It`s not up to ARM. It was up to their customers and how they designed their procurement contract. Each customer will have to be examined. Some include this clause as a standard business practice, some on specific contracts based on perceived risk, some just don`t do it at all. It`s insurance. And it depends on the supplier, i.e., some may not accept a contract that includes this clause, as they don`t want to be in the position of ``bag holder`` if a claim is filed. The risk is on both sides of the deal.

Buyer - pay extra for the clause as insurance, and not have to sweat it. Pay less, assume the risk or at least share the risk.

Seller - charge more for inclusion of the clause and assume sole liability/risk. Charge less and either share the risk or hope to duck it.

Some companies acquire actual insurance to avoid liability/risk. Simple thought process is: The insurance will cost less than the premium the supplier is charging for the inclusion of this clause.

Hope this helps,

SGE