Sales of Products and Services

Scope

This policy covers sales and services to the general public.

Reason for Policy

Sales of products and services often occur as an indirect result of accomplishing the core mission of the University, which is education.  This policy outlines the requirements of sales by the University for the purpose protecting the core mission and to ensure that no sale or service shall be conducted for the sole purpose of making a profit.

Policy Statement

No service shall be established or conducted solely for the purpose of profiting from the public sale of products or services. In situations where sales of products or services are made to the general public, such products or services shall be secondary and incidental to the primary functions of the University.  No service involving sales to the general public shall be inaugurated without prior written approval by the Chancellor (President for UM System) or a designee.

Approved services must satisfy one or more of the following conditions:

• The service is peculiar to the nature of the department or the University and is necessary to the conduct of its educational, research or service programs.
• The provision of the service by the University will contribute primarily to the convenience, comfort, health, academic, social or recreational life of its students and staff or others participating in educational, research or service programs at the University.
• The inclusion of the service will improve the efficiency and economy of operations.
• The service is not otherwise available in the quantity or quality required or not conveniently available geographically.

All sales of University products and/or services shall be made on a cash basis unless otherwise specifically authorized by the Chancellor (President for UM System) or a designee.  Internal sales to other departments of the University are allowed.  Any employee extending credit without proper authorization will be held responsible for all accounts so incurred.

Definitions

Accountabilities

Departments:

• Shall seek approval for the sale of products or services to the general public.

Additional Details

Forms

Related Information

History

Formerly Business Policy Manual 207 – Sales of Products and Services (revised 2/16/2005)

Procedure