Right of rejection and otherwise. 5.3.1 The parties agree that ACM's right to accept or reject Milk (and upon what terms which may include the imposition of any price penalty or price reduction) will be based on Supplier's compliance with ACM’S Quality Standards and the outcome of ACM's inspection and testing in accordance with this Agreement.
5.3.2 If ACM rejects Milk because of a failure to meet ACM’s Quality Standards, ACM must as soon as practicable, inform Supplier of the grounds of any reduction or rejection.
5.3.3 If ACM intends to take any adverse action regarding a defect in the Milk, it will issue a notice to the Supplier outlining any such action as soon as reasonably practicable.