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Explain this line to me, please?

I am reading a document about electronic devices and I don’t understand the line in capital letters. I am not a native English speaker. Please, explain this line to me, thanks:

“Distributor warrants, on behalf of its Affiliates performing the obligations under this Agreement, that they are not currently, nor have they been within the past four (4) years from the effective date of this agreement, disqualified, or excluded under any applicable law FROM PARTICIPATING IN A REIMBURSED GOVERNMENT-FUNDED OR FINANCED HEALTHCARE PROGRAM.”

2 Answers

  • 1 month ago

    Legal speak that says "we and our associated companies have no legal judgements against us (within the past four years) with regard to Government-funded healthcare programs".

    the general purpose of this is that there are laws which disqualify firms or people/business entities from direct or indirect government support if they have a history of violations, and they have to make a declaration of absence of such violations for legal reasons.  Takes away the argument "well, no one asked us", so the question is asked and the applicant must declare.  It is a crime to make a false declaration on top of the other issues which would arise.

    It really isn't an important thing in practice, for you, unless of course you are spending government funds on goods or services, which (I presume) you are not allowed to do when the provider is someone who has not made such a declaration, or who is excluded under law from providing services.

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  • Mamie
    Lv 7
    1 month ago

    The affiliates are not legally prevented from taking part in a healthcare program that is funded or financed by the government.  

    In other words, the affiliates are legally able to take part in a healthcare program that is funded or financed by the government.

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