Common use of Return of Rejected Product Clause in Contracts

Return of Rejected Product. In the event Buyer, Buyer's Affiliates, or Buyer's Authorized Agent detects non-conforming Product, a Non-Conforming Material Report (NCMR) and/or a Corrective Action Request (CAR) shall be provided to Seller. Seller has [*] from the return receipt of non-conforming Product to confirm the reason for rejection. Seller must provide a Return Material Authorization (RMA) within [*] after receipt of samples of suspected Product. -------------------------------------------------------------------------------- Iomega WS, Supplier RM Rev. P, July 30, 1997 -- -- Page 8 of 26 -------------------------------------------------------------------------------- If Seller accepts the CAR, the following procedures (the "RMA Procedures") shall apply with respect to the relevant Product: 1. Buyer shall return the discrepant Products to Seller accompanied by the RMA number and send a debit note (invoice) to Seller representing the Prices and quantity of the returned Product; and 2. Buyer may send a Purchase Order to Seller to replace parts at Buyer's discretion; and 3. Seller shall expedite such Purchase Order at Buyer's request by premium transport. Incremental transportation cost shall be absorbed by Seller. Seller shall also conform to the Buyer's closed loop corrective action process.