Rejection of Products. The parties agree that: (a) Annie’s or a Designee, as the case may be, may reject and refuse to pay for Products that (i) do not fully comply with the Specifications or were not manufactured in accordance with the Specifications, (ii) have been damaged during storage or handling prior to being shipped from DC’s facility(ies) or (iii) are not in compliance with the other terms and conditions of this Agreement (“Properly Rejected Product”). (b) If DC has received payment for Properly Rejected Products, Annie’s shall provide DC a statement which includes substantiating documentation, for the cost of such Properly Rejected Products and for any freight, handling or other reasonable disposition costs or expenses incurred by Annie’s in connection with such Properly Rejected Products, and Annie’s shall receive credit from DC within thirty (30) days of such invoice. (c) Annie’s or a Designee, as the case may be, may reject and refuse to pay for Products that have been produced and packaged during a particular production run if quality assurance samples from that production run do not conform to the Specifications or were not manufactured in accordance with the Specifications or are otherwise not in compliance with the terms and conditions of this Agreement. Following return of the rejected Products to DC, if the Parties mutually agree that such rejection of Products by Annie’s or a Designee was unwarranted, Annie’s shall reimburse DC for the reasonable and documented costs incurred by DC for transportation of such rejected Products to DC and inspection and testing thereof.
Appears in 3 contracts
Sources: Product Supply Agreement, Product Supply Agreement (Annie's, Inc.), Product Supply Agreement (Annie's, Inc.)