Common use of Rejected Goods/Shortages Clause in Contracts

Rejected Goods/Shortages. (a) HMRI shall notify Alliance in writing of any claim relating to Material that fail to meet the Specifications, arising from defective manufacture, storage or handling of such Material by Alliance prior to shipment or any shortage in quantity of any shipment of Material within 45 days of receipt of such Material. In the event of such rejection or shortage, Alliance shall replace the rejected Material or make up the shortage within ten business days if replacement stock is available, and in any case as soon as reasonably possible after receiving such notice, at no additional cost to HMRI, and Alliance shall make arrangements with HMRI for the return of any rejected Material, such return shipping charges to be paid by Alliance for Material determined after inspection and testing by Alliance to fail to meet the Specifications. In the event that only a limited supply of Material is available at the time of such rejection or shortage, then Alliance shall ship to HMRI such quantities of Material as are available and HMRI will be promptly reimbursed or credited against future orders, at HMRI's option, for amounts paid for the remaining quantity of rejected Material. (b) In the event of a disagreement regarding the Material which fail to meet the Specifications which HMRI and Alliance are unable to resolve, a sample of such Material shall be submitted by Alliance to an independent laboratory reasonably acceptable to both parties for testing against the Specifications and the test results obtained by such laboratory shall be final and controlling. The fees and expenses of such laboratory testing shall be borne entirely by the party against whom such laboratory's findings are made. In the event the test results indicate that the Material in question do not conform to the Specifications, Alliance shall replace such Material at no additional cost to HMRI within seven business days after receipt of such results if replacement stock is available, and in any case as soon as reasonably possible after receipt of such results. In the event the test results indicate that the Material in question does conform to the Specifications, HMRI shall pay all additional shipping and transportation costs incurred as a result of the disagreement.

Rejected Goods/Shortages. (a) HMRI shall Abboxx xxxll notify Alliance Corixa in writing of any claim relating to Material that fail Materials which do not conform to meet the Specifications, arising from defective manufacture, storage or handling of such Material by Alliance prior to shipment Specifications or any shortage in quantity of any shipment of Material Materials within 45 thirty (30) days of receipt of such Materialshipment. In the event of such rejection or shortage, Alliance Corixa shall replace the rejected Material Materials or make up the shortage within ten business thirty (30) days if replacement stock is available, and in any case as soon as reasonably possible after of receiving such notice, at no additional cost to HMRIAbboxx, and Alliance xxd shall make arrangements with HMRI for Abboxx xxx the return or destruction of any rejected MaterialMaterials, such return shipping charges or costs of destruction to be paid by Alliance for Material determined after inspection and testing by Alliance to fail to meet the Specifications. In the event that only a limited supply of Material is available at the time of such rejection or shortage, then Alliance shall ship to HMRI such quantities of Material as are available and HMRI will be promptly reimbursed or credited against future orders, at HMRI's option, for amounts paid for the remaining quantity of rejected MaterialCorixa. (b) In the event of a disagreement conflict regarding the Material any nonconforming Materials which fail to meet the Specifications which HMRI Corixa and Alliance are Abboxx xxx unable to resolve, a sample of such Material Materials, together with mutually agreed upon questions, shall be submitted by Alliance to Abboxx xx an independent laboratory reasonably acceptable to both parties for testing against the Specifications and the test results obtained by such laboratory shall be final and controllingbinding upon the parties. The fees and expenses of such laboratory testing shall be borne entirely by the party against whom such laboratory's findings are made. In the event the test results indicate that the Material in question do does not conform to the Specifications, Alliance Corixa shall replace such Material with conforming Material at no additional cost to HMRI within seven business Abboxx xxxhin thirty (30) days after receipt of such results if replacement stock results, provided that Corixa has sufficient conforming Material in its inventory to do so. If sufficient conforming Material is not available, and in any case as Corixa shall use its best efforts to replace the nonconforming Material with conforming Material at no additional cost to Abboxx xx soon as reasonably possible after receipt of such results. In possible, but in no event shall the event the test results indicate that the Material in question does conform to the Specifications, HMRI shall pay all additional shipping and transportation costs incurred as a result of the disagreementreplacement time exceed one hundred twenty (120) days.