Common use of INSPECTION OF SHIPMENTS Clause in Contracts

INSPECTION OF SHIPMENTS. 7.1 Buyer shall inspect all Product delivered hereunder for defective or adulterated Product within a reasonable period of time after receipt and shall provide Vivier with written notice of any such defective or adulterated Product within thirty (30) days of discovery of any defect of adulteration. Defective or adulterated Products, excluding those Products suffering from defects or adulteration as a result of shipper's action or failure to act, shall hereinafter be referred to as, "Damaged Product." If within such thirty (30) day period, Buyer notifies Vivier that in its opinion the defects or adulteration are not as a result of shipper's action or failure to act, Buyer agrees to review its results with Vivier's Quality Assurance Department to confirm the existence of Damaged Product. Pending final determination of the existence of Damaged Product, Buyer's obligation to pay for the Damaged Product shall be suspended. Upon a determination that such product is or was not Damaged Product, Buyer shall immediately pay to Vivier the full invoice price for such product. If both parties agree that the shipment, or any part thereof, is Damaged Product, then Vivier shall, at Buyer's option, (a) deliver replacement Product to Buyer as soon as reasonably practical thereafter (but, in any event, within ninety (90) days after the initial notification by Buyer) , (b) refund to Buyer (by cash or credit) the purchase price paid by Buyer with respect to the amount of Product which is determined to be Damaged Product or (c) cancel that portion of the purchase order to the extent of the Damaged Product in which event Buyer shall have no obligation to pay for such Damaged Product. If the parties disagree as to the existence of a problem, they will then submit representative samples of the shipment to a mutually acceptable independent testing lab and the results of said lab shall be binding on the parties and the costs associated with such submission shall be borne by the party against which the lab decides.

Appears in 2 contracts

Samples: License and Supply Agreement (Omp Inc), License and Supply Agreement (Omp Inc)

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INSPECTION OF SHIPMENTS. 7.1 5.1 Buyer shall inspect all Product delivered hereunder for defective or adulterated Product within a reasonable period of time after immediately upon receipt and shall provide Vivier Geneva with written notice of any such defective or adulterated Product within thirty (30) days of discovery of any defect of adulterationreceipt. Defective or adulterated Products, excluding those Products suffering from defects or adulteration as a result of shipper's action or failure to act, shall hereinafter be referred to as, "Damaged Product." If within such thirty (30) day period, Buyer notifies Vivier Geneva that in its opinion the defects or adulteration are not as a result of shipper's action or failure to act, Buyer agrees to review its results with VivierGeneva's Quality Assurance Department to confirm the existence of Damaged Product. Pending final determination of the existence of Damaged Product, Buyer's obligation to pay for the Damaged Product shall be suspended. Upon a determination that such product is or was not Damaged Product, Buyer shall immediately pay to Vivier Geneva the full invoice price for such product. If both parties agree that the shipment, or any part thereof, is Damaged Product, then Vivier Geneva shall, at Buyer's option, (a) deliver replacement Product to Buyer as soon as reasonably practical thereafter (but, in any event, within ninety (90) days after the initial notification by Buyer) ), (b) refund to Buyer (by cash or credit) the purchase price paid by Buyer with respect to the amount of Product which is determined to be Damaged Product or (c) cancel that portion of the purchase order to the extent of the Damaged Product in which event Buyer shall have no obligation to pay for such Damaged Product. If the parties disagree as to the existence of a problem, they will then submit representative samples of the shipment to a mutually acceptable independent testing lab and the results of said lab shall be binding on the parties and the costs associated with such submission shall be borne by the party against which the lab decides.

Appears in 2 contracts

Samples: License and Supply Agreement (Omp Inc), License and Supply Agreement (Omp Inc)

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