The quality of the coffee must be strictly as per
contract. If there is a difference and the resultant claim cannot be settled
amicably then it will go to arbitration, but a buyer cannot lodge any formal
claim before paying for the shipping documents. Effective January 1st 2006 GCA
contracts should stipulate whether they cover 'Commercial Grade' or 'Specialty
Grade' coffee. This will determine the type of arbitration that would be held -
if nothing is specified, then the contract is automatically assumed to cover
'Commercial Grade' coffee. Claims are usually settled by granting an allowance
that the seller must pay, together with the buyer's costs and expenses. But if
the coffee is unsound or the quality is radically different from that specified
then the buyer may seek to have the contract discharged by invoicing back the
coffee. In awarding invoicing back the arbitrators shall establish the price
bearing in mind all the circumstances concerned. Basically this means they may
order the contract cancelled and instruct the sellers to refund the entire cost
of the coffee plus any relevant damages. Note that
an excessive moisture level is one factor towards declaring a coffee
unsound. (See 05.02, Logistics, and 12.00, Quality Control.)
Under GCA all quality
issues FCA, FOB, CFR, CIF and DAF are settled by allowance, except gross
negligence and fraud. In the latter case the arbitration will be a technical
arbitration that might convene a quality panel to verify negligence or
fraud.