7. Defects and Cancellation of orders
If defects found during the 10% Final Inspection of goods in the purchase order, there will be penalties assessed against the purchase order based on the following:
If defects are found in less than 1% of the shipment, there will be no penalty and the inspector will make sure the defectives identified are destroyed by the factory.
If defects are found in 1% to 3% of the shipment, each Major defect will be assessed a USD$500.00 penalty per defect and each Minor defect will be assessed a USD$200.00 penalty per defect. The inspector will make sure the defectives identified are destroyed by the factory. Factory to correct issue without delay or possible cancellation of order.
If defects are found in 3% to 10% of the shipment, the inspection quantity will be increased from a 10% to a 100% audit of the goods. Each Major defect will be assessed a USD$500.00 penalty per defect and each Minor defect will be assessed a USD$200.00 penalty per defect. The inspector will make sure the defectives identified are destroyed by the factory. In this instance, the factory will be additionally responsible for the cost of the audit including the cost for transportation and hotel lodging.
If unacceptable quality and defects are found surpassing 10% of the shipment, Randa Luggage reserves the right to CANCEL the order and refuse the goods.
There is a zero-tolerance policy for Critical defects. A Critical defect is a major failure of the raw material or a structural/construction failure. The order is subject to cancellation if any critical defect is found.
A penalty Table is accompanied with this policy.