Liability/Warranty

Suppliers will warrant that all goods supplied conform to the requirements, specifications, drawings, samples or other descriptions furnished or adopted by Sensata and that they are of good material and workmanship and free from all defect in manufacture or design, and are of merchantable quality and fit for their intended purpose. Such warranties shall run to the benefits of Sensata, its employees and purchasers from Sensata. Sensata’s approval of designs furnished shall not relieve suppliers of their obligation under this warranty. All supplier warranties shall be effective for a period of four (4) years from the date of acceptance of goods by Sensata, or for such longer period as specified by Sensata. All costs associated with goods failing warranty provided above shall be the responsibility of the supplier, including expenses and penalties incurred by Sensata at its manufacturing facilities and/or those that occur after the goods have been delivered to Sensata’s customers.

In the event that a defect in the suppiers product results in Sensata reimbursing its customers or directly incurring costs for a field action, product recall or other corrective action, the supplier shall be liable for reimbursement for all such expenses incurred by Sensata and/or Sensata's customers with the understanding that the portion to be borne by the supplier shall be proportional to the degree of their responsibility for the situation. In the event of a dispute as to: (a) whether in fact a defect exists in any product supplied; (b) whether such defect was proximate cause of such field action, product recall or other corrective action; or (c) the degree of the suppliers responsibility for the situation; such dispute and any claims, questions of differences between parties shall be submitted to arbitration in the City of Boston, administered by the American Arbitration Association in accordance with the provisions of its Commercial Arbitration rules.