Common use of Warranty; Limitation of Liability Clause in Contracts

Warranty; Limitation of Liability. (a) Supplier warrants that all PET Products sold to Purchaser (i) shall be free from defects in workmanship and materials, except for any defects arising out of actions taken by or at the direction of Purchaser or materials provided by or on behalf of Purchaser and (ii) shall comply with the historical specifications for Existing PET Products and with any agreed upon specifications for New PET Products. Supplier’s liability under this warranty, whether in contract or tort, shall be limited exclusively to the repayment of the purchase price of the defective PET Products. Supplier will make no other warranties with respect to the PET Products. OTHER THAN THE ABOVE WARRANTY, SUPPLIER MAKES NO WARRANTY, WHETHER OF MERCHANTABILITY, FITNESS OR OTHERWISE, EXPRESS OR IMPLIED, IN FACT OR BY LAW, AND SUPPLIER SHALL HAVE NO FURTHER OBLIGATION OR LIABILITY UNDER THE ABOVE WARRANTY OR WITH RESPECT TO THE PET PRODUCTS. SUBJECT TO THE FOLLOWING SENTENCE, SUPPLIER SHALL IN NO EVENT BE LIABLE FOR PUNITIVE, CONSEQUENTIAL OR INCIDENTAL DAMAGES. Notwithstanding the foregoing, Supplier shall indemnify Purchaser for reasonable and customary line hour charges actually paid to the Constar Customers by Purchaser that directly result from Supplier’s breach of the above warranty; provided, that such line hour charges shall be no greater than the line hour charges paid by Purchaser to other similar Constar Customers under similar circumstances.