MLeake:
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Having the system "indemnify" sellers would imply that they otherwise should bear a liability that they don't bear. So, I don't like the indemnity bit on second thought, but would still be ok with an OPTIONAL system, if costs were supportable.
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When I've seen that in legislation, the writers usually specifically point out some version of "such indemnity does not, and should not be used to imply culpability" or some such legalese.