Reference no: EM132863787

1. Thai SocksInc, a Thailand based manufacturer of socks has a long-term contract with Swoops Inc, an American sporting company. In recent months, Swoops has received multiple returns from its consumers with a mention that the quality of the socks is not the same as it had been in the past. Swoops has investigated and found that the quality delivered is not in line with the contract. Swoops raised the concern with Thai Socks, however the seller is unwilling to accept the defects and has blamed the quality issues on Swoops' mishandling of inventory. Describe the ADR method of conciliation and how it will help both companies resolve this dispute.

2. Describe how fluctuations in foreign exchange (FX) rates can cause a dispute between two parties.

3. iSell Inc. is a known Canadian manufacturer of garage doors used for commercial buildings in Canada. In recent years, the demand for such product has grown significantly in the foreign market. iSell Inc. won a large contract to supply 100 doors over two years to iBuy Inc., a company in Ireland. Given that this is its first export experience with a large contract, iSell Inc. took an accounts receivable insurance (ARI) policy to protect non-collection of its receivables. However, iBuy Inc. has recently refused to make payments for delivered doors, indicating that it has received doors of lower quality than those signed for in the contract. Given that both parties are willing to collaborate, explain why the ADR method of fact finding could be used in this scenario.