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7.6 If after the second assessment and acceptance the products still cannot meet the requirements， if the responsibility lies in Party B， Party B shall compensate Party A for the direct economic losses thus occur， take measures to correct the defects and participate in the third assessment and acceptance； if the responsibility lies in Party A， all the losses shall be borne by Party A itself.
7.7 If the products are still not qualified after the third assessment and acceptance and the responsibility lies in Party B， Party B shall be responsible for all the losses thus caused and Party A shall have the right to terminate the contract and raise a claim against Party B according to Chapter 8； if the responsibility has in Party A， both parties shall mutually discuss the further implementations of the contract.
8.Guarantee & Claim
8.1 Party B guarantees that technical documentations are those used by Party B and such documentations are proved reliable and of latest technology. Party B also guarantees that during the term of contract， Party B shall notify Party A on time of any development and improvement of the technology it achieves.
8.2 Party B guarantees that the delivered technical documentations are complete， correct， uniform， clear and the delivery is on time. Detailed requirements are as follows；
complete： The technical documentations delivered by Party B shall include all those specified in Appendix 2 of the contract without omission.
Correct： There is no error in the technical documentations delivered by Party B. When Party A strictly follows such documentations， the products manufactured are qualified.
Uniform： All the signs， standards and specifications used in the technical documentions are uniform and there is no contradiction.
Clear： All the drawings， lines， language notes， signs， etc. used in the technical documentations are clear and easy to read.
On time： The date of delivery of the technical documentations shall not be later than the delivery schedule as set forth in Appendix 2 of the contract.
8.3 If there is any part of the technical documentations not in conformity with the requirements of 8.2， Party B shall， within 30 days from receipt of notice from Party A， make supplements or replacements free of charge.
8.4 The delivered equipment shall be installed and tested by Party B and shall fully comply with the technical requirements and processing quality of the contract.
8.5 If the equipment supplied by Party B cannot meet the requirements of 8. 4， Party B shall replace and retest such equipment until it meets the requirements.
8.6 If any portion of the technical documentations is delivered late as specified in Appendix 2 of the contract， Party B shall， from the 2nd day， pay to Party A a penalty as follows：
For late delivery of 1 to 4 weeks， the rate of penalty shall be O. 1% of the total contract price per each delayed week；
For late delivery of 5 to 8 weeks， the rate of penalty shall be O. 15% of the total contract price per each delayed week；
For late delivery of more than 8 weeks， the rate of penalty shall be 0.2 % of the total contract price per each delayed week.
However， the total amount of the above penalty shall not exceed 5 % of the total contract price.
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