Common use of Competitiveness Clause in Contracts

Competitiveness. Seller will continually review pricing as necessary to remain total cost competitive for market products similar to the Products. During the term, Buyer will have the status of a most-favored customer with respect to matters of pricing and, where applicable, payment terms, scheduling, delivery, warranty and indemnification. If Seller offers more favorable terms to any of its other customers during the term of the Agreement who are purchasing similar types and quantities of products, Buyer will be entitled to the more favorable terms for the Products from and after the date of such offer. Furthermore, Buyer may market test the Products to determine whether Seller is competitive (including with respect to quality, delivery, technology and price) for products in substantially similar quantity, quality and specification as Products. If Buyer determines that Seller is not competitive and notifies Seller in writing, Seller will have 30 days from the date of such notice to become market competitive. If Seller fails or refuses to become market competitive, Buyer may immediately terminate all or part of the Agreement for cause or reduce its orders of such Products from Seller, without liability to Seller; provided that Buyer will timely remit any payment due to Seller for Products accepted by Buyer.