Product Non-Conformance Clause Samples
The Product Non-Conformance clause defines the procedures and responsibilities when delivered products fail to meet agreed-upon specifications or quality standards. Typically, this clause outlines the steps for notifying the supplier of defects, the timeframe for reporting issues, and the remedies available, such as repair, replacement, or refund. Its core function is to ensure that buyers receive products that conform to contract requirements and to provide a clear process for addressing and resolving quality issues, thereby minimizing disputes and protecting both parties' interests.
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Product Non-Conformance. If SunPower identifies Nonconforming Products, SunPower will issue a Non-Conformance Report (“NCR”). Enphase must respond to SunPower within 48 hours to such NCR. Enphase is obligated, at its own expense, to complete a thorough RCCA, using 8D or similar methodology, to identify the cause of such Defect. Enphase is obligated to identify and execute reasonable corrective and preventative actions to eliminate the reoccurrence of such Defect. In the event of any Nonconformity, SunPower, at its sole discretion, may direct Enphase to stop shipments and/or manufacturing and conduct inspection and testing at Enphase’s expense to ensure conformance.
Product Non-Conformance. 4.2.1 If Medeva determines that any shipment of Bulk Licensed Product from TGC does not conform to the warranty provided in Section 2.8 above, Medeva shall give TGC notice thereof (including a sample from such shipment and copies of the results of any testing supporting Medeva's determination) within fifteen (15) days after receipt thereof, in the case of non-conformities that may be ascertained by the exercise of reasonable diligence (which shall not include laboratory testing or other chemical analysis), and within fifteen (15) days after discovery thereof, in the case of other non-conformities (including, without limitation, non-conformities relating to stability). Notwithstanding anything to the contrary, except as provided in Section 2.4, the sole criteria for a determination that any shipment of Bulk Licensed Product is non-conforming is failure to satisfy the warranty for such Bulk Licensed Product provided in Section 2.8. Medeva may elect in its discretion to conduct routine laboratory testing and other chemical analysis of shipments of Bulk Licensed Product. If TGC confirms such non-conformity, it shall promptly so notify Medeva. If TGC does not confirm such non-conformity, it shall promptly so notify Medeva, and the Parties shall promptly submit the disputed shipment for testing to an independent testing laboratory or other independent Third Party expert that is mutually acceptable to the Parties. The findings of the testing laboratory or Third Party expert shall be binding on the Parties. The expenses of such testing or other investigation shall be borne by TGC if the non-conformity is confirmed, and otherwise by Medeva.
4.2.2 If any Bulk Licensed Product delivered by TGC hereunder does not conform to the warranty provided in Section 2.8 above for any reason other than the willful or negligent acts or omissions of Medeva or its customers or agents which occur after the date of delivery thereof by TGC, TGC shall credit Medeva with the costs incurred by Medeva with respect to such non-conforming Bulk Licensed Product, which costs shall be deemed equal to the sum of any amounts paid on account of such Bulk Licensed Product pursuant to Section 2.1.2 or Section 2.2.1, as applicable, any and all transportation and storage charges incurred by Medeva in connection with such Bulk Licensed Product, any and all costs incurred by Medeva in manufacture of Licensed Products from such Bulk Licensed Product, and any and all transportation and storage charges in...
Product Non-Conformance. If Digirad determines that any shipment of Products from QuickSil does not conform to the Performance Specifications and Acceptance Criteria applicable at its plant as specified in Exhibit A, Digirad shall give QuickSil notice thereof (including a sample from such shipment and copies of the results of any testing supporting Digirad’s determination) within [***] after receipt thereof, in the case of non-conformities that may be ascertained by the exercise of reasonable diligence (which shall not include laboratory testing or other chemical analysis), and within [***] days after discovery thereof, in the case of other non-conformities. If QuickSil confirms such non-conformity, it shall promptly so notify Digirad in writing thereof. If QuickSil does not confirm such non-conformity, it shall promptly so notify Digirad in writing thereof, and the parties shall promptly submit the disputed shipment for testing to an independent testing laboratory or other independent third party expert whose decision shall be mutually binding on the parties. The expenses of such testing or other investigation shall be borne by QuickSil if the non-conformity is confirmed, and otherwise by Digirad. If any Products delivered by QuickSil hereunder do not conform to the Performance Specifications and Acceptance Criteria for any reason, QuickSil shall [***]. In addition, at Digirad’s option and sole discretion, (i) [***] (ii) [***].