Arbitration on Buyer-Seller Disagreement Case Study

Arbitration on Buyer-Seller Disagreement - Case Study Example There are situations in the international market where the buyer and the seller disagree on their transactions. The basis of such dispute could range from the supply of inferior quality goods, failure of the goods delivered to meet standards and specifications or failure to deliver such goods or services in good time (Cornell, 2001). Under all these circumstances, the laws governing the international market provides an avenue through which such disputes can be resolved (Frank, 2009). In our case where the American businessperson ships livers to the German trader that do not meet all the specifications, then a need for dispute resolution arises. While the sex of the animal from which the livers are obtained is no cause for concern to Americans, the case is different in Germany. The livers obtained from different sexes of animals will fetch different prices in their markets. Since the attempt by the traders to resolve the dispute by them has failed completely, then a need for arbitrati on arises. The most important thing that the arbitrator should consider in this dispute resolution is the fact that a company is guided and under obligation to follow both the domestic laws regulating business transaction and the laws of the foreign country where the company is undertaking its business. In this case, owing to the fact that in Germany livers fetch different prices, based on which sex of the animal they come from, then the German importer has a reason to require the American supplier to pay a price allowance of $1000 (Cornell, 2001). Owing to the fact that the German importer issued instructions to the effect that the livers shipped should be of customary merchantable quality, it was the responsibility of the American trader to seek to understand the particular requirements of customary merchantable quality livers in the German market. Therefore, in this case, the arbitrator will rule in favour of the German importer, and establish an agreement with both of the traders, for the American exporter to reduce the price of the livers he shipped, so that the German importer does not run at a loss wholesomely.