CLAIMS
By ordering from this price catalog Customer agrees that all claims relating to Customer’s purchases of Products shall be submitted and handled in the following manner:
1. Claims regarding Product damage and/or shortage must be made in writing, received by Abbott within 30 days from the date the Product shipment was received by Customer, and be supported by a signed carrier’s delivery receipt. Customer shall supply Abbott any back-up documentation requested by Abbott regarding the alleged Product damage and/or shortage. If Abbott determines that Abbott will issue a credit for the Product damage and/or shortage, then Abbott will issue a credit to Customer as set forth in the Section titled Customer Request for Credit. Customer must submit in writing any requests for proofs of deliveries from Abbott within 120 days from the date of Abbott’ invoice for the Product. Customer shall pay a $35 charge (plus interest) for Customer requested proofs of deliveries that validate Abbott’ invoice.
2. Customer must raise within 1 year from date of invoice all claims and disputes regarding payments, pricing and/or credits.
3. The failure of Abbott to enforce at any time, for any period, any provision hereof shall not be construed to be a waiver of such provision or of the right of Abbott thereafter to enforce each such provision.

Abbott will accept return of Product only if such Product is purchased directly from Abbott, and Abbott will issue a credit for returned Product in accordance with the terms set forth in the Section titled Customer Request for Credit. All Product returned to Abbott will be subject to verification that such Product was purchased directly from Abbott, and Abbott shall have no obligations with respect to any Products not purchased directly from Abbott. Indirect Customers should return Product to their point of purchase. However, Abbott may, at its discretion, allow an indirect Customer to return Product to Abbott. If Abbott allows such a return, the Customer must follow the return policy set forth herein and Customer’s return will be valued at 50% of 98% of the Bracket #3 truckload list price. Abbott reserves the right to destroy all Products returned whether or not such Products are eligible for credit from Abbott.

  1. Abbott will pick up returns from direct customers.
  2. Full case returns of Product must be in the original case and have unbroken seal and original label.
  3. Customers must contact Abbott Customer Service Operations at 800-551-5838 to arrange pick up or use e-abbott.com to request a return pick up.
  4. Upon calling for pick up, the customer will be provided with a Return Identification Number (RIN). NO PRODUCT CAN BE RETURNED WITHOUT A RIN. The RIN must be referenced on all correspondence to Abbott pertaining to the return.
  5. Abbott will pay all freight expenses only if an Abbott designated carrier is utilized.
  6. Abbott will issue and mail call tags to the Customer for the return of the Product if a return is less than 10 cases for full case Returns or less than 10 boxes for less than full case returns.
  7. Credit will only be given for returns if returned to Damaged Recovery Systems (DRS) or an authorized ABBOTT shipping point.
  8. Credit will be issued at approximate selling price at the time of purchase.
  9. Payment for all expired Product returned to Damage Recovery Systems (DRS) or an authorized Abbott Shipping point: will be credited at the price in effect on the date of return.
  10. List prices are subject to change without notice.

This Wholesaler / Distributor Chargeback Policy (“Policy”) sets forth the terms and conditions upon which Abbott Products Division, Abbott Laboratories Inc. (“Abbott”) will provide a rebate (“Chargeback”) on purchases of eligible Abbott products and devices (“Products”) to a wholesaler or distributor customer (“Customer”) participating in the Abbott Charge back Program (“Charge back Program”).

  1. Chargeback. In order for Customer to receive a Chargeback from Abbott, the Customer must comply with the following provisions.
    1. Customer must be authorized in writing by Abbott to participate in the Chargeback Program.
    2. Customer’s resale of Products must be to an eligible end-user facility (“End User”), as set forth in Section 2 of this Policy.
    3. Customer’s Chargeback claim must be submitted within sixty (60) days of the original Customer invoice date to the End-User, and the invoice date must coincide with the Customer’s shipment date to the End-User. Abbott will not accept summary invoices that collectively represent future or historic End-User shipments.
    4. Customer must submit Chargeback claims electronically through: (a) Electronic Data Interchange (“EDI”) ASC X12 844 (“Product Transfer Account Adjustment”),(b)EDI ASC X12 867 (“Product Transfer and Resale Report,” and collectively with Product Transfer Account Adjustment, “EDI”),or (c) Ross’s web-based system located at http://www.e-abbott.com (“E-abbott.com” and collectively with EDI, the “Ross Electronic Commerce Requirements”). Abbott will honor Chargeback submissions made via paper report for Customers that do not have electronic submission capabilities until March 31, 2008. Thereafter, Customers shall be required to submit claims in accordance with the Abbott Electronic Commerce Requirements, and Abbott will not accept any claims submissions that do not comply with Abbott Electronic Commerce Requirements. For information on how to convert current paper claims to Abbott Electronic Commerce Requirements, please contact the Abbott Charge back Department at the number set forth below.
    5. Customer shall include the following information in each request for Chargeback:
      1. Customer’s name, address, and its Abbott eight (8) digit account number, DEA/HIN number, or, if applicable, its Abbott approved alternate identification number.
      2. Each End-User’s name, address and DEA/HIN number (or if applicable, its Abbott approved alternate identification number).
      3. Customer’s invoice number and invoice date that evidences Customer’s resale of Products to the End-User.
      4. Product UPC, NDC or Ross list product number.
      5. The number of units of Product in each transaction.
      6. Unit of measure (each, carton or case) of each transaction.
      7. The End User contract number against which the Customer is making its Chargeback claim.
      8. Customer’s cost for each Product as of the invoice date for each transaction with an End-User (i.e., list price or Customer’s contract price).
      9. The End-User’s contract price as noted on the Abbott Bid Award (as defined herein) for each Product as of the shipment date for each invoiced transaction with the End-User.
      10. A calculation of the Chargeback for each Product and the total dollar claim for Chargeback. A sample calculation follows:
        (Customer Cost – End User Contract Price) x (Total Units) = Chargeback Credit
      11. Customer assigned debit memo number for Chargeback claims.
  2. Eligible End User. In order to participate in the Chargeback Program, Customer must sell Products only to eligible End Users. For purposes of this Policy, an eligible End User, shall include hospitals, nursing homes and home health care providers that have an agreement with Abbott for the purchase of Products or are designated in an agreement between Customer and Abbott as an End User for which the Customer may submit Chargeback claims. Customer must also comply with the following provisions.
    1. Customer’s resale of Products must be for an End User’s “own use,” as such term is defined in Abbott Laboratories, et al v. Portland Retail Druggists Association, Inc., 425 U.S. 1 (1976)
    2. If Customer resells Products to an End User that is also a governmental entity, then such End User must use the Products for “consumption in traditional government functions,” as set forth in Jefferson County Pharmaceuticals Association, Inc. v. Abbott Laboratories, et al., 460 U.S. 150 (1983).
    3. If Customer resells Product to an End User that is a home health care provider, and then Customer must maintain on file and provide to Abbott upon request a signed Home Health Care Provider Certification for the home health care provider. The Home Health Care Provider Certificate can be obtained on E-abbott.com or by contacting the Abbott’s Charge back Department.
    4. Customer’s resale of Products must be for an End User’s “own use” within the fifty (50) United States
  3. Price Notification.Abbott will notify Customer of End User and group purchasing organization (“GPO”) pricing (“Price Notification”) in the following manner:
    1. Provided Customer has received written authorization to participate in the Chargeback Program; Abbott will provide End User and GPO Price Notifications daily to Customer’s participating in the Chargeback Program when the End User or GPO has designated the Customer as its primary distributor. Abbott reserves the right to change the End User pricing, the End User’s GPO membership, and GPO pricing within one day’s notice if requested by End User or GPO and agreed to by Abbott.
    2. Subject to the provisions set forth in Section 3.1; Abbott will provide Price Notifications electronically through EDI or via an email to Customer. Customer may also receive Price Notifications and verify End User GPO membership via E-ross.com, which is updated on a daily basis.
    3. A Price Notification will include any updates to the End User or GPO: contract number, contract effective dates, product identification (“ID”) number / UPC, contract pricing, and GPO membership eligibility. Customer must reference this updated information with any Chargeback claim relating to End User Product purchases occurring after such Price Notification.
    4. If Abbott changes its price for Products and such price change impacts Customer’s acquisition cost, the price change will be applied to Chargeback claims as of the date of the price change and such price change shall coincide with the ship date on the Customer’s End-User invoice.
    5. Customer may not Chargeback to an End User pricing contract until Customer has received notification from Abbott via a Price Notification that the End User has a pricing contract with Abbott. If Customer has not received a Price Notification for a specific End User, then such End User shall be deemed to not have a pricing contract with Abbott and Customer may not submit Chargeback claims for the End User.
  4. Chargeback Credit & Resubmits. Chargebacks shall be issued solely in the form of a credit after the appropriate documentation has been accepted and approved by Abbott.
    1. Abbott will provide Chargeback credit and a reconciliation of Customer’s Chargeback claims electronically through EDI or E-abbott.com.
    2. Abbott will respond to all initial/original electronic Chargeback claims within thirty (30) days. Customer shall not deduct or set off Chargeback amounts in advance of the Customer’s original chargeback claim transmission date to Abbott. Upon Customer’s receipt of the Abbott issued charge back credit, Customer will reverse any original chargeback deduction and deduct the Abbott credited amount accordingly.
    3. If Customer resubmits a Chargeback claim based on a variance between Customer’s Chargeback claim and Abbott’s reconciliation, then Customer may only deduct the amount of Customer’s resubmit claim for which Customer has provided to Abbott the appropriate documentation in support of such deduction. Appropriate documentation includes, but is not limited, copy of group roster, End User or GPO Price Notification, Home Healthcare Certificate, and/or DEA Certificates.
    4. Customer may within one year (365 days) from the Customer’s End User invoice date resubmit disputed Chargeback claims. Thereafter, Abbott will recognize no further claims.
    5. End Users that purchase Products through a GPO may have a written agreement with Abbott specifying which GPO pricing the End User is allowed to access for Product purchases. Customer may confirm End User GPO membership eligibility at E-abbott.com. If an End User dispute the Abbott’s recognized GPO membership eligibility, the Customer should refer the End User to Abbott or the End User’s GPO.
    6. Abbott will notify Customer if a resubmitted claim is denied. Resubmissions may be denied for any errors, including, but not limited to, incorrect WAC, incorrect contract price, incorrect or expired contract numbers, ineligible classes of trade, invalid DEA/HIN or alternate IDs, Products not awarded on submitted contract number, including Products not belonging to Ross, and duplicate claim submission.
    7. When Abbott denies a Chargeback claim, Customer shall seek reimbursement from End User.
  5. Customer Representations. Customer shall not submit any Chargeback claims for Products that Customer has not purchased directly from Abbott and resold directly to an End-User. Customer shall not repackage Abbott Product, or obtain repackaged Product or include such Product for submission on any Chargeback claim. Customer’s Chargeback claim must not relate to a resale of Products to an End User who is also authorized by Abbott to submit Chargeback claims.
  6. Audit.Customer shall maintain accurate books, records and files with respect to Products sold to and by Customer as required by law, but no less than three (3) years from the Customer’s date of sale to the End User. Upon Abbott’s request, Customer shall identify such Products and ascertain their location and/or destination to Abbott’s satisfaction. Upon at least five (5) days prior written notice from Abbott, Customer shall permit Abbott’s internal auditors or its third party designee to inspect such books, records, and files during regular business hours. Any such auditor or designee will be required to hold price, cost, fee or other confidential financial information of Customer observed during such review in confidence and refrain from sharing it with any persons other than Abbott representatives who have a need to know for purposes of determining compliance with and resolving issues relating to transactions.
  7. Termination. Abbott reserves the right at any time to terminate or modify this Policy or Customer’s right to participate in Abbott’s Charge back Program. Any rights or obligations, which have accrued prior to termination, shall survive such termination. For Information or Questions regarding this Policy, please contact Ross Chargeback Department at 614-624-5754.
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