Adr Analysis Handling Business Dispute

To All Employees CC Martin Leeway From Date August 4, 2014 Re The Legal System and ADR Analysis Handling business disputes can be questionable at times with the uncertainties that can from having a case play out in court. There are various levels of court systems on a state level and the disputes can reach as high up to the states Supreme Court. Being efficient is one of the main keys when considering how to handle a business dispute. One option for a business to handle a business dispute would be to use an Alternative Dispute Resolution or commonly known as ADR. There are few methods that will be discussed that can help a business to resolve a dispute, negotiation and arbitration. A local shoe store is an authorized dealer for specialty
The contract between the shoe store and Sling Bling states that all orders made for the particular shoe will be shipped within two months. The order must contain more than five pairs of shoes in order for it to make sense financially for both companies. An order was placed for seven pairs of shoes with a variety of sizes and widths for a wedding party. Sling Bling was to complete the order and ship within two months. The customers had already been charged by the shoe store and in turn Sling Bling had accepted the funds needed to produce the specialty shoes. Sling Bling contacted the shoe store and advised that due to material being on backorder with the supplier the three pairs of shoes that were completed would not ship until the remaining shoes were made. The owner of shoe store became quite upset because the wedding party was assured all shoes would come in at the same time. This could potentially cause a loss of all current and potential business for the local shoe store. Sling Bling is stating there will be a month to two month backorder for the shoes. Now that the shoes are not going to be shipped as promised the shoe stores account has been debited by Sling Bling for the amount of the seven pairs of shoes plus the shipping charges even though all the shoes are not
For a lawsuit to gain headway there must be an investigation done by a hired attorney, pleadings filed, and then a trial will begin. Trials can cause more than a financial loss a trial can cause a loss of business, a tarnished reputation and possibly a business closure due to legal fees and fines. Going to trial would also be in the eyes of the public which could also be detrimental to the business relationship. The shoe store and Sling Bling have a lot to consider when it comes to the terms of the businesses interactions with one another and future clients. One of the most efficient Alternative Dispute Resolution methods would be a negotiation. Negotiation is when the parties involved can engage in a discussion to try to reach a settlement voluntarily (Cheesman, 2013). Sling Bling is a high-end shoe designer and company which most likely allows the business to have the funds and access to a high-powered attorney to protect the image of the company in this case. The local shoe store does not have the same financial means and may have limited access to lawyers with experience to fight Sling Bling. Some state courts may request or even require that ADR be attempted before a court