Squabbling Merchants - Act 5 Side Quest
Start Location: Village of Kaupangr
Quest Location: Birch Forest/Ichtian Fjord
Objective: Obtain Sheepskin or Lupine Necklace and give it to Audhild in Kaupangr
Squabbling Merchants is one of the quests that you'll find in the small Village of Kaupangr, a town in Act 4. If you've forgotten how to get here, take the Portal to Scandia then travel west out of town to the dockmaster. Speak with him and he'll take you to Kaupangr.
This quest will begin automatically when you approach the two Squabbling Merchants pictured above - you will not have to speak to either of them. All you need to do in order to complete this quest is to obtain one of two different items. Lupine Necklace or the Sheepskin.
Lupine Necklace: Complete The Craftsman's Passion Side Quest nearby which will reward you with the Lupine Necklace Design. Use this design to create the Necklace.
Sheepskin: Begin the Giesel Side Quest and get Giesel killed. A Sheepskin will spawn on the ground where Giesel died.
Once you've obtained either of these items you'll want to speak with Audhild in the center of Kaupangr. She is the Chieftess of the village and you can obtain Audhild's Permit from her by turning in either of the two aforementioned items. With Audhild's Permit in hand you can speak with whichever brother you'd like to take over the forge. The rewards vary slightly depending on whom you choose to inheret the forge.