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OCR Page 1 of 54PRIVILEGED AND CONFIDENTIAL -- Attorney Work Product
Prepared by SMBD for POTUS & USDOJ in Anticipation of Litigation
(f)
consistent enforcement of the manufacturer's standards through
appropriate disciplinary mechanisms, including, as appropriate, discipline of
individuals responsible for the failure to detect a noncompliance; and
(g)
reasonable steps to be taken in order to respond appropriately after the
detection of an action in noncompliance, including any necessary modifications to
the compliance plan and program to prevent and detect the recurrence of such
action or similar actions.
21.
Agreements With Respect to Retail Monitoring.
A.
Each Settling Defendant and Participating Tobacco Manufacturer shall take all
steps, including, without limitation, compliance checks of retailers and creation of
financial incentives for compliance, reasonably calculated to ensure that retailers or
others—
(1)
do not advertise or label tobacco products of such Participating Tobacco
Manufacturer in violation of the provisions of this Master Settlement Agreement,
and
(2)
fully comply with the applicable provisions of this Master Settlement
Agreement.
B.
Each Participating Tobacco Manufacturer shall establish procedures requiring that
its employees and agents report violations of the Master Settlement Agreement by
40
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