Definition of Punitive action:
Action taken by a business customer against a supplier who fails to fulfill the terms of an agreement. Consistently late delivery is a common example of the type of problem that would prompt a customer to take punitive action. Punishment might consist of charge-backs, order cancellation, the threat of contract cancellation, or other measures designed to motivate the supplier to correct the problem.
Meaning of Punitive action & Punitive action Definition