definiens: meaning that such Consumer Package Units fail to conform to the applicable Speciftcations or otherwise fail to conform to the warranties given by CMI herein ) which would not be discoverable upon reasonable physical inspection or testing ( the ) . As soon as either party becomes aware of a Latent Defect in any lot or batch of Consumer Package Units, it shall immediately notifY the other party and the lot or batch involved, at [COMPANY] ' election, shall be deemed rejected as of the date of such notice . CMI shall be responsible for replacing all defective units involved at its expense and shall reimburse [COMPANY] for its costs of accepting returns from its customers and shall be responsible for all costs reasonably incurred by [COMPANY] in recalling the Consumer Package Units having Latent Defects . At its election, [COMPANY] may recover moneys to which it may become entitled under this Section by deducting same from amounts then due or that may subsequently become due to CMI from [COMPANY] hereunder