Common use of Restocking Fee Clause in Contracts

Restocking Fee. 4.1 All “Stock Items” (ie, goods which are kept in stock in large quantities by the Supplier and are not ordered in on a job by job basis) that are not defective in design or manufacture, as determined by the Supplier acting reasonably, and are returned by the Purchaser shall incur a restocking fee of 20% of the total tax invoice price for those Stock Items.