| Receiving - Inspections and Defects |
Policy No.: |
P-110 |
| Supercedes No.: |
|
| Effective Date: July 1, 2002 |
Page No.: |
1 of 1 |
I. PURPOSE
To provide guidance needed to properly inspect and process any defects discovered during or after inspection.
II. SCOPE
This policy applies to all Town employees.
III. GENERAL
Although inspection of goods received is not a function of the Purchasing Division, the Buyer or a purchasing staff member should be informed of any negative results of inspection so that appropriate action can be taken with the supplier.
IV. DUTY TO INSPECT
Under the Uniform Commercial Code (UCC), a buyer has no statutory duty to inspect goods on arrival. Failure to inspect goods at time of arrival may preclude the right to reject the shipment in its entirety, even though it does not constitute a wavier of the rights to claim breach of warranty upon a subsequent discovery that the goods are faulty. Most suppliers have sought to impose a duty to “inspect upon arrival” by inserting clauses in the contract stating that all claims must be made within ten (10) days after arrival of the shipment. Such clauses normally are interpreted by the courts to apply only to claims for defects readily apparent upon arrival.
V. RECEIVING AND INSPECTION POLICIES
Sound receiving and inspection policies mark the starting point for preserving the Town’s rights against suppliers and are essential to successful prosecution of claims for shortages or damages to shipment. Early detection of defects or obvious failures to comply with specifications often permits us to secure a replacement at the supplier’s expense and puts us in a more favorable position if a claim develops.
Shortage and/or damage should be called to the attention of the supplier or the carrier at the earliest opportunity. Tardy claims are usually suspect, and there is the risk of losing our rights because of a shorter nonclaim clause in the “bill of lading” or the “supplier’s packing slip.”
VI. DEFECTS NOT REASONABLY DISCOVERABLE ON RECEIPT OF SHIPMENT
In certain types of goods, a defect or fault is not reasonably discoverable on receipt of shipment.
For example:
Goods received in packages that are not opened until needed;
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Goods shipped in sealed packages or containers;
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Defects that do not appear until the goods are put into service.
When the defect appears prompt action may be essential to remedy the malperformance or other deficiencies.
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The
Town of Collierville does not discriminate on the basis
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its hiring
and employment practices, or in admission to, access to,
or operation of its programs, services, and activities pursuant
to Title VI
of the Civil Rights Act of 1964 (42 U.S.C. 200d) and the
Americans with Disabilities Act of 1990, Pub. L 101-336.
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