If buyer receive inferior quality product, how to proceed
Quality fraud: after signing contract, the seller makes fake inspection report, seller conspires with inspection organization (third party inspector), and inspector issues the fake inspection report, then satisfying the requirement of contract or Letter of Credit. In such case, if buyer brings lawsuit against seller, and in court litigation, the seller will provide the third party’s inspection report. It is hardly for buyer to provide evidence to show the inspection report is fake. The chance for winning case of buyer is little. Or, seller inspects the cargo in factory, and obtain the inspection report, after that, seller changes the cargo with fake cargo during transportation, and delivers the fake cargo to buyer. This is involving contract fraud, the criminal shall be punished by criminal law.
Upon receipt of product, the buyer shall inspect it within the agreed inspection period. Where no inspection period is agreed, the buyer shall timely inspect product. Where the parties have agreed upon an inspection period, the buyer shall notify the seller of any non-compliance in quantity or quality of the product within such inspection period. Where the buyer delayed in notifying the seller, the quantity or quality of the product is deemed to comply with the contract.
Where no inspection period is agreed, the buyer shall notify the seller within a reasonable period, commencing on the date when the buyer discovered or should have discovered the quantity or quality non-compliance. If the buyer fails to notify within a reasonable period or fails to notify within 2 years, commencing on the date when it received the product, the quantity or quality of the product is deemed to comply with the contract, except that if there is a warranty period. the warranty period applies and supersedes such two year period.
Please pay attention to inspection period in your contract: too short period can not protect your interest. And you shall inform the seller of bad quality.