Manner of Rejection. Company may reject any Product manufactured by Contractor if such Product fails to meet the Specifications or contains a Manufacture Defect when inspected by Company. Company shall notify Contractor within five (5) days of receipt of the Product if the Product is rejected. Company may, at its option, (i) return the Product to Contractor for rework, (ii) rework the Product, and charge any labor cost, not to exceed Contractor’s Value Added, to Contractor, or (iii) scrap the Product if it cannot be reworked. If the Product is scrapped, Contractor shall, at the request of Company, replace the Product so scrapped, or reimburse Company for the amount charged to Company for the Product so scrapped.
Appears in 2 contracts
Sources: Product Manufacturing Agreement, Product Manufacturing Agreement (Rf Monolithics Inc /De/)