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Finding a Middle Ground with Overseas Buyers

Arbitration can settle cross-border disputes.

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This story appears in the August 2007 issue of Entrepreneur. Subscribe »

Panic is the natural reaction when an overseas buyer disputes a transaction. But fear not. You can help prevent a dispute, or at least minimize its impact, by establishing resolution protocols beforehand.

One way to resolve disputes is through arbitration (sometimes called alternative dispute resolution). Consider including an arbitration clause in your credit applications or sales contracts with overseas buyers. By signing an arbitration clause, both parties agree that any disputes will be heard not by a court, but by a neutral individual or panel (which you should designate). The arbitrator should be in the seller's country, not the buyer's.

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