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BARTER SYSTEMS, INC.
TRADING POLICIES AND PROCEDURES
A. Buyer must have a
valid, signed identification card to make a purchase. Client is solely
responsible for all changes made on card(s) issued to Client's account.
B. Because of high Client demand and short supply, certain items may be
available on a limited basis only. BSI is committed to provide only
those products or services actually available in the exchange system.
C. An authorization must be obtained from BSI for each purchase.
D. Products and or services are to be traded at fair market prices. BSI
has the right investigate any complaint of overpricing. Violation may
subject the Client to suspending trading, adjustment to the transaction
involved or termination.
E. Purchases by Clients
will be limited to the amount of trade dollars accrued to their
accounts unless secured by collateral and approved by an officer of
BSI. Client grants to BSI the right and power to make trade dollar
loans to any client on terms and conditions consistent with the
Client's credit status and the ability to repay the loan. Interest of
.8% in trade will be charged to accounts with a deficit trade balance
as of the end of the month.
LIABILITY FOR TRADE
DOLLARS
Client acknowledges that trade dollars in the trade exchange (positive
balances) are the liabilities of persons who have spent more than their
earnings (negative balances); that there is a creditor/debtor
relationship between such persons, and that trade transactions incur
the normal business risks associated with any credit transactions. BSI
is responsible for negative balances of clients and for losses, but
shall have full responsibility for all trade dollars that it uses like
any other client on the trade exchange.
F. Clients may request
their account be placed on hold under the following conditions (a) the
account is in a positive trade status, (b) sufficient notice is given
to BSI and (c) the account is not on the
suspended trading list.
G . Trade dollars shall
not be considered as legal tender, securities or commodities, by either
BSI or its clients, and may not be redeemed for cash.
H. Memberships may not be transferred or sold without BSI approval.
I. A $25 cash credit, applied toward current or future transaction
fees, will be given to Clients who sponsor a NEW Client that joins BSI.
J. Trade transactions are
entered into on a voluntary basis between Clients. Although BSI may
give referrals as a service to its Clients, BSI assumes no
responsibility for the quality, timely delivery, warranty or dispute of
any nature between Clients with regard to any product or service being
traded. BSI is functioning in a brokerage capacity and Client does
hereby indemnify and hold BSI harmless with respect to any claim, debt
or liability whatsoever, arising out of trade transactions wherein
Client is a buyer or seller. This shall include but be limited to,
professional malpractice claims, contractor/client disputes or claims
of product liability. It is understood that the Client may not be
considered a creditor of BSI or Clients of the exchange in relation to
Client's ability to spend Trade Dollars from his or her account.
K. The collection,
declaration and reporting of all applicable local, state and federal
taxes resulting from trade transactions rests solely with the Client.
Barter sales are taxable events.
L. Cash transaction fees resulting from client purchases are due and
payable upon receipt of the monthly statement. BSI RESERVES THE RIGHT
TO SUSPEND ALL TRADING OF CLIENTS WHOSE FEES ARE NOT PAID BY THE 30TH
OF THE MONTH IN WHICH THE STATEMENT IS RECEIVED. Any transaction fees
that remain unpaid beyond the end of the month that they are due, will
be assessed a cash penalty equal to 1% per month on the fee amount that
is outstanding. Cash transaction fees on trades of 5000 trade dollars
or more are due and payable in advance. BSI reserves the right without
notice to Client, to suspend client's trading privilege until the
account is current.
M. Client or BSI may cancel this Agreement after 30 days written
notice. Upon cancellation, all trade dollars due Client must be spent
within 90 days on products and services available through BSI. Any
trade remaining in Client account after the 90 days will revert back to
BSI. Any outstanding balance due BSI must be paid in full within 30
days, in cash. In the event this obligation is referred to an attorney
with or without suit, Client agrees to pay, in cash, attorney fees and
costs.
N. BSI may, at its option,
request advance payment of Client Transaction fees. Outstanding fees
and fees on the trade balance are due in advance of any spendout.
Client agrees that in any dispute where BSI is suing Client collect
fees or negative trade balance credits (trade dollars) , the exchange
rate for each BSI trade dollar owed is equal to on US dollar.
O. If, after one year, an
account has not had any activity (buy or sell), and the account remains
with a zero balance, BSI shall have the right to close that account.
Client acknowledges that, from time to time, Client firms will cease
doing business, abandon or otherwise exit the BSI network leaving a
debit or credit balance in their trade account. Further, BSI maintains
an account termed "Debt Reserve," wherein the debit or credit balances
are charged or credited. If BSI loses contact with an account due to a
disconnected telephone and/or continued returned mail, and the Client
has not attempted to notify BSI of this change of status, BSI will
close the account after 60 days and credit any trade dollars to BSI's
Debt Reserve account.
P. All sales made in the BSI showroom to BSI clients would require the
sales tax (all purchases) and transactions fees (purchases over
$1000TD) to be paid at point of sale. The BSI return policy on showroom
purchases is 14 days from date of purchase.
Q. Retention and/or use of
the BSI Barter Card constitutes acceptance of the Agreement with all
terms and conditions as a Client of BSI. BSI shall give 30 days notice
of such change, deletions or additions.
R. Major construction and other long term trade projects should have
all estimates written form. The seller can request an initial deposit,
with a phased payment schedule thereafter based upon the satisfactory
completion of each part of the project.
S. Client's monthly
statement will be considered accurate as printed unless the BSI
accounting department is notified of any discrepancy within 14 days of
receipt. BSI will charge client a Research Fee of 5TD's per statement
for all copies of monthly statements, if this request is not directly
related to a disputed item appearing on client account.
T. Direct trades between clients to avoid transaction fees are
prohibited, and if consummated, are subject to our normal transaction
fee on both sides, payable on demand. Such trades may also result in
suspension or termination of this Agreement.
U. BSI may place a Client's account on hold and/or cancel this
agreement if one or more of the following situations exist:
- BSI has received 2 written complaints on
a given Client for either proof of poor performance or attempting to
charge in excess of Client's retail prices.
- Client has committed fraud, either on
other Clients or against BSI.
- Client is not following his/her
contractual agreement with BSI.
- Client has exhibited unprofessional
behavior in dealing with BSI staff or in the conduct of trades with
other BSI Clients.
V. A $20 cash booking fee
will be included on all transactions involving local Clients purchasing
travel, restaurants or other forms of entertainment from exchanges
other than BSI. A $25 cash cancellation charge will be assessed to
Clients for reservations which are confirmed and then canceled. In
addition, a minimum trade charge of one night's room rate may be added
by the exchange through which the booking took place.
W. Any Client checks returned to BSI for insufficient funds, or any
other financial deficiency, will be assessed a $30 cash fee. Requests
for replacement BSI cards because they were lost or stolen will carry a
10TD cost per card.
X. In the event the
Exchange were to terminate or otherwise cease doing business: (1) the
aggregate credit/debit balance of the Member Debt and Forfeitures
Account would be credited/debited pro rata among all Exchange client
accounts and (2) all member businesses with negative trade account
balances will pay amounts they owe in cash into a fund. The fund, less
expenses, will be distributed pro rata to all clients who have positive
trade account balances. Thus, all member businesses with positive trade
balances will receive cash for their trade dollars to the extent that
funds permit. BSI shall not be liable to any Client or person for
cash/trade dollars beyond the distribution of such funds as aforesaid.
If this agreement is
canceled by a BSI client, there shall not be any refund of or
transaction fees.
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