Common use of Warranty for Consumables Clause in Contracts

Warranty for Consumables. DIAMETRICS warrants to PHILIPS that the Consumables at the time of their delivery by DIAMETRICS to PHILIPS (a) shall meet the agreed specifications as set forth on Exhibit 1.5; (b) shall have been manufactured in accordance with all laws and regulations applicable to their manufacture in those jurisdictions in which PHILIPS is distributing the Consumables (provided that PHILIPS gives DIAMETRICS at least ninety (90) days written notice of any jurisdictions in addition to those in effect as of the Effective Date of this Amendment); (c) shall be new or newly manufactured; and (d) shall be of good and merchantable title, free of liens and encumbrances. DIAMETRICS shall, promptly, at DIAMETRICS' sole option, replace, repair or make a purchase price (in the amount paid by PHILIPS to DIAMETRICS) refund for any of such Consumables proved to be non-conforming, provided that written notice and reasonable documented evidence of each warranty claim and the fact that the failure occurred during the warranty period is received by DIAMETRICS within thirty (30) days after the expiration thereof. DIAMETRICS shall have the sole right to verify such non-conformance. Such replacement, repair or refund shall be PHILIPS' sole remedy hereunder. Unless otherwise agreed by the Parties, the warranty period under this Section 5.1 for (1) any Sensor shall be the stated shelf life as set forth on the label for such Sensor, not to be less than ten (10) months from the date of shipment to PHILIPS; (2) any Cartridge shall be the stated shelf life as set forth on the label for such Cartridge, not less than three (3) months from the date of shipment to PHILIPS, except that the shelf life of the GL & H4 (M3587A & M3617A)) Cartridge shall be not less than nine (9) weeks and the shelf life of H4E (M3617B) Cartridge shall be not less than eleven (11) weeks; and (3) any Accessory shall be ninety (90) days from the date of shipment to PHILIPS. If requested by DIAMETRICS, PHILIPS shall return the non-conforming Consumable to DIAMETRICS at the time of submission of the warranty claim therefore. PHILIPS agrees to provide DIAMETRICS sufficient notice of additional countries in which it intends to distribute the Consumables to permit DIAMETRICS to meet its obligations under subsection (b) of this Section 5.1.

Appears in 4 contracts

Samples: Manufacturing and Distribution Agreement (Diametrics Medical Inc), Manufacturing and Distribution Agreement (Koninklijke Philips Electronics Nv), Manufacturing and Distribution Agreement (Koninklijke Philips Electronics Nv)

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