Common use of Acceptance and Returns Clause in Contracts

Acceptance and Returns. A Facility shall be deemed to have accepted Products when they are taken from the Consignment Inventory, opened, inspected and used with a patient/client (“Accepted”). In the event that any Products within the Consignment Inventory dispensed to a Facility is/are (i) rejected by the Facility, its physicians or patients, (ii) rejected for (a) any nonconformance with the terms and conditions of this Agreement, (b) shipping damage, and/or (c) failure of the Product(s) to comply with law or to meet the quality or safety rules or procedures of the Facility, and/or (iii) returned by a client and such return accepted by a Facility for any reason (e.g., product is defective), such Consignment Inventory shall be returned and the Facility (or System) shall promptly notify Company of the return and provide Company with information necessary for Company to process such rejection or return. Products so rejected will be returned to Company and Company shall pay all costs of shipping. The Facility (or System as applicable) shall receive, at Facility’s discretion, a full credit of purchase price, including, but not limited to the cost of the Product and all shipping costs, or the replacement of the Product(s) with no additional cost of shipping. Neither System nor any Facility is responsible (financially), and bears no responsibility for any Products within the Consignment Inventory that have expired. A Facility shall return such expired Products to Company at Company’s expense and Company shall promptly replace the expired Product.

Acceptance and Returns. A Notwithstanding anything in the Purchase Agreement regarding Product acceptance to the contrary (the parties agree that this Section 6 shall supersede Product acceptance language in the Purchase Agreement with respect to Products in the Consignment Inventory), Facility shall be deemed to have accepted Products when they are taken from the Consignment Inventory, opened, inspected and used with a patient/client (“Accepted”). In the event that any Products within the Consignment Inventory dispensed to a Facility is/are (i) rejected by the Facility, its physicians or patients, (ii) rejected for (a) any nonconformance with the terms and conditions of this Agreement or the Purchase Agreement, (b) shipping damage, and/or (c) failure of the Product(s) to comply with law or to meet the quality or safety rules or procedures of the Facility, and/or (iii) returned by a client and such return accepted by a Facility for any reason (e.g., product is defective), such Consignment Inventory shall be returned and the Facility (or System) shall promptly notify Company of the return and provide Company with information necessary for Company to process such rejection or return. Products so rejected will be returned to Company and Company shall pay all costs of shipping. The Facility (or System as applicable) shall receive, at Facility’s discretion, a full credit of purchase price, including, but not limited to the cost of the Product and all shipping costs, or the replacement of the Product(s) with no additional cost of shipping. Neither System nor any Facility is responsible (financially), and bears no responsibility for any Products within the Consignment Inventory that have expired. A Facility shall return such expired Products to Company at Company’s expense and Company shall promptly replace the expired Product.