Common use of Damaged Items Clause in Contracts

Damaged Items. (a) In-bound Freight Damage. CellStar shall not be liable for shipments of Inventory Items until they have been received and accepted at the Warehouse. CellStar will assist MCI in filing and resolving any freight claims for these shipments and shall retain all packaging and shipping materials until the claim is settled unless otherwise directed by MCI. (b) Out-bound Freight Damage and Warehouse Damage. Subject to the allowance for shrinkage contained in Section 11(c) of this Agreement, the risk of loss, damage, or destruction of the Products and Inventory Items shall be borne by CellStar from the time the shipments are received and accepted at the Warehouse until the goods are delivered to and accepted by MCI at the Sam's Club location. (c) Definition of Damaged Products. Unless otherwise stated in Section 12, Products and Inventory Items shall be considered damaged when the actual unit has been marred in any manner, including, but not limited to, scratched, dented, water stained or stained by any other substance, crushed, punctured, and/or when the item has obvious damage detected by rattling sound. Any Inventory Items that is not resalable as a new product, due to any visual defects or obvious internal damage, shall be considered damaged.