A package handling device includes a conveyor, a sensor system and a reject system. The conveyor transports a product along a product handling line. The sensor system is proximate to the conveyor system to determine at least one characteristic of the product for comparison to product acceptance criteria. Failure of the product to meet product acceptance criteria generates a reject signal. The reject system directs the product to a reject bin responsive to the reject signal via a movable assembly that moves a portion of the conveyor to create a gap in the product handling line. The reject system includes an adjustable retraction mechanism coupled to a frame of the conveyor and to the movable assembly. The adjustable refraction mechanism draws the movable assembly inwardly responsive to receipt of the reject signal to define a size of the gap based on information indicative of a size of the product.