Question

Two business companies dispute the quality of goods delivered by the seller and the price agreed to by the buyer. With regard to this dispute, the two firms can

a. litigate it.

b. resolve it through an alternative method, such as arbitration.

c. any of the choices.

d. settle it between themselves.

Answer 1

The correct answer is any of the choices. Explanation: The companies must try to settle the dispute mutually among themselves before involving any third party into the matter. Also, the companies can resolve it through the alternative method, like arbitration, where they can consensually hire an arbitrator, who is an unbiased person to solve their dispute. The decision taken by the arbitrator will be binding on both the companies. If the companies do not arrive at a mutual settlement, and want to avoid the legal proceeding, they can opt for arbitration. The business companies can use litigation too as an option, where they both can take legal action against each other. The decision taken by the court will be binding on both the companies. This is usually the last resort. Hence, the companies can opt for any of the choices mentioned.