goods_and_service_procurement_practice_guide.doc

Liability issues regarding disposal of products a

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Liability issues regarding disposal of products A public authority should not offer any warranty as to the quality or condition of products offered for disposal. Documentation relating to the products that a public authority is offering for disposal should contain a disclaimer and exclusion of warranty, which establishes that: The public authority offers no warranty on the condition of products for sale; All products are generally sold ‘ex works’ or ‘as is, where is’; and 72 Ver. December 2017 Appendix
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The public authority will not admit any claims for rebates resulting from any error in description, quantity or quality. A public authority should consider seeking legal advice regarding the drafting of any disclaimer relating to the disposal of products of sufficient value. Disposal of electronic equipment Public authorities should consider information security issues when disposing of electronic equipment, such as faxes, copiers, printers and personal computers. Recent investigations found that the electronic equipment disposed of by some public authorities still contained sensitive and confidential information. Public authorities should ensure that all sensitive information is deleted from their electronic equipment prior to disposal. Sale of products to public sector employees Although it is not openly encouraged, circumstances may arise where a public authority considers an internal disposal to be the most appropriate disposal method. This method is in accordance with the policy where the products are valued at less than $1,000. When undertaking internal disposals, a public authority needs to be aware of the sensitivities that surround the selling of products to employees. If this disposal option is to be adopted, it is recommended that consideration be given to the following issues: Internal disposals may draw criticism from the general community and should therefore be used sparingly. Perception is important and a public authority must, if required, be able to justify why the particular method was chosen. Packaging of products is important. It should not be used as a means to remain under the $1,000 threshold and therefore avoid a public disposal process. If products are packaged in large quantities, they may be targeted by employees for the purpose of resale. Some consideration should therefore be given to limiting the number of items an individual employee can purchase. Appropriate procedures ensure fairness and probity of the internal disposal process. This includes: o Implementing a bidding process from the local work area. o Nominating a closing date and time for bids. o Ensuring sealed bids are placed in a tender box. o Producing a written evaluation report. Officers involved in the internal disposal process must not be permitted to bid for the products.
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