Should the DE fail for any reason, the failed unit will be considered non-repairable.
Under the terms of the Warranty PARTY B will provide distributors and dealers with
a replacement unit in exchange for the returned defective unit. PARTY B will advise
PARTY A on a monthly basis of the number of units used for warranty replacement.
PARTY A will credit PARTY B’s account for the PARTY B purchase price for the
replacement units. PARTY B will hold defective units for sixty (60) days pending
disposition instructions from PARTY A. Party A will either (a) request that
defective units be returned to PARTY A at PARTY A’s expense; or (b) advise
PARTY B to destroy and scrap the defective units. If no instructions are
forthcoming from PARTY A within the sixty (60) day period, PARTY B shall be
free to dispose of the defective units at its discretion.
2. Replacement of a defective unit will be accomplished by the distributor or dealer
who originally installed the DE. PARTY B will credit the distributor or dealer a flat
fee of AUD ... upon receipt by PARTY B of the defective unit. The flat fee will be
the limit of liquidated damages granted to the distributor or dealer to cover labor and
material costs to replace the defective unit. PARTY B will invoice PARTY A for
each AUD ... payout made; and PARTY A will promptly credit PARTY B’s account.
3. A second category of failure would be failure due to faulty installation, not due to a
defective DE. In such cases the party who failed to properly install the DE will bear
full responsibility for correcting the faulty installation.