When international buyers and sellers disagree
No matter what line of business you’re in, you can’t escape sex. That may have been one conclusion drawn by an American exporter of meat products after a dispute with a German customer over a shipment of pork livers. Here’s how the disagreement came about:
The American exporter was contracted to ship ‘30,000 lbs. of freshly frozen U.S. pork livers, customary merchandisable quality, first rate brands.’ As the shipment that was prepared met the exacting standards of the American market, the exporter expected the transaction to be completed without any problem. But when the livers arrived in Germany, the purchaser raised an objection: ‘We ordered pork livers of customary merchantable quality –what you sent us consisted of 40 per cent sow livers.’
‘Who cares about the sex of the pig the liver came from?’ the exporter asked.
‘We do,’ the German replied. ‘Here in Germany we don’t pass off spongy sow livers as the firmer livers of male pigs. This shipment wasn’t merchantable at the price we expected to charge. The only way we were able to dispose of the meat without a total loss was to reduce the price. You owe us a price allowance of US$1,000.’ The American refused to reduce the price. The determined resistance may have been partly in reaction to the implied insult to the taste of the American consumer: ‘If pork livers, whatever the sex of the animal, are palatable to Americans, they ought to be good enough for anyone,’ the American thought. It looked as if the buyer and seller could never agree on eating habits.
(Source: Dun and Bradstreet Corporation.)
Questions
1. What does ‘customary merchandisable quality’ mean? Where? In which language and cultural context?
2. Discuss how ethnocentrism and SRC (self-reference criterion) are at work in this case.
3. In this dispute, which country’s law would apply, that of the United States or of Germany?
4. If the case were tried in US courts, who do you think would win? And if tried in German courts? Why?
5. Is formal litigation justified in such a case? How can one solve this problem? How can one avoid this type of conflict in the future?

When International Buyers and Sellers Disagree

Pertinent Facts
The disagreement is that a West German importer bought pork livers from a U.S. supplier. The buyer was expecting 100 percent male pig livers, but got 45 percent sow livers which the Germans consider inferior to the male pig liver.
The German firm had to dispose of the sow livers at a reduced price and wants the U.S. supplier to reduce his price accordingly on the sow livers.
The U.S. supplier refused to pay the $1,000 requested.
Comments
Insofar as contract law is concerned, the crux of the problem seemed to be whether the phrases “customary merchantable quality” referred to standards in the United States, where the meat originated, or in the country to which it was exported. Many other firms in the industry awaited the arbitrator’s decision because, while arbitral awards do not constitute binding precedents as such, they do provide some guidelines for the future.
The American Arbitration Association upheld the American exporter. The arbitrator found that, although there was some tendency in the U.S. for packers to distinguish between male pork livers and pork livers from sows, the practice was not so widespread as to constitute an implied term of the contract. If the German buyer wanted no sow livers included in the shipment, he should have stated so when the contract was made.

There are still many needs to be noticed in the international business. When doing a company has a comprehensive background knowledge about the other country, such dispute in international business can be avoided.
2.2 The dispute in negotiation
Each party of this case all claim his right with their own reasons, and would like to refer to their law. As no one would like to make a concession, how to solve this problem? I found three solutions to this problem.
2.2.1 Solving these problems
2.3 American law or German law?
Since both countries have different legal systems, U.S.--Common Law, and Germany-- Civil or Code law, we will have different results. Then, if we try to solve this case by the U.S. courts, the party that will win the case is the seller, since the other party did not specify the quality of the goods.
If the jurisdiction of this case were of the German courts, it might win as well the seller since the buyer did not specify the quality of the goods, even though this party could appeal that since the goods are for German market should have the German standards.
In order to avoid all the probabilities that problems may arise, it is important to include in the contract which law is applicable, and specify the quality of the good, delivery, date, price, place of origin, certificates that must have and all the important facts of the goods.
2.4 American courts or German courts?
2.5 The role of SRC played in this case
3. Conclusion
Secondly, religion has a great influence on international business. Although, it is not implied in the premier case, it will cause similar problems. f the jurisdiction of this case were of the German courts, it might win as well the seller since the buyer did not specify the quality of the goods, even though this party could appeal that since the goods are for German market should have the German standards.
In order to avoid all the probabilities that problems may arise, it is important to include in the contract which law is applicable, and specify the quality of the good, delivery, date, price, place of origin, certificates that must have and all the important facts of the goods.
2.4 American courts or German courts?...