Dispute resolution (business to business)
Dispute Resolution
As with all contractual claims, the ultimate recourse is an action in the civil courts. Additionally, some disputes of this kind will be covered by a form of “alternative dispute resolution” (ADR) which can be a quicker and easier alternative to considering court action. One type is the online dispute resolution systems operated by many multi-seller online marketplaces. Another is the Financial Ombudsman Service, which can be used for disputes which are fully or partially financed by credit (such as a bank credit card) and for which the total amount paid (price of goods plus delivery charge) is £100 or more. This includes many purchases by small businesses.
Example - Alternative Dispute resolution
The buyer in the example attempt to increase delivery charge after sale uses its business credit card to purchase plumbing supplies.
Buyer's Rights
The rights listed under the example attempt to increase delivery charge after sale can be claimed against the seller OR the credit card provider (i.e. a bank or other financial institution) and ultimately the Financial Ombudsman Service for small businesses can rule on the case.
What can the buyer do?
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Instead of taking steps in relation to the seller, the buyer can hold their card provider liable.
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Refer the case to the Financial Ombudsman Service for small businesses if the card provider fails to resolve the matter in the prescribed timescale. In addition to actual losses, this can include a claim for compensation for inconvenience.