Inspection - Nonconformity. (a) Buyer may inspect the Products upon receipt and/or at any time prior thereto, provided that such inspection is completed within thirty (30) days of receipt of the Products at Buyer's facility. Buyer shall, however, be under no duty to inspect the Products prior to Buyer's use or resale of the Products. Buyer reserves the right to refuse to accept Products which do not conform with the requirements of an Order (including, without limitation, delivery schedule and shipping instructions) or the Specifications for the Products. Neither receipt, retention, use, resale, nor payment of or for the same shall be construed to constitute an acceptance of any Product not in compliance with the terms of Buyer's Order or the Specifications, or construed to constitute a waiver of any obligations of Seller with respect to its warranty relating to such Product. Buyer may reject a lot or group of Products if five percent (5%) defective Products are discovered and in such case, upon Seller's approval, the expenses of Buyer in sorting and testing the Products in order to find defective units shall be reimbursed to Buyer by Seller. Buyer shall promptly return to Seller for repair or replacement, nonconforming Products, including Products becoming nonconforming due to latent material or workmanship defects not discovered during any inspection, testing and/or acceptance. Products containing latent material or workmanship defects shall be deemed rejected as of the time of delivery in the same manner as Products found defective at the time of incoming inspection. Seller shall promptly and without expense to Buyer replace or correct defects in any nonconforming Products. Seller shall bear the risk, and all costs and expenses, including, without limitation, storage, transportation, shipping, recalling, repacking, reshipping, and the like, associated with repair and/or replacement of nonconforming Products. Buyer shall bear all of the risk, and all costs and expenses, associated with Products that have been returned to Seller for which there is no defect found. Within fifteen (15) days after the end of each calendar quarter during the term of the Agreement, Buyer shall provide Seller with its calculation of the Field Rejection Rate as of the end of such calendar quarter. ***** Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
Inspection - Nonconformity. All itemsorderedwill be subjecttoinspectionand approval, at Buyer’selection, at Seller’s plant or other Buyer-designated location or, if services, at the site of such services. If any of the items are found at any time to be not in conformity with the requirements of this order, Buyer shall have the right to reject and return, or to hold such items for Seller’s instructions at Seller’s risk and expense or, in the case of services, to have such services re-performed by Seller at no cost or expense to Buyer,such items not to be replaced or re-performed without authorization fromBuyer.Buyer’sinspection of goodswhether duringmanufacture,priortodelivery or within a reasonabletimeafterdelivery,shall notconstitute acceptance of any work-in-process or finished goods. All costs related to transportation of nonconforming goods will be for Seller’s account.
