Common use of Quality Audits Clause in Contracts

Quality Audits. Buyer may audit any Supplier facility and records related to this Agreement during Supplier’s regular business hours with reasonable advance notice to evaluate Supplier’s quality and food security and defense procedures and compliance with Specifications. Buyer may conduct these audits itself or through its third-party representatives or Buyer will require Supplier to select an auditor from Buyer’s then-current list of approved third-party auditors for the Products. Supplier will not request that Buyer or any auditor selected by Buyer sign an additional agreement in order to conduct the audit, and Buyer will protect all Confidential Information it learns during the audit under the Confidentiality section. Buyer may also require that Supplier complete a questionnaire either in lieu of or in advance of an audit, or that Supplier register with and provide information to a third-party that Buyer has selected to manage audit information. Buyer will bear its own internal costs and Supplier will bear all other audit costs (including those of the third-party auditors). If Buyer learns of any breaches of this Agreement, Supplier will promptly take all corrective action that Buyer reasonably requires. Buyer will not audit more frequently than once per year unless Buyer has a reasonable health, food safety, or quality concern related to this Agreement or unless Buyer is ensuring that previously identified breaches have been corrected.