The memorandum below focuses on the available alternative dispute resolution (ADR) methods that can be used by two warring business parties in settling their disputes. With reference to our last discussion, this memo illustrates how the chosen case would advance in a number of legal stages in a state court system. When settling disputes, parties are usually advised to settle on the most effective methods. A number of disagreements are normally addressed through the court system. Based on the degree of the dispute, the case can advance up to the Supreme Court (Cheeseman, 2013). Notably, the case is expected to become more expensive as it advances from one legal phase to another. Given that the case may never make to trail, it is advisable that the involve parties consider the available alternative dispute resolution (ADR) methods. In this regard, the memo will illustrate an alternative method of dispute resolution.
For a number of years, an owner of a legalized maintenance company has upheld a contract with a broker of copying equipment. The company always gives the broker a monthly bill for the services rendered. The services comprises of regular maintenance and lease of equipment. The broker’s shop is also charged every month for a share of prints completed. Last month after routine repairs had been done, the maintenance company counseled the broker of a problem with the liquid ink cartridges. The company directed the broker that the liquid ink cartridges were to be replaced in a week’s time. Conversely, the broker did not receive the replacement until a month later. For a period of 3 weeks, the broker could not carry on with is daily activities, which led to huge losses. Nevertheless, when the once-a-month bill arrived the broker had been billed for services not rendered. Thereafter, the broker contacted the company leading to a dispute. Despite the communication, the dispute could not be could not be resolved.
Proceeding through Court
Following the dispute, the broker has to file a case in the municipal courts. Based on the degree of the dispute, the case can advance from the municipal court to the Supreme Court. Because the dispute comprises of perceived legal wrongdoing, the broker and the maintenance company have to hire lawyers. The lawyers would advise the involved parties on how to circumnavigate the legalities of the condition (Cheeseman, 2013). Through the proceeding, the broker and the maintenance company have to follow a number of filling processes. Equally, the approach would render them at the sympathy of the courts’ scheduling and site. Based on the above illustration, it is apparent that the proceeding through the court would be expensive and time consuming in the long term. As the company had asserted in the past, the approach may damage the parties’ reputation in the end. In this respect, the most effective means of settling the above issues is through alternative dispute resolution. The approach can utilize negotiation, arbitration, and mediation processes. Of the three processes, negotiation and arbitration processes will be the most suitable approaches for solving the above business dispute.
Negotiation will enable the rivaling parties to address their issues without seeking the assistance of a third party. Through the approach, the parties will save a lot of time and cost required in hiring a third party. As such, there would be no cost incurred in hiring a lawyer or a third party to assists in the resolution of the case. On the other hand, arbitration will enable the warring parties to settle their issues with the aid of an arbitrator. The arbitration would be completed within a period of one to three months depending on the severity of the issue (Cheeseman, 2013). Contrasted with the court proceeding, the approach will enable the parties to save up to 40% of the disputes settling charges.
The above ADR approaches will enable the parties to come up with the best solution based on their agreements. When warring parties play a role in formulating a solution to a difference, chances of coming up with a mutual agreement are higher. The parties are less likely to begrudge the treaty in the future. When the opposing parties narrate their scenarios that led to the dispute to one another, they will comprehend one another’s standpoints and requests. If they can discuss a treaty that replicates the understanding and needs of the two parties, a resolution that is more reasonable and justifiable will be achieved without the help of the court proceedings.
Alternative dispute resolution gives individuals a better substitute to the confrontational structure of the courts. The approach has been applied with significant victory to issues filed in the court system (Cheeseman, 2013). In this regard, the approach should be adopted prior a dispute is filed in a court of law. The support of ADR rather than the court proceedings can alter the people’s perception about argument resolution. Individuals can benefit from the demonstrations. By doing so, they will try to address their issues through the approach.
Cheeseman, H. (2013). Business law: Legal environment, online commerce, business ethics, and international issues (8th ed.). Upper Saddle River, N.J.: Pearson Prentice Hall.