Contractual Provision
A specific legal agreement defines the procedure for resolving disputes when the buyer and the supplier receive conflicting test results from different laboratories. The retest arbitration clause specifies the selection of a neutral third party laboratory whose results will be considered final and binding. This mechanism prevents deadlocks in the supply chain when a mill’s internal report shows a pass while a brand’s random audit shows a fail.
Procedural Step
The clause typically outlines the timeline for filing a challenge and the method for selecting the arbitration sample from the original batch of fabric. Costs for this third test are usually allocated to the party whose initial result is proven incorrect by the arbitrator. This financial arrangement encourages both the mill and the buyer to use high quality, accredited laboratories for their primary testing.
Sample Integrity
Maintaining a chain of custody for the retained samples is essential for the arbitration process to be valid. If the original sample has been degraded or contaminated, the retest arbitration clause may become unenforceable.
Dispute Resolution
Global apparel contracts rely on these clauses to maintain trust between international partners operating in different regulatory environments. Having a clear path to resolution reduces the risk of cancelled orders and helps maintain production schedules. The clause acts as a safeguard against laboratory error and commercial bias.
