DEFECTIVE INVENTORY central Stores / User department / Procurement cell of the Institute will be the sole authority to declare inventory as defective either at the time of receiving the goods or after the use of goods. Cost of such defective inventory will be recoverable from forthcoming bill of the supplier or replaced with any other approved stocks, failing which contract may be terminated.
DEFECTIVE INVENTORY. The Supplier shall:
(a) honour the manufacturer’s warranty for all supplied Inventory, including extended warranty terms that the Purchaser has negotiated with bus or Component OEMs;
(b) guarantee on-site replacement for Inventory that is defective, inferior or does not fit the intended application (the “Defective Inventory”), based on the warranty provided;
(c) replace, at no charge to the Purchaser, Defective Inventory at the site of failure or distribute replacement Inventory to the Purchaser at its desired location at the Supplier’s sole expense;
(d) establish a tracking system to ensure the timely replacement or reimbursement of Defective Inventory during the processing of warranty claims ;and
(e) maintain warranty records of Inventory sold to the Purchaser and issue any credits due for Defective Inventory and reimbursement for any labour utilized by direct payment within thirty (30) days. In addition to the foregoing, if the Purchaser has selected the Full Service Inventory Service Level, the Supplier shall also provide a distinct area to stage and store Defective Inventory and track warranties for Defective Inventory to ensure that credits are issued to the Purchaser for any inventory purchased by the Purchaser and labour utilized by direct payment within thirty (30) days.
