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  • 7.12.5-ARBITRATION-QUALITY: GROSS NEGLIGENCE AND FRAUD

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  • Quality: Gross negligence and fraud

     
     
    Under GCA rules all quality issues under FCA, FOB, CFR, CIF and DAF contracts are settled by allowance. GCA considers that it is a technical issue whether or not quality is inferior to such an extent that the normal remedy of an allowance is insufficient. Therefore the claimant must file a demand for a technical arbitration. The technical arbitration panel might in its turn convene a quality panel to verify whether negligence or fraud took place but this would not be made known to the claimant who would only receive the decision of the technical panel.