Common use of Defective Items Clause in Contracts

Defective Items. If Supplier delivers Items (or provides Services) that do not conform to the warranty terms applicable to the Item(s) or Service(s) (a "Defective Item"), Applied shall give written notice (including notice by e-mail, facsimile or other electronic record) to Supplier's Customer Service Manager in Austin or Milpitas, as appropriate, of the Defective Item, and thereafter: (a) Supplier shall promptly correct, repair or replace, at Supplier's cost and expense, the Defective Item(s) without further notice from or demand by Applied. As to Services, Supplier's obligations include the prompt correction or re-performance of the Services and any work product or other deliverables. Supplier shall use the most expeditious commercially available means to effect repair, replacement or correction, including the provision of a new Item in lieu of repair. Applied may require repair, replacement or correction at Applied's facility. (b) If the failure constitutes or results in a Production Issue under Section 2.4, Supplier shall comply with that Section. If the failure is subject to Section 5.1.2, as applicable under this Agreement, Supplier shall comply with that Section of this Agreement. (c) If Supplier fails to comply with Section 2.4, where applicable, or if Supplier otherwise fails to promptly repair, replace or correct any Defective Item(s) or if Supplier repudiates, Applied may recover its damages resulting from such failure and may exercise all remedies available pursuant to the UCC (to include revocation of acceptance) and, as to Services and related deliverables, may recover its damages and exercise all remedies provided by law or equity. Applied may, as part of its recovery, include premium costs for expedited delivery. Where applicable, the procedures and limitations of (or, provided for through) Section 7.1.6, 7.2.2(e) and (f), and Article 21 of Exhibit 1 will apply to exercise, enforcement and recovery by Applied. (d) (i) Applied will utilize the procedures of this Section 7.2.2