Common use of PROPER USE OF DISCOUNTS Clause in Contracts

PROPER USE OF DISCOUNTS. A Seco “contract account” discount or a “meet comp” discount is intended only to support the Distributor in meeting the specific lower price offered by a non-Seco competitive seller to the specific customer which is the subject of the “meet- ing comp” or “contract account” authorization. Product purchased under “meet comp” or “con- tract account” authorization pricing is intended to be provided to the specified customer and for the specified order only. Inventory purchased on a “meet comp” or a “contract account” discount basis should be separately tracked and accounted for from general inventory. Seco may conduct an audit of the Distributor’s books and records for the purpose of verifying that discounts have been properly requested and applied.