TO: ALL DILLARD VENDORS
& SUPPLIERS
DATE: JANUARY 12,1996
RE: DILLARD BUSINESS POLICY
As we begin a new year, we at Dillard's believe it is appropriate to
restate and reiterate the principles upon which our relationship with
vendors and suppliers will be based.
For many years, Dillard's business relationship with its vendors and
suppliers has been governed by terms and conditions contained on our
purchase order form as supplemented by communications with our
merchants. These terms and conditions have also been applicable to
electronic transactions. The terms and conditions have historically
contained various commercial requirements as well as directives
requiring compliance with various laws. These various business
conditions have been re -evaluated and have resulted in the preparation
of a document entitled Dillard Department Stores, Inc. Purchase
Order Terms, Conditions and Instructions, a copy of which is
attached hereto. These terms apply to all orders placed with you; and
acceptance of Dillard purchase orders, whether in writing or by
electronic means, expressly constitutes your acceptance, as a vendor or
supplier, of the terms, conditions, and instructions contained in the
attached document as it may be supplemented from time to time. Without
strict compliance with the elements of the attached Dillard
Department Stores, Inc. Purchase Order Terms, Conditions and
Instructions, we will be unable to establish or continue a business
relationship.
Dillard's particularly calls to your attention the portion of the
attached which deals with the manner in which our merchandise is
manufactured and shipped. Recent negative industry publicity has
motivated us to restate and emphasize our longstanding philosophy and
policy that all Dillard merchandise must be manufactured and shipped in
compliance with all laws. We particularly wish to emphasize to all of
our domes tic and foreign vendors and suppliers that no Dillard
merchandise will be manufactured or shipped by use of illegal forced
labor, illegal convict labor, or illegal child labor. Further, all
domestic or foreign suppliers of Dillard merchandise must conduct their
business in compliance with all other laws and regulations relative to
employment, manufacturing, shipping, customs and environment practices.
Compatible with the above, we are also re-negotiating our agreements
with our foreign buying agents. These new buying agency agreements will
include prohibitions against illegal child labor and other forms of
illegal employment, manufacturing, shipping, customs and environmental
practices identical to those contained in the enclosed. Our buying
agents will be required to periodically spot check compliance with these
standards. In addition, corporate representatives of Dillard's will be
making periodic inspections of manufacturing facilities to insure
compliance.
We believe that these high standards are compatible with our
philosophy of bringing quality products to our customers.
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