CREDIT & WARRANTY
- Scope and Purpose
First Corp International, Inc. d/b/a Diamond Drilling Industries (“FCI”) evaluates and determines appropriate terms and credit limits for all our customer accounts. This Credit Policy applies to all sales of FCI products to customers located in the United States.
The purpose of this Credit Policy is to define the requirements for establishing and maintaining credit lines and payment terms for FCI’s customers. This Credit Policy also provides alternative payment methods for accommodating sales to customers who do not qualify for credit with FCI.
In order to facilitate the flow of orders and shipments of products, it is FCI’s policy that credit will be extended to all customers who demonstrate both the ability to pay and have an established history of timely payment of debts. FCI’s credit department will evaluate all new customers who apply for credit to determine what payment terms and methods will be required and what level of credit will be established. Decisions are based on references (both bank and trade), payment histories, and alerts obtained through our application process, which includes, but is not limited to, credit applications and customer credit reports generated through Experian.
FCI’s credit department will also periodically review and reevaluate payment terms and credit lines of existing customers to support customer requirements and to manage risk as financial and business conditions change.
FCI’s credit department is responsible for authorizing all communications with FCI’s customers (new and existing) regarding credit acceptance status, credit line value, and payment terms and methods. FCI’s credit department will determine which financial information of the customer is required and what dollar credit limit will be approved.
FCI’s sales department is responsible for ensuring that FCI’s Credit Application Form is submitted to the credit department by a new customer, in advance of order acceptance.
- Credit Lines and Payment Terms
A credit evaluation is performed by FCI’s credit department in order to recommend a credit line (if any), payment terms, and any other conditions of sale specific to the customer. The credit evaluation and proposal is submitted to and signed off by the appropriate signature levels. After approval, FCI’s sales department will be notified of the results.
The standard form of credit is an open credit line without a security interest . Based on the credit evaluation, FCI’s credit department has the discretion to require some tangible form of security in order to continue the credit approval process. Such additional security requirements can include, but are not limited to, (i) an irrevocable letter of credit; (ii) a guarantee from a bank or other financial institution; (iii) a guarantee from the parent or other affiliated entity; (iv) a personal guarantee from the owner(s) or principal(s); or (v) an interest in secured collateral.
FCI’s terms of payment are net thirty (30) days from the date of product shipment. If an invoice is not paid within thirty (30) days from the date of shipment it will be considered past due, and among other remedies, FCI’s credit department can place, in its sole discretion, an account or shipment on credit hold and to make disclosures to Experian or any other credit agency. Prepayment discounts are not offered in the standard corporate payment terms. All other non-standard terms or conditions require approval from FCI’s President or Director of Finance .
- Alternatives to Credit
The result of the credit evaluation may be a denial of credit to a customer whose risk factors are assessed as too great or whose level of risk is indeterminable due to an insufficient amount of information or background history. The denial of credit does not constitute, and therefore will not be communicated as, a rejection of sales to the customer.
Alternative payment terms that can be approved by FCI’s credit department and extended to these customers are:
- Cash in Advance (CIA)—payment is delivered to FCI and receipt of funds are confirmed by FCI’s credit department prior to shipment of the product.
- Credit Card (CC)—payment is made electronically using a major credit card, including Visa, Master Card, or American Express. Upon authorization or approval of the purchase, the product is released for shipment.
- Credit Holds and Releases
FCI’s credit department can place, in its sole discretion, an account or shipment on credit hold and to make disclosures to Experian or any other credit agency due to any of the following reasons: (i) the customer’s credit line is or will be exceeded; (ii) payments are overdue; (iii) the customer faces financial hardship or operational setback; (iv) termination of the business relationship between FCI and the customer; or (v) any other reassessment of risk by the credit department.
The credit department will notify the sales department, in advance, of all pending shipments that are being put on credit hold. The credit department will begin to work with the customer service and sales departments to effectively resolve any issues upon institution of the credit hold.
No orders or shipments with a credit hold status can be released without approval from the credit department.
IMPORTANT: BY PURCHASING PRODUCTS, YOU ARE AGREEING TO BE BOUND BY THE TERMS OF THE NINETY (90) LIMITED WARRANTY (“WARRANTY”) AS SET OUT BELOW. DO NOT ORDER A PRODUCT UNTIL YOU HAVE READ THE TERMS OF THE WARRANTY. IF YOU DO NOT AGREE TO THE TERMS OF THE WARRANTY, DO NOT ORDER THE PRODUCT.
TO THE EXTENT PERMITTED BY LAW, THIS WARRANTY AND THE REMEDIES SET FORTH ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES, REMEDIES AND CONDITIONS, WHETHER ORAL, WRITTEN, STATUTORY, EXPRESS OR IMPLIED, OR OTHERWISE. FIRST CORP INTERNATIONAL, INC. D/B/A DIAMOND DRILLING INDUSTRIES (“DDI”) DISCLAIMS ALL STATUTORY AND IMPLIED WARRANTIES, INCLUDING WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND WARRANTIES AGAINST HIDDEN OR LATENT DEFECTS, TO THE EXTENT PERMITTED BY LAW. IN SO FAR AS SUCH WARRANTIES CANNOT BE DISCLAIMED, DDI LIMITS THE DURATION AND REMEDIES OF SUCH WARRANTIES TO THE DURATION OF THIS EXPRESS WARRANTY AND, AT DDI’S OPTION, THE REPAIR OR REPLACEMENT SERVICES DESCRIBED BELOW.
WHAT IS COVERED BY THIS WARRANTY?
First Corp International of 5000 Kaltenbrun Rd., Fort Worth, Texas 76119 warrants the product (“Product”) against defects in materials and workmanship under normal use and service for a period of ninety (90) days from delivery of the Product from First Corp International ’s place of business (“Warranty Period”).
WHAT IS NOT COVERED BY THIS WARRANTY?
This Warranty does not apply: (a) to consumable parts, unless failure has occurred due to a defect in materials or workmanship; (b) to cosmetic damage, including but not limited to scratches and dents; (c) to damage caused by negligence, misapplication, modification, accident, operating capacity, abuse, misuse, fire, earthquake or other external cause; (d) to damage caused by operating the Product outside First Corp International’ s published guidelines or specifications; (e) to damage caused by service, repair or modification performed by anyone who is not a representative of First Corp International; (f) to a Product that has been altered or modified to alter functionality or capability without the written permission of First Corp International; (g) to defects caused by normal wear and tear or otherwise due to the normal aging of the Product; (h) improper preventative maintenance of the Product; (i) use or operation of the Product in conjunction with any accessories or auxillary equipment not specifically approved by First Corp International; (j) and/or force majeure, including natural disaster, fire, flood, accidents and the like. Furthermore:
DDI bits are warranted against cutter total loss for the life of the bit. If a cutter ever dislodges free from the cutter pocket with no diamond or tungsten backing is left in the pocket, First Corp International will repair the whole bit free of charge. If there is any portion of the PDC cutter left in the cutter pocket, this will be classified as cutter breakage, and will NOT be covered under the Warranty.
Cutter Delamination is defined as improper heating of the cutter which causes failures between diamond and the substrates from improper installation methods that generally involve overheating that will eventually lead to diamond and substrate failure. Defects caused by Cutter Delamination are NOT covered under the Warranty.
Damage incurred while drilling, such as broken/worn cutters is NOT covered under Warranty. Bit body damage that is sustained due to prolonged usage beyond the operational capabilities of the bit where multiple cutters have been damaged/worn is NOT covered under Warranty.
Alterations to any DDI Product:
If customer performs any changes to the body of the bit, like welding or other alterations, it will void the Warranty. Use of non-DDI parts is not acceptable and any unauthorized parts usage will void the Warranty.
First Corp International ’s Warranty does not include travel time and mileage charges for delivery of Warranty parts (if applicable), pick-up and delivery of Products, or service related to Products.
WHAT WILL FIRST CORP INTERNATIONAL DO IN THE EVENT OF A VALID WARRANTY CLAIM?
If during the Warranty Period you submit a valid Warranty claim to First Corp International, First Corp International will, at its option, (i) repair the Product (ii) replace the Product with a product that is at least functionally equivalent to the Product and is formed from new and/or previously used parts that are equivalent to new in performance and reliability, or (iii) exchange the Product for a refund of your purchase price.
A replacement part assumes the remaining term of the Warranty or ninety (90) days from the date of replacement or repair, whichever provides longer coverage for you. When a Product or part is replaced or a refund provided, any replacement item becomes your property and the replaced or refunded item becomes First Corp International ‘s property.
HOW TO OBTAIN WARRANTY SERVICE?
You must first contact First Corp International before submitting a claim and proof of delivery of the Product to you must be provided when submitting a claim. All problems with Products must be reported to First Corp International in the Claim Form so a decision can be made as to what actions will be taken, if any. Customer has to provide a full description of the problem with the Product and images that can evidence the validity of the problem. If initially deemed by First Corp International to be a valid Warranty claim, a Return Authorization will be issued to return the required Products for further evaluation by First Corp International . Items received without a valid RMA# will be refused.
LIMITATION OF LIABILITY
EXCEPT AS PROVIDED IN THIS WARRANTY AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, DDI IS NOT RESPONSIBLE FOR DIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES RESULTING FROM ANY BREACH OF WARRANTY OR CONDITION, OR UNDER ANY OTHER LEGAL THEORY, INCLUDING BUT NOT LIMITED TO LOSS OF USE; LOSS OF REVENUE; LOSS OF ACTUAL OR ANTICIPATED PROFITS (INCLUDING LOSS OF PROFITS ON CONTRACTS); LOSS OF THE USE OF MONEY; LOSS OF ANTICIPATED SAVINGS; LOSS OF BUSINESS; LOSS OF OPPORTUNITY; LOSS OF GOODWILL; LOSS OF REPUTATION; OR ANY INDIRECT OR CONSEQUENTIAL LOSS OR DAMAGE HOWSOEVER CAUSED INCLUDING THE REPLACEMENT OF EQUIPMENT AND PROPERTY.
No DDI reseller, agent, or employee is authorized to make any modification, extension, or addition to this Warranty. If any term is held to be illegal or unenforceable, the legality or enforceability of the remaining terms shall not be affected or impaired. This Warranty is governed by and construed under the laws of the country in which the Product purchase took place. First Corp International or its successor in title is the warrantor under this Warranty.
All Warranty correspondence should be directed to:
First Corp International
5000 Kaltenbrun Rd.
Fort Worth, TX 76119
If you have any questions regarding the First Corp International Warranty Policy and procedures please contact a DDI Sales Representative at +1-817-561-5040