Common use of Dealer Fallback Clause in Contracts

Dealer Fallback. which means that the parties shall expeditiously and jointly and in good faith agree on three independent leading dealers in the principal trading market for the relevant underlying commodity market from among those dealers with the highest credit standing. Such dealers shall be appointed to make a determination of the reasonable price payable for the shipments to be made under this Agreement taking into consideration the latest available quotation for the relevant commodity and any other information that, in good faith, they deem relevant. The price to be paid under this Agreement shall be the arithmetic mean of the three prices determined by such dealers, in which case such calculation shall be binding and conclusive absent manifest error. If the parties have not agreed upon the appointment of the dealers on or before the sixth Business Day following the day on which this clause becomes applicable, or if a determination of the price cannot be obtained from at least three dealers, then the dispute shall be referred to arbitration in accordance with clause 22.