Dispute Resolution
Contractual resolution procedures use independent, accredited testing facilities to settle disagreements over fiber quality certificates. This process, termed referee laboratory arbitration, is triggered when a buyer’s test results deviate significantly from those provided by the seller’s laboratory. The decision of the referee laboratory is legally binding.
Arbitration Process
Discrepancies in fiber diameter or clean yield measurements can involve millions of dollars in high-volume trade. When a dispute arises, both parties agree to send sealed samples from the same lot to a mutually recognized referee facility. This laboratory must hold high-level international accreditation.
Testing Protocol
The referee laboratory executes the testing under highly controlled environmental conditions using calibrated instruments and standardized methods. Multiple tests are performed on the same sample to ensure maximum precision and reduce statistical error.
Financial Outcome
The final certificate issued by the referee lab determines whether the buyer’s rejection or discount claim is valid. If the referee’s results fall within the contracted limits, the buyer must accept the shipment at the agreed price. If the results confirm the defect, the seller must pay the costs of the arbitration and adjust the price.
This structured resolution mechanism provides a rapid, cost-effective alternative to formal court proceedings, ensuring that supply chain operations are not stalled by unresolved quality disputes.
