Common use of Stock Rotation Policy Clause in Contracts

Stock Rotation Policy. Seller’s returned goods program allows a Buyer who is a distributor the flexibility required to carry a complete inventory of Seller’s Goods with a minimum risk of inventory obsolescence. Seller will accept items of its manufacture for material credit from the distributor’s stock subject to the following conditions: (i) What Goods are eligible for Stock Rotation: All Goods in resalable condition in unopened, undamaged original packaging may be returned for stock rotation. All Buyer order errors must be returned as part of the stock rotation unless approved in writing by Seller. UPS Goods may be returned as a stock rotation within six months of purchase. UPS products over 3KVA must be field repaired; no returns will be accepted. All other standard catalog Goods purchased within one year. Obsolete, modified, non-stock, or custom Goods are non-cancelable and not allowed for return without 100% penalty fees. (ii) Authorization to return Goods must be initiated by the local sales representative or through the RMA online system. (Goods cannot be returned by Buyer until RMA authorization notification and factory issued RMA forms are received.) (iii) Annual authorizations will be considered for amounts up to 3% of stock purchases made during the prior 12-month period. Timing of Stock Rotation must be negotiated with the applicable sales representative. (iv) All returned Goods must be currently cataloged items, new, in resalable condition, and in original, unopened cartons. (v) Goods purchased more than 12 months prior to the RMA request will not be allowed. (vi) Goods not allowed on RMA include the following: special Goods not in the catalog, discontinued Goods, other customized Goods, catalog Goods modified to customer specifications, other Goods deemed non-returnable by Seller. Other Goods not allowed on RMA include Goods shipped directly to Buyer’s customer, or Goods being returned directly from the customer’s stock. (vii) Credit for all eligible returned Goods will be issued at the purchased price less cash discount, restocking and refurbishing charge where required. A minimum restocking, handling expense charge of 10% or $50.00, whichever is higher, will apply to any return regardless of size, plus all shipping expenses incurred by Seller. Credit will be issued within 60 days of receipt unless other arrangements are made with Seller. (viii) All returns that are part of a job quotation must have the invoice price or proof of purchase noted. If an invoice for the Goods is not provided, credit will be issued at the lowest price paid for such Goods within a two-year period or negotiated for all others. Credit will be issued in the form of Goods credit only. (ix) Credit will be issued only on the quantities actually received by Seller. No unauthorized Goods will be accepted. (x) Authorized stock returns must be shipped freight prepaid to the destination stipulated on the RMA and must be accompanied by the issued RMA form. (xi) Goods shipped in error by Seller, or which is to be returned because of manufacturing defects, must be processed on a separate RMA and may be returned to the destination stated on the RMA freight collect, lowest-cost way with no restocking charge, and accompanied by the issued RMA form. Requests for RMAs due to shipping error must be submitted within one week of incident. (xii) All returns are subject to inspection and final credit approval. (xiii) Goods must be returned within 60 days of RMA issuance or the RMA will be void. (xiv) Goods returned which do not meet this RMA policy may be returned at Buyer’s expense or scrapped with no credit.

Stock Rotation Policy. Seller’s returned goods program allows a Buyer who is a distributor the flexibility required to carry a complete inventory of Seller’s Goods with a minimum risk of inventory obsolescence. Seller will accept items of its manufacture for material credit from the distributor’s stock subject to the following conditions: (i) What Goods are eligible for Stock Rotation: All Goods in resalable condition in unopened, undamaged original packaging may be returned for stock rotation. All Buyer order errors must be returned as part of the stock rotation unless approved in writing by Seller. UPS Goods may be returned as a stock rotation within six months of purchase. UPS products over 3KVA must be field repaired; no returns will be accepted. All other standard catalog Goods purchased within one year. Obsolete, modified, non-stock, or custom Goods are non-cancelable and not allowed for return without 100% penalty fees. (ii) Authorization to return Goods must be initiated by the local sales representative or through the RMA online system. (Goods cannot be returned by Buyer until RMA authorization notification and factory issued RMA forms are received.) (iii) Annual authorizations will be considered for amounts up to 3% of stock purchases made during the prior 12-12- month period. Timing of Stock Rotation must be negotiated with the applicable sales representative. (iv) All returned Goods must be currently cataloged items, new, in resalable condition, and in original, unopened cartons. (v) Goods purchased more than 12 months prior to the RMA request will not be allowed. (vi) Goods not allowed on RMA include the following: special Goods not in the catalog, discontinued Goods, other customized Goods, catalog Goods modified to customer specifications, other Goods deemed non-returnable by Seller. Other Goods not allowed on RMA include Goods shipped directly to Buyer’s customer, or Goods being returned directly from the customer’s stock. (vii) Credit for all eligible returned Goods will be issued at the purchased price less cash discount, restocking and refurbishing charge where required. A minimum restocking, handling expense charge of 10% or $50.00, whichever is higher, will apply to any return regardless of size, plus all shipping expenses incurred by Seller. Credit will be issued within 60 days of receipt unless other arrangements are made with Seller. (viii) All returns that are part of a job quotation must have the invoice price or proof of purchase noted. If an invoice for the Goods is not provided, credit will be issued at the lowest price paid for such Goods within a two-year period or negotiated for all others. Credit will be issued in the form of Goods credit only. (ix) Credit will be issued only on the quantities actually received by Seller. No unauthorized Goods will be accepted. (x) Authorized stock returns must be shipped freight prepaid to the destination stipulated on the RMA and must be accompanied by the issued RMA form. (xi) Goods shipped in error by Seller, or which is to be returned because of manufacturing defects, must be processed on a separate RMA and may be returned to the destination stated on the RMA freight collect, lowest-cost way with no restocking charge, and accompanied by the issued RMA form. Requests for RMAs due to shipping error must be submitted within one week of incident. (xii) All returns are subject to inspection and final credit approval. (xiii) Goods must be returned within 60 days of RMA issuance or the RMA will be void. (xiv) Goods returned which do not meet this RMA policy may be returned at Buyer’s expense or scrapped with no credit.