Idle Inventory definition

Idle Inventory consists of Brow▇ ▇▇▇ds, White Goods and Miscellaneous Goods that are not B.O.R. Units and: (i) are located at the stores and are suitable for rent as B.O.R. Units or (ii) are in the possession of a third party repair service or on loan to a customer while his or her unit is being repaired. Any idle inventory rented by Rainbow Rentals during the month of March ("March Rentals") shall be included in the 100 units per store defined as part of the Acquired Idle Stock. Buyer agrees to maintain accurate records of March Rentals, which records shall be open for inspection by Seller during normal business hours, with reasonable notice. Any item of merchandise on loan to customers or on repair that are returned to the stores will, at Buyer's option, be (a) purchased from Seller at a price equal to the greater of (i) the depreciated book value of the item or (ii) one-third the original book value, or (b) held at Buyer's store for pick-up by Seller for subsequent sale in the liquidation sale.
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Examples of Idle Inventory in a sentence

  • All inventory relating to the Stores (including without limitation, the Idle Inventory) was purchased, acquired or ordered in the ordinary and regular course of business or pursuant to acquisitions and consistent with the regular inventory practices of the Company and the Operating Subsidiaries.

  • Not more than two percent (2%) of the B.O.R. Units and seven percent (7%) of the Idle Inventory require any service, repair or replacement in order to maintain such Inventories in rentable condition at normal rental rates for comparable B.O.R. Units in the general vicinity of the Stores.

  • Any Idle Inventory not acquired by Buyer as part of the Acquired Idle Stock, including loaners returned to the stores, shall be retained by Seller and Seller shall remove such merchandise from those Stores operated by Buyer within the later of (i) ten days after Buyer's final determination of the items included in Acquired Idle Inventory or (ii) 30 days after the Closing Date.