Expert: Timmy Chou - 2/16/2004

Question
Hi;
Sold a watch for $ 7,500 over the internet...
check cleared, watch was mailed to portugal...and insured..

check cleared, and I mailed it...$ 250.00 for shipping and insurance..

Now owner wants to return it, because he states the tax and duty is toooo much money...

Where do I stand...
Should I accept the return?

Money is now gone...

What is my legal recourse...
he wants a refund...

Judy  

Answer
Thank you for your question!

Mediators act as neutral third parties to disputes and never "get involved" in judging the merits of conflict, but merely use special techniques to assist the parties in solving dilemmas.

Therefore, I can only respond to your question from my business consulting experience.  Note that this may ultimatly be a legal question and you may wish
to consult an attorney.

My view is unless you have some requirement from Ebay or other third party facilitation site you used to make the sale, and unless you advertised a money back clause, you are not obligated to accept a return.

Of course you could be sued, but the buyer would have to hire a lawyer in the US to chase you down and file a suit--which you would undoubtedly win.  Remember there is never a "safe harbor" where the law is concerned and anyone with enough money can find a way to sue you if they want to.  

However I would think it would cost $3-5000 upfront to sue you and it is very unlikely someone from Portugal will be willing to spend the money.  

These are some ideas.  Feel free to follow up with additional questions.

The pros and cons of the types of dispute resolution methods follows.

GOOD LUCK!

Arbitration, Mediation, and Litigation

Arbitration: the referral of a dispute to one or more impartial persons for final and binding determination outside of the judicial system

Benefits of Arbitration:

    Confidential, no public record
    Limited exchange of documentation, information
    Quick, don't have to wait for a court date
    Arbitrators have expertise in the subject matter and are trained in conflict resolution
    Cheaper than litigation
    Preserves business relationships

Negatives of Arbitration

    It's a compromise, no %100 winner
    Complex arbitration can be costly
    If not satisfied, may litigate the arbitration procedure
    Poor results with an unskilled arbitrator
    Both parties must agree to cooperate in the process

Mediation: the process by which parties submit their dispute to a neutral third party (the mediator) who works with the parties to reach a settlement of their dispute.

Benefits of Mediation:

    Neutral mediator can objectively suggest alternatives not considered before
    Parties are directly engaged in negotiating the settlement
    Can be quicker than litigation
    Less costly than litigation
    Preserves business relationships
    85% of American Arbitration Association cases mediated find successful solutions

Negatives of Mediation

    may not reach a binding decision
    unskilled mediator

Litigation: using the judicial system to resolve disputes

Benefits of litigation:

    a clear winner and loser
    uses a prescribed set of procedures
    more predictable outcomes
    is final

Negatives of Litigation:

    waiting for court dates can do more harm
    usually more expensive than mediation and arbitration
    part of the public record