Common use of Excess Inventory Clause in Contracts

Excess Inventory. eCost acknowledges that market uncertainties or eCost’s errors in projection of future sales may result in excess Products being acquired by AF Services for resale to eCost. In the event that AF Services has in its possession, at the end of a customary sales season, Products purchased by AF Services based upon reasonably calculated projections using data provided by eCost for which it has not received Product orders (such Products, “Excess Inventory”), AF Services shall have the right to demand that eCost purchase all or any portion of such Excess Inventory, and eCost agrees to purchase from AF Services all or any portion of such Excess Inventory upon demand by AF Services. Alternatively, and at its option, AF Services may dispose of such Excess Inventory through any other means, including sale to eCost’s competitors. However, should AF Services elect not to exercise its right to require eCost to purchase Excess Inventory pursuant to this Section 2.3(g) within forty-five (45) days of the end of the applicable customary sales season, eCost shall have no further responsibility or liability for such Excess Inventory.

Appears in 2 contracts

Sources: Product Sales, Inventory Management and Order Fulfillment Agreement, Product Sales, Inventory Management and Order Fulfillment Agreement (Ecost Com Inc)

Excess Inventory. eCost acknowledges that market uncertainties or eCost’s 's errors in projection of future sales may result in excess Products being acquired by AF Services for resale to eCost. In the event that AF Services has in its possession, at the end of a customary sales season, Products purchased by AF Services based upon reasonably calculated projections using data provided by eCost for which it has not received Product orders (such Products, "Excess Inventory"), AF Services shall have the right to demand that eCost purchase all or any portion of such Excess Inventory, and eCost agrees to purchase from AF Services all or any portion of such Excess Inventory upon demand by AF Services. Alternatively, and at its option, AF Services may dispose of such Excess Inventory through any other means, including sale to eCost’s 's competitors. However, should AF Services elect not to exercise its right to require eCost to purchase Excess Inventory pursuant to this Section 2.3(g) within forty-five (45) days of the end of the applicable customary sales season, eCost shall have no further responsibility or liability for such Excess Inventory.

Appears in 1 contract

Sources: Product Sales, Inventory Management and Order Fulfillment Agreement (Ecost Com Inc)