Common use of Return Material Authorization Clause in Contracts

Return Material Authorization. 10.1 All Products which Buyer returns to Seller shall be accompanied by a Return Material Authorization (RMA) number. Unless further verification is required by Seller, Seller shall provide Buyer with an RMA number within three (3) working days of Buyer’s request for return of the nonconforming Product to Seller. 10.2 If it is determined that the Failure Is electrical, mechanical, or of any other nature requiring further verification by Seller, Buyer shall return to Seller an agreed upon number of data-logged samples of the Product lot, whereupon Seller shall issue a Failure Analysis (FA) number. Buyer may, at its option, suspend the processing of invoices through Buyer’s accounting system for such nonconforming Product and suspend payments under this Agreement. Seller shall analyze the samples and report its findings to Buyer as soon as possible but in no event more than ten (10) working days after receipt by Seller of the samples (together with any supporting data or information reasonably requested by Seller) and shall promptly complete the failure analysis and take corrective action. 10.3 An RMA shall be issued within three (3) working days if the verification under Section 10.2 results in confirmation of the existence of a Failure. 10.4 Upon mutual agreement, Seller shall replace the Product or credit the purchase price of any Product which has been found to be nonconforming. If the returned Product is subsequently determined by Buyer and Seller to be in conformance, Buyer shall promptly complete payment in accordance with Section 6. 10.5 RMA Products will be shipped from Seller’s CM to the destination specified by Seller. Transportation charges and risk of loss or damage for Products returned from Buyer to Seller or from Seller to Buyer under this Section shall be at Seller’s expense, provided that Buyer shall reimburse Seller for any transportation charges paid by Seller for returned Products which are subsequently determined as a result of problem analysis pursuant to Section 8.4 to be conforming.