EPIDEMIC DEFECT Sample Clauses
The Epidemic Defect clause defines and addresses situations where a significant number of products or components exhibit the same defect within a specified period or production batch. Typically, this clause sets out the criteria for what constitutes an epidemic defect, such as a threshold percentage of failures, and outlines the supplier’s obligations to remedy the issue, which may include repair, replacement, or recall of affected products. Its core practical function is to protect the buyer from widespread product failures by ensuring prompt and comprehensive corrective action, thereby minimizing operational disruptions and associated costs.
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EPIDEMIC DEFECT. Supplier warrants that the goods will be free from epidemic defects. An ”epidemic defect” is a defect which appears in more than half a percent (0.5%), or any lower percentage as specified in the specifications, of the goods of the same or substantially the same type delivered by Supplier to Buyer or its Affiliates within the epidemic defect period as stated in the relevant specifications, or if no such period is stated, within any consecutive period of three (3) months, and which defect is either similar or substantially similar or has similar or substantially similar cause. In the event of an epidemic defect, Supplier shall urgently and at its costs and expense repair or replace goods delivered to Buyer which show such epidemic defect within the reasonably expected life time of such goods and Supplier shall further indemnify Buyer for all losses and damages incurred by Buyer, including without limitation all costs and damages in relation to recall of any goods or products in which the goods are used from the market (whether defective or not) in relation to the epidemic defect.
EPIDEMIC DEFECT. Supplier warrants that the goods will be free from epidemic defects. An “epidemic defect” is a defect which appears in more than half a percent (0.5%), or any lower percentage as specified in the specifications, of the goods of the same or substantially the same type delivered by Supplier to Philips or its Affiliates within the epidemic defect period as stated in the relevant specifications, or if no such period is stated, within any consecutive period of three (3) months, and which defect is either similar or substantially similar or has similar or substantially similar cause. In the event of an epidemic defect, Supplier shall urgently and at its costs and expense repair or replace goods delivered to Philips which show such epidemic defect within the reasonably expected life time of such goods and Supplier shall further indemnify Philips for all losses and damages incurred by Philips, including without limitation all costs and damages in relation to recall of any goods or products in which the goods are used from the market (whether defective or not) in relation to the epidemic defect.
EPIDEMIC DEFECT. Supplier warrants that the goods will be free from epidemic defects. An “epidemic defect” is a defect which appears in more than half a percent (0.5%), or any lower percentage as specified in the specifications, of the goods of the same or substantially the same type delivered by Supplier to Fresenius Kabi or its Affiliates within the epidemic defect period as stated in the relevant specifications, or if no such period is stated, within any consecutive period of three (3) months, and which defect is either similar or substantially similar or has similar or substantially similar cause. In the event of an epidemic defect, Supplier shall urgently and at its costs and expense repair or replace goods delivered to Fresenius Kabi which show such epidemic defect within the reasonably expected life time of such goods and Supplier shall further indemnify Fresenius Kabi for all losses and damages incurred by Fresenius Kabi, including without limitation all costs and damages in relation to recall of any goods or products in which the goods are used from the market (whether defective or not) in relation to the epidemic defect.
EPIDEMIC DEFECT. If more than [***] of the aggregate of any Product delivered to LGIT during any thirty (30) days period fails to meet any of the Product warranties given in Article 7.2(a), as measured in accordance with LGIT’s testing and evaluation processes (“Epidemic Defect”), the Seller and LGIT shall immediately cooperate to find appropriate countermeasures, and, LGIT may, at its sole option, in addition to and without any other rights or remedies that it may have at law or in equity, or pursuant to this Agreement, take any or all of the following action: (i) cancel or suspend any outstanding Contract for the affected Products; and (ii) return all affected Products, including any Products purchased hereunder that are compatible with or used in connection with the defective Products, and to the extent LGIT has paid the Seller for the returned Products, the Seller shall reimburse LGIT the price paid with interest and return costs for the Products, which shall be payable by the Seller within twenty (20) days after the receipt of the returned Products. In the event LGIT elects to cancel or suspend any Contract in accordance with this Article, and afterwards LGIT wishes to reinstate such Contract, then such Contract shall be automatically reinstated in accordance with the original terms and conditions of such Contract (including, without limitation, the applicable schedule but taking into consideration the period of time that such orders or deliveries were suspended) upon a written notice from LGIT to the Seller. * [***]: Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
EPIDEMIC DEFECT. Company is responsible for all loss, liability, cost and expense (whether inside or outside the warranty period) with respect to any defect caused by any manufacturing process (including testing), material, or component (but not caused by engineering design of the Products) and found in three percent (3%) or more of any individual Part Number specified in Exhibit A delivered during any three (3) month period (an “Epidemic Defect”). An Epidemic Defect may be identified by Avocent or by Company’s test procedures or it may appear as customer-reported failures. Company and Avocent will cooperate to promptly determine the root cause of the failures. If the root cause is determined, then Company and Avocent will cooperate in good faith on a corrective action plan. If an Epidemic Defect occurs, Avocent may stop delivery of Products without penalty or liability until the root cause is determined. In addition to any applicable warranty, Company will be responsible for all costs associated with resolving an Epidemic Defect, including without limitation all Product recall costs.
EPIDEMIC DEFECT. 8.1 In addition to the warranties above, Supplier shall be obligated to remedy any Epidemic Defect of the Products during a period of five (5) years from the end of warranty period.
8.2 In the event of any Epidemic Defect affecting the Product, the Buyer and / or its customers shall
(a) be permitted to return all Products to Supplier at Supplier’s expense; and
(b) be permitted to immediately obtain a full refund of monies paid for the Product in lieu of obtaining repaired or replaced Product. An Epidemic Defect shall exist when the defect affects:
a) a similar defect at a rate of two percent (2%) or more in any given thirty (30) days rolling period over the life of the Product during the aforementioned relevant time period of five (5) years; herein the defect rate of two percent (2%) should be over a population delivered in 30 days, or
b) a similar defect rate of one point five percent (1.5%) or more of any Product within a time period of six (6) consecutive months during the aforementioned relevant time period of five (5) years; herein the defect rate of one point five percent (1.5%) should be over a population delivered in 6 months.
8.3 Notwithstanding the foregoing, an Epidemic Defect shall not include any of the following:
(i) an application specific failure, outside the product specification parameters
(ii) a customer / system induced failure.
8.4 In the event that defects or non-conformity with the agreed specifications are present in Products and are reoccurring and the combined defect rate meets the definition of Epidemic Defect above, Supplier shall remove the Epidemic Defect cause. In this case, shipments of still-due Products will be suspended upon ▇▇▇▇▇’s request.
8.5 In case the Supplier has not provided remedy within thirty (30) days after the Buyer has notified the Supplier about the presence of an Epidemic Defect, the Buyer has the right to terminate the contract free of any liability; nevertheless, the Buyer reserves the right to claim damages as well as all other applicable remedies.
8.6 In the event that a solution to the problem is found, all Product units subsequently delivered to Buyer shall have modifications necessary to remedy the cause for Epidemic Defects and Supplier shall carry out free-of-charge retrofitting in all the units previously delivered to Buyer which were affected by the Epidemic Defect. Supplier shall reimburse (but not limited to) Buyer for damages suffered due to substitution or identification of Products delivere...
EPIDEMIC DEFECT
