A:Mr.Li,I’d like to talk with you about something which is getting to be quite a headache.I’d like to see it settled at this meeting,if possible.

B:What is it,Mr.Smith?

A:It’s about the quality of 300 cartons of dried mushrooms.They reached us two weeks ago,and were immediately examined after they were landed.To our astonishment,about 20% of them were moldy and in many cartons there were even small brownish bugs crawling in and out of the half-eaten mushrooms.We can’t accept them in this state.They are unsalable and unfit for human consumption.And the Medical Officer of Health has issued “Stop Notice” on them.

B:I am quite shocked to hear that.Honestly speaking,so far we haven’t had any complaint of this kind.Our mushrooms have enjoyed a good reputation for their superior quality for years.We are really at a loss to understand why your lot was found moldy,or even worm-eaten.Have you any evidence?

A:Certainly.Here are some pictures together with a survey report by a well-known lab in London,whose testimony is absolutely reliable.

B:Though everything may be as you say,there are many factors involved.What’s more,your surveyors have not mentioned any cause for the damage.

A:The mushrooms were packed in small plastic bags of one pound,sixty of these bags to a carton.It is stated on the surveyors’ report that the external conditions of goods at the time of survey are all sound and intact.So it is obvious that the cause of the damage is that the mushrooms were not completely dried before packing.

B:As you know,before shipment,the goods in question were inspected by The Administration for Entry-Exit Inspection and Quarantine.They concluded that the goods were well dehydrated from fresh and choice material and up to standard for export.

A:I personally doubt the sampling method at your end.The specific inspection department,I presume,when effecting inspection,only selected a few packages at random—these happened to be up to the standard.The part that was not dried properly,most probably,escaped their attention.As the quantity in question is only 20% of the whole shipment,I think it is only reasonable that you should compensate us for the loss.

B:The inspection certificate,which is based on a random selection of 20% of the consignment as we’ve agreed on beforehand,is considered final and binding upon both parties.We do not accept any claim for compensation for loss incurred in transit,because you bought the goods FOB Whampoa and on shipping quality,not on landed quality.Your claim,in our opinion,should be referred to the insurance company,as the mishap occurred after shipment.

A:We already got in touch with the underwriter.But they have refused to take any liability.They attributed the accident to the effects of dampness during the long sea voyage.

B:That’s a matter over which we could exercise no control,then.I’m afraid I have to insist that you approach the insurance company for settlement,that is,if you have covered this risk in your coverage.

A:To my regret,we failed to cover the risk of contamination.This is an unfortunate oversight on our part and a lesson to us.

B:Otherwise the insurance company would no doubt have entertained your case.

A:Well,live and learn.It seems we’ll have to waive the claim.