Unit 9 Claims and SettlementI. Introduction In international business, claims do not happen in every transaction but often occur. Sometimes when the loss is not serious, the party suffered the loss may not lodge a claim for compensation. Instead he writes a complaint to call the other partys attention to avoid this matter happening again. Claims are usually raised by buyers for great loss, for example, loss caused by non-delivery or delay of delivery, short weight or shortage of quantity, inferior quality and improper packing, breach of contract, etc. However, sellers may also raise claims against buyer for non-establishment of L/C or breach of contract, etc. 1. Types There are two main kinds of complaints or claims made by buyers: (1) Genuine complaint or claim, which arises from the situations as follows: 1) The wrong goods may have been delivered; 2) The quality may have been found satisfactory; 3) The shipment may have been found damaged, short, missing or late; 4) The prices charged may be excessive or not as agreed. (2) False complaint or claim, which is made by buyers who find fault with the goods as an excuse to escape from the contract, either because they no longer want the goods or because they have found that they can get them cheaper elsewhere. Ordinarily, the purpose of writing a letter of complaint is to get better service. The more specific your letter is, the easier it will be for your correspondent to handle your complaint. We must handle complaints or claims in accordance with the principle of “on the first grounds, to our advantage and with restraint” and settle them amicably to the satisfaction of all parties concerned. 2. Structure of a Claim Usually a claim or complaint letter follows the under-mentioned outline. (1) The opening states the problem and gives as much information as possible. (2) The body gives, if any, additional informationwhy it is necessary to write, why and how you are inconvenienced, etc. (3) The body also states what you want to be donewhat you consider a reasonable demand to satisfy your claim. There is no need for sellers to go into a long story of how the mistake was made and a short explanation may be useful. Reply to Complaint Letters in reply to the complaints or claim should always be courteous, even if the complaint is unfounded; the sellers should not say so until they have good and reliable grounds on which to repudiate the claim. 1. Rules Dealing with a Complaint (1) The first thing to be decided is whether the complaint is justified. If it is so, the seller has to admit it readily, express his (or her) regret and agree to the buyers request. (2) If the complaint or claim is not justified, point it out politely in an agreeable manner. It would be a wrong policy to reject the customers request without any explanation; (3) If the seller cannot deal with a complaint promptly, acknowledge it at once; explain that the matter is being investigated and full reply will be sent later. To sum up, firstly, put yourself in the customers placeperhaps the customer realizes that his request is not a reasonable one. In that case, your refusal will not be annoying. Secondly, usually along with the refusal you can suggest an alternative that the customer will find reasonable. Thirdly, sometimes it is a matter of language instead of writing in a negative tone, try to make it positive. 2. Types Letters in reply to complaint or claim fall into three categories 1) Agreeing to the customers request. The answer to a claim letter is easy if you are agreeing to the customers request. Such letters often begin with good news.2) Making adjustment of the customers request The in-between answer to a claim letter is one in which the writer is making some adjustment or concession, but the demand is not entirely met. The opening will begin with a “thank you” or an apology and a repetition of the particulars of the shipment in question. 3) Rejecting the customers request There are times when the customers request must be rejected. “No” letters are difficult to write because you must both refuse the customers request and retain the customers good will. 3. Structure If the letter contains negative or bad news, do not begin with the bad news in the opening. You can thank the customer for writing or perhaps say that you are sorry for the dissatisfaction. After that, you go on explaining why the request is being refused in the body of the letter. If at all possible, offer an alternative. Also, if possible tell the customer what you are doing to prevent the problem from being repeated. The closing is then often a summary and request for the customers future business. II. Useful Sentences 1. Concerning Delay in Shipment 1) You have confirmed our order, but to our surprise, we have not received the goods or any advice from you when we may expect delivery. 2) You wrote that our order No. C