INVENTORY LIABILITY Sample Clauses
The INVENTORY LIABILITY clause defines which party is responsible for losses, damages, or discrepancies related to inventory during the course of a business relationship. Typically, this clause specifies whether the supplier, distributor, or retailer bears the risk for inventory that is lost, stolen, damaged, or becomes obsolete while in their possession or during transit. For example, it may state that the seller remains liable until goods are delivered to the buyer’s warehouse, after which the buyer assumes responsibility. The core function of this clause is to clearly allocate risk and responsibility for inventory, thereby preventing disputes and ensuring both parties understand their obligations regarding inventory management.
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INVENTORY LIABILITY a. OEM will have no liability for any inventory other than [***] as defined in Exhibit E, which becomes Obsolete Inventory as defined below. [***].
b. Obsolete Inventory. Unless otherwise agreed, OEM will issue an Order for, and take receipt of all Non-Standard Material inventory that : (i) [***] and (ii) [***](the “Obsolete Inventory”) [***].
INVENTORY LIABILITY. 9.1 OEM shall have no liability for any inventory other than non-standard material, defined as those finished goods, WIP [***] and raw material set forth in Exhibit C (“Non-Standard Material”). Inventory liability for Non-Standard Material shall be as follows:
a. [***]
b. Obsolete Inventory: OEM shall take receipt of Non-Standard Material inventory that is: (i) aged inventory for a period of [***], and (ii) is not included in the monthly forecast (the “Obsolete Inventory”). [***] *** Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
9.2 Supplier will undertake reasonable efforts to reduce Excess Inventory and Obsolete Inventory through open order cancellations, return for credit programs, reworks or allocation to alternative programs (if available and appropriate) for a period not to exceed thirty days beyond end customer demand change.
9.3 Both parties shall meet monthly regarding Excess Inventory and Obsolete Inventory to determine the best method to mitigate OEM’s potential inventory liability. Inventory liability for Non-Standard Material will be evaluated monthly or as mutually agreed by the parties.
INVENTORY LIABILITY. 4.1 The Forecast shall not be modified within four (4) weeks of the scheduled shipment date. Purchase orders shall be communicated in accordance with the process described in Section 2.4 above.
4.2 Customer shall Pull or have its contract manufacturer(s) Pull any Products within thirty (30) days after such Products arrive at the Warehouse (the “Removal Period”). If any Products are not Pulled during the Removal Period applicable to such Products, Micron may immediately ship the Product to Customer or Customer’s contract manufacturer(s) and invoice Customer at the currently applicable price for the Products and Customer shall pay such invoice pursuant to the applicable terms and conditions.
INVENTORY LIABILITY. 9.1 OEM shall have no liability for any inventory other than non-standard material, defined as those finished goods, WIP [***] and raw material set forth in Exhibit C (“Non-Standard Material”). Inventory liability for Non-Standard Material shall be as follows:
a. [***]
b. Obsolete Inventory: OEM shall take receipt of Non-Standard Material inventory that is: (i) aged inventory for a period of [***], and (ii) is not included in the monthly forecast (the “Obsolete Inventory”). [***]
9.2 Supplier will undertake reasonable efforts to reduce Excess Inventory and Obsolete Inventory through open order cancellations, return for credit programs, reworks or allocation to alternative programs (if available and appropriate) for a period not to exceed thirty days beyond end customer demand change.
9.3 Both parties shall meet monthly regarding Excess Inventory and Obsolete Inventory to determine the best method to mitigate OEM’s potential inventory liability. Inventory liability for Non-Standard Material will be evaluated monthly or as mutually agreed by the parties. *** Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
INVENTORY LIABILITY. In the event that Synnex purchases or orders Components, in order to meet Blue Coat’s requirements for Buffer Stock or Forecasts, Blue Coat may be required to purchase the unused portion of such Components from Synnex upon demand if Blue Coat fails to purchase Products in accordance with such Forecast. Blue Coat shall pay for such Components in the amounts and at times contemplated as follows:
9.1 Common Components. Blue Coat shall have no payment obligation or other liability for Common Components that are purchased by Synnex for this Agreement and Synnex shall indemnify and hold Blue Coat harmless from all costs and expenses arising from such Common Components.
INVENTORY LIABILITY. In the event that Synnex purchases or orders Components, in order to meet Blue Coat’s requirements for Buffer Stock or Forecasts, Blue Coat may be required to purchase the unused portion of such Components from Synnex upon demand if Blue Coat fails to purchase Products in accordance with such Forecast. Blue Coat shall pay for such Components in the amounts and at times contemplated as follows:
INVENTORY LIABILITY. [insert freshness and forecast liability language]
4.1 Customer shall provide Micron every week with an updated Product forecast to facilitate Micron’s capacity planning. Product forecast shall be provided by EDI. Such Product forecasts are merely estimates and firm Orders shall be communicated in accordance with the process described in Section 2.4 above.
4.2 Micron shall use forecasts to maintain a consignment stock equal to ________ weeks, as a minimum, to _______ weeks as a maximum, of inventory, calculated on the average of __________ weeks of forecast, available for consumption during the first week of the forecast.
4.3 If the Product has not been consumed by Customer after ______________ days in the Warehouse, Micron may invoice Customer at the currently applicable Consigned Product price.
INVENTORY LIABILITY