anyway.

Other things you may want to cover are those which are in the nature of the product and not considered defects. These should include dye lot variations, shading, sprouting, shedding and seam placement.

Your contract should also have a clause dealing with problems that are easily correctable. This may include missing or protruding tufts, high rows of yarn, soiled edges, stretching and/or buckling, etc. It may say, if these conditions appear after installation, they will not be considered defects and your only obligation is to make the simple corrections to eliminate the condition. It could also take this obligation one step further. Unless a local consumer protection law says otherwise, the Uniform Commercial Code (UCC) allows a seller of goods to limit, within reason, his liability for defects in the goods delivered.

This section of the law states: “The agreement may limit or alter the buyer’s remedies to return of the goods and repayment of the price, or to repair and replacement of nonconforming goods or parts.”

One sample clause for this section may state: “It is expressly understood and agreed that the buyer’s sole and exclusive remedy shall be repair or replacement of defective goods.”

Sometimes the following is added to this clause, just in case: “If in the seller’s sole discretion, he deems it necessary, he may instead take back the defective goods in which case the buyer’s sole and exclusive remedy shall be the return of the purchase price. The buyer shall in no event be liable for damages for injury to persons or property or for consequential or incidental damage.”

As we’ve noted, the UCC allows these types of clauses to be agreed to and binded by the seller and buyer. However, when the buyer is a consumer, there may be a local law or judge that says you’re going to be fully responsible no matter what the clause says or how many times it has been signed.

Keep in mind that sometimes just the fact the clause is printed and signed is enough to help solve the problem and prevent it from ever getting to court.