Common use of Quality Maintenance Clause in Contracts

Quality Maintenance. Party A and Party B shall strictly observe Technical Standard or Technology Agreement that the two parties signed (generally in the form of product specification), amendment to the Technical Standard that Party A is entitled to make based on the circumstances shall not affect the effectiveness of this Agreement; if problems or accidents due to poor quality occur resulting from Party B breaching this Agreement, Party B shall take full responsibility and compensate for losses of Party A with reference to relevant terms of this part. 1. Designation and quality control of Party B’s main raw materials 1.1 To ensure consistent and stable quality of components, Party B shall designate its matched raw material and provide relevant samples, and inspection & test reports. 1.2 Party B shall strictly inspect the key raw materials to be purchased, and shall establish a strict entrusted inspection system and quality archive for the materials that Party B is unable to inspect before purchase. 1.3 Party B shall strictly implement batch management on raw materials and strictly prohibit using expired raw materials. 1.4 Party B shall ask for Party A’s consent before it changes raw materials or raw material manufacturer and shall resupply relevant samples and inspection & test reports. 2. Control over Party B’s manufacturing process 2.1 Party B shall establish necessary quality control points for key processes so as to ensure consistent and stable product quality. Party B must get written consent of Party A before it changes key processes or suppliers during its bulk supply. 2.2 Party B shall prepare operation instruction for its production line and work out daily report for first pass yield, daily report for relevant inspections and relevant analytical and improvement report. Party B shall provide the said data reports when Party A deems it necessary. 2.3 Party A may send someone to Party B’s site for inspection and guidance when it believes it necessary; and Party B shall provide assistance. 3. Standard for goods supply of Party B 3.1 Party B shall, before delivery of goods, provide Party A with written information of the products to be supplied unsuitable for use or storage on certain conditions (if any). Otherwise, it shall be deemed as quality problems of the products supplied by Party B where uninformed Party A uses or stores the products supplied by Party B by mistake resulting in quality problems. 3.2 Party B shall not have its products leave its factory before they pass the inspection, and shall attach ex-factory qualification test report for each batch of its products. 3.3 Party B shall xxxx on the outer box any change made by Party B as approved by Party A to functional parameters or improvement to defects of the products. 3.4 Labels stuck on packages (including minimum package) of Party B’s products must bear: material code, specifications and models and batch number. 3.5 Party B’s products which must be kept free from static electricity (such as SMD diode, triode, LED, LCD, and semi-finished PCB) shall be packaged in anti-static material with surface impedance of 106~1010W. 3.6 Party B must silk-screen print relevant installation symbols on all devices. Where any component is too small for silk-screen printing, Party B must issue document formally explaining it in advance and get consent of Party A. 3.7 Party B must strictly implement batch management to ensure consistent and reliable product quality. The period of producing the same batch of products shall not exceed months. In the meantime, Party B’s finished products shall not be stored more than months in Party B’s warehouse; otherwise, the products must pass another inspection before it can be supplied to Party A. 3.8 Party B as an agent shall not change the brand of goods to be supplied without written consent of Party A; otherwise, Party B shall be responsible for all losses. 4. Party B must get Party A’s written consent in advance if it has goods produced by original equipment manufacturer (OEM). 4.1 Party B shall, upon receiving the quality problems fed back by Party A, arrive at Party A’s site to confirm the problems within 48 hours, and take effective corrective and remedial measures as soon as possible and provide Party A with written Corrective Action Report in time within the time limit promised. 5. Control on the acceptable quality level (AQL) of the goods supplied by Party B 5.1 The pass rate of the goods supplied by Party B shall reach the AQL value set by Party A. Party A’s inspection department shall, with reference to the said AQL value, conduct sampling inspections as per the general inspection level II and a single normal sampling plan specified in Sampling Procedures and Tables for Lot-by-lot Inspection by Attributes (GB2828.1-2003).

Quality Maintenance. Party A and Party B shall strictly observe Technical Standard or Technology Agreement that the two parties signed (generally in the form of product specification), amendment to the Technical Standard that Party A is entitled to make based on the circumstances shall not affect the effectiveness of this Agreement; if problems or accidents due to poor quality occur resulting from Party B breaching this Agreement, Party B shall take full responsibility and compensate for losses of Party A with reference to relevant terms of this part. 1. Designation and quality control of Party B’s main raw materials 1.1 To ensure consistent and stable quality of components, Party B shall designate its matched raw material and provide relevant samples, and inspection & test reports. 1.2 Party B shall strictly inspect the key raw materials to be purchased, and shall establish a strict entrusted inspection system and quality archive for the materials that Party B is unable to inspect before purchase. 1.3 Party B shall strictly implement batch management on raw materials and strictly prohibit using expired raw materials. 1.4 Party B shall ask for Party A’s consent before it changes raw materials or raw material manufacturer and shall resupply relevant samples and inspection & test reports. 2. Control over Party B’s manufacturing process 2.1 Party B shall establish necessary quality control points for key processes so as to ensure consistent and stable product quality. Party B must get written consent of Party A before it changes key processes or suppliers during its bulk supply. 2.2 Party B shall prepare operation instruction for its production line and work out daily report for first pass yield, daily report for relevant inspections and relevant analytical and improvement report. Party B shall provide the said data reports when Party A deems it necessary. 2.3 Party A may send someone to Party B’s site for inspection and guidance when it believes it necessary; and Party B shall provide assistance. 3. Standard for goods supply of Party B 3.1 Party B shall, before delivery of goods, provide Party A with written information of the products to be supplied unsuitable for use or storage on certain conditions (if any). Otherwise, it shall be deemed as quality problems of the products supplied by Party B where uninformed Party A uses or stores the products supplied by Party B by mistake resulting in quality problems. 3.2 Party B shall not have its products leave its factory before they pass the inspection, and shall attach ex-factory qualification test report for each batch of its products. 3.3 Party B shall xxxx on the outer box any change made by Party B as approved by Party A to functional parameters or improvement to defects of the products. 3.4 Labels stuck on packages (including minimum package) of Party B’s products must bear: material code, specifications and models and batch number. 3.5 Party B’s products which must be kept free from static electricity (such as SMD diode, triode, LED, LCD, and semi-finished PCB) shall be packaged in anti-static material with surface impedance of 106~1010W.106~1010 W. 3.6 Party B must silk-screen print relevant installation symbols on all devices. Where any component is too small for silk-screen printing, Party B must issue document formally explaining it in advance and get consent of Party A. 3.7 Party B must strictly implement batch management to ensure consistent and reliable product quality. The period of producing the same batch of products shall not exceed months. In the meantime, Party B’s finished products shall not be stored more than months in Party B’s warehouse; otherwise, the products must pass another inspection before it can be supplied to Party A. 3.8 Party B as an agent shall not change the brand of goods to be supplied without written consent of Party A; otherwise, Party B shall be responsible for all losses. 4. Party B must get Party A’s written consent in advance if it has goods produced by original equipment manufacturer (OEM). 4.1 Party B shall, upon receiving the quality problems fed back by Party A, arrive at Party A’s site to confirm the problems within 48 hours, and take effective corrective and remedial measures as soon as possible and provide Party A with written Corrective Action Report in time within the time limit promised. 5. Control on the acceptable quality level (AQL) of the goods supplied by Party B 5.1 The pass rate of the goods supplied by Party B shall reach the AQL value set by Party A. Party A’s inspection department shall, with reference to the said AQL value, conduct sampling inspections as per the general inspection level II and a single normal sampling plan specified in Sampling Procedures and Tables for Lot-by-lot Inspection by Attributes (GB2828.1-20032012).