Question

Mike of Mike's Marketing Magic and Lisa of Lisa's Computer Cave have been doing business with one another for over 10 years. Initially Lisa was quite happy with the relationship and found Mike's service to be excellent. Over the past year and a half, however, the pamphlets and advertising materials from Mike's Marketing Magic have been late with increasing, and alarming, frequency. Lisa has spoken to Mike about this, and while the problem was solved for a short time, it has recently begun to be a problem again. On the other hand, Mike's prices are the lowest that Lisa has managed to find From Mike's perspective, the relationship also began as prosperous. Recently, however, Lisa has hired a new accounts payable clerk, who regularly misses the due dates for payment and sends the money late. Mike also has suppliers and finds this inconvenient and that his relationships with his suppliers are deteriorating. As was the case with Lisa, Mike has called and spoken to the clerk, which improved things briefly, but they shortly reverted to late payments. Last week Lisa ordered a shipment of brochures from Mike in preparation for a trade show sale that she had a table at this past Saturday. She had paid to be sponsor of the trade show to have a prominent table at the show. Without the brochures and advertising materials, Lisa was forced to give use her "old" advertisements to the people who came by her table. She believes that she lost significant business. When she called Mike, he told her that he was still waiting for payment from the last shipment, which was overdue, and was not at all sympathetic. In light of the foregoing, and assuming that direct discussions between the parties has not been successful, answer the following questions:

Answer 1

ANSWER: A

The different dispute resolution methods present to them are stated as below=

Mediation: This is the process in which there will be an expert mediator that will facilitate the communication between the aggrieved parties so that the settlement can be obtained between these parties.

Advantage: There will be full control over the process by the parties

These proceedings are confidential and faster than legal methods

Disadvantages: The legal support is not present so the legality of the decision is not there

There may be the chance of not having any type of settlement

Litigation: This can be seen as a method of dispute resolution in which the court decides the case after hearing all the facts and arguments of all the parties. The decision is legally binding on all the parties

Advantage: There is a legally binding decision in the end

It follows the laws and precedents thus the changes of unfair treatment is relatively limited

Disadvantage :

It takes a lot of time to come to a verdict

It needs a lot of time and resources

Arbitration: This is a more formal process than mediation and there will be an arbitrator who will provide the decision in the process. This type of method is more suitable for the cases with some technicality involved in it.

Advantage: These processes are flexible and less costly than litigation

The parties can have the right to select the preferred arbitrator

Disadvantage

If arbitration is mandatory in the contract between the parties, then the limitation cannot be used as the first method

The decision of the arbitration are not legally enforceable

ANSWER: B

I would suggest mediation as the method for the dispute resolution due to following points=

• As Mike offers the less price thus it is important to secure the trade relationship for Lisa with Mike
• There is no technical or legal point that the other two methods can be useful
• Mediation is a fast-paced and cost-effective method

Lisa should not go for the arbitration as=

• It is costlier than mediation
• There is no technical aspect related to the dispute
• Arbitration takes a lot of time to get the verdict

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