VIII. Complaints and Adjustment Complaints Concerning Goods Delivered

A complaint is made by the buyer if the wrong goods have been delivered, if the goods received are defective or damaged, if the quantity is not right, etc.

The letter of complaint (or: claim letter) must indicate clearly what is wrong. The seller cannot take any action unless he is informed exactly of the nature of the defect, extent of the damage, etc. The complaint should also contain such details as order number, date of order, or arrival date, to enable the seller to identify the consignment in question. The buyer usually requests a particular adjustment, but he may also ask the seller to make suggestions as to how the matter could be settled.

If the buyer has received the wrong goods, goods that are unsalable or otherwise of no use to him, he is entitled to reject them. Should he still be interested in the delivery of the proper goods, he demands a replacement.

In the case of minor defects in the goods delivered, the buyer will keep them but claim a reduction in price (allowance). Many small defects can be remedied by repair, or by the replacement of parts.

Sometimes the seller’s failure to supply the goods as provided for in the contract gives rise to an action for damages.

In many trades it is customary for the seller or manufacturer to offer the buyer a written guarantee (or: warranty). Under the terms of his guarantee, the manufacturer undertakes to replace or repair, free of charge, any article which may prove defective during the guarantee period, provided the defect is due to faulty material or workmanship.

Adjustment of Complaints

When a complaint is received from a customer, the supplier investigates the matter. If a decision cannot be made immediately, the supplier should write a brief acknowledgment informing the customer that his letter is receiving attention.

Depending on the circumstances, the seller may grant the buyer's claim, refuse it, or offer a compromise.

If the seller finds that he is to blame, he should frankly admit his fault, offer his apologies, and make a prompt adjustment.

Should it turn out that the buyer himself is responsible for the defect, the seller will, as a rule, refuse buyer's claim. Sometimes, however, in such cases, the claim is granted, or a compromise is made, in the interest of good business. The action taken depends on seller's adjustment policy, the type of customer concerned, and the circumstances of the particular case. Unfounded complaints made by customers who try to take advantage of the supplier are, of course, always refused.

Damage or loss in transit is a matter that has to be taken up with the carrier or the insurance company. If the carrier is liable for the damage or loss, a claim is entered with the carrier. Insurance companies pay compensation in the case of accident in transit regardless of whether the carrier or any other third person is liable, but they require the insured to assign to them any claims he may have against third parties.

In order to help his customer, the supplier is often prepared to send a replacement for the damaged or lost goods pending the settlement of a claim against an insurance company or a carrier.

Modern businessmen recognize the value of a satisfied customer. They do not regard complaints as a nuisance, but as a welcome opportunity to build goodwill. Many firms actually encourage customers to inform them whenever they are not completely satisfied with the goods or service received.

Sometimes a buyer’s complaint gives rise to a dispute. This is the case, for example, if the buyer claims that the quality of the goods is not according to contract and the seller claims that it is. Should the parties be unable to settle the dispute themselves, they have to refer the matter to a court of arbitration or to a court of law. As a rule, businessmen try to avoid litigation, which is both costly and time-consuming, and therefore agree, when entering into a contract, that disputes arising from the contract are to be settled by arbitration, whereby it is understood that they will both accept the arbitrator’s decision as final.