Common use of OWNERSHIP AND INSPECTION Clause in Contracts

OWNERSHIP AND INSPECTION. Company shall retain all title to and rights in the Consignment Inventory until Products are removed from the Consignment Inventory and Accepted and used by the Facility. Each Facility agrees to give Company’s representative reasonable access, subject to Section 7 herein, upon advance notice and during normal business hours, to its Consignment Inventory to verify the quantity and condition of the Consignment Inventory. Company representatives may not enter the location of the Consignment Inventory without the Facility’s permission. Company representatives while on site at a Facility or any of its facilities must comply with the System’s and Facility’s policies and procedures, as required per Section 7 herein. Company and the Facility will jointly count and reconcile Consignment Inventory on a quarterly basis. Representatives for Company and the Facility will each acknowledge the results of the Consignment Inventory count. Company will submit a detailed report of this inventory reconciliation to System and the Facility within one week after the inventory count has been conducted. Failure by Company to conduct any quarterly physical inventory with Facility during the term of this Agreement shall relieve the System and Facility of any obligation to make payment for any quantity variances from the initial Consignment Inventory for the duration of this Agreement and subsequent expiration. Excess Consignment Inventory will result in a credit being issued by Company to the Facility within thirty (30) days of the inventory. A Facility will issue a PO to Company for identified inventory shortages.