Common use of Product Modification Clause in Contracts

Product Modification. A. Company shall have the right to discontinue the sale of Products or to modify the design, specifications and components of Products at any time in its sole discretion; provided, however, that Company shall notify Dealer, prior to shipment, of any major changes with respect to Products previously ordered by Dealer but not yet delivered, in which event Dealer shall have the right to terminate such order within five (5) days after such notification by providing written notice to Company. The failure by Dealer to provide such timely written notification shall be deemed acceptance by Dealer of such changes. B. Dealer understands that Company does not provide a warranty or Product protection coverage for replacement or repairs to specific areas of a Product that have been impacted as a result of modifications or alterations without Company authorization. Consequently, Dealer agrees it will notify Company in writing any time Dealer modifies or alters a Product in any manner. In addition, when seeking authorization to perform warranty or Product protection work, Dealer shall notify Company in writing if it appears that the Product on which the warranty or Product protection work is being performed has been modified, altered, or otherwise differs from the stock Product in any way. For the avoidance of doubt, the warranty or Product protection coverage is not affected and remains in full force and effect for all remaining areas of the Product not impacted as a result of modifications or alterations without authorization.