Essay About Potential Customers And Liability Limitation Clauses

Exposure to Lawsuits
Exposure to Lawsuits
Exposure to lawsuits
Potential customers may rely upon SIT’s products for critical energy needs. A malfunction or the
inadequate design of the Company’s products could result in tort or warranty claims. Although SIT
generally will seek to reduce the risk of any claims by methods including insurance, warranty
disclaimers and liability limitation clauses in the Company’s commercial agreements,SIT cannot assure
investors that its efforts will effectively limit the Company’s liability.
Under certain existing contracts with its customers, SIT has not included any warranty disclaimers or
liability limitation clauses. Although these contracts are few in number it is not likely that SIT will be
able to effectively limit its liability in relation to them other than by obtaining insurance in relation to
its exposure under such contracts. There can be no guarantee that SIT will be able to obtain such
insurance. However, the Directors believe that the risk of warranty claims being made in relation to
such contracts is minimal due to the established quality and reliability of the underlying roofing and
photovoltaic components, as well as the reliability of the manufacturing process and adhesives which
SIT employs.
Dependence on third party suppliers
SIT relies on a small number of critical third party suppliers. If the Company fails to develop or
maintain its relationships with these or its other suppliers,it