Common use of Rejection of Product Clause in Contracts

Rejection of Product. (a) Schering may reject any shipment of Product from ICN that does not meet ICN's warranty set forth in Section 8.4, upon notice to ICN delivered within forty five (45) days after receipt by Schering of such shipment or, in the case of any latent defect, after Schering discovered or had a reasonable basis for discovering such defect. Any shipment of Product that is not rejected by Schering within such period shall be deemed accepted. In no event shall ICN be liable for any nonconformity of the Product resulting from the shipment, storage or handling of the Product after tender by ICN in accordance with Section 8.2(g) (unless resulting from the fault of ICN, such as not shipping in accordance with agreed specifications), or the tampering, alteration or mishandling of the Product by any person (including any customer of Schering) following such tender. (b) Upon the request of ICN, Schering shall furnish evidence of nonconformity of the shipment of Product. If ICN confirms the nonconformity, ICN will use diligent efforts to, at Schering's request, either promptly replace the Product at no additional charge to Schering with a conforming shipment (which may include rework of the Product if feasible), or issue a credit to Schering (pro rated, if less than a full shipment is rejected) for the Product Price and any other costs and expenses incurred by Schering in shipping the rejected Product to ICN. If ICN disagrees with Schering's determination, the Parties shall promptly submit the dispute to a mutually acceptable laboratory for a binding determination (in lieu of the procedures described in Article 13) of the conformance or nonconformity of the Product and ICN shall submit as part of its documentation retained manufacturing samples. The non-prevailing Party shall pay the costs and expenses of the laboratory tests.

Rejection of Product. (a) Schering may reject any shipment of Product from ICN that does not meet ICN's warranty set forth in Section 8.4, upon notice to ICN delivered within forty five (45) days [REDACTED] after receipt by Schering of such shipment or, in the case of any latent defect, after Schering discovered or had a reasonable basis for discovering such defect. Any shipment of Product that is not rejected by Schering within such period shall be deemed accepted. In no event shall ICN be liable for any nonconformity of the Product resulting from the shipment, storage or handling of the Product after tender by ICN in accordance with Section 8.2(g) (unless resulting from the fault of ICN, such as not shipping in accordance with agreed specifications), or the tampering, alteration or mishandling of the Product by any person (including any customer of Schering) following such tender. (b) Upon the request of ICN, Schering shall furnish evidence of nonconformity of the shipment of Product. If ICN confirms the nonconformity, ICN will use diligent efforts to, at Schering's request, either promptly replace the Product at no additional charge to Schering with a conforming shipment (which may include rework of the Product if feasible), or issue a credit to Schering (pro rated, if less than a full shipment is rejected) for the Product Price and any other costs and expenses incurred by Schering in shipping the rejected Product to ICN. If ICN disagrees with Schering's determination, the Parties shall promptly submit the dispute to a mutually acceptable laboratory for a binding determination (in lieu of the procedures described in Article 13) of the conformance or nonconformity of the Product and ICN shall submit as part of its documentation retained manufacturing samples. The non-prevailing Party shall pay the costs and expenses of the laboratory tests.