LED Screen Enterprises VS Users, Who Should Pay For The Lack Of Trust?

- Aug 22, 2019-

As a commodity, LED displays are different from most other commodities in that they are closely connected with manufacturers and end users. Product installation and maintenance is more professional, generally can only be provided by manufacturers, dealers; In recent years, changes in payment methods have extended the link between the two. On one hand, the connection between LED screen enterprises and users is closer, which directly leads to the extremely important trust for both sides.


However, at present, the relationship between LED screen enterprises and users can not be described as "harmonious" : according to the survey, for LED screen enterprises, the problem of customers defaulting on balance payment is relatively common, the manufacturers are distressed; As far as users are concerned, problems such as doubt on product quality and difficulty in after-sales service occur from time to time. It's not uncommon for both sides to go to court and blame each other for quality and balance payment issues. So, who is really responsible for the breakdown of trust?


Case warning: many disputes, each side of the argument


Take a certain legal case as an example, the LED manufacturer of party a takes the buyer of party b to court, claiming that the buyer did not pay balance payment on time, and requires the buyer to pay the arrears and the corresponding interest. On the other hand, party b argues that the quality of party a's products is not up to standard, which seriously affects their normal use and causes economic losses, and refuses to pay, instead, it demands party a to return the paid fees and compensate for the corresponding economic losses.


The court sorted out the case and found out:


Party a signs a contract with party b, requiring party a to use 3528 black light produced by shenzhen xx optoelectronics to produce 100 square meters of LED display, with a total price of 1.28 million yuan. Party b shall pay the deposit in advance, take delivery of the goods and then pay a certain amount of the payment. The remaining amount shall be paid off in October according to a certain amount. The acceptance period shall be within 20 days after taking delivery of the goods. If there is no written objection or return of goods during the period, the products shall be deemed as qualified. The warranty period of the product shall be one year starting from the date of taking delivery of the product, and shall only be limited to the fault caused by non-human factors, and the round-trip freight shall be borne by party b.


After party b makes the payment on time and takes delivery of the goods, it shall negotiate with party a about the delay of the products after more than one month. (2) the after-sales service period shall be set as one year. Party a shall maintain the products free of charge, except for improper storage, natural disasters and other reasons. However, when party b makes subsequent payment for goods, it fails to deliver the stipulated amount for several times and issues a statement saying that the LED display screen produced by party a has various defects, requiring party a to extend the warranty period for one year, and party b does not deal with balance payment temporarily.


According to the test report of the case display screen by relevant enterprises, the analysis results are as follows: the case display screen is used for a long time (more than one year), and the user has too much humidity in the storage place, which causes some products to be damp and lead to product failure. In addition, party a claims that not all the disputed payment is used to pay for the products involved.


In sorting out the case, several issues have become the focus of the dispute between the two sides:


1. No quality objection during the acceptance period.


In the contract between the parties, the acceptance period shall be within 20 days after party b takes delivery of the goods, during which time party b may raise quality objection or even return the goods, failing which, it shall be deemed as qualified after acceptance. In this case, party b considers itself as a non-professional and cannot judge whether the products are qualified within a short period of time, claiming that this provision is unreasonable. Party a does not acknowledge this.


2. Are product quality problems due to birth defects or improper storage?


Party a believes that party b has placed the products in a humid environment for a long time and moved them frequently, resulting in failure. On the other hand, party b thinks that the design of the product has great defects, which leads to frequent quality problems of LED display screen, and doubts that party a USES the raw material of lamp beads for the black lamp beads produced by a certain manufacturer.


3. How much did party b pay?


Due to the fact that party b, the buyer of LED screen, should pay the rest balance payment on a monthly basis after paying the deposit and payment for goods, but in fact, party a's remarks on the payment made by party b are not clear, resulting in disputes. Party a claims that part of the payment is for the payment for the external project, while party b claims that all the payment is for the payment


Quality defects are difficult to solve and contracts are treated as a game


From the above three main points of dispute, it is not difficult to see that LED screen enterprises and customers have accumulated conflicts for a long time, the focus of which is no longer a simple default balance payment, but a series of deeper issues related to product quality, contract and after-sales service. As mentioned in the first paragraph of this article, LED screen companies are more closely connected with customers than ordinary businesses and consumers, and once the seeds of distrust are planted, they will take root. By the time it erupts, the relationship may have fallen to freezing point, even causing unnecessary losses.


In fact, the above - mentioned case win or lose is no longer important, which exposed the problem, more worthy of industry reflection. The first is the breach of contract. In this case, party b, as the buyer, violates the contract and refuses to pay on the grounds of quality problems, which reflects the lack of integrity and the spirit of contract. But now this phenomenon of default balance payment often occurs, the industry should focus on countermeasures.


And the quality of products is the cause of party b's dissatisfaction. Due to the problem of tail dragging, party b has negotiated with party a to reduce the payment and add after-sales terms. In court, party b also challenged party a for violating the contract by not using the black lights produced by a certain manufacturer as required. It can be seen that the quality problems have many troubles to users, which is also the direct cause of their distrust to manufacturers.


In addition, the contract signed by the two sides and the subsequent treatment methods, there are irregularities, also caused controversy. For example, when party a fills in the receipt, the remarks on the payment are not clear, and there is an objection, which may easily cause unnecessary losses to party a itself.


Good faith is fundamental, contract is the criterion


Admittedly, although disputes between LED screen enterprises and customers occur from time to time, it is completely feasible for the two sides to establish a good relationship, and for LED screen enterprises, a good cooperative relationship is conducive to promoting re-cooperation and word-of-mouth promotion. Among them, honesty and contract are the key.


Requirements for LED screen enterprises:


LED display enterprises are required to pay attention to the design and quality of products, and manufacture LED display products in accordance with regulations to ensure that the quality of products comply with regulations and satisfy customers. As for the products involved in the case of dampness and damage in handling, it can also be seen that the manufacturer should pay attention to improve the moisture-proof performance, stability and other details of the products to reflect the quality of the products.


Require manufacturers to pay more attention to the control of raw materials, lamp beads often die lamp problems, may also be the upstream supply of products, so manufacturers to do a good job in the supply chain to check the work;


Manufacturers are required to be more honest with customers, so that they can give more professional evaluation and pertinent Suggestions to customers about the problems they may encounter in the future use. In case of improper storage of party b in the case, the manufacturer of LED display screen can provide users with training on handling and maintenance upon delivery of the products, or provide users with manuals on handling and maintenance to provide more detailed services;


It requires the enterprise to further improve the after-sales work and optimize the after-sales service, which should be reflected in the contract, rather than in the case. Party b will not agree to be responsible for free maintenance until quality problems occur and additional terms are required by party b.


Requirements for users:


Users are required to comply with and perform the terms of the contract. Users should respond to problems in a timely manner, conduct friendly negotiations or seek legal help, rather than unilaterally violate the contract.


Users are required to carefully consider the enforceability of a contract before signing it. For example, in terms of product acceptance, professionals can be invited for inspection when necessary, or measures such as appropriate extension of acceptance period can be proposed, which can be considered according to their own actual conditions, rather than blindly signing a contract;


Users are required to pay attention to the details of the contract, including the restrictions of the treaty, who shall bear the after-sales transportation costs and other details;


Require users to pay attention to the use and storage of products, or ask the manufacturer how to handle, maintain and other methods to ensure the normal operation and life of products.


The development of LED display industry cannot be separated from the efforts of LED display enterprises and the support of end users. To this end, the industry should establish as soon as possible jian LED display purchase and after-sales contract standards, including payment for goods, product acceptance, after-sales service, quality disputes and a series of issues. A punishment clause may be added for key problems such as payment arrears; For product acceptance, quality retention money third-party custody system can be considered, and payment can be made to the manufacturer only after inspection. To quality dispute circumstance, can undertake appraisal by professional detection orgnization. Only when all links, from production to after-sales service, are more standardized, can the trust of both sides be strengthened, and the friendly settlement of problems between manufacturers and users be promoted, so as to make the industry develop healthily.