Text 7 Claims

In ideal business conditions everything should be done care­fully – details of offers and orders checked, manufacture of the goods carried out properly, packing and marking verified.

However in spite of every possible care and attention that is given to contracts letters of complaint happen to arrive rather frequently because of various infringements.

There are various reasons for complaints. The following kinds of claims are often made by Buyers:

1) claims arising from the delivery of wrong goods, damaged goods or substandard goods:

2) claims connected with delays of one kind or another;

3) claims owing to goods missing from delivery (i.e. short - shipment or short-delivery);

4) claims that concern errors in carrying out an order, These may be caused by mis-typing of figures, mis-reading of numbers, misdirection of goods, wrong packing and so" on. Sellers most frequently make claims on Buyers because of default of payment.

As a rule a customer will not complain unless he has a good reason. If the customer's complaint is well-grounded, the settlement is comparatively easy the error will be admitted and the responsible party will meet the claim fully or partly. In other words, the dissatisfied party will get full or partial compensation for the losses which they suffered. Thus the matter is settled amicably.

Much more difficult is the case where the customer's complaint is not justified. It would be wrong policy to reject the claim off-hand.

The responsible party must carefully explain why the claim is declined and try to persuade the dissatisfied party to withdraw the claim.

Settling commercial disputes by arbitration is practiced if the parties in dispute cannot reach mutual understanding. In this case the parties may refer the matter to the Foreign Trade Arbitration Commission at the Russian Chamber of Commerce and Industry in Moscow. Then the case is heard before a tribunal comprising three arbitrators. The award is made by a majority vote.

The award of the Arbitration Commission is final and binding upon both parties. It is not subject to appeal.

Text 8 Discussing the Guarantee Period

Borisov studied the offer and the leaflets very closely. He thought that the technical characteristics of the LS 8 pump would suit their customers.

He got in touch with Mr. Parks and visited his office. During their talk they discussed some technical matters.

Today they are meeting at the Russian Trade Delegation.

Borisov: Good morning, Mr. Parks. Very glad to see you again.

Parks: Good morning, Mr. Borisov. What terrible weather we are having!

Borisov: Yes, it has been raining since early morning though the radio didn't say it would rain today.

Parks: I hope it will clear up by the evening.

Borisov: Perhaps it will. Mr. Parks, the matter I'd like to bring up today is the guarantee period. I know it is 12 months from the date of putting the pumps into operation, but not more than 18 months from the delivery date.

Parks: That's right.

Borisov: Well, I find it rather short. We'd like it to be extended by two and three months respectively, as the usual guarantee period for this type of equipment is longer.

Borisov: I see. But, Mr. Parks, I believe the contract will specify that if any defects are found during the guarantee period you are to correct them promptly and at your expense.

Parks: Yes, this is our usual obligation, but of course we do that only if we are responsible for the defects, not if they appear through your fault.

Borisov: This seems reasonable. Let's consider one more possibility. Suppose we would like some faulty parts to be replaced, on what terms will you deliver the replacements?

Parks: We'll try to supply them immediately and pay the cost of their insurance and transport. Will that suit you?

Borisov: Quite.

Parks: By the way, if you want special service visits of our engineer to be arranged after the guarantee period, we can always do that.

Borisov: Shall we have to pay for such visits?

Parks: Yes. You should authorize such visits and pay the engineer's fare to and in Russia, hotel expenses and the cost of each job he will do.

Borisov: Thank you. I'll have to look into the matter. Could we meet on Thursday, say, at 12?

Parks: Let's make it 2 if you don't mind. I have an appointment at 12, which I don't want to break.

Borisov: Very good.