Common use of Nonconforming Products Clause in Contracts

Nonconforming Products. Seller shall control and physically segregate all nonconforming Products, or any material considered unacceptable for use in the manufacture of Products, from conforming Products and approved material in accordance with Legal Requirements. Seller shall immediately notify Hillrom of any nonconforming Product that was released for shipment to Hillrom or Hillrom’s designee(s) or customers and shall provide Hillrom with all investigation reports, quality reports, or other means of reporting Seller’s investigation process. For nonconforming Products that were released, Seller, in consultation with Hillrom, shall decide whether nonconforming Products should be destroyed or returned to Seller. Seller shall pay all expenses related to destroying or returning the Products. At Hillrom’s sole discretion, Hillrom may cancel any order or payment covering nonconforming Products or may elect to have Seller replace the nonconforming Product(s), and Seller shall pay all expenses related to such replacement.