Red Angus Association of America

SALE TERMS & CONDITIONS (Recommended)

a) The following terms and conditions of sale were adopted by the Board of Directors of the Red Angus Association of America as the official terms and conditions of sale for sales sponsored by the Red Angus Association of America.

b) These terms and conditions of sale are recommended for use by all members of the Red Angus Association of America.

c) Copies of these terms and conditions of sale are available upon request from the Red Angus Association of America.

All cattle in this sale are offered according to the laws of the State wherein the sale is conducted. The right to bid, as provided under law, is reserved for all sellers unless otherwise announced.

1. BIDDING

The Auctioneer in charge will settle any disputes as to bids, and his decision on such matters shall be final.

2. TERMS

Terms of sale are cash unless satisfactory credit arrangements have been made with Sale Management prior to sale.

3. PURCHASER’S RISK

Each animal becomes the risk of the Buyer as soon as sold, but it shall be the obligation of the Seller to see that animals are fed and cared for free of charge to Buyer, until loaded for shipment or until the expiration of 48 hours after the sale, whichever occurs sooner.

4. CERTIFICATE OF REGISTRY

A transferred certificate of registry will be furnished to the Buyer for each animal.

5. HEALTH

All animals are eligible for interstate shipment, except as otherwise announced. Interstate health papers will be furnished for each animal requiring tuberculosis and brucellosis tests in accordance with Federal Regulations.

6. A.I./NON-OWNER BULL PERMITS

If a female is bred to a non-owned bull, a Non-Owner Bull Permit will be required for registration of the resulting calf and will be the responsibility of the individual submitting the application for registration unless otherwise specified between buyer and seller.

7. ANNOUNCEMENTS

Any changes from information of any kind in this catalog will be announced from the auction box and such announcements shall take precedence.

8. BREEDING GUARANTEE

a) All animals are guaranteed by the Seller to be breeders, with the exception of:

i) Calves under 12 months of age.

ii) Animals shown by purchaser after sale. The breeding guarantees, if any, shall be such as agreed upon between Seller and Buyer.

iii) Gross negligence or willful misconduct on the part of Buyer.

b) Bulls are guaranteed breeders if not allowed to run within the herd until at least 14 months of age. Any bull that either, (1) settles one-third or more of the healthy cows he serves, (2) is the sire of 20 or more animals, or (3) settles cows by natural service and passes a fertility test made by a competent veterinarian during any six-month period of trial (provided for in paragraph 10b of “Options and Privileges of Return or Adjustment,” this section) shall be considered a breeder. Any guarantees with respect to the ability to freeze semen shall be by separate agreement between the Buyer and Seller.

c) Safe in Calf Females have been examined by a competent veterinarian and are so guaranteed.

d) Served Females are believed to be in calf but are not so guaranteed.

e) Pasture-bred Females have been exposed but are not guaranteed to be in calf.

f) Open Females have not been served and are so guaranteed.

9. IDENTIFICATION

Seller offers each animal with readable tattoos corresponding to its registration.

10. OPTIONS AND PRIVILEGES OF RETURN OR ADJUSTMENT

a) All claims for adjustment or refund must be made in writing either within six months of the sale date or not later than six months after the animal reaches 18 months of age, with the exception of claims involving defects of parentage.

b) In the event an animal is claimed to be a non-breeder, the animal may be returned to the farm/ranch of the Seller if in good condition and complying with the health requirements of the Seller’s state. The Seller shall be entitled to six months trial following the return of the animal in which to prove the animal is a breeder. If at the end of six months the Seller is unable to prove the animal is a breeder, the Seller, at the option of the Buyer, shall replace the animal with another of equal value or refund the purchase price. The return of the full purchase price shall in any case be deemed full satisfaction and settlement. Any expenses incurred for transporting an animal claimed to be a non-breeder shall be the responsibility of the Buyer; except that the Seller shall be responsible for transportation cost in the excess of the distance between the Buyer’s farm/ranch and the location where the sale took place. If the Seller proves the animal to be a breeder, it shall be the obligation of the Buyer to take delivery of the animal and pay all expenses incurred for transportation.

c) If a female sold as “safe in calf” proves not to be in-calf, the Buyer may receive service from the bull previously used. If the bull is not available, the Seller shall be obligated to make a satisfactory adjustment on the purchase price upon return of the animal to the farm/ranch of the Seller. Any adjustment provided for herein shall absolve the Seller from further liability, except in case such female proves to be a non-breeder. If a female represented as “safe in calf” at time of sale to a certain bull proves to have been bred to a different bull, the Seller shall be obligated to make a satisfactory adjustment on the purchase price upon return of the animal to the farm of the Seller (adjustments shall not be considered to be a breeding fee or an allocation of the purchase price to any unborn calf). Any expense incurred for transportation shall be the responsibility of the Buyer, except that the Seller shall be responsible for transportation costs in excess of the distance between the Buyer’s farm/ranch and the location where the sale took place.

d) If a female sold as “served” proves not to be in calf, or if a female sold as “pasture-bred” proves not to be in calf, the Seller only guarantees such female to be a breeder.

e) If a female sold as “open” proves to be with calf, the Buyer may return the animal to the farm/ranch of the Seller prior to calving for a refund of the full purchase price or for replacement with another animal of equal value, whichever is acceptable to the Buyer. It shall be the obligation of the Seller to bear any expense incurred for transportation.

11. Default

In the event the Buyer defaults on payment, the Buyer shall be responsible for all costs, including attorney’s costs, incurred by Sale Management or Seller in connection with collecting, or attempting to collect, payment due.

12. GENETIC DEFECT AND PARENTAGE GUARANTEE

a) All animals are guaranteed by the Seller not to produce calves with the following defects: DWARFISM, DOUBLE MUSCLING, PARROT MOUTH, OSTEOPETROSIS (marble bone disease) and SYNDACTYLISM (mule foot). The parentage of all animals bred by the Seller is guaranteed to the extent that the animal is by the sire and out of the dam that is indicated on its registration paper. These guarantees are effective for a period of two years from date of sale only under these conditions:

i) The Buyer shall notify the Seller in writing immediately upon birth of a calf suspected of being defective or immediately after determination is made that such calf is defective, or if parentage is suspect or found to be in error.

ii) The Seller, at his expense shall be permitted, and provided with reasonable opportunity, to obtain blood samples of alleged defective calf and its sire and dam for the purpose of DNA or blood type analysis to establish parentage. In the case of suspect parentage, the Buyer, at his expense, shall be permitted, and provided with reasonable opportunity, to obtain samples of the animal in question and its sire and dam for the purpose of DNA or blood type analysis to establish parentage. If sire and dam, as indicated on the animal’s Registration Certificate, are proven to be in error by such analysis, Seller shall reimburse Buyer for cost of such analysis.

iii) The animals will be returned by the Buyer to the Seller at the Buyer’s expense, provided the animals meet the health requirements of the Seller’s state.

iv) The replacement of an animal with another of equal value or the refund of the purchase price in connection with a defect producing animal or an animal whose parentage is in error shall be deemed full satisfaction and settlement.

In the event there is a dispute as to whether or not a calf is defective, or parentage is in error, “determination” referred to in a-i above, shall be made by a person or persons acceptable to both the Buyer and Seller, and in the event the Buyer and Seller cannot agree on the selection of such a person or persons then each of them shall appoint a representative to make the determination. In the event that such representatives fail to agree, a third person selected by the representatives of the Buyer and Seller shall make the determination.

13. SELLER’S SEMEN RIGHTS

Any semen rights retained by the Seller must be announced from the auction box at the time of the sale, if not already printed in the sale catalog.

14. RIGHTS AND OBLIGATIONS

a) The above terms and conditions of sale shall constitute a contract between the Buyer and Seller of each animal and shall be equally binding upon both. Each sale or resale of an animal constitutes a separate transaction.

b) Unless specifically stated herein, neither the Sale Management nor the Red Angus Association of America shall have any liability for any event or occurrence related in any manner to this sale.