Unit 14 Complaint, Claim & Settlement

Unit 14 Complaint, Claim & Settlement Teaching Objectives:  Knowledge Requirements: 1 To help students to learn and master key words, phrases and sentence patterns 2 To enable students to know the causes of claims  Competence Requirements: To enable students to know the main points in writing letters to deal with claims

Part One Introduction • In international business, mistakes, problems and disputes may occur without exception. In this case, the party suffering the loss will surely make a complaint and/or ask for compensation/claim. The term “claim” in its broader sense includes complaint, dispute and claim. • 1. The seller is held responsible for the following claims: • Non-delivery or part-delivery • Delay in delivery/shipment • Inferior or wrong quality • Wrong quantity • Insufficient packing • Failure in entering into contract • Non-fulfillment of contract • Discrepancies in specification

2. The buyer is held responsible for the following: • Refuse to open an L/C • Delay in opening L/C • Delay in payment • Commission unpaid • Failure in entering into contract • Non-fulfillment of contract • 3. The carrier is held responsible for the following: • short-landed • Goods missing • Rough handling • Others • 4. The insurer is held responsible for the following: • Goods suffer losses or damages in transit because of the risks insured against • Other reasons stipulated in the policy according to which, the insured is entitled to ask for compensation

Part Two Complaint, Claim & Settlement and Sample Letters • 2.1 Structural Parts of Claim Letter • Analysis of Letter of Claim

Upon the above analysis, we may come to the impression and conclusion that: • Structural parts of letters of Claim generally consist of the following sections: • Section 1: Identify the reference to the delivery of goods; • Section 2:Politely make the detailed complaint & state your presumption of its possible causes; • Section 3: Ask for compensation or state your reaction & submit evidence for your requirements; • Section 4:State your future requirements & urge a reply.

2.2 Sample Letters of Complaint, Claim & Settlement • Sample 1 Claim for Poor Packing • July 28, 2009 • Dear Sirs, • We have received your letter of 20th September, informing us that the typewriters we shipped to you arrived in a damaged condition on account of imperfectness of our packing. • Upon receipt of your letter, we have given this matter our immediate attention. We have studied your surveyor’s report very carefully. • We are convinced that the present damage was due to extraordinary circumstances under which they are transported to you. We are therefore not responsible for the damage; but as we do not think that it would be fair to have you bear the loss alone, we suggest that the loss be divided between both of us, to which we hope you will agree. • Yours sincerely, • (signature)

Sample 2 Settlement for Improper Packing • Dear Sirs, • Your Order No. 123 per S/S Prince • Thank you for your letter of May 20 and we are pleased to know that the consignment was delivered promptly, but it was with great regret that we heard that several cups in case No.8 were damaged, as mentioned in your letter. • You may be aware that our cups have been sold in a number of markets abroad for quite a long time, and all our customers have been satisfied with our packing. Every shipment of our exports is strictly inspected by our shipping department before loading, and each packing is subject to a careful examination, the goods under the above order were in perfect condition when they were shipped, and individual cases were clearly marked with “Handle With Care”, “Fragile” and other necessary care marks. The clean B/L supports these facts. • After going into the matter carefully, we presume that the damage might be due to rough handling in transit or during unloading. • Your claim should be referred to the shipping company or the insurance company as a “mishap”. • Yours faithfully, • (signature)

Sample 3 Claim for Quality • Dear Sir or Madam, • Thank you for your delivery of table cloth which we ordered on May 12. To our regret, on inspection, we found that the goods do not conform to the sample. We wish to invite your attention to the following points: • 1) The colors of the cloths are different to your original sample. • 2) The finish id unsatisfactory. • We are returning two of these by separate mail and would like you to replace the whole in correct color immediately, as we are in urgent need of them. Concerning the airfreight, we agree to pay the extra costs for airfreight. However, your costs for packing and insurance must have been lower for air cargo and we request you to ask this fact into consideration and bear some part of the air freight charges. • We think that we may be able to dispose of them and await your reply as to whether you agree to our proposal. • Yours faithfully, • (signature)

Sample 4 Claim for Short Weight • Dear Sirs, • Referring to our letter of March 17, 2009, in connection with the rice under the Contract No.AB0109 shipped Per S.S. “Blue Sky”. After discharged at DALIAN, we found that there is a short-weight of 1,357 M/T and therefore we are now lodging claims with you as follows: • Claim NumberClaim for • DL01 Short-weight US$1, 368, 60 • DL02 Quality US$1, 532, 31 • Total Amount US$2, 900, 91 • In order to support our claims, we are sending you herewith one copy each of Inspection Certificate • No DCIB 01011 and No DCIB01012 together with our Statement of Claims which amount to US$2, 900, 91. • Please give our claim your most favorable consideration and let us have your settlement at an early date. • Yours faithfully, • (signature) • Enclosures: As stated.

Sample 5 Settlement of the Claim • Dear Sirs, • Contract No. AB 0109—Rice • We are in receipt of your letter of March 22, with enclosures, claiming for short weight and inferior quality on the consignment of Rice shipped per S.S. “Blue Sky”. • After carefully looking into the matter, we have found that our Rice was properly weighed at the time of loading and the quality was up to standard. We really cannot account for the reason of your complaint. But since the goods were examined by DALIAN Commodity Inspection Bureau upon arrival at DALIAN, we have no choice but accept your claims as tendered. • We therefore enclose our check No.12345 for US$2, 900, 91 in full and final settlement of your Claims DL01 and DL02. • We sincerely apologize for the trouble caused to you and would like to assure you that all possible steps will be taken by us to avoid any recurrence of similar mistakes in our future business. • Yours faithfully, • (signature)

Sample 6 Claim for Missing Goods • Dear Sirs, • We acknowledge receipt of your telex of August 26, concerning the 2500 cartons Canned Lichee under S/C No.2244 carried by M.V. “Yinghe” and feel much regretful to learn that 45 cartons of the shipment are missing. • Much as we are eager to help you straighten out this matter, however, we wish to inform you that we are not the party to blame. According to the B/L issued to us by the shipping company, the 2500 cartons have all been loaded on the carrying vessel. • In accordance with the clauses on the back of the B/L, the shipping company is responsible for any cargo short landed at the port of discharge. In view of this, we suggest you lodge your claim with the shipping company immediately. • Please let us know by telex as soon as the case has been settled satisfactorily. We assure you of our close cooperation in helping settle this case, and will comply with your instructions wholeheartedly. • Yours faithfully, • (signature)

Sample 7 Declining the Claim • Dear Sirs, • We are sorry to learn from your letter of March 16 that 50 out of the 2,000 cases of prunes supplied to your Order No.DF-3 were found deteriorated on arrival at the port of destination. • As you know, we have exported such kind of goods for many years, and all our prunes sent to you were selected from perfectly dried goods and subject to strict inspection before export. But for any possible deterioration for which we are found liable, we shall always be ready to compensate. • We have to point that the goods were in good condition when shipped, which was clearly stated in the clean Bill of Lading. We, therefore, suggest that you file a claim against the shipping company for compensation. • Should you wish to place an order for a new batch of 30 cases to make up for your deteriorated goods, please let us know and we will be willing to do so. • Yours faithfully, • (signature)

Summary • As known to all, nothing goes as well as what we expected. Often due to many unforeseen factors, errors occur and goods are mishandled; accidents happen. All these may result in subsequent complaints of different characters. They may be: complaint of wrong goods delivered; complaint of goods in inferior quality; complaint of shipment damaged, short, or missing; complaint of goods delayed or badly packed. • Regardless of the character of complaints, the making of complaints is an unpleasant business and needs to be well prepared and well documented. Otherwise, business would become unprofitable and pointless, and future business relationships may be jeopardized. • Letters in reply to complaints or claims should always be courteous. Even if the complaint is unfounded, the seller should not say so until they have good and reliable grounds on which to repudiate the complaint.

Exercises • 1. Translate the following terms into Chinese. • 1) poor packing • 2) up to the standard • 3) to cancel the order • 4) accept a claim • 5) be apt to • 6) Handle With Care • 7) lose no time • 8) in execution of • 9) short-paid • 10) settlement by arbitration

Answer: • (1) 包装不慎 • (2) 符合标准 • (3) 取消订单 • (4) 同意索赔 • (5) 倾向于，易于 • (6)小心搬运 • (7) 立即，不失时机　 • (8) 执行 • (9) 少付 • (10) 以仲裁方式解决

2. Translate the following sentences into Chinese. • (1) With reference to the 22 cases of glassware shipped by M.V. “Huangshi”, we are greatly disappointed at the unbusinesslike way in which you were handling our order. • (2) The responsibility for the losses may rest with the shipping company and we suggest you yourselves make the claim for compensation. • (3) Our customers reported that much inferior quality of materials was used to make your products. • (4) We regret to inform you that each bag weighs short by 6 to 10 kilograms. • (5) As we have pointed out repeatedly, prompt delivery is essential in this trade. However we have not yet • received the goods or any advice when we may expect delivery. • (6) It is natural that you should be responsible for all the losses resulting from the delay of shipment. • (7) The goods have been so discolored and heavily saturated by rain that they are unsalable. • (8) The damage is apparently caused by improper packing. • (9) Please let us know by fax when we may expect delivery. • (10) We would like to know what you intend to do in the matter.

(1) 关于由“黄石”号货轮运来之玻璃器皿２２箱，我方对贵方处理我方订货之非商业水准方法感到极其失望。 • (2) 损失的责任可能在于船公司，我们建议你们自己（向船公司）索赔。 • (3) 我方客户反映，您们的产品是以十分低劣之原材料制造的。 • (4) 我方遗憾地通知贵方，每包短重6-10公斤。 • (5) 正如我们已多次指出的，迅速交货对这笔业务来说十分重要。但我们迄今未收到货物，亦未收到可能何时交货的通知。 • (6) 贵方应当承担由于装船延误所招致的一切损失的责任，这是自然不过的事情。 • (7) 货物已经褪色并为雨水所侵透，已无法销售。 • (8) 损坏是明显地由于不良包装所造成的。 • (9) 请电告我们何时可以发货。 • (10) 我们希望了解贵方打算如何处理此事。

3. Translate the following short passages into English. • (1) 打开箱子时，我们发现其内容与装箱单不符。请查证并与答复。 • (2) 歉难接受你方索赔，因箱子离开此地时完好无损，损坏显然发生在运输途中。 • (3) 我方已收到你方运来的三十箱红茶，但遗憾的是，经检验，其中八箱损坏严重。很明显这是包装不良所致。 • (4) 很遗憾，你们对……质量提出异议。请接受我们对由此给你们带来的麻烦表示歉意。 • (5) 由于包装外形良好，且无动过的迹象，因此，我们猜度你们一定是少装了。

(1) When unpacking the case we found that the contents do not agree with your packing list. Please look into the matter and let us have your reply. • (2) We regret our inability to accept your claim because the cases were in perfect condition when they left here and the damage evidently occurred during transit. • (3) We have received the 30 cases of Black Tea you sent us, but regret to say that on examination, eight of them were found in badly damaged condition. This was apparently attributable to faulty packing. • (4) We are very sorry that you have complained about the quality of …Please accept our apologies for the trouble it has caused you. • (5) As the case is in good shape and does not appear to have been tampered with, we surmise that you must have short-shipped.

4. Fill in the right link in the following sentences. • (1) We made enquiries, ____ we did not receive any information. • (2) We made a suggestion, ____ it was accepted. • (3) The word-professor saves time, ____ it is expensive. • (4) Mr. Wood has not been long in the trade, ____ he is competent and efficient. • (5) We can replace the damaged parcel, ____ we can give you a 9% discount. • (6) We’d better hold the bazaar indoors this year, ____ it may rain again. • (7) The ship did not arrive on time, ____ was its departure confirmed. • (8) The accident did not halt work in the factory, ____ did it decrease production. • (9) She has done a good job, ____, she made some improvements. • (10) They tried to sell more, ____ they did not have ample supply.

Answer: • (1) but (2) and (3) although (4) but/nevertheless • (5) or (6) for (7) nor (8) nor (9) moreover • (10) but/however

5. Fill in the blanks with a connective or transitional expression in accordance with the context, and set out the letter in paragraphs. • We are sorry to learn from your letter of June 2 that you have had complaints from customers about our silk piece goods. We are very concerned ___ glad that you have brought the matter to our notice so promptly. ____ these silk materials are made from Chinese silk ____ are renowned for their fine quality and exquisite design. It is ____ unfortunate that the consignment supplied to your last order should have included some defective piece goods. ____ you will wish to continue to stock our silk piece goods ____ there is a very promising market for them and ____ suggest that you return for replacement free of charge all the defective piece goods from this particular consignment. ____ we deeply regret the inconvenience you have been caused ____ ask you to accept our apologies.

Answer: but/nevertheless, As you know, and, therefore, We feel sure, as, in the circumstances, meanwhile, and

6. Write an English letter based on the following information. • The shipment of the glassware you ordered has arrived, but a number of the wooden cases and contents inside were found broken. The survey report from the Entry-Exit Inspection and Quarantine Bureau shows that the breakage is due to bad stowage (装货方法)—the cases containing the glassware put under machines in the same hold. You claim for $12000. But you need to decide first against whom you should file the claim.

Answer: • (略)

Unit 14 Complaint, Claim & Settlement