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Costco Wholesale, any Merchandise, shipment or portion thereof that is non-conforming, or that is shipped contrary to Costco Wholesale's instructions, or that is in excess of the quantities covered by the Purchase Order, or that allegedly contains any defect or inadeauate warnings or instructions, or allegedly violates any law, regulation, or court or administrative order, or allegedly infringes any patent, trade name, trade dress, trademark, copyright or other right

vendor hereby assumes, and shall bear and pay, all risks and expenses of un packing, examining, repacking, storing, holding and/or reshipping or returning any such Merchandise, and shall reimburse Costco Wholesale its net landed cost for such Merchandise as shown on the books of Costco Wholesale, in addition to any other remedies available to Costco Wholesale. In the event Vendor's payment terms include a cash discount, such dis count is not refundable to Vendor upon return of Merchandies pursuant to this Section 12


In the event Costco Whlesale cansels any purchase Order Pursuant to Section 8, rejects any Merchandise due to its non-conformance pursuant to this Sectin 12, accept customer returns pursuant to Section 13, or exercises its rights under Section 14, Costco Wholesale shall not be liable for any, damages including consequential or incidental damages or lost profits or expenses incurred by Vendor as a result of such cancellation, rejection, acceptance, revocation of acceptance, refund, or offset.
CUSTOMER RETIRNS. Costco Wholesale may reject or revoke acceptance of any Merchandise returned by Costo Wholesale's customers for any reason stated in Section 12(a) above.