3. If they charge a fee for the CD-ROM or other media on which they deliver the Mugshot™ code, they warranty the media on which the Mugshot™ code is delivered, thus ensuring that the recipient receives a usable copy.Paragraph 3 may be the first problem. It basically prevents "cheap CD" vendors from selling copies of Debian on an "as is" basis.
Note that, in many jurisdictions, this is actually a legal requirement. For example, this clause would be meaningless in the UK because the vendor would be liable under SOGA (Sale Of Goods Act) anyway.
Cheers, Wol -- Anthony W. Youngman - anthony@thewolery.demon.co.uk