Common use of Substandard Product Clause in Contracts

Substandard Product. Product that fails to meet the specifications or the Quality Assurance Policy and which cannot be sold without discounting shall be considered substandard for purposes of this Agreement. Product of substandard quality shall be withheld from the Primary Pool and marketed by UNITED in a Separate Pool, with proceeds of the sale of such Product, less all direct and indirect selling expenses, distributed to the MEMBER that produced such Product; in the alternative, this MEMBER and UNITED may mutually agree that the Product of substandard quality may remain in the Primary Pool and the MEMBER will be charged with the additional costs relating to the substandard quality of the Product, including any necessary discounts.

Substandard Product. Product that fails to meet the specifications or the Quality Assurance Policy and which cannot be sold without discounting discounting, shall be considered substandard for purposes of this Agreement. Product of substandard quality shall be withheld from the Primary Pool and marketed by UNITED in a Separate PoolUNITED, with proceeds of the sale of such Product, less all direct and indirect selling expenses, distributed to the MEMBER that produced such ProductPROCESSOR; in the alternative, this MEMBER PROCESSOR and UNITED may mutually agree that the Product of substandard quality may remain in the Primary Pool and the MEMBER will be charged with the additional costs relating to the substandard quality of the Product, including any necessary discounts.