Knowledgebase
Knowledgebase:
What To Do If Your Products Are Faulty, Defective, Not Made To Specifications With Defects
Posted by Live Now Education G Support Team on 01 April 2019 01:00 PM
The first thing we recommend doing is looking at the documents you have in place for your order to double check if the specifications were clearly stated on the POA (Purchase Order Agreement) and if there's anything you could have changed or added to avoid these faults.

Next explain to the supplier to that the products won't be sellable to your customers because of the faults and that the products have not been made in accordance with your POA. Also let them know they agreed to the terms to re-make faulty products at their cost, as per the POA which states:

"3) If any products don't pass the quality control check or have defects, the supplier agrees to re-make the products at their cost, or give the purchaser a credit off the balance of the order, to the cost value of the defective products, depending on what the purchaser prefers to have."

Depending on the what the faults are, your supplier will probably try to repair the faulty products before re-making them from scratch, which is fine if both parties agree to this and the products can be repaired.

Whilst most suppliers will be willing to find a solution to keep your business ongoing, there is a chance that they refuse to take responsibility and repair or replace the faulty products and if so, your only options would be to refuse to pay the balance (you would probably loose the deposit) or seek legal action and you'll need to consider every option and what the costs (money and time) will for each outcome.

Ideally your supplier will repair or replace the products at their cost, however if not you may be able to work out an agreement where you pay a partial amount. This will all depend on how faulty the products are (if they can be repaired), how thorough your documents are, how much the additional fee will be and what the costs will be in comparison if you don't proceed with this order.

Whilst there's no black and white rules when it comes to resolving defective products, you need to do what you feel is right and what's going to be the best outcome for your business. Also when talking to the supplier go through one solution at a time starting with the best outcome for yourself and gradually working down through each solution.

In the unlikely event you can't work out a compromise with the supplier, you'll need to decide whether to proceed with legal action which again will depend on the cost of your order, the amount of deposit you have paid (if the supplier won't refund you), how thorough your documents are and whether you have the money to outlay in lawyers. You may find simply mentioning this to the supplier is enough without actually having to go through with it, however this would be a last resort to try and maintain your relationship with them.

We also highly recommend looking at what you can add to your documents to cover these specific faults even more and prevent this from happening in the future or with different suppliers.

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