Words and word combinations

producer plant завод-виробник

root reason основна причина

capacity потужність

exercise користатися правом

Analyse the case.

1. Do you find the position of the Buyers substantiated?

2. What losses were incurred by the Buyers?

3. What could be the Seller' position in the dispute?

4. Who has a real chance to win the case if the matter is submitted to Arbitration?

Roles

The Buyers' side: Managing Director, Manager of the Finance and Currency Department.

The Sellers' side: Chief Business Executive, Product Manager, Technical Expert.

Buyers

You represent the interests of the Ukrainian Production Plant. You claim full compensation for the losses.

The list of damages includes:

1. part of the purchase price for the delivered equipment,

2. projected transport charges back to the country of origin,

3. the fee to the Experts' Commission.

You also claim the "lost profit". Under Ukrainian Law that is the profit that could be gained if the supplied equipment ran at its designed capacity. If your partner blocks the negotiation the only option left is to submit the case to Arbitration. Tell your partner that you are ready to present

1. An Act of Experts' Examination,

2. Chemical analysis of the content of steel.

During the negotiation you may refer to the Ukrainian Civil Code. Article 219 entitles you to compensation.

Seller

You represent the interests of the Suppliers.

During the talks you cannot deny poor operation of the equipment as finished products have visual defects. But you are sure that the only reason for malfunction is improper steel. You are dead sure that poor quality steel affected the quality of the finished product.

In business you are always committed to customer and your rescue plan may be:

1. to run a test with your own sample of steel used. (It will help to discover the real fault);

2. to complete the commissioning of the full set of equipment. (You will select people of better professional skills). You may devise another plan. Just remember, that your main purpose is to dissuade your partners from rash actions.

Useful language

Anything the matter?

The thing is

Your claim should be supported by evidence

That sounds reasonable

There are complaints because

There is also the problem of

It came as a surprise

It happened through no fault of ours

Let's split the expenses

That's just what we are going to suggest.

That seems fair

Further Subjects for Discussion

An efficient business manager must know the law governing in a country where he runs his business. In business management it is a crucial point, especially when disputes arise.

How must a manager behave in a conflicting situation?

What are his rights by law?

Where can he apply for help?

---- these are the key questions to answer if you want to be an expert management. Exchange your opinions on the problem.

Written follow-up

Write up minutes of the meeting.

ROLE PLAY 2

POOR SALES

Problem

An American Agency company signed an agreement with a Ukrainian trading association for distributing Ukrainian goods on the American market. In their correspondence the American Party criticized the Principal for the poor performance. The points of criticism are as follows:

- delays in delivery of the goods,

- poor supply of spare part,

- late arrival of documentation necessary for customs clearance,

- mismarking of cartons,

- poor packing.

The American side held a meeting to discuss the situation with their Ukrainian counterparts; at the meeting the Ukrainian delegation submitted their counter-argumentation.

Words

principal принципал; особа, яка уповноважує другу особу діяти в якості агента

performance виконання, здійснення /договору/

Analyse the case.

1. What where the points of criticism made by the Agent?

2. Do you find the criticism well-grounded?

3. What could be the counter argumentation of the principal?

Roles

Agent

You are an agent selling Ukrainian goods on the US market. Your major problem is:

- irregular supplies of goods and spare parts. Ask the principal to put the deliveries in small lots.

Customs clearance is also a chronic problem with you as the shipping documents arrive much later than the goods.

Principal

You act on behalf of the Principal. In your counter-argumentation say that sales are poor because of high prices quoted by the agent. Once again ask the firm to rent a warehouse of bigger space. Then you will have an opportunity to deliver the goods in bigger lots.

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